The Fed’s Money Printing Escalates

Last week the Fed announced that it was going to start buying $60 billion in T-Bills per month at least into Q2 2020.  The Fed will also rollover the proceeds as the T-Bill’s mature. The rationale was to address the decline in the “non-reserve” liabilities of the Fed.  So what are “non-reserve” liabilities?  Federal Reserve Notes.

The directive as written was “Fed Speak” which means that the Fed would print $60 billion per month for the next 4-6 to months cumulatively.  If it’s only 4 months, it means that the Fed will be printing at least a quarter trillion dollars which apparently will be become permanently part of the Fed’s balance sheet.

Chris Marcus invited me onto this Arcadia Economics podcast to discuss probably reasons why the Fed has ramped up its money printing operations despite explaining a month ago that it was only temporary to address quarter-end issues:

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9 thoughts on “The Fed’s Money Printing Escalates

  1. It’s not just the REPO markets. For the first 2 weeks of the new US fiscal year, they have added a $100B in debt. Are we headed to our first documented $2T deficit?

    As the Dutch have recently said, time to buy a lot of gold for the coming reset.

  2. Organic Balance Sheet Expansion!?!?! WTF
    This sort of mendacity; {To be QE or not to be, that is the question} reminds me of Supreme Court Justice Stewart Justice’s comment about pornography; paraphrased:

    “I can’t exactly/intelligibly define hard core pornography but I know it when I see it”
    Well, Chief Goon Powell, you got some serious monetary pornography going on in the back room.

    When trying to explain Non-QE by defining it as “‘Organic’ Balance Sheet ‘Expansion'”, that sounds like porn and QE as the same time.

    1. “Organic Balance Sheet Expansion!?!?!” – That is FedSpeak meaning they are stuffing the balance sheet with shit.

  3. All the data says that the global economy is still contracting and the unabated money printing scheme by the ESF, BIS & other CB friends may finally be losing the battle. Reasons are:

    1) Repo madness increasing syas there are big problems.
    2) Near zero to negative interest rates no longer helping the global economy.
    3) Non-Performing loans (of all kinds) impacting the banks but will the repos bail them out.
    4) Foreigners selling U.S. Treasuries en masse.
    5) Hypothecation and rehypothecation of U.S. Treasuries, gold, silver, etc may come up again.
    6) Global manufacturing data continues to get weaker.
    7) No trade deal with China.
    8) Retail sales went negative in September for the strong U.S. consumer…lol
    9) WeWork and other garbage losing companies going down the drain are hurting the big bank investors and Softbank.
    10) Does China and Russia want to crash the stock markets and destroy the western banks to force a new financial system with gold the trade and monetary discipline.
    11) Derivative counter party risk going on right now. Pay up buddy, what you don’t have the funds.
    12) To what extent will the ESF, BIS and friends continue to prop up the markets before they have their own minsky moment and crap their pants.

  4. I freely admit that could be construed as being biased, given that I hold, and have held physical gold for a long time, and have not taken part in the stock market at all during the past seven years, but this REALLY feels like the inflection point that I, and those of similar ilk, have been anticipating for so long.

    I’m even skeptical that the balls can stay in the air until the 2020 election. It feel much more like the next few months will be the beginning of the end of the biggest, most fraudulent credit/debt bubble in the history of mankind.

  5. I keep wondering why all the Repo money is being loaned or just outright given to the LARGE banks, why the large banks? Besides bad loans does this have anything to do with suppressing the price of gold?

  6. The USD has been in a free fall on the daily chart this week. This probably has to do with the Fed announcing the $60B POMO per month. Foreigners have to be selling the USD in the currency market in a mammoth way and probably buying the Euro and gold.

    However, gold in USD terms has not gone up as the USD declined in a big way. The cabal is suppressing the paper price of gold at all costs. If the USD continues its decline and CBs & others continue to buy physical gold, it would seem that the dollar price of gold will have to rise. The cabal is beyond insane.

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