Bitcoin & Crypto | Monetary Policy & Inflation
2022 Grey Swan #13: The Fed Buys Tech ETFs!
- By David Dredge
- 4 min read
In complex systems like markets and economies, imbalances build up over time. They suffer frequent, if inconsequential, intermediate avalanches until fragility and connectivity reach a critical state and eventually an avalanche triggers a catastrophic return to equilibrium. This is the normal function. What is abnormal are outside agents trying to prop up imbalances in their critical states. Currently, various manipulations have accumulated – zero interest rates, unprecedented asset purchases by central banks, and all-time extremes of government debt after endless rounds of bailout and stimulus packages – making every effort to keep the increasingly fragile system from correcting. What market participants tend to consider Black or Grey Swans are merely the inevitable rebalancing of fragile systems.
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.