This Mysterious Document Reveals Why The Fed Just Shocked Everyone…

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Cameron Long

Cameron Long

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35 Comments

    1. With the money supply / inflation up how it is, a small percentage is many more trillions than the 80s.
      Only problem is, not everyone is a millionaire.

  1. BTFP was to provide liquidity for banks who experienced deposit flight so that they did not have to recognize losses on USTs. I wonder if they banks are now experiencing losses on their loan portfolios and now using BTFP in a manner to loan/sell what you can because auto, commercial estate and other loans are impaired and un-sellable.

    1. Curious to see what happens in March. No way this goes away. They’ll have to extend and massively expand this “temporary” program or banks start going bust again.

  2. How money’s value is manipulated is a scam. I would like the ability to revalue my savings higher too.

  3. Great video George. Also note that these banks bought these bonds using leverage. That means that the total is at least 30x what we see. I’m betting the Fed extends the BTFP come March 12th 2024.

  4. Great content George. Daniela Di Martino also makes an interesting point regarding liquidity and the election cycle. Once the Reverse Repo liquidity gets fully drawn, Treasury auctions will really start draining more liquidity out of the system. So far, Treasury auctions have been a net wash, as the banks have used the liquidity parked at the Fed under the Reverse Repo to buy these Treasuries (you can chart the inverse of the Reverse Repo balances against the Treasury account balances to see what I mean). Unless the Fed keeps the BTFP open by ballooning it way beyond what we have seen so far (BTFP flows are tiny compared to Reverse Repo), or the Fed starts increasing its balance sheet with Treasuries, liquidity tightness will become extreme (and things will really, really break). Don’t count on fiscal stimulus this time, as Congress will not approve any form of helicopter money before the elections. At the current rate of decline, the Reverse Repo could be fully drawn by as early as the first week of February. That’s a very long, long way until November.

    1. @@crazyinvestor5987 Yup, that’s very likely how it will play out……and would mark the very end of the Fed’s credibility. The Fed Put will be as dependable as the sun rising every morning, to be enjoyed with a daily dose of your favorite “Inflation” coffee blend.

    2. Also remember that Powell is on record stating the reverse repo has served it’s function, & is being intentionally drained. If you believe that, I’ve got a near new bridge, in Crimea, I can sell you.

  5. 👍🏻👍🏻Another amazing vid!!
    Well done George. Charts and data collection were very well presented. Thorough insight!

  6. @George is it possible that the BTFP ticked up because more money is moving into assets since the Fed indicated rate cuts?

  7. Given reduced inflation signals and as the Federal Reserve has halted rate hikes, what are the best additions for a $500K portfolio to enhance the overall performance of my portfolio next year

    1. Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions. Alternatively speaking to a certified market strategist can help with pointers on equities to acquire

    2. True, some folks employ hedging strategies or devote a portion of their portfolio to defensive assets that perform well during market downturns and such pointers are provided by engaging the services of market experts just like i did in 2019, amid rona-outbreak, and as of today, i can boost of a 45% enhancement on my $1m portfolio after acquiring assets recommended by my advisor.

    3. Nicole Desiree Simon deserves credit as one of the finest portfolio managers in the industry. Her reputation precedes her, and I highly recommend looking her up to locate her online if you are internet-savvy

    4. Thank you for sharing, I must say, Nicole appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled a call

  8. Question: Could it be that due to the drop in rates, the treasuries the Fed is holding in the BTFD program have simply increased in value and the banks are not actually taking more loans? JB

  9. George, thank you for your humor. It’s appreciated when looking at the situation US economy is in. I love the way you back up your opinions with charts/stats.

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