FRED:WORAL   Assets: Other: Repurchase Agreements: Wednesday Level
Just a short update for today. It is important, so it deserves an idea on its own.

For the first time since 2019, the FED is now officially giving money into the system.

What could this mean for the US economy? Are they sensing weakness or is this just a response to the recent banking crises?

Now let's look at the history of bailouts.

Price made a higher-high, and stayed high for months until the GFC.

Similarly in 2019, without anyone concerned about recession, the FED pivoted and cut rates.

This might be the beginning of more bailouts. Who knows how many more...

There is a big difference however...
Historically, during periods of economic weakness, the money input was higher than the output.
Now, the scale of money going out of the system is astronomical.
So much so, that is literally bull-flagging.

Money supply metrics cannot be ignored.
Record low RSI for money supply.

Beware, these scale of these events is incalculable. The numbers we witness here are massive (RRPONTTLD).
The money supply monster we have created is more powerful than it's creator.
What must be done to fight it? And who will be the first to fall?

Do note that RRPONTTLD is a sum of agreements. The effect of such a dramatic money drain out of the system will take years to show itself. This M2SL drop is just the tip of the money-berg.

Tread lightly, for this is hallowed ground.
-Father Grigori
코멘트:
60B. B as in Bailout haha
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