Of a Fractional Monster

VOL. III.

In a land of contraction, we set this tale,

Where banks wield mighty power like a holy grail,

There lies a monster, twisted and wrought,

Born of central bankers’ fractional thought.

 

Hold fractions of coin so close and so dear,

And lend out the rest without any fear,

Create new money to stimulate growth,

A cycle repeating, as if it’s an oath.

 

But treasuries fall like a darkening sky,

As interest rates rise and riskless bonds die,

And if banks must sell, the price be low,

Like a monster's groan, a guttural blow.

 

The Valley hit hard, like Victor’s creature,

A loss in confidence, a Signature feature,

Their treasuries fell, a monstrous loss,

Their balance sheets hurt, at mighty great cost.

 

So, beware central bank of your inflation plight,

To save more banks, might weaken your fight,

But those that get 100, will do it again,

By lending out 90, and squirrelling 10.

Mike Ganon, March 2023

Michael Ganon#strategy, commodities, #corporatefinance, #markets, #equities, #stocks, #bonds, #finance, #economics, #business, #ethereum, #bitcoin, #inflation, #gold, #silver, #qeinfinity, #economy, #interestrates, #trade, #transformation, #ceos, #directors, #founders, #cfos, #currencies, #construction, #mining, #renewables, #technology, #leadership, #india, #china, #australia, #perthbusiness, #education, #research, #businessowners, #future, #brexit, #nextlevelcorporate, #mikeganon, #community, #covid, #populism, #crypto, #successionplanning, #familyoffices