categoryMenu_new
 
  Home
  EXTRAORDINARY AH Teaching from Spiritual Hierarchy
  AbundantHope
  NEW READERS! Read Here First
  Supporting AH
  Leadership of AbundantHope
  Announcements
  Regional AH Sites
  Other Sites with AH material
  Contact Us
  Becoming A Messiah
  OUR PUBLIC FORUM IS OPEN TOO ALL
  Mission Ideas
  System Busting
  Cleric Letter/English
  Translations of Cleric Letter
  AH Member Writings
  Candace
  Ron
  Rosie
  Jess
  Brian's Poetry
  James
  Giuseppe
  Esteban
  Telepathic Messages
  Candace
  Jess Anthony
  Vince
  Leonette
  John
  Adam
  Bela
  Joyce
  Hazel
  Kibo
  Peter
  Rosie
  Johan
  Lucia
  Lucia G
  Rubens
  Shellee-Kim
  Ben
  Dorothea
  Solon
  Others
  Targeted Messages
  Hano
  Light Flower
  Changing The Face Of Religion
  - Phoenix Journals - PDF in German
  Candace on Religion
  Other Spiritual Pieces
  Spiritual Nuggets by the Masters
  Phoenix Journals
  Phoenix Journals - PDF
  Telepathic Messages PDF books
  Selections from the Urantia Book
  Illustrations For The Urantia Book
  CMGSN Pieces
  THE WAVE
  Environment/Science
  David Crayford and the ITC
  Health and Nutrition
  Podcasts, Radio Shows, Video by AH
  Political Information
  True US History
  Human/Animal Rights
  The Miracle That Is Me
  Education
  Resources
  911 Material
  Books - eBooks
  government email/phone #'s
  Self Reliance
  Video
  Websites
  Alternative News Sources
  Art and Music
  Foreign Sites
  Health and Healing
  Human/Animal Rights
  Scientific
  Spiritual
  Vegan Recipes
  Translated Material
  Dutch
  Gekanaliseerde berichten Jess
  Gekanaliseerde berichten Candace
  Gekanaliseerde berichten Anderen
  Artikelen/berichten
  French
  Canal Jess
  Par Candace
  Other Channels
  Articles
  German
  Telepathische Nachrichten (Candace)
  Telepathische Nachrichten (Jess)
  Telepathische Nachrichten (div.)
  AH Mitgliederbeiträge (Candace)
  AH Mitgliederbeiträge (Jess)
  Spirituelle Schätze
  Italian
  Translations - Candace
  Translations - Jess
  Translations - Others
  Portuguese
  by Candace
  By Jess
  By Others
  Spanish
  Anfitriones Divinos
  Bitácoras Fénix
  Creadores-de-Alas (WingMakers/Lyricus)
  Escritos de Candace
  Escritos de Otros
  Monjoronsón
  Telemensajes de Candace
  Telemensajes de Jess Anthony
  Telemensajes de Otros
  Chinese
  By Candace
  By Jess
  By Others
  Korean Translations
  Hungarian Translations
  Swedish Translations

Search
[an error occurred while processing this directive]
Political Information : True US History Last Updated: Jan 14, 2020 - 12:07:47 PM


"Massive... Huge... Largest Ever": Fed Will Flood Market With Gargantuan $500 Billion In Liquidity To Avoid Year-End Repo Crisis
By Tyler Durden
Dec 13, 2019 - 6:34:11 PM

Email this article
 Printer friendly page Share/Bookmark

https://www.zerohedge.com/markets/avoid-repo-crisis-fed-will-flood-market-gargantuan-365-billion-year-end-liquidity

In previewing today's Fed statement regarding repurchase operations, on Tuesday Curvature Securities repo expert Scott Skyrm said that he expects the Fed to announce a $50 billion (at least) term operation for Monday December 23 (double the current term ops) and a $50 billion (at least) term operation for Monday, December 30. This prediction was in response to Zoltan Pozsar's warning that reserve levels are too low and the result would be a market crash that could spark QE4.

Well, moments ago the NY Fed did publish it latest weekly "Statement Regarding Repurchase Operations" as expected laying out the Fed's expected repo operations for the period December 13 - January 14... and it blew Skyrm's expectations out of the water

According to the statement, the NY Fed will continue to offer two-week term repo operations twice per week, four of which span year end. In addition, the Desk will also offer another longer-maturity term repo operation that spans year end. The amount offered in this operation will be at least $50 billion, just as Skyrm expected.

But there was more. Much more.

In addition, to prevent a cascading year-end liquidity squeeze, Fed overnight repo operations will continue to be held each day, and just to be safe, the Fed will go to town by substantially expanding their size: On December 31, 2019 and January 2, 2020, the overnight repo offering will increase to at least $150 billion to cover the "turn" in a flood of overnight liquidity. In addition, on December 30, 2019, the Desk will offer a $75 billion repo that settles on December 31, 2019 and matures on January 2, 2020.

And just in case that's not enough, the NY Fed's markets desk also added that it "intends to adjust the timing and amounts of repo operations as needed to mitigate the risk of money market pressures that could adversely affect policy implementation, consistent with the directive from the FOMC."

What the Fed means is that in addition to expanding the sizes of its "turn" overnight repos to $150 billion, the Fed will conduct a total of nine term repos covering the year-end turn from Dec 16 to Jan 14, 8 of which will amount to $35BN and the first will be $50BN, for a total injection of a whopping $365 billion in the coming month.

And visually:

In other words, instead of QE4 the Fed will flood the repo market with a firehose of liquidity.

Here is how Curvature's Skyrm summarized this:

One word: "Massive". A few more words: The largest series of RP operations ever! The Fed announced it's RP operations schedule for the next few weeks and it's huge!

Here are my calculations:

There are two existing $25 billion term operations over the Turn already in the market totaling $50 billion

The Fed committed to at least a $150 billion overnight operation on year-end

A REG-start year-end operation on the day before year-end of $75 billion

Between now and year-end a total of 6 term RP operations totaling $225 billion

All total, I count the Fed committed to pump $500 billion in the Repo market over year-end. Naturally, the Turn (12/31-1/2) rallied a bit today. Trading from 4.25% yesterday to 3.80% today

There's more: add in the incremental liquidity from the expanded overnight repo of about $50 billion and another $60 billion in T-Bill purchases, and the Fed will inject a total of just shy of $500 billion in the next 30 days!

This also means that by Jan 14, the Fed's balance sheet would have grown by a cumulative $365BN in "temporary" repos, and together with the expanded overnight repos, and the $60BN in monthly TBill purchases, and by mid-January, the Fed's balance sheet, currently at $4.066 trillion, will surpass its all time high of $4.5 trillion!

The question then is whether this will be sufficient to refute the repo Doomsday predicted by Pozsar, one which was supposed to launch QE4, or will the Fed's gargantuan liquidity injection still not be enough and lead to a collapse in the repo market. We will find out in the next three weeks.




All writings by members of AbundantHope are copyrighted by
©2005-2020 AbundantHope - All rights reserved

Detailed explanation of AbundantHope's Copyrights are found here


Top of Page

True US History
Latest Headlines
Are You Loving Your Servitude ? (Part 2)
Texas School Officials Caught Promoting Marxism & Terrorism
The Injection Fraud – It’s Not a Vaccine
Veteran Virologist Slams Mainstream Media's "Misinformation" About An Effective COVID Treatment
Flashback – Jewish Bill Gates: Crypto-Jew, Pseudo-Christian
NEVER FORGET: Swine Flu Vaccine Rushed to Market Ended Up Paralyzing 500 Americans
T-Mobile Switches on Standalone 5G Network, expands coverage by 30 percent
Understanding The Gravity Of The Russia Hoax
Insider Exposes LGBT Invasion of Public Schools
Trump “October Surprise” Roswell And Durham Revelations Warned Will Plunge America Into Chaos
“This Is America And It’s A War Zone” Cry Slams Into “There’s Not Going To Be An Election Night” Reality
“Beware The Guns Of August” Final Warning Issued—United States-Communist China War Unstoppable
The United States of America Has 2 Constitutions
The Pentagon’s New UFO Disclosures: 75 Years of MK Ultra Psy Ops
Minneapolis Police Department Tells Residents to Cooperate with Criminals, ‘Do as They Say – Give Up Your Wallet, Purse and Cell Phone’
Can Trump Postpone the Election? Maybe He Can!
Are You Loving Your Servitude ?
Church Will Fight Ventura County Threat to Shut it Down
Hydroxychloroquine, COVID, FDA; and Pharma and all its whores around the world
Crash the Economy, Burn the Cities, Infect the People: the Evil Plan to Remake America