Zero Hedge: Federal Reserve economists have floated the idea of a “standing repo facility” which would allow banks to exchange Treasurys for reserves.
- The idea would be to get banks to hold fewer reserves, and thus would help the Fed in its quest to shrink its balance sheet.
- There’s considerable support for the plan, but critics say it could represent more dangerous tinkering with financial markets. more …
Opinion: The Federal Reserve has been trying for the past 3 years to reduce its $4,000,000,000,000 (trillion) debt from the last tinkering (Quantitative Easing) bringing to mind ol’ Bill Shakespeare “A rose by any another name would smell as sweet”.
The US economy is growing at 3% for the first time since Barack O, but because of mounting debt it has still not provided the Fed the opportunity to raise interest rates, showing how fragile the real economy still is.
Of course, all of this manipulation will have to be paid for one day. When a consumer opens new credit cards to make minimum payments on old credit cards, at some point the credit gets shut off. When that happens to a nation, its currency crashes and sudden hyperinflation is the result.
Venezuela, once an oil rich nation now has 63,324% inflation and has descended into chaos, is a mini example of the global economic collapse to come (Revelation 6:5-6).
But don’t worry, the 783 Socialists running for the Democrat nomination say it will be different this time.