Oct. 24 at 3:01 PM
$JNUG $B $GLD $SLV $GDX
US FEDERAL RESERVE WILL PRINT
$1.X.5 TRILLION FOLLOWING OCTOBER AND NOVEMBER INTEREST RATE CUTS
The
$1.X.5 trillion “money printing” isn’t optional. Banks don’t have enough reserves — they’ve fallen below the safe level the Fed wants (under 10% of the economy). If the Fed doesn’t step in, the system could start to fail
This is similar to what happened in Sept 2019, when banks suddenly ran out of cash to lend overnight. Interest rates jumped from about 2% to 10% in a few hours, & the Fed had to step in & pump money into the system
The “reverse repo facility” — a kind of emergency cash stash for banks — is almost empty now. So there’s no cushion left if things tighten again
The Fed will likely say this is just a “technical adjustment” to sound calm, but in reality, it’s an emergency move to stop a cash (liquidity) crisis
The issue isn’t just that money is expensive (high interest rates) — it’s that there isn’t enough money flowing through the system
