Explanation: there's too much money in circulation. Instead of raising interest rates (which will slow down the economy), the Fed is using reverse repo to temporarily soak up the excess money to prevent explosive inflation. With the Democrats planning to spend trillions more, the Fed knows they'll have to print even more money to finance the spending, triggering even worse inflation. In sum, this is their last-ditch effort to prevent future hyperinflation.
They will try to keep the band aid on until Trump takes over again. Then they will rip it off and blame him. Little do the know, this is what Trump wants. This way he can get rid of the petrodollar, go back to sound money and pump the economy back up with real money. American Made money. Just my opinion. in reality, they cant go on much longer. The damage is already done and it this just makes it worse. The system would have crashed already and we would be on the way to building it back up. They are just slow rolling the inevitable.
Explanation: there's too much money in circulation. Instead of raising interest rates (which will slow down the economy), the Fed is using reverse repo to temporarily soak up the excess money to prevent explosive inflation. With the Democrats planning to spend trillions more, the Fed knows they'll have to print even more money to finance the spending, triggering even worse inflation. In sum, this is their last-ditch effort to prevent future hyperinflation.
You have any idea how long this bandaid will hold?
They will try to keep the band aid on until Trump takes over again. Then they will rip it off and blame him. Little do the know, this is what Trump wants. This way he can get rid of the petrodollar, go back to sound money and pump the economy back up with real money. American Made money. Just my opinion. in reality, they cant go on much longer. The damage is already done and it this just makes it worse. The system would have crashed already and we would be on the way to building it back up. They are just slow rolling the inevitable.