SDR since revenue is SWF appears to be there quest as we read. Capital flight is the issue of the ruble and euro. When that settles as
gravity influences maybe some will grasp parity by default is the only solution to ideologues of narrowed zone of intent.
We posit movement from 2012 to 2016 as a pain curve intensifies. Mother nature may have more to say than we.
History will always learn that the Nations are Judged by its soil conditions. Blaming Ben is pointless as is asking Washington to do what makes sense.
This took a long time to transpire so the infection is advanced in nature.
I amended this note to the direction seen. Observation from BIS confirm this.
Discern carefully the M2 there and what was done in the states to capital M2 here in the States under Q
http://media.hoover.org/sites/default/f ... Russia.pdf
Regulation Q--Sweeps and Money Supply
The Dodd-Frank Act allows banks to pay interest on ordinary demand deposits beginning July 21. Associated with this legislation the Federal Reserve Board has repealed Regulation Q.
The undoing of Regulation Q should render sweep arrangements as relatively less attractive.
With the unwinding of Regulation Q there is simply less incentive to sweep funds from checking accounts into overnight investment vehicles. Banks can simply offer business firms non-zero interest rates on demand deposits. There will simply be a diminished incentive for firms to sustain Sweep accounts.
Against this backdrop what we may be seeing is an unwinding of sweep arrangements prior to the July 21 repeal of Reg Q. As Eurodollar deposits mature, the deposit may be coming back home to the domestic branch in the form of a demand deposit for business accounts, or as an MMDA for accounts owned by individuals. From the Fed's H.8 release we know that there has been a dramatic sudden drop in US banks liabilities to their foreign branches. This is exactly what would happen if Eurodollar deposits were to be brought back to the balance sheet of the US branch. Stone McCarthy
Here is a bare-bones way to think about this situation: A is the customer, B is the service
provider. B informs A what A should buy from B, and a third entity, C, pays for it from a
common pool of funds. Stated this way, the problem has no known economic solution
because there is no equilibrium. There is no automatic balance between willingness to pay
by the consumer and willingness to accept by the producer that constrains and limits the
choices of each.
Functions are mediated as conditions to exist.
Leading Economic Indicators are shifted and so our
pocket we noted was somewhat accurate in nature. Rough number was ~11% deviation mid quarter
in my observation. Time out pockets to sort capital.