Jim Bianco: The Fed Fears A Liquidity Crisis More Than An Inflationary One

Adam Taggart | Thoughtful Money, Released on 1/18/24

Rumors are suddenly flying fast and furious that the Federal Reserve will be soon ending its campaign of Quantitiave Tightening (aka QT). This is on top of the 3 rate cuts it recently guided the market to expect in 2024. Is the end of QT indeed imminent? If so what will the implications be? To discuss that, as well as the other major macro trends expected to impact markets most in 2024, we’re fortunate to sit down with analyst Jim Bianco, founder of Bianco Research. Jim thinks the Fed is now scrambling to cut rates and end QT because of the brewing potential for a liquidity crisis once the Reverse Repo Program is fully drained.

Jim Bianco is President and Macro Strategist at Bianco Research, L.L.C. Since 1990 Jim’s commentaries have offered a unique perspective on the global economy and financial markets. Unencumbered by the biases of traditional Wall Street research, Jim has built a decades long reputation for objective, incisive commentary that challenges consensus thinking. In nearly 20 years at Bianco Research, Jim’s wide ranging commentaries have addressed monetary policy, the intersection of markets and politics, the role of government in the economy, fund flows and positioning in financial markets. Prior to joining Arbor and Bianco Research, Jim was a Market Strategist in equity and fixed income research at UBS Securities and Equity Technical Analyst at First Boston and Shearson Lehman Brothers. He is a Chartered Market Technician (CMT) and a member of the Market Technicians Association (MTA). Jim has a Bachelor of Science degree in Finance from Marquette University (1984) and an MBA from Fordham University (1989).

Adam Taggart is the Founder of  Thoughtful Money. He is also Co-Founder and former President of Peak Prosperity. Adam is an experienced Silicon Valley internet executive and Stanford MBA. Prior to partnering with Chris Martenson (Adam was General Manager of our earlier site, ChrisMartenson.com), he was a Vice President at Yahoo!, a company he served for nine years. Before that, he did the ‘startup thing’ (mySimon.com, sold to CNET in 2001). As a fresh-faced graduate from Brown University in the early 1990s, Adam got a first-hand look at all that was broken with Wall Street as an investment banking analyst for Merrill Lynch. Most importantly, he’s a devoted husband and dad.

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The Privately Owned and controlled Federal Reserve
Was created in 1913 to fund WW! and all subsequent wars
Because the Bank of England could not afford to fund both sides
Extended for two more unnecessary years with Germany being funded and supplied to enable her to continue fighting through the fake Belgium Relief Fund headed by Herbert Hoover until the Bolsheviks had taken control in Russia
When an armistice was signed the Kaiser went into exile and the war ended
At the same time the IRS to collect interest under the guise and ruse of tax’s
And the ADL armed with the Lie Anti-Semitism