REPO-ing the Economy
The economy is roaring along. Record low unemployment. Banks have never been stronger. DOW is way up there somewhere. Everything is fine. Go back to sleep. Kindly ignore the constant hum from the printing presses down in the Financial District.
Consider this a sequel to my September 24th column on the same subject. That was like a long time ago. You’ve probably forgotten. Waaay back then, starting on September 16th, the New York Fed announced they were injecting just a tiny bit of extra cash into the [VERY HEALTHY AND IN NO WAY ABOUT TO COLLAPSE] commercial banks. “Tiny bit” could have been estimated at around $2 Trillion. Could have. Who, honestly, knows? The program was supposed to last until October Tenth. But why cut short such a good thing?
Now, it’s going to run through and until November Fourth. Fifty days of free fiat funny money. Fifty days. At one-hundred and five billion dollars per day. That’s … let’s see, Gawd… Okay, 105 x 50 = … Hang on… I get … gonna run this straight out, numerically: $5,250,000,000,000. That’s just a shit ton of… Oh! Hang on, again. They’ve attempted to obfuscate with the REPO BUCKS!!! (like a lottery game, but where the ticket is forced upon you and you have to pay out the jackpot…). Something about, in addition to a flat daily grafting of $75 Bn, another $35 Bn, but only twice a week, unless the moon is full. Originally, it was $30 Bn… It’s still…
Well, hell! The “zero” button on my calculator broke.
How on Earth do we explain this??? I thought a little ditty appropriate: