patrick.net

Okay, give all the racist crap a rest for a while. This seems to be big enough to pay attention to...

What do you guys and gals think of this:
link to article

Many observers have expressed disbelief that the Fed is actually aggressively reducing the monetary base, in particular that part of the base which directly affects the trading accounts of 20 of the world�s largest banks, the Fed's Primary Dealers ... The vast majority of market pundits, economists, and quasi-journalists for the mainstream infomercial outlets like Marketwatch, the Wall Street Journal, Bloomberg, and especially CNBC, are totally clueless. To a man and woman, they all think that the Fed has aggressively been adding liquidity to the system.

The proof, they say, is in the pudding and the Fed has just served it up in multicolored, multi-layered glory. The Fed itself is confirming, in graphical form, [that it] has aggressively collapsed the size of the System Open Market Account, beginning slowly last July, then moving aggressively beginning in December. The effect has been to withdraw billions of dollars of what is, in essence, margin buying power from the trading accounts of the Primary Dealers.

A lot of folks here are betting on inflation and commodities, so what do you all think of an actual bubble-deflation at work?
SP

[Racist, Sexist, Xenophobic, and Anti-American comments will be deleted, as will troll-posts.]