The Fed’s balance sheet crossed the $8.2 trillion mark this week, up a staggering $105 billion from, well, last week!
No, you can’t make this stuff up. We well and truly have a camarilla of monetary arsonists in control of the financial system, and they are literally dousing everything in sight with monetary kerosene.
For want of doubt, here is the Fed’s balance sheet during the last 688 days. We chose that particular time span because it began on August 28, 2019 when the Fed’s short-lived effort to “normalize” its balance sheet ended abruptly in response to the “repo ruckus” in the bond pits. The latter was a momentary flare-up when Wall Street speculators, who fund their huge troves of treasury securities on 95% or better leverage in the overnight repo market, suddenly had to pay 5% rather than 2% to carry their holdings.
Of course, we’d say: So what!