Now is not the time to be nibbling.
That’s how much cash the Fed will pump into Primary Dealer accounts this week. Guess how much new Treasury issuance there will be over the same period. If you guessed $321 billion, you would be all but correct. It’s $328 billion.
That’s right. The Fed is buying all of the COVID19 rescue financing. It’s inventing imaginary money to pay Primary Dealers for that new supply. The Fed is printing the money to pay for the economic bailout.
And it’s not stabilizing the financial markets. Here’s why, and what it means
The Fed has cut back its direct cash injections to Primary Dealers this week. So far it has bought approximately $92 billion per day in Treasuries and MBS from the dealers on both Monday and Tuesday. That’s down from more than $110 billion per day last week. Follow the money. Find the profits!Liquidity is money.…
The US Treasury will bomb the markets with $288 billion in new supply over the next 7 days.
This supply hits a market where structures are still collapsing and burning despite the Fed’s rescue programs. Those programs only exacerbate and prolong the causes of this disaster:
When the margin man came collecting on other stuff, gold got dumped. Once he left, gold came right back. What does it mean for the long haul? Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you…
Between today and Thursday, the US Treasury will pound the market with $194 billion in net new supply. The total since March 24 will be $283 billion. And it’s only the first week of it. That will have consequences.
The Fed injected around $600 billion into the markets and the banking system last week. That’s about $2,000 for every American, and it was just one weekly installment. All in the valley of Death rode the 600. We are the 600 and the Fed is leading us into the valley of Death. Follow the money.…