Thanks to a healthy heaping of God’s work by Zoltan Pozsar at Credit Suisse,i we gain strategic insight into the inner workings of the Deep Fried Soviets and their TBTF croniesii :
The U.S. Treasury also absorbed about $250 billion of inflows. After accounting for the $35 billion of U.S. Treasury bills sold by prime funds, money fund reform delivered just over $200 billion in net new demand for bills from government funds. Roughly one fifth of this demand was accommodated by the corporate treasury department of Microsoft Corp., which sold $40 billion of bills and replaced them with longer-dated notes (see Figure 4).
MAGA won’t come cheap, rates are going up. Any questions ?
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- PDF here. ↩
- Speaking of cronies but slightly unrelated to the tech space, did you know that Ivanka Trump is enjoying something of a surge in popularity… in China ? Apparently the huswives and fuerdai have taken a shining to the US’ newfound cronyism and nepotism – it reminds them that the US and China aren’t so different after all, and that Herr Trump’s inflammatory campaign rhetoric about “currency manipulation” and was little more that : rhetoric.
A post-upset recognition by Agent Orange that his in-office choices were either i) To continue amicable relations with Russia, as forged on the campaign trail, at the expense of all-out war with China, or ii) Backtrack on vilifying China at the expense of renewed conflict with Russia by proxy in the Middle East. He chose the SSDs. And the Chinese love him all the more for it. ↩
[…] be nowhere close to as popular as it is today if it weren’t for the White House (via its TBTF tentacles, naturally) stepping in to support the currency. […]