The FED Sets Another New Record
 

Yesterday for the first time in history the FED Reverse Repo window went over 500B to 503B,,,

AND TODAY ANOTHER NEW RECORD WAS SET.. the drum roll please.....FIVE HUNDRED THIRTY FOUR BILLION NINE HUNDRED FORTY THREE MILLION

Just as I said it would keep ratcheting up.

Somebody is putting their unwanted USD's into circulation. You don't need cyber war to defeat the USA...we has dun it to ourselves.

The stage is being set for a USD panic...call it a crisis...

I agree...we are headed in a bad direction.

More importantly....HTH did you get 5 stars???:D

that's a lot of tiny, broken-up potato chips

What’s a reverse repo window?

Banks give FED cash, FED gives banks short term bonds paying zero % on a over night basis.

The rationale is that the banks have so much cash that if they bought bonds the interest rate would go negative..since that is a FED no no...they put the cash in overnight limbo with these short term securities..

The question is where is all this cash coming from? Of course the FED printed gobs and gobs of it...but where has it been hiding until now?

I suspect that there is a ground swell to divest USD's in the world. People in the world no longer TRUST the USA to be responsible stewards of the currency that is the foundation of the Global Economy of Scale.

I suspect this is the opening gambit of the end game for the USD...people are moving towards the door now and it will become a stampede at some point.

Self fking promotion.

Thank you. I think the dollars are coming from China.

If so, it appears we are at war.

The Chinese said they were going to divest themselves of 200B in US Treasuries..

Very possible...

As noted in 09 the Chinese set course to get away from the USA as quickly as they could..without hurting themselves..over the past 12 years they have done just that..now getting to the point where they no longer defer to the USA but now just do what they want..so far they have not exactly told the USA to go fk themsleves...

So far the USA has been able to adsorb any move against it...

It is not so much Chinese aggression or desiring dominance...it is about protecting themsleves against American delusional fiscal irresponsibility.

Hugh.

Incredible.

I know. Who knew an RV could hold so much moolah? Lotsa storage?

The smoke and mirror show since 1970 has really been astounding.
Much of it seems like it shouldn’t even be legal.

The Exchange rate for $USD shows it's absolutely plummeting.


Not really. I just wanted to make an interesting contribution :)

Another FED milestone has been.set today..8T on the balance sheet.

Lets have a rousing Hooray for the FED!

And this is getting darn right monotonous...

The FED sets another record by RATCHETING up the Reverse REPO to......FIVE HUNDRED FORTY SEVEN BILLION EIGHT HUNDRED AND EIGHT MILLION USD


This is getting to be some serious money here.

Just think in mid May the REPO window was operating at 200B to 240B a day...How fast things can change...

It is now becoming obvious that the FED in order to manage the US macro economy is sucking up excess cash that is being repatriated, by putting it into the daily limbo of the Reverse Repo window.

It seems that it is a slow accretion of cash that is being repatriated of 10B to 20B a day. So the question becomes from what mattress is this cash coming from? Is it foreign nationals, corporations or sovereign states?

deposits (cash) on a Banks balance is a liability. doing a rev repo with FRB is an asset. this an asset/liability management maneuver due to stricter banking regulations. but as you point out follow the money

Partly due to the debt limit coming up in July. This article touches on it.

https://news.yahoo.com/u-feds-reverse-repo-volume-175058552.html

That is why the banks have to do something with money and can not let it sit.