(Zero Hedge)—Bank reserves at The Fed rose considerably last week expanding The Fed’s balance sheet by the most since the SVB crisis last March – as usage of The Fed’s BTFP bank-bailout facility pushed to a new record high (amid increasing arbitrage flows).
But, after four straight weeks of inflows, seasonally-adjusted bank deposits saw $23.3BN outflows in the first week of 2024…
And, on a non-seasonally-adjusted basis, deposits also saw an outflow (-$33.7BN) after five weeks in a row of inflows (NSA)…
Which means that while money-market funds hit a new record high, bank deposits did pull back a little (despite the drain in RRP filling the liquidity gap)…
Excluding foreign bank flows, domestic banks saw deposit outflows of just over $40BN (SA and NSA) – the first in 5 weeks…
Large banks dominated that deposit outflow (Large -$39.9BN, Small -$347MN)…
On the other side of the ledger, Large bank loan volumes tumbled (-$16.6BN) for the 5th week in row (small bank loan volume rose $4.3BN)…
The Fed’s reverse repo facility is draining fast (faster each week), getting closer and closer to zero…
…at which point reserves get yanked, which mean huge deposit flight.
And the embarrassing surge in usage of The Fed’s BTFP for free-money-arbitrage…
…will make it hard for The Fed to defend leaving the facility open after March when its “temporary” nature is supposed to expire.
“In justifying the generous terms of the original program, the Fed cited the ‘unusual and exigent’ market conditions facing the banking industry following last spring’s deposit runs,” Wrightson ICAP economist Lou Crandall wrote in a note to clients.
“It would be difficult to defend a renewal in today’s more normal environment.”
Which means, as we pointed out earlier in the week, “March will be lit”…
March will be lit:
1. Reverse repo ends
2. BTFP expires
3. Fed cuts (allegedly)
4. QT ends (allegedly)— zerohedge (@zerohedge) January 8, 2024
Because without the help of The Fed’s BTFP, the regional banking crisis is back bigly (red line), and large bank cash needs a home – green line – like picking up a small bank from the FDIC…
And now you know why The Fed will cut rates in March – no matter what jobs or inflation is doing.
Controlling Protein Is One of the Globalists’ Primary Goals
Between the globalists, corporate interests, and our own government, the food supply is being targeted from multiple angles. It isn’t just silly regulations and misguided subsidies driving natural foods away. Bird flu, sabotaged food processing plants, mysterious deaths of entire cattle herds, arson attacks, and an incessant push to make climate change the primary consideration for all things are combining for a perfect storm to exacerbate the ongoing food crisis.
The primary target is protein. Specifically, they’re going after beef as the environmental boogeyman. They want us eating vegetable-based proteins, lab-grown meat, or even bugs instead of anything that walked the pastures of America. This is why we launched a long-term storage prepper beef company that provides high-quality food that’s shelf-stable for up to 25-years.
At Prepper All-Naturals, we believe Americans should be eating real food today and into the future regardless of what the powers-that-be demand of us. We will never use lab-grown beef. We will never allow our cattle to be injected with mRNA vaccines. We will never bow to the draconian diktats of the climate change cult.
Visit Prepper All-Naturals and use promo code “veterans25” to get 25% off plus free shipping on Ribeye, NY Strip, Tenderloin, and other high-quality cuts of beef. It’s cooked sous vide, then freeze dried and packaged with no other ingredients, just beef. Stock up for the long haul today.
Within the last year or two, BAC and JPM were listed as most likely to fail. Thanks to Dodd-Frank, banks too big to fail can save themselves by taking customers deposits to fix the losses called bail ins. We have gradually moved our money from one of the aforementioned banks into several community banks. Said differently, moved the eggs from one basket into several baskets.
Consider a local credit union as at least one of those baskets. We moved our money from BAC into one after the bankster bailout; should have done it sooner. CUs are nonprofits that work for their customers, not shareholders. And the CU insurance fund is solvent (unlike the FDIC). As for bail-ins, better the foolish depositors take a haircut than the taxpayers.
Too big to fail. To minority to go to prison. That is the state of lawlessness these days.