Growth Cycle Analysis of USD Supply.
This is not entirely about a trade, moreso a thought experiment of the future to come.
After the great 2020 coof liquidity crisis a brief and severe expansion of the monetary supply occurred in order to bail out the entire economy. This seems to be followed by an equivalent expansion rate mirrored by the 1971 expansion. The marked difference this time is that the interest rate is 0. To reign this in would require negative rates, or capital controls, AND a major collapse (which I do not think will be permitted).
After the great 2020 coof liquidity crisis a brief and severe expansion of the monetary supply occurred in order to bail out the entire economy. This seems to be followed by an equivalent expansion rate mirrored by the 1971 expansion. The marked difference this time is that the interest rate is 0. To reign this in would require negative rates, or capital controls, AND a major collapse (which I do not think will be permitted).
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.