Thanks for the shoutout! It seems I’m cold as ice 😎
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QE is coming. Here's why. Think of the financial system like a car engine. 1️⃣ The reserve ratios track the main fuel tank, and over the past year they’ve fallen to critically low levels. 2️⃣ RRP was the backup tank, silently feeding the engine with nearly $2.5T of extra liquidity while QT was draining the primary tank, but that backup is now empty too. 3️⃣ And SOFR–EFFR widening is the engine knocking, the same warning sound we heard before the 2019 repo crisis. With both fuel tanks depleted and the engine starting to strain, the Fed has no choice but to refuel the system: end QT, add reserves, and eventually restart bill purchases to keep the engine from stalling. $BOOMER $BASE #FOMC #FED
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A short story. QE is coming. $BTC $BOOMER $ETH $SPX 1) What the chart shows All major reserve-based liquidity ratios, Reserves/GDP, Reserves/Deposits, Reserves/FedAssets, Reserves/Debt collapsed sharply in recent months. This only happens when the financial system is running critically low on reserves. 2) Why that matters When reserve ratios fall this far, banks get tight, repo markets destabilize, and Treasury issuance strains the system. This is the same setup that led to the 2019 repo crisis. The Fed knows this and ended QT before anything broke. 3) What comes next Fed officials already signaled: - QT has ended - Reserves must be rebuilt - “Reserve management purchases” (Not-QE) are coming - This is the pre-QE phase that historically turns liquidity upward. 4) Market implication Every time reserve ratios bottom, 2012, 2019, 2020, 2023, risk assets rally as liquidity returns. The collapse in ratios marks the liquidity floor, and QT ending is the confirmation.
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