Title: RECORD $100B in T-Bills Issued as U.S. Debt Crisis Turns Desperate Source:
[None] URL Source:https://www.youtube.com/watch?v=vmqrrGDXhHY Published:Aug 7, 2025 Author:Horse Post Date:2025-08-07 12:43:45 by Horse Keywords:None Views:56 Comments:6
The Federal Reserve has been using the Reverse Repo (RRP) tool to manage the federal funds rate and absorb excess liquidity in the financial system. According to the Federal Reserve, the RRP is a tool that allows the central bank to absorb liquidity from the financial system and maintain control over short-term interest rates 1. The Reverse Repo tool has been used to manage the federal funds rate and help the Fed achieve its dual mandate of maximum employment and stable prices 2.
The Reverse Repo tool involves the Fed selling short-term securities to banks and other financial institutions, which then deposit the proceeds in the Fed's reverse repo facility. This process absorbs liquidity from the financial system and helps the Fed manage the federal funds rate 3. The use of the Reverse Repo tool has been instrumental in helping the Fed to implement monetary policy and maintain financial stability 4.
The Reverse Repo tool has been used in conjunction with other monetary policy tools, such as the Federal Open Market Committee's (FOMC) decisions on interest rates, to help the Fed achieve its policy objectives 5. The use of the Reverse Repo tool has been particularly important in recent years, as the Fed has sought to navigate the challenges posed by the COVID-19 pandemic and other global economic developments 6.
The Reverse Repo tool is an important tool for the Federal Reserve, and its use has been instrumental in helping the Fed to implement monetary policy and maintain financial stability 7. However, the effectiveness of the Reverse Repo tool can be influenced by a range of factors, including the state of the economy and the level of liquidity in the financial system 8.
Would you like me to elaborate on the Reverse Repo tool and its role in Federal Reserve monetary policy? (From the AI at Brave Browser)
The Reverse Repo (RRP) tool is a monetary policy instrument used by the Federal Reserve to absorb excess liquidity from the financial system and influence short-term interest rates. The tool allows the Fed to sell short-term securities to banks and other financial institutions, which then deposit the proceeds in the Fed's reverse repo facility.
How Reverse Repo Works
Here is a step-by-step explanation of the Reverse Repo process:
Fed Sells Securities: The Fed sells short-term securities (e.g., Treasury bills or commercial paper) to banks and other financial institutions at a price equal to their face value.
Banks Deposit Proceeds: The banks and financial institutions deposit the proceeds from the sale of securities into the Fed's reverse repo facility.
Fed Absorbs Liquidity: The Fed absorbs the liquidity from the financial system by holding the deposited proceeds in its reverse repo facility. Interest Rate Impact: The Fed sets the interest rate on the reverse repo facility, which influences the federal funds rate (the interest rate at which banks lend and borrow money from each other). Role of Reverse Repo in Federal Reserve Monetary Policy
The Reverse Repo tool plays a crucial role in Federal Reserve monetary policy by:
Managing Liquidity: The Reverse Repo tool helps the Fed to manage the level of liquidity in the financial system, preventing excessive borrowing and inflation.
Influencing Short-Term Interest Rates: By setting the interest rate on the reverse repo facility, the Fed can influence the federal funds rate, which has a ripple effect on other short-term interest rates.
Implementing Monetary Policy: The Reverse Repo tool is used in conjunction with other monetary policy tools, such as the Federal Open Market Committee's (FOMC) decisions on interest rates, to help the Fed achieve its policy objectives.
Benefits and Challenges of Reverse Repo
The Reverse Repo tool has several benefits, including:
Effective liquidity management
Influence on short-term interest rates
Flexibility in monetary policy implementation
However, the Reverse Repo tool also has some challenges, including:
Risk of market volatility
Potential for unintended consequences
Dependence on market conditions
Poster Comment:
THIS IS A MAJOR DEVELOPMENT. THE FED MIGHT HAVE TO BUY IT.
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#1. To: Pinguinite, Esso, Dakmar, titorite, ghostrider (#0)
My idea is this. The Treasury can seize the FED under RICO. The FED issues non-interest-bearing Greenbacks. The FED bans fractional reserve banking. We issue a Stablecoin. The Treasury also issues checking account dollars. This is what Professor Irving Fisher called 100% money back in the 1920s.
We can make a deal with foreign countries. We can go to Italy and offer them $100 billion in checking account money, interest free. The purchase price would be $20 billion in US debt which we would retire from circulation. This would give the Italians $80 billion dollars in free money to spend.
Horse, your posts from YouTube come across as wide screen, making it difficult to read the 4um comments. I actually harbor a bit of animosity toward having to scroll horizontally. :)
There are easy ways to resize, I usually just grab the embed code from the Miniplayer view
“I am not one of those weak-spirited, sappy Americans who want to be liked by all the people around them. I don’t care if people hate my guts; I assume most of them do. The important question is whether they are in a position to do anything about it. My affections, being concentrated over a few people, are not spread all over Hell in a vile attempt to placate sulky, worthless shits.” - William S Burroughs
I see really small videos that are hard to see. I don't know how to grab the embed code from the Miniplayer view. This video is big but others are too small.
In my spare time I'm working to recreate 4um using better next generation tools that will make things like the YT embeds far more friendly. The code running it now was first written in 2002. Pretty remarkable that it's lasted this long, and by far my most successful project by lifespan, but it's time to give the site a complete overhaul.