Fed Pumps Emergency Liquidity into the System

EIR is receiving reports that the Federal Reserve has massively pumped liquidity in the repo market, using the Standing Repo Facility. Some reports speak about a $30 billion line of liquidity, but other mechanisms may have put the number at over $50 billion. EIR had anticipated that this would occur because of the density of warnings from central banks in the past weeks about the threat of a financial crisis. Money and investment funds have reportedly parked their excess liquidity at the central bank, fearing bank insolvencies. We are in a bank bailout mode again, whose dimensions—and the hyperinflationary potential—might be larger than in 2008.