15 Comments

As is your norm, excellent article. Particularly enjoyed your labeling the "Chart of Doom"

Point of clarity though. I believe the cumulative deficit is only 14.3b thus far (see table 6 Liabilities, Earnings and Remittances Due to the US Treasury from most recent H.4.1 https://www.federalreserve.gov/releases/h41/20221215/), but perhaps I am looking in the wrong place. How did you derive the 48b number?

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founding

Thank you Bear! Another great writeup!

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Outstanding analysis. I have been following you for a little while and have enjoyed all you have written thus far.

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Great article! Thanks for explaining this. It seems to me whatever the Fed does acts against it’s own interests to a degree. I believe this is likely because the Fed is itself an unnatural institute which works against free market principles, and so the free market principles reciprocate pressure.

I would love to hear your speculative analysis on the currently discussed subject of a central bank digital currency.

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Dec 17, 2022·edited Dec 17, 2022

Basic question:

Why does the Fed need the IORB and the RRP?

Why do they need to borrow this much money? $5.3trillion.

I'm sure their operational expenses aren't that high.

Is it to help the financial system to operate appropriately and efficiently?

What does the IORB/RRP accomplish? Does it make money markets less volatile?

Jus trying to understand it.

Echoing others, thank you TLBS for all the excellent learnings.

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Wow, I have no words to describe what I’m learning from you, is super valuable. Again, can’t thank you enough for the work that you put for free, keep it going TLBS!!

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