Everyone is obsessing over the rate cut, but they missed the real signal.

I’ve been tracking the plumbing, and the math just shifted. As of December 1st, Quantitative Tightening (QT) is officially dead.

The era of draining liquidity is over.

Here is the setup: The Treasury spent the last year sucking cash out of the system to fill its checking account to $1 Trillion.

But the "buffer" (the Reverse Repo facility) is now empty. They have run out of room to maneuver.

To avoid breaking the banking system, they HAVE TO release that cash. They are targeting a drawdown to ~$600B, which means ~$400 Billion is about to flood back into the market.

This isn't speculative. It’s structural. For the first time in years, the liquidity flows are positive.

What do you thinks happens next?