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Thread: Repo market weirdness has returned

  1. #1

    Repo market weirdness has returned

    Several months before "Covid-19" was unveiled to the world, overnight repo markets were inexplicably behaving strangely and the Fed wasn't commenting on it. Banks were dumping Treasuries onto the Fed in exchange for cash reserves.

    http://www.ronpaulforums.com/showthr...Nobody-Noticed

    Repo market weirdness has suddenly returned, but is now in the opposite direction in the form of reverse repo weirdness. Banks are now taking Treasuries and draining cash reserves back onto the Fed. Something is going on behind the scenes again.

    https://www.zerohedge.com/markets/rr...le-amount-cash

    https://www.zerohedge.com/markets/fe...arket-set-blow

    Last edited by devil21; 05-25-2021 at 11:47 AM.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book



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  3. #2
    dp
    Last edited by devil21; 09-22-2021 at 03:21 PM.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  4. #3
    Still flying quietly under the radar is the continued and increasing reverse repo operations, which have now exceeded $1.2T per night.

    I was watching JPow's presser today and caught something he said. He was asked something about the "taper" and his response was (paraphrasing) "The taper is going smoothly.....uh the taper will go smoothly." It really sounded like a Freudian slip admission that the Fed is tapering now and a quick correction on his slip up. So I wondered how that would be possible for the Fed to taper asset purchases without anyone realizing it? Hmmm....ongoing reverse repo that keeps climbing?

    I'm going to noodle on this more but I'm thinking the Fed is flat out lying (it's their MO) and its sycophant media is complicit with the lie to maintain the illusion of a stable market, so everyone doesn't run for the exit until they're told to. JPow wouldn't make a mistake of saying the taper is current when it's not. This could be why we're seeing signs of economic contraction and gov't funding issues.

    If the repo operations in 2019 were QE, per the thread in my OP. What would reverse repo operations be? REVERSE QE aka "tapering".
    Last edited by devil21; 09-22-2021 at 03:23 PM.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  5. #4
    Just giving this a bump because I can't believe no one is commenting as the repo operations are topping $1.6T/night now.

  6. #5
    "Stupidity got us into this mess. Why can't it get us out?"--Will Rogers

    "All I know is what I read in the newspapers, and that's an alibi for my ignorance."--Will Rogers

  7. #6
    Quote Originally Posted by Lindsey View Post
    Just giving this a bump because I can't believe no one is commenting as the repo operations are topping $1.6T/night now.
    It's weird because the cover story doesn't make much sense. What's the point of doing it every night just to unwind it the next day and do it all over again? Is the (relatively) tiny bit of interest being paid worth all that and why does it keep growing? Something else is being done under the cover of this and JPow always ducks any questioning on it. I posted a theory regarding it somehow being a stealth taper and withdrawing of QE cash but that's a guess. Very strange situation. Reminds me how the Depression was triggered by the Fed pulling out only ~15% of circulating money. Seems like a relatively small percentage but when debt servicing requires MORE and MORE money creation, that 15% becomes huge.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book



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