Essentially there is too much money in circulation and reverse repo is where the banks give cash to the fed reserve in return for treasury bonds, which they use as collateral. (Banks having cash is a liability because it’s not really their money). The feds are now paying .05% interest TO THE BANKS to do this.
Feds are trying to take some cash out of circulation to prevent hyperinflation. The problem is they are still printing money! If they don’t stop the crash will be much worse than 1929 or 2008.
Here is an interesting post comparing post WW 1 economy to our economy today. Really makes you think.
Essentially there is too much money in circulation and reverse repo is where the banks give cash to the fed reserve in return for treasury bonds, which they use as collateral. (Banks having cash is a liability because it’s not really their money). The feds are now paying .05% interest TO THE BANKS to do this.
Feds are trying to take some cash out of circulation to prevent hyperinflation. The problem is they are still printing money! If they don’t stop the crash will be much worse than 1929 or 2008.
Here is an interesting post comparing post WW 1 economy to our economy today. Really makes you think.
https://www.reddit.com/r/Superstonk/comments/o37ukz/ok_we_teed_to_talk_about_inflation_growing/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
Idaho flakes are everything.
Love the buttery ones!