Game Over

BY TYLER DURDEN                                                                                                   THURSDAY, JUL 29, 2021 - 02:48 PM

Authored by Sven Henrich via NorthmanTrader.com,

Game over. Occam’s Razor: The simplest explanation is often the best one. Central banks will never extract themselves. Whether they ultimately end QE is besides the point. They won’t reduce their balance sheets. They can’t.

Powell’s “performance” yesterday was not an accident. He’s been running on the same theme of offering absolutely zero specifics. Why?

3 reasons:1. There are none as there is no plan.

2. To maintain flexibility and not to be held accountable or anything

3. To not upset markets.

We saw this recently when he actually got challenged on MBS and QE. He couldn’t and wouldn’t offer a rationale as to what is actually economically accomplished by it:

Yesterday he clarified his “transitory” definition :