REPO VS QE, Gold Standard, Banks… Q&A with Lynette Zang and Eric Griffin
- ITM Trading
Slides and Links: https://www.itmtrading.com/blog/repo-…
Question 1. Wayne L: Are there any reasons for backing a currency with gold other than stopping the government/bankers from creating more currency out of thin air?
Question 2. Rob I: What’s the difference between the Feds repo events and QE?
Question 3. Albert S: In 2008, we saw a similar uncontrolled spike in the fed funds rate as we have seen recently. Only in 2019 it is a much bigger spike with much more debt and deficits. In 2008 we got an immediate QE of $1 trillion in the Fed balance sheet. Do you expect that we could get an even larger QE4 today?
Question 4. Finditmedia: So does the FED’s Repo Intervention mean that the bank don’t trust each other? Is this indicating that some banks are worried that other banks could fail at any moment?
Question 5. Mark H: I am curious about the hyper-inflation likely coming and if I will be paying my same fixed rate mortgage but with inflated dollars or will the mortgage banks reset the principle owed into hyper-inflationary dollars also?
end