Diego Parrilla

And, but, you know, I think Mark Twain said death and taxes, right?

I'd say death, taxes, and inflation, right?

So I think in that story, we have this dynamic.

And to your point, the 60-40 fallacy, are we really solving problems?

This is kind of what I keep asking.

Are we really solving the problem or are we delaying, transferring, transforming or enlarging the problem?

And what yield curve control does, back to that level two and what we might be witnessing in certain parts of the world, is we're not solving the problems.

We're transforming a credit problem, which is a fiscally imbalanced bankrupt economy, into an inflation problem and currency devaluation.

And this is yet again the same thing we've always done, except that problems become bigger and more exponential

And so we're now at that point where the frogs, you know, and this brings me to, you know, in the chess game, okay, move six or seven.

Because the first thing people are thinking today is, if I have a problem with US treasuries, and at 5%, they're going to have to print a lot of dollars to hold it, and the dollar is going to go to zero.

And I'm like, yeah, but...

Do you want to buy bonds at two and a half?

Do you want to buy JGBs at one and a half?

They have exactly the same problem, except that the Fed and the Treasuries have already taken the hit of their bonds going from one and a half to five.

So from a duration perspective and considering the central bank put, which is really a fixed income put, it's not an S&P put.

A free put by put-call parity is a free call.

So if I'm loaned treasuries at 10%, at 5% yield, and that yield is controlled, I have a free call, except that it's denominated in dollars.

But good luck in the ride of the bond or the bono or the BTP, and good luck with JGBs.

And good luck with interest rate differentials and the widening.