Quote:
Originally Posted by Crowbob
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.