Discover How The Repo market is Getting Worse!
I've done 10+ repo market videos so we pulled the best clips from all of them to show you how the repo market has gone from a temporary glitch to proof the entire dollar funding system is broken.
The feds intervention in the repo market will most likely be permanent now, it's the only way the fed can control the ceiling on the fed funds rate.
The fed will be the repo market! So if you're concerned about runaway inflation, a deflationary collapse, a dollar crisis, negative interest rates, or any other of the potential black swan events THIS VIDEO IS FOR YOU!
This repo market mashup video is a trip down repo memory lane or repo market nightmare lane, as we look at how the problem in the short term funding market has continued to get worse.
The fed has had to expand its balance sheet by 100 billion a month. More than QE3!! That is A LOT of money printing.
It seems the end game has to be runaway inflation because the only release valve can be the dollar.
During the plaza accord the dollar collapsed by 50% so will we see something like that again?
I don't know.
What I do know is the repo market getting out of control and the fed losing control of the short end of the yield curve takes us closer to a dollar collapse, not further away.
But the dollar could go up in the short term because of all the demand for dollars. This is being played out in the repo market and around the world
In this repo market video:
- I specifically discuss the following, again, using clips from past videos. 1. Start of repo market crisis.
- More liquidity injected into the repo market.
- The fed starting to take more and more MBS's as collateral in the repo market.