The alarming contraction in bank credit, an event occurring only once in the past 50 years, adds a foreboding dimension to the rapid depletion of the 2 trillion-dollar Reverse Repo pot. As Wall Street grapples with financing challenges for Washington’s deficits, the ominous trajectory raises concerns about the stability of the financial system. At this accelerated rate, the strain on monetary dynamics prompts a warning that something is bound to break, heightening the urgency to prepare for the impending financial uncertainties likely to unfold around March/April 2024.
What happens when all the Fed-printed funny money stuffed into Big Bank coffers that is currently buying US Treasury debt runs out? I don't know, but we'll find out somewhere around March/April 2024: t.co/bMvD2cUdbM pic.twitter.com/xEogq93j4k
— Chris "Context Matters" Martenson, PhD (@chrismartenson) November 22, 2023
WARNING: Bank credit is officially contracting
This has only happened once in the past 50 years
At this rate, something is bound to break pic.twitter.com/7DhTJH74g4
— Game of Trades (@GameofTrades_) November 22, 2023