The U.S. Federal Deficit Is About to Soar

   By  March 28, 2020

"...I used to work for the “repo” (short-term loans) desk at Citigroup. So when I started studying the markets again in 2018 after my two-year sabbatical, it was the first thing I noticed.
“The plumbing beneath the banking system is blocked,” I wrote.

The cause: Enormous amounts of cash the government was soaking up and the inability of the banking system to meet its appetite.

As I warned many times last summer, if they didn’t unblock the money markets things would “start blowing up.”
Things blew up on September 17, 2019 when the interest rate on short-term loans spiked from 2% to 10% in a matter of minutes.
The Fed turned on its printing press and began bailing out the government. It couldn’t let the government collapse financially.
That was the moment I was sure we were about to get inflation...." Further reading...

Comment: It nice to hear from someone with experience on the inside of the FED Monetary system works; that is, Tom Dyson who now works for Bonner and Partners Best, Norton West

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