Repo meltdown shows budget deficit has limits
“Ballooning Treasury auctions have placed a heavy burden on the financial system, forcing the Fed’s hand.”
USAGOLD note: As of a few days ago, the addition to the national debt for fiscal year 2019 went over the $1 trillion mark. “[T]he amount of U.S. Treasury securities outstanding,” says Chapatta, “has roughly tripled since the financial crisis.” That’s a large load to carry and its weight is making itself known in the overnight repo market where banks scramble for liquidity.
Repost from 9-27-2019