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Month: December 2019

The Second Repo Crisis Just Days Away – And This Time It Will Be Worse

September 16th marked the beginning of the recent repo crisis. If you are unfamiliar with the repo market, I highly suggest watching this video before you read this post. Since then, the Fed has been in emergency mode, effectively “bailing out” the overnight cash repo markets continuously. These efforts were supposed to allow banks some […]

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Maturity Transformation: Transferring Risk from the Elites to the Public

Maturity transformation should be illegal. Maturity transformation is the process by which short-term deposits at banks are lent out as long-term obligations. Deposits, which are redeemable at any time, are not actually available. They are tied up in loans that are not redeemable. This makes fractional reserve banking even worse than it would be by […]

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The Biggest Con of Our Lives: The Federal Reserve has Convinced America We Need Higher Inflation

The Federal Reserve is considering a much more aggressive approach to raising inflation.  Seeking higher inflation is perhaps the biggest con of our day.  The number one most important thing to understand about inflation is this: Rising prices are not healthy. Falling prices are.  The “deflation bogeyman” was invented in 2002 by none other than […]

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