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.
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Fed Pumps Emergency Liquidity into the System
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