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Originally Posted by Sooner or later
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The Treasury had 1.5T parked at the FED in cash UNTIL....they passed the 1.9T Recovery Act..That $1400 felt real gud in my pocket..and I will bet it did in your pocket to.
The only question that I have is there such a dearth of short term Treasuries available from the Treasury due to the upcoming debt ceiling. that the banks have to use the RRepo window. That doesn't seem too likely a major causation. That in of itself is a sea change..
The tide has definitely turned against the USD as a safe haven. First the Chinese reducing their US Treasury portfolio by 200B and the net out flow of capital from the US when the CV hit in 2020 .. instead of the past historical inflow during times of stress.
My guess is that there is a slow reparation of USD from foreign nationals and or corporations lightening their loads. That this is the beginning of a trend. Imperceptible at first.. 10B to 20B a day..
The USD is trending downwards against other currency's. But other currency's have similar troubles as the USD so the fx equilibrium remains..