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<blockquote data-quote="brotherjimbob" data-source="post: 1513553" data-attributes="member: 23061">So So 'reverse repo' is a misleading label, really?Better 'Fed Repo'?That's not how I understood the George Gammon video though (not that I understand this at all)'Reverse Repo' would be the Fed borrowing overnight from the banks, because the Fed couldn't meet it's obligations, no?Which actually wouldn't make sense.So I'm just spreading confusion. Sorry.So to make it as simple as possible;- When things are fine, banks lend money to each other overnight to meet short term obligations (Repo')- In Sep 2019 the system broke-down, as the banks no longer trusted each other to have the funds to honour the debt.- The Fed stepped in and gave them oceans of printed money. Good for inflation, bad for everyone else.- Now the banks are flush, and no longer need overnight loans (No Repo).- The Fed likes printing money, and we all know The Powers That Shouldn't Be love the idea of crazy inflation, so now The Fed are buying bonds from the banks which means more money printing (Reverse Repo).- People have noticed The Fed has printed yet another $1tn dollars and started to ask questions (Reverse Repo Crisis).Upshot for me and you... serious inflation incoming. Buy gold, buy silver.About right?</blockquote>

[QUOTE="brotherjimbob, post: 1513553, member: 23061"] So So 'reverse repo' is a misleading label, really? Better 'Fed Repo'? That's not how I understood the George Gammon video though (not that I understand this at all) 'Reverse Repo' would be the Fed borrowing overnight from the banks, because the Fed couldn't meet it's obligations, no? Which actually wouldn't make sense. So I'm just spreading confusion. Sorry. So to make it as simple as possible; - When things are fine, banks lend money to each other overnight to meet short term obligations (Repo') - In Sep 2019 the system broke-down, as the banks no longer trusted each other to have the funds to honour the debt. - The Fed stepped in and gave them oceans of printed money. Good for inflation, bad for everyone else. - Now the banks are flush, and no longer need overnight loans (No Repo). - The Fed likes printing money, and we all know The Powers That Shouldn't Be love the idea of crazy inflation, so now The Fed are buying bonds from the banks which means more money printing (Reverse Repo). - People have noticed The Fed has printed yet another $1tn dollars and started to ask questions (Reverse Repo Crisis). Upshot for me and you... serious inflation incoming. Buy gold, buy silver. About right? [/QUOTE]

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