Here, at greshams-law.com, I update and publish daily treasury statement charts on a regular basis. But why exactly do I bother? Why does it matter? How can it help the contrarian investor?

 

In short, I believe that the daily treasury statement can help us understand the ‘deleveraging pressure’ eminating from the private sector. This is significant because – when the private-sector is under pressure to deleverage – it ends up selling things to ‘buy money’. This can create a cascading set of trades in the current environment and thus can be very bearish for risk assets. I contend that the daily treasury statement can help us figure out the magnitude of the ‘deleveraging pressure’. Combined with a contrarian mindset, these charts can help us execute profitable trades.

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An update of the daily treasury statement charts:

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An update of the daily treasury statement charts:

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