The U.S. Federal Deficit Is About to Soar By Tom Dyson 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...
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