Awe Just Nine Billion Short
 

June 30, 2021 the Fred R Repo window fell 9B short of a Trillion .

At 991,939B

I told ya it was gona git to a T. YOU make of it what you will.

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I thought you were talking about Honolulu's Rail. Twenty miles and supposed to be $5B, then $8B, $10B, now $12B.

Quarter End not surprising

Heck, that's just a rounding error.

Usage of RRP is currently almost entirely by money market funds.

Excess money mkt funds...

It doesn't matter which acct the money is coming from... what matters is the escalating AMOUNT.. SUDDENLY!!!!! they have.. an excess of a few $$$ that have to be laid off...

I suppose some might say that a Trillion is a trivial amount of money...

At the beginning of May 200 to 240B...end of June 1T..

The danger in this is that the world is coughing up $$$$$$$ and repatriating them back into the system? Which as pointed out by Piscov Ascoy can cause the FED some problems in managing the US macro economy..(Being Money Mkt funds would indicate an aggregate of smaller players rather than big institutions)?

As Drunkenmiller pointed out in 2020 instead of the usual pattern of having an inflow of money into Treasuries during a crisis as a "safe haven" there was an outflow. This is a clear sea change in perception about the safe haven status of the USD.. The USA is now in the same boat as Argentina..

This GLOBAL change in perception about the USD is the point I am making, have been making pointedly since early 2013..It HAS NOW COME TO PASS...it is another step further on the road/process to he11. A sign post that I said would happen if the US?FEd continued it's current policies..

An another thought is if so much money is in Money Mkt funds it is not being utilized in the economy..but is being side lined..which should effect the Velocity of Money.

Then we have the US govt and it's spending regime...WITH INCREASING DEFICIT SPENDING...(just put another Trillion on the card for infrastructure..what the he11 this is America for christs sake..we are rich and can afford it). But I digress a bit..the point here is the position it leaves the FED is in..they have no choice but CONTINUE QEing... the US Bond mkt is already saturated with US debt instruments..leaving the FED as being the BUYER OF LAST RESORT..

The paradox is, on one hand the FED has to deal with the EXCESS of money in the system while being forced to continue printing more of it.

Something is wrong here...the economy is moribund..and the dance that the US govt and FED has been doing to plaster it over isn't working so well anymo... it has become dysfunctional. It is just one more sign post/milestone on the road to he11.

The trajectory of all of this has been apparent for a VERY VERY LONG TIME...the smell of this to the discerning indivdual was noticeable back in 1980. AND certainly the road map was published in early 2009.. You already know what I think the terminus is going to be..

The thing that is perplexing to me is that you Boyz..don't take this stuff to heart, because your actions and discussions continue to be it's going to be bizness as usual..as if it will never change...my solace in this is Lemming wouldn't be Lemmings if they could take it to heart and change course..In that way the Lemmings course of action and outcome have been predetermined.

Without a doubt, we are screwed...but what's the choice other than continue biz as usual? None...so we await the collapse.

Just 742B today..

QTR end?

The question becomes how much can the FED put into limbo on a daily basis..1T, 2T ,3T?

This mechanism is an easy way for the FED to maintain stability in the system. At what point doesn't it work anymore?

The signposts now say increasing instability in the system ahead. Society and politics as Bell-weathers of the economic health of the system have increasingly become more dysfunctional and chaotic of the years..this is nothing new here..I think that you are increasingly going to see that dysfunction pervade the economics as well..

To a degree due to CV you have seen supply chain disruptions..you are going to see more disruptions/dysfunction in the financial mkts. Game Stop and Bitcoin crashes are precursors of things to come..

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.
Ernest Hemingway

I have continuously said you have to play the game as if the music would never stop..and hedge for the rainy day acomin.. With the CAVEAT..that when the music stops all the skin you have in the game is GONE FOREVER...you will then have to walk away and rely on your Hedge funds..

Debt or no debt DOES NOT MATTER ANYMORE...Not when virtually everything is leveraged to the hilt..and the system hits tilt..BTW..I don't hear much about how the system is already in tilt..with the CV...except for mortgage, rent, credit card, car loan and student loan moratoriums..Nobody wants to talk much about it?

The thing that gets me is not that biz continues as usual but that people think that the system/structure is sustainable.. that their investment assets are going to be viable no matter what..they have no experience of stuff evaporating virtually overnight.. What I am talking about is called the uncertainty of life itself..

When FDR was elected one of the first things he did was close all the banks..the banks that were solvent were shortly reopened, the ones that were not didn't reopen and ALL OF THE DEPOSITORS MONEY WAS GONE.. ZIP, ZERO, NADA.. That is why FDIC was instituted so that people could have confidence in the banking system (Systemically the FDIC couldn't handle the scale of defaults)..So losing everything you have is a very real and distinct possibility..It has happened before and can happen again..

Markets up again today....I'm startin the celebratin early:)

Wow you are gettin real fat...time to treat yourself you deserve it..head on down to the Car deler and pick out a nice shiny new car...for yourself and while you are at it pick out one for the wife as well.

Thanks!! I plan on that!
Not too fat yet....148 as of today.

Ohh and stop at Red Lobster on the way home from the dealer..

Not fond of their lobster platter.
I'm more of a burger and IPA guy.

need a War on Inflation