The Repo Market Is In Crisis
Mr. X: “If Big Deficits + Tighter Monetary Policy = USD+ , then Big Deficits + Looser Monetary Policy = ______?” Join our weekly newsletter and download the full report at https://t.co/FfnuAPxnBw pic.twitter.com/jMdEyeByVb
In other words, the Fed will only have one choice, that's to let inflation run and devalue the dollar to save the repo market and the world financial system.
If you're interested in the future of the US economy and the repo market, this is a MUST WATCH VIDEO!!
Zoltan Pozsar and Luke Gromen both believe the Fed will start QE4, the difference is Gromen thinks they already have started it via the repo market interventions and Pozsar thinks the Fed will start QE4 by buying treasuries directly.
The one thing we know for sure is the Fed has no choice currently but to expand the balance sheet indefinitely with repo market money printing until the lower the value of the dollar enough to let market forces take over.
In this repo market crisis video I discuss:
1. Zoltan Poszars repo market predictions and why they matter.
2. Luke Gromens repo market views and how it plays into the dollar.
3. What will the Feds response be to rates going up in the repo market? Will they lose control of the repo market?