Heresy Financial: Reverse Repo Year End Spike to $2.3 Trillion

Heresy Financial
Dec 31, 2022

What in the world is going on with the reverse repo facility at the Federal Reserve with it currently hitting $2.3 trillion?

Apart from a few brief spikes in September of 2022, we are reaching the top of the range that it has been since June of 2022. Now, if you are not familiar with the reverse repo facility, this is where banks park their cash to get collateral.

You see, banks have a requirement to get collateral to offset their liabilities, which is deposits. And so, when banks get a bunch of cash, normally they go out to the open market and they buy things like short term government debt, like T-bills.

But after the trillions of dollars that the federal government spent that were printed into existence by the Fed over the last few years, there is a lot of cash flowing into the system, so banks needed a place to get this collateral from.

So, the Federal Reserve said, just get it from us.

https://www.youtube.com/watch?v=Y_sIu1blT7k

______________________________________________________

If you wish to contact the author of a post, you can send us an email at voyagesoflight@gmail.com and we’ll forward your request to the author (if available). If you have any questions about a post or the website, you may also forward your questions and concerns to the same email address.
______________________________________________________

All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.

Dinar Chronicles is an informational news aggregator. All content, including third-party reports and community commentary, is provided for educational purposes only. We do not provide financial, legal, or tax advice. We do not recommend the purchase or sale of any currency or investment. Please consult with a licensed professional before making any financial decisions.

Copyright © Dinar Chronicles