Rafi Farber: Gold and Silver Break Out As Fed Considers Dumping $2.3 Trillion Back Into Banks

#RafiFarber – Gold and Silver Break Out As Fed Considers Dumping $2.3 Trillion Back Into Banks

Back in 2020 and 2021 when the Federal Reserve printed about $6.5 trillion dollars, $2.3 trillion more on top of that gargantuan sum ended up in a monetary horror funhouse called “reverse repos”. Financial institutions could dump their extra cashback in this thing managed by the Fed in return for interest at the overnight rate.

Now this facility is sucking sterile money out of bank deposits in return for that interest, being offered by brokerages to their clients through money market funds. And now, to “save the banks”, the Fed is considering ending the reverse repo facility entirely, which would slam the banking system with $2.3 trillion and cripple money market funds at the same time!

But don’t worry. Fed officials say there will be little to no consequences from this. Meanwhile, gold is flirting with new highs and silver is finally catching up. All is well in the monetary horror funhouse.

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