On top of the already hundreds of billions of dollars daily, the Fed is injecting $1,500,000,000,000 into the repo “market” today and tomorrow. Here are the details…
(Silver Doctors Editors) The government and the Fed certainly have created one gigantic mess.
It’s likely by design.
Although, are they really to blame if a deaf, dumb and blind citizenry enabled it?
Regardless, the elderly invested in the modern “financial system” (a.k.a. the stock, bond and other paper markets) are getting killed in the “markets” right now, so apparently in an effort to not leave the elderly savers out of the fun, here comes a mega-tsunami of currency debasement, money printing and inflation.
You get no stinkin’ free markets here!
The Fed will decide what you get, so if you’re an elderly saver whose capital has been depleted because of the government lying about inflation and the Fed destroying the concept of “interest”, then too bad for you.
Or is that not the message we get?
From the NY Fed just today (bold added for emphasis):
The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released a new monthly schedule of Treasury securities operations and has updated the current monthly schedule of repurchase agreement (repo) operations. Pursuant to instruction from the Chair in consultation with the FOMC, adjustments have been made to these schedules to address temporary disruptions in Treasury financing markets. The Treasury securities operation schedule includes a change in the maturity composition of purchases to support functioning in the market for U.S. Treasury securities. Term repo operations in large size have been added to enhance functioning of secured U.S. dollar funding markets.
- As a part of its $60 billion reserve management purchases for the monthly period beginning March 13, 2020 and continuing through April 13, 2020, the Desk will conduct purchases across a range of maturities to roughly match the maturity composition of Treasury securities outstanding. Specifically, the Desk plans to distribute reserve management purchases across eleven sectors, including nominal coupons, bills, Treasury Inflation-Protected Securities, and Floating Rate Notes. The distribution of purchases across sectors will be the same distribution as the Desk uses to reinvest principal payments from the Federal Reserve’s holdings of agency debt and agency MBS in Treasury securities. The first such purchases will begin tomorrow, March 13, 2020.
- Today, March 12, 2020, the Desk will offer $500 billion in a three-month repo operation at 1:30 pm ET that will settle on March 13, 2020. Tomorrow, the Desk will further offer $500 billion in a three-month repo operation and $500 billion in a one-month repo operation for same day settlement. Three-month and one-month repo operations for $500 billion will be offered on a weekly basis for the remainder of the monthly schedule. The Desk will continue to offer at least $175 billion in daily overnight repo operations and at least $45 billion in two-week term repo operations twice per week over this period.
These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak. Reserve management purchases into the second quarter will continue to be conducted with this maturity allocation. The terms of operations will be adjusted as needed to foster smooth Treasury market functioning and efficient and effective policy implementation.
Detailed information on the schedule of Treasury purchases is provided on the Treasury Securities Operational Details page. Detailed information on the schedule and parameters of term and overnight repo operations are provided on the Repurchase Agreement Operational Details page.
As a friendly reminder, the NY Fed is an agent of the Exchange Stabilization Fund:
And what is the ESF?
Oh, just a part of the US government that can manipulate any market, at any time, and for any reason:
The ESF does just that!
To say these markets are rigged 24/7 is an understatement.
As of now, and as has been for some time, these markets are rigged 24/7 plus 1.
The message here?
If elderly savers had it hard before, just wait until they scramble as their US dollars hyper-inflate into oblivion, only with this latest edition of the Death of Fiat Currency, the elderly have the added twist of trying to survive the hyperinflation during a raging, deadly pandemic.
We will get back to gold and silver, eventually.
Humans always do.
Gold and silver are money.
We will use money again.
That is, if we don’t totally destroy ourselves first.