04/15/2020 - Sitka Capital on the Implications of the Virus and Central Bank Actions
“It is difficult to understate what this means for the value of the dollar over the coming decade. The period of “strong inflation” during the 1940s and 1950s, highlighted in the chart above, occurred while monetary policy was effectively taken over by the U.S. Treasury during another national emergency, and what we saw over the past month as the Fed put out fires in the bond market and coordinated with the Treasury to create special purpose vehicles and various lending programs was reminiscent of the earliest steps taken in that direction in the 1930s.”
