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BREAKING: The Fed is sharply increasing the amount of help it is providing to the financial system
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[quote:jk 49787505:MV80MTcwODEwXzc1ODA5MzUxX0I0NEQzOURF] [quote:Anonymous Coward 71594995:MV80MTcwODEwXzc1ODA4NDY5XzJDNDg5M0NG] [quote:Anonymous Coward 76809044:MV80MTcwODEwXzc1ODA1NDcwX0JFRTVDMkY3] [quote:Trained Noticer:MV80MTcwODEwXzc1ODA1NDUyXzYyRERDMTU5] [b]Who the hell is receiving all this money that is created out of thin air???? [/quote] they pass it around to their buddies. [/quote] and by the time is reaches us serfs, it is only worth a fraction of what it was newly created. lucky us to even get scraps from the maters table [/quote] Excellent: all three of you are correct! 1. That IS the right question to ask [u]Trained Noticer[/u]. (Who gets the "money" that's [i]"created out of thin air?"[/i]) Because when you understand (WHO) is in receipt of the funds, and to understand that it "is" created out of thin air (at least the funds used to buy the newly issued USTB's are), then, you can start to understand (MOTIVES). MOTIVES then, can lead people to the truth about a subject. 2. And [u]AC[/u]...per [i]"they pass it around to their buddies"[/i]. This is correct. The Fed ultimately creates these funds, and then (through the mechanisms in place: in these cases, "Open Market Operations" or "REPO Operations", the funds are directed to the banks in cash shortfall - for whatever reason; as we still don't know yet; despite the many theories). 3. And [u]AC[/u]...per [i]"...it is only worth a fraction of what it was newly created."[/i] This is also correct. When the funds are immediately created by the Fed (after the USG creates the USG-debt instrument (Ex: USTB's), these funds are then used to BUY this debt instrument. Investors could also buy it, with "capital" (and they do)...[u]but not SUFFICIENTLY, TO KEEP THE RATES LOW ENOUGH (TO KEEP OUR ECONOMY AFLOAT)[/u]. If the Fed DID NOT buy the USTB's that they buy, the yields would be MUCH HIGHER - CAUSING INTEREST RATES TO BE MUCH HIGHER - AND THEREFORE, SLOWING ECONOMIC GROWTH. Further, it's the USG that gets the money FIRST! These are known as (hot) dollars...because they have the highest value: they have the greatest purchasing power, (since the USG gets use of these dollars, before they make their way into the economy), and therefore, as you correctly point out AC, are then [i]"worth a fraction of what it was newly created."[/i] All the best GLP, jk [/quote]
Original Message
Why is this not major headlines?
Why is Trump not mentioning?
What really is going on here...
BREAKING
The Federal Reserve is ramping up the amount of temporary liquidity injections it is providing for overnight lending markets.
Starting Thursday, the repo operation offerings will escalate to $120 billion from the current $75 billion as the central bank continues to calibrate the right amount of funding needed to keep the markets operating properly and to hold the overnight funds rate within its target range.
The announcement came from the New York Fed,
which did not elaborate on the reason for the increase
. However, it comes a day after the Fed injected just shy of $100 billion into the system via an operation where it provides banks with cash in exchange for high-quality assets like government bonds.
...
In addition to the repo increase, term repo operations are rising to $45 billion, from $35 billion.
In addition to those two operations, the Fed recently announced a permanent operation that will target $60 billion a month initially in bond purchases that will resemble the three rounds of quantitative easing employed during and after the financial crisis.
[
link to www.cnbc.com (secure)
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