Rising inflation means rates are likely to rise.
Investing at fixed rates in a rising rate environment is unwise.
Reverse repo rates change daily, reflecting inter Alia inflationary expectations.
The Fed represents a counter party without credit risk.
The banks can park all that excess liquidity overnight at the Fed via reverse repos.
This is liquidity, risk, and interest rate management 101, not the Great Reset or the Boogie Man or Soros et al.
Conservatives are sounding like tin foil hatted libs in 2002, where everything was "Halliburton, Halliburton, Halliburton," even if it had noting to do with Halliburton.
But I bet this kind of economic fearporn keeps sure keeps Anthony B. Sanders liquid.
Just perfect!
I am skeptical of any prediction made regardless of “politics”.
However, while I am not an “economist”, I am a student of history and understood my own household budget.
We are on an unsustainable path financially as a nation.
The machinations of those who control the levers of our “currency” are to benefit themselves - not the average American.
There is no existential threat to our nation that warrants saddling my children and grandchildren with debt. That was true under Trump and its true now just as it was true under his predecessors. The only massive debt that was a benefit in my lifetime was Reagan’s divinely inspired drive to collapse the USSR and that debt was incurred because of “compromise” in our nations capital. That “compromise” was the impetus that has brought us to 30 trillion in debt and many times more in unfunded liability.
There are powerful forces on the world stage who would like to bring America to its knees.
The collapse of our currency and its status in the world is as predictable to me as the coming of Christ. I don’t know when it will happen nor does anyone else but it WILL happen.
When the trajectory of a currency is that it is worth LESS than it was when deposited in a “bank” the currency is in trouble. We might be there in our own nation and other nations are in the same spot so when it all collapses look for the “Davos crowd” and the elites to propose a new centralized banking system to avoid the very behavior they grew wealthy from.
If that makes me a tin-foil hat person so be it. I am quite confident of what I wrote above even if I am skeptical of momentary predictions.
It is inevitable.
It's already "parked" at the Fed. Moved from Reserve to Repo.