Post #8890

In addition to those exported dollars coming home to roost, there is a reverse repo crisis looming. In 2019, the fed printed more money than it ever had. This caused a delayed surge of inflation (we are feeling parts of this now). In addition other factors are causing our economy to slow. So big money managers have decided the economy is too volitile to loan money, esp as the fed is lowering rates. So they have parked $2T at the fed. that money is "taking up space" at the fed and the fed needs them to withdraw that money. In a nutshell, the bankers have painted themselves in a corner. If they force that money out of the fed, they will cause more inflation. But if they continue to allow money to park there the economy can't improve. A classic mexican standoff. (continued)