About this episode
Summary:Since Summer 2023, the Federal Reserve has been reducing its balance sheet and thus reducing the base money supply available to member banks. However, the $2 trillion that has flowed out of the money supply during this “tightening” has been matched dollar for dollar by money flowing back into the economy from the Reverse Repo Market. Now, as the Reverse Repo Market balance approaches zero, the Fed will have to decide whether it continues to shrink its balance sheet and decrease the money supply for real, bringing on a possible financial crisis, or freeze or increase its balance sheet and bring back high “inflation.”A reckoning is coming soon.Links:Watch on YouTubeIs the Fed Loosening or Tightening? It’s ComplicatedReverse Repo Market ChartReverse Repo Award RateFederal Reserve Balance Sheet ChartM2 Money SupplyFree Gifts from Tom:Get a free copy of It’s the Fed, Stupid at itsthefedstupid.com!Learn more about the philosophical differences between conservatives, liberals, and the founding fathers in this free excerpt of Tom’s 2015 book, Where Do Conservatives and Liberals Come From?Check out Tom’s new podcast, Tom Mullen Talks Movies!Like the music on Tom Mullen Talks Freedom? You can hear more at tommullensings.com!
