The Federal Reserve is all dried up.
- added February 7, 2008
- 3 responses
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- abbym0308
- added this
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The till is empty. Empty is an understatement. If this Federal Reserve chart is right, then the the Net Free or Borrowed Reserves (NFORBRES) of Depository Institutions just fell off a cliff. Note the second numeric column (See Chart at the link). It starts at $40 Billion, where it's been since 1913, by law. Then it suddenly drops to $198 million and then two days ago the report lists the banks as minus $8.7 Billion, something which has never happened before.
"Think Weimar Republic. The Fed can no longer stop inflation because the banks can not secure new money with debt. People aren't buying debt anymore. Ergo, hyperinflation is the natural consequence."
Uh oh.
"Think Weimar Republic. The Fed can no longer stop inflation because the banks can not secure new money with debt. People aren't buying debt anymore. Ergo, hyperinflation is the natural consequence."
Uh oh.
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How many days till Bush is out of office?
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Greenspan was messing up the market long before Bush. And I think we are still consulting him.
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- TheRealEdwin
- 6 months ago
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