The ECB announcement was open and obvious. Instead, the big banks are allowing the NY Federal Reserve branch (which they closely control) to do the "lending". It I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.I wrote this article myself, and it expresses my own opinions.

To be clear, the Federal Reserve has not been printing money. TOMOs and POMOs essentially do the same thing, however, in that both increase the money supply. Suddenly the price of food rises 10 percent, 20 percent or 30 percent because there is too much money chasing the same amount of goods.The cost of things is as important to your family as the amount of money you earn.Another big problem is that QE didn’t do much to help the economy, which has been stuck at around 2 percent annual growth for years.Still another problem: What the Fed is really doing is rigging the bond market, where interest rate levels are ultimately determined.By being a shill bidder at government bond auctions with QE money in its pocket, the Fed is causing the prices of bonds to go up. And the low interest rates were supposed to help the economy grow.Once the economy got going, the Fed was supposed to stop printing money. This compares to a couple hundreds billion near the end in 2009The question is why a bank or group of banks is so desperate for money? That's some good old monetary policy by the Federal Reserve. And that automatically causes the yield on those bonds (the interest rate) to come down.Like at any other auction, eventually legitimate buyers won’t stand for this bid rigging any more.QE advocates have argued since the beginning that their scheme is different from past money-printing operations. The Fed was forced to print $350 billion since August to keep the economy going, bringing the Fed balance sheet back up to $4.1 trillion.However, that was not enough, and Pozsar discovered that banks would run out of liquidity due to the year-end turn since banks need extra liquidity at the end of the year to pay their taxes and other debts. Pozsar also predicted the Fed would have to print a ton of money to prevent this crisis or choose to watch the economy go up in flames.Lo and behold, Pozsar was right, and only two days after his analysis, the Fed announced a $500 billion money printing and liquidity injection operation to get banks and corporations through the year-end turn.

But, the amount rose from a few billion in 2001 to hundreds of billions of dollars by the time they were finally repaid.On September 17, 2019, the New York Federal Reserve announced that it would issue "overnight" TOMOs in the amount of $53.15 billion dollars. Remember that whenever there is a sharp increase in prices, as over the last few months, the market for physical metal, which is always price sensitive, will inevitably slow dramatically. But, if the central bank is willing to admit it never expects to be repaid, the operation is known as a "permanent open market operation" or POMO. The overall stock market, as indicated by the S&P 500 index, is now selling for about four times its low in 2009. No news supported the price decline, but "technical analysts" claimed that it happened because the metal was "overbought.

First, the Fed announced it would purchase Treasury bills at a pace of about $60 billion per month through the second quarter of 2020. On September 4, 2019, a little over a week before the announcement, the spot price of gold reached a high of $1,546 per ounce at the London close, after rising for several months. September 18, 2019 9:41 AM UTC. Therefore, the most likely reason is that failure of an insolvent bank(s) would cause their intricate web of hundreds of trillions worth of cross guaranteed derivatives to fail. I expect the printing extravaganza to take precious metals and mining share prices on a fantastic ride upward. 1 On April 16, 2020, the Board approved a revision to its FY 2020 order. But, the rise will be more dramatic this time because we're now dealing with a lot of central banks printing money at the same time.During the early years of the 21st century, as you may recall, the ECB was a mere babe, steeped in the innocence of her birth. The borrowing bank(s) will be called upon to repay only when the Fed decides that the coast is clear.

The value of the existing stock of currency is just as effectively being diminished as it would be if you called the operations POMOs (a/k/a "QE"). The Federal Reserve is America's central bank. But, as opposed to precious metals stocks, which are still depressed well below their 2011 highs, the prices for equities in general are historically high. Sorry, your blog cannot share posts by email. | Source: Shutterstock The Federal Reserve Bank of New York very quietly handed out $75 billion in cash to the banks on Wednesday in a process known as a ‘repurchase operation,’ or repo.

We can only assume that the borrower(s) managed to repay $10 billion for the first time, although it is possible that the numbers were massaged by On September 25, 2019, the Federal Reserve announced that it would increase the amount of the 1 day TOMOs from $75 to $100 billion, and the size of the two week TOMOs from $30 billion to $60 billion! This shows how shaky the economy really is and will likely create favorable conditions for the Bitcoin (BTC) market, as we will explore in this article., a repo crisis occurred in the middle of September, meaning the rates for overnight lending of liquidity skyrocketed due to a lack of liquidity.

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