Hi Alan, fellow former Alert subscriber here. You have done an amazing job taking up the torch. Please know the amount of joy and gratitude I experienced when discovering you had done this is not measurable. Thank you so much.
What's your opinion on the inevitability of those RRPs eventually making it out into economy and, you know, putting upwards pressure on prices? I don't see how they won't at some point. I would figure with M2NSA crashing they are going to let that rip at some point when the market falters. It seems like they are way out there off the Philips curve and are trying to hit the gas and the brakes at the same time.
It would not take much to see those RRP funds come rushing back and pushed into the economy. The problem for the banks is, no one wants to borrow. They are flush with cash and can't find a way to put it to use. So they are taking advantage of the RRP facility to get a return. The Fed is happy to suck up that money. They know they printed a lot. They are trying to find a way out of this mess without upsetting the market and so far, its working. In time, banks will find a better return and that money will come flooding back in.
Hi Alan, fellow former Alert subscriber here. You have done an amazing job taking up the torch. Please know the amount of joy and gratitude I experienced when discovering you had done this is not measurable. Thank you so much.
What's your opinion on the inevitability of those RRPs eventually making it out into economy and, you know, putting upwards pressure on prices? I don't see how they won't at some point. I would figure with M2NSA crashing they are going to let that rip at some point when the market falters. It seems like they are way out there off the Philips curve and are trying to hit the gas and the brakes at the same time.
Brings to mind this gem:
https://www.youtube.com/watch?v=bju-1Q1KScw
That's a great one from Murray Rothbard.
It would not take much to see those RRP funds come rushing back and pushed into the economy. The problem for the banks is, no one wants to borrow. They are flush with cash and can't find a way to put it to use. So they are taking advantage of the RRP facility to get a return. The Fed is happy to suck up that money. They know they printed a lot. They are trying to find a way out of this mess without upsetting the market and so far, its working. In time, banks will find a better return and that money will come flooding back in.