Advertisement

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

0
211
Advertisement

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

______________________________________________________

Advertisement

If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we’ll forward your request to the author.
______________________________________________________

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 not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.

Copyright © 2022 Dinar Chronicles

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here