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Letter Re: A Federal Reserve Balance Sheet Disaster
Dear Jim,
I just read on a[nother] blog about an imminent Federal
Reserve disaster.
There's no [mainstream] news coverage on it yet so this qualifies as a serious
heads up.
Note the second numeric column. $40 Billion, has been since 1913, by law. Then
notice 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.
How bad is it? Think Weimar Republic. The Fed can no longer stop inflation
because the banks can't secure new money with debt. People aren't buying debt
anymore. Ergo, hyperinflation is the natural consequence. Mark this day on
your calendar. Best, - InyoKern
JWR Replies: In case you missed it, I mentioned the following
in Friday's Odds 'n Sods: Hawaiian K. pointed out this
Federal Reserve chart, showing that the Net Free
or Borrowed Reserves (NFORBRES)
of Depository Institutions just fell
off a cliff. Let's pray that there aren't any bank runs soon, because the
till is empty. It is
a
jolly
good
thing
that
the
Fed
is handing
out so much cheap money these days, so the member banks can list part of
these
funds
as "reserves."
