Posted on 05/31/2022 5:38:09 AM PDT by Browns Ultra Fan
Run for cover!
Markets opened after a long (and expensive) Memorial Day weekend, with the 10-year Treasury yield up 8.1 basis points (to
Meanwhile, banks continue to park funds at The Federal Reserve in the form of reverse repos as global inflation soars.
And then we have US gasoline prices rising to the highest in history.
Its like banks know something that the rest of us don’t. Although we do know about the highest gasoline prices in history.
(Excerpt) Read more at confoundedinterest.net ...
Post the whole thing?
That IS the whole thing. Aside from graphs.
Looks like big money is more concerned with the return of their money than the return on it.
Are then no NASDAQ equities trading at 100 times sales to invest in?
Rising inflation means rates are likely to rise.
Investing at fixed rates in a rising rate environment is unwise.
Reverse repo rates change daily, reflecting inter Alia inflationary expectations.
The Fed represents a counter party without credit risk.
The banks can park all that excess liquidity overnight at the Fed via reverse repos.
This is liquidity, risk, and interest rate management 101, not the Great Reset or the Boogie Man or Soros et al.
Conservatives are sounding like tin foil hatted libs in 2002, where everything was "Halliburton, Halliburton, Halliburton," even if it had noting to do with Halliburton.
But I bet this kind of economic fearporn keeps sure keeps Anthony B. Sanders liquid.
The Democrat’s assault and forced contraction of the energy sector is ravaging the economy. The increased costs of fuel and electricity is slowing real production of goods, services and food production. the wholesale printing of dollars in a stalled economy can only result and has resulted in severe inflation. The Biden cabal are leftists/globalists who seek to destroy the American nation and its heritage. This will not end well if it continues much longer.
The large Banks park a bit of the required risk reserves at the Fed to recoupe losses from the last decade and some people are freaking out over what is common number of 2 decades ago, a months worth of GDP in the overnight market at the fed instead of with other peer banks. Yes some of these resaves are created by fractional reserve methods but remain a liability on the banks balance sheet.
.5 Trillion is a week income of the us economy. So we are talking the float of 1 month cashflow.
2 Trillion dollars is 4 times the gross yearly sales of walmart, and the banks combined make anywhere from 75M - 150M per night or a few hundred billion per year that will not keep up with inflation.
It is not a lot of money as compaired to
Consumer Debt - $16 trillion.
Mortgage Debt - $20 trillion.
Credit Card Debt - $1 trillion
Education Debt - $2 trillion
US State and County Debt - $26 Trillion
US Federal Debt held by Fed- $12 Trillion
US Federal Debt held by Public / Foreign - $24 Trillion
> Aside from graphs
I think there’s a whole new generation of arrogant-gunposer wannabees that think you can just slap an entire page in to FR, with graphics.
Ignore them.
Just perfect!
Highest gas prices in history and worst inflation in four decades with Biden being president for not even two years. I hope those Trump haters who voted for Biden are enjoying the prices at the pump and in in the grocery store as well as seeing their hard earned savings evaporate.
I am skeptical of any prediction made regardless of “politics”.
However, while I am not an “economist”, I am a student of history and understood my own household budget.
We are on an unsustainable path financially as a nation.
The machinations of those who control the levers of our “currency” are to benefit themselves - not the average American.
There is no existential threat to our nation that warrants saddling my children and grandchildren with debt. That was true under Trump and its true now just as it was true under his predecessors. The only massive debt that was a benefit in my lifetime was Reagan’s divinely inspired drive to collapse the USSR and that debt was incurred because of “compromise” in our nations capital. That “compromise” was the impetus that has brought us to 30 trillion in debt and many times more in unfunded liability.
There are powerful forces on the world stage who would like to bring America to its knees.
The collapse of our currency and its status in the world is as predictable to me as the coming of Christ. I don’t know when it will happen nor does anyone else but it WILL happen.
When the trajectory of a currency is that it is worth LESS than it was when deposited in a “bank” the currency is in trouble. We might be there in our own nation and other nations are in the same spot so when it all collapses look for the “Davos crowd” and the elites to propose a new centralized banking system to avoid the very behavior they grew wealthy from.
If that makes me a tin-foil hat person so be it. I am quite confident of what I wrote above even if I am skeptical of momentary predictions.
It is inevitable.
The only things inevitable are death and taxes. And Jesus' return.
I can't find it now, but there was a study that I posted, that says we can retire the entire national debt and then some, by selling and leasing federal lands for oil/gas extraction and mining.
People work overtime to keep you and me in mental bondage. I prefer Kirk's approach to the Kobayashi Maru.
I concur. We live in strange times.
I have a friend who is a really solid guy. Unlike me, he does not follow the news very closely and rarely gets his blood pressure up.
He does not like the debt but he shrugs about it because of the old adage - if I owe you 10k I have a problem - if I owe you a trillion you have a problem.
The question always comes down to “who” owns or owes the “debt”. The other question is that part that Rahm said out loud - “never let a crisis go to waste”.
As shown above, it is not only the federal debt. There is a massive amount of debt at all levels of government (and elsewhere). It is not just our nation either - most of the Western nations face the same problems.
The people “in charge” around the world appear to want total control and the surest way to gain that is to collapse the system so that they can come in on a white horse to create a new more “fair and equitable” system in its place.
Sounds downright biblical.....
It's already "parked" at the Fed. Moved from Reserve to Repo.
Regardless, this is much ado about nothing. Unless you're selling an economic doom snake oil newsletter.
If you look around. You don’t need the newsletter.
They also accept payment in USD, frequently using bank accounts.
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