My basic take away is that the entire scheme of Fed printing money is a scam, and reverse repo market is just a small solution to hide the real problem, but its coming undone.
Think of a parent who keeps pouring out more and more food for their kid to eat (thinking it will make them stronger). The kid simply dumps it in the flower pots, under the sink, outside the window etc, but eventually runs out of space to dump it. Thats basically what the reverse repo market is.
The problem is that for all intends and purposes, some inflation is needed to alleviate the pressure in the system.
With many assets overpriced, there are only a couple of assets under priced. In this scenario, they would have to make the move in concert with other CB's: that is: ECB, BOJ, PBoC to increase the value in fiat of precious metals like gold and silver.
I would not be surprised to see this happen in the coming months.
All this chaos happening in the world is a distraction from this elephant in the room.
The video assumes so much. If you don’t know what it looks like when it is working as intended there is no chance people will understand the video.
In the example above I use you but you is me I don’t know what it looks like when it’s working as intended.
It is a good video but after the 30 seconds in I was blowing spit bubbles.
My basic take away is that the entire scheme of Fed printing money is a scam, and reverse repo market is just a small solution to hide the real problem, but its coming undone.
Think of a parent who keeps pouring out more and more food for their kid to eat (thinking it will make them stronger). The kid simply dumps it in the flower pots, under the sink, outside the window etc, but eventually runs out of space to dump it. Thats basically what the reverse repo market is.
The problem is that for all intends and purposes, some inflation is needed to alleviate the pressure in the system.
With many assets overpriced, there are only a couple of assets under priced. In this scenario, they would have to make the move in concert with other CB's: that is: ECB, BOJ, PBoC to increase the value in fiat of precious metals like gold and silver.
I would not be surprised to see this happen in the coming months.