Fed has first trillion dollar reverse repo

[shiv]

Can some of you money guys explain it like I’m 5?

 

[Shaun52]

Can some of you money guys explain it like I’m 5?

Ditto on 5 year old explanation

 

[ttyh]

We spend way too much money that we don't have and massive inflation is on the horizon.

 

[tiderollsonu]

We spend way too much money that we don't have and massive inflation is on the horizon.

Well we knew that so what does it mean baisel

Spoiler

this is not good news for Clemson

 

[TheNJNole]

Fed Open Mkt Ops trying to manipulate the banking system likely due to the impending inflation explosion

Repo and Reverse Repo Agreements - FEDERAL RESERVE BANK of NEW YORK

www.newyorkfed.org

 

[TheNJNole]

Barron's paper was the most detailed.

You can see data on FOMO along with M1,M2 and M3 figures

 

[tiderollsonu]

Barron's paper was the most detailed.

You can see data on FOMO along with M1,M2 and M3 figures

 

[absoluteUnit]

Means there's a shit ton of cash at the banks with nowhere to go. It means they're sending money BACK to the Fed in order to keep it OUT of the market. $1 trillion is where it is, and it's a record. It is on pace to be $2.5T by Christmas. They're trying to prevent all out hyperinflation.

 

[Jtrain80]

Means there's a shit ton of cash at the banks with nowhere to go. It means they're sending money BACK to the Fed in order to keep it OUT of the market. $1 trillion is where it is, and it's a record. It is on pace to be $2.5T by Christmas. They're trying to prevent all out hyperinflation.

Thank you.

Does this have anything to do with private money buying real estate as opposed to traditional purchasers?

 

[STMF2X]

Problem solved

 

[Ip-tide Watercat]

Means there's a shit ton of cash at the banks with nowhere to go. It means they're sending money BACK to the Fed in order to keep it OUT of the market. $1 trillion is where it is, and it's a record. It is on pace to be $2.5T by Christmas. They're trying to prevent all out hyperinflation.

they (banks) get 5 bps risk free. Most are overnight funds. Until the last fed meeting the repo rate was zero. I don’t understand why they raised it

 

[dirtytoeddawg]

Means there's a shit ton of cash at the banks with nowhere to go. It means they're sending money BACK to the Fed in order to keep it OUT of the market. $1 trillion is where it is, and it's a record. It is on pace to be $2.5T by Christmas. They're trying to prevent all out hyperinflation.

They could send a little to me.

 

[dirtytoeddawg]

Means there's a shit ton of cash at the banks with nowhere to go. It means they're sending money BACK to the Fed in order to keep it OUT of the market. $1 trillion is where it is, and it's a record. It is on pace to be $2.5T by Christmas. They're trying to prevent all out hyperinflation.

Can you or anyone explain why gold/silver seem to be remaining more or less stagnant with all of these inflationary indicators and measurable inflation occurring in real time?

 

[STMF2X]

Like I’m 5yrs old and it’s 2am.
we print money, the fed loans it out at a low iterest rate. People borrow, and pay back at a higher interest rate. People complain about increasing interest rates, but the high rates loss is covered by the low risk dependability in theory right? Did People like my dad, who had low interest on a new house in 2008 and said fuck this, and paid it off hurt?

 

[hmt5000]

I feel like the "we won't have inflation because we haven't had inflation" crowd is getting ready to be smacked up side the head with some counter data.

 

[TheNJNole]

Means there's a shit ton of cash at the banks with nowhere to go. It means they're sending money BACK to the Fed in order to keep it OUT of the market. $1 trillion is where it is, and it's a record. It is on pace to be $2.5T by Christmas. They're trying to prevent all out hyperinflation.

Hyperinflation is a huge stretch

 

[shiv]

Can you or anyone explain why gold/silver seem to be remaining more or less stagnant with all of these inflationary indicators and measurable inflation occurring in real time?

This is somewhat puzzling to me. I know that one of the drivers is cryptocurrency has pulled off some of the would be precious metals investors, but that doesn’t explain everything.

I’m still holding some PM miners: HL, EGO, AGI and the big boy NEM just as a hedge. I also own Bitcoin and RE, but I really have a feeling my PM play is gonna pay off at some point

 

[mrt]

Smart people have warned about the spending and printing money we don't have going back over 50 years. At some point we break down, the sad part is they started borrowing money from our worst enemies. Recently you've seen the chinese were buying up our farm lands. These criminals in government are our worst enemy now.

 

[Zgdaf]

Barron's paper was the most detailed.

You can see data on FOMO along with M1,M2 and M3 figures

And the St. Louis fed stopped reporting M2 because the fed has lost control?

M2 (DISCONTINUED)

View data of a measure of the U.S. money supply that includes all components of M1 plus several less-liquid assets.

fred.stlouisfed.org

 

[Zgdaf]

Smart people have warned about the spending and printing money we don't have going back over 50 years. At some point we break down, the sad part is they started borrowing money from our worst enemies. Recently you've seen the chinese were buying up our farm lands. These criminals in government are our worst enemy now.

Look up Triffen dilemma. He warned this situation could occur when they made the US the base currency. Basically Chyna realized they could indebt other countries like what the US did, we were screwed. Along with the favored nation status that was the catalyst.
Once Nixon broke the implied contract of US currency with the gold standard the fate was sealed. Btw most currencies last around 50 years or so.. timelines check out.

 

[dirtytoeddawg]

This is somewhat puzzling to me. I know that one of the drivers is cryptocurrency has pulled off some of the would be precious metals investors, but that doesn’t explain everything.

I’m still holding some PM miners: HL, EGO, AGI and the big boy NEM just as a hedge. I also own Bitcoin and RE, but I really have a feeling my PM play is gonna pay off at some point

I’ve been wondering if crypto’s were somewhat replacing metals as a hedge. But then we did see a jump from below $20/oz to the now $25-$30/oz range of silver & similar ratios for gold over a year ago.

Maybe that jump was the hedge & the market just hasn’t quite gotten ready to jump again as there’s still $$$ to be made in stocks as long as they’re pumping.

In any case I’ve been buying silver/gold for 30 years now. Over time it’s a good accumulation. Will likely just pass it on to my son unless we have a true “oh shit” period in the US. Who knows, crypto may in fact render it useless as an investment.

Then I can use it to throw & hit people in the head during riots.

 

[Zgdaf]

I’ve been wondering if crypto’s were somewhat replacing metals as a hedge. But then we did see a jump from below $20/oz to the now $25-$30/oz range of silver & similar ratios for gold over a year ago.

Maybe that jump was the hedge & the market just hasn’t quite gotten ready to jump again as there’s still $$$ to be made in stocks as long as they’re pumping.

In any case I’ve been buying silver/gold for 30 years now. Over time it’s a good accumulation. Will likely just pass it on to my son unless we have a true “oh shit” period in the US. Who knows, crypto may in fact render it useless as an investment.

Then I can use it to throw & hit people in the head during riots.

Depends on the crypto for the hedge. It’s good you have physical good because the paper gold is manipulated. There’s no open ledger like with BTC.
look back at gold prices in 2008 time, it’s behaving the same. At some point prices will rise.
Btw I try and diversify and have some gold and silver along with crypto

 

[America 1st]

Hyperinflation is a huge stretch

Hyperinflation is defined as a 100% rise in the price of goods and services per year.

We are struggling with inflation in ways we haven’t seen in the past 50 years; roughly a 12% rise if we assume the worst continues.

We’ve heard the same thing for decades and those same folks swore we were going there in 08 as well.

All of the inflation tears, China virus fear peddling, and Desantis playing devil’s advocate is an attempt to distract from election audits and removing the voting machines. It’s working too with GOP “advisors” telling folks like Don Jr. that China virus authoritarism is the thing we should all be focused on even though that battle is won by simple non compliance / already won in any state that matters.

The more they divide what the top issue is the more the swamp wins.

 

[TheNJNole]

Hyperinflation is defined as a 100% rise in the price of goods and services per year.

We are struggling with inflation in ways we haven’t seen in the past 50 years; roughly a 12% rise if we assume the worst continues.

We’ve heard the same thing for decades and those same folks swore we were going there in 08 as well.

All of the inflation tears, China virus fear peddling, and Desantis playing devil’s advocate is an attempt to distract from election audits and removing the voting machines. It’s working too with GOP “advisors” telling folks like Don Jr. that China virus authoritarism is the thing we should all be focused on even though that battle is won by simple non compliance / already won in any state that matters.

The more they divide what the top issue is the more the swamp wins.

Hyper was 500% per annum, unless my oulde memory is shot.

 

[America 1st]

Hyper was 500% per annum, unless my oulde memory is shot.

When I duckducked it I was told 100% but either way it just shows you how far off from hyperinflation we truly are.

Helm Sinema has said no to the reconciliation bill the radical Dims want already so that whole thing is likely dead.

The most we might see still before the midterms is the bipartisan infrastructure bill which is long overdue. The GOP really fucked Trump by not passing something similar while they held all three.

 

[TheNJNole]

And the St. Louis fed stopped reporting M2 because the fed has lost control?

M2 (DISCONTINUED)

View data of a measure of the U.S. money supply that includes all components of M1 plus several less-liquid assets.

fred.stlouisfed.org

Moved the reporting time line to monthly from weekly.

When I duckducked it I was told 100% but either way it just shows you how far off from hyperinflation we truly are.

Helm Sinema has said no to the reconciliation bill the radical Dims want already so that whole thing is likely dead.

The most we might see still before the midterms is the bipartisan infrastructure bill which is long overdue. The GOP really fucked Trump by not passing something similar while they held all three.

This is a major issue for the Fed and the Treasury....

 

[America 1st]

Moved the reporting time line to monthly from weekly.

This is a major issue for the Fed and the Treasury....

It’s a velocity of money issue.

The long term affects mean the economy isn’t going to grow or bounce back as quickly as everyone keeps talking.

Here is quick video for folks that haven’t studied the topic in depth: