This is a special edition of Macrovoises with hedge fund manager Eric Townsend.

The premier financial podcast targeting professional finance, high net worth individuals, family

offices, and other sophisticated investors.

Now for this special edition of Macrovoises, here's hedge fund manager Eric Townsend.

Macrovoises All Stars Episode 86 was recorded on December 23rd, 2019.

I'm Eric Townsend. This episode of Macrovoises All Stars is brought to you by the generosity

of our listeners whose donations make this show possible. Joining us this Christmas holiday is

Forest for the Trees Founder Luke Gromund. Luke, happy holidays. What's got your attention recently?

Hey, happy holidays Eric, thanks for having me on. You know what's caught our attention recently

is that to my eyes it appears the Fed has engaged in its own version of or its own whatever it takes

moment. But most investors either don't realize it or don't seem to believe it yet.

What do you mean, Luke, as it seems to me like if anything, they're trying to qualify.

They're doing QE, but they're insisting we can't call it QE.

It's a great point. You know, what I mean is so last time we talked was on November 11th,

I think it was in my notes. And back then as I look at my notes, we said the following.

The one thing that has really grabbed me recently is I can't find anyone willing to say we don't

have one more risk off before what so many have called the quote end game occurs, which is the Fed

monetizing US deficits on an open-ended basis. This fascinates me. I mean, here we have the Fed

quote accidentally monetizing the US treasury in slow motion, which is what one strategist at the time

called it. They undid 10 months of QT in just nine weeks in response to what was a very brief,

but very serious crisis in repo markets. And yet as far as I can tell, overwhelming consensus,

I mean, nearly unanimous consensus is that we need at least one more risk off crisis before the

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