San Francisco Fed President Mary Daly, who makes $422,900 per year – and scrambled out of dozens of investments last year shortly before the Fed finalized strict new limits on policymakers’ portfolios – just had her ‘Nancy Pelosi Ice Cream” moment, dropping a sidewalk-spattering turd from her ivory tower on the average struggling American.
During an interview with Reuters broadcast live on Twitter spaces, Daly said: “I don’t feel the pain of inflation anymore. I see prices rising but I have enough… I sometimes balk at the price of things, but I don’t find myself in a space where I have to make tradeoffs because I have enough, and many Americans have enough.”
The Fed’s QE may be over, and QT may be just starting (it won’t last long), but don’t think the Fed free money giveaway is ending any time soon. In fact, for a handful of happy, mostly anonymous counterparties, the real free-money bonanza has just begun!
Case in point: the Fed’s reverse repo facility. While one can debate for hours why there is a record $2.330 trillion in cash parked at the Fed’s overnight facility and what it means for systemic plumbing problems, the fact is that there is a record $2.33 trillion in cash parked at the Fed’s overnight facility, doing nothing.
Well not nothing: it was nothing when rates were zero, but at 1.55% which is the current reverse repo rate, that $2.33 trillion is a golden goose for the 108 counterparties that are parking cash at the facility, a mixture of money market funds, banks, GSEs and various other financial intermediaries.
How big is this particular Golden Goose? The chart below shows the payment in interest that the Fed makes day on this record $2.33 trillion in funds: as of today it amounts to just over $100 million every single day! That’s right, more than $100 million in interest payments on funds parked with the Fed, which is by definition the world’s only risk-free counterparty!
Lael Brainard – recently nominated as Joe Biden’s Federal Reserve Vice Chairman – controversially refused to label the Chinese Communist Party (CCP) a currency manipulator during her stint in the Obama administration and is married to Kurt Campbell, who has deep ties to Beijing’s foreign influence operations and propaganda organs, The National Pulse can exclusively reveal.
When reporting on the nomination of Brainard earlier this week, corporate media outlets all neglected to mention the nepotistic appointment, as well as Brainard’s long-standing ties to CCP influence groups.
As Treasury’s top diplomat from 2010 to 2013, Brainard oversaw eight reports that all cleared China of its well-documented practice of currency manipulation and failed to ever criticize the decision.
Beyond her failure to hold the Chinese Communist Party to account for its financial abuses, Brainard is married to Kurt Campbell, a top National Security Council (NSC) official dubbed Biden’s “Asia Tzar.”
The National Pulse has previously exposed Campbell’s deep ties to Chinese Communist Party influence operations, including keynoting a major conference alongside a business partner of Hunter Biden, Patrick Ho. In audio unearthed exclusively by The National Pulse from Hunter Biden’s hard drive, the president’s son referred to Ho as the “the f**king spy chief of China.”
The Federal Reserve sent out a notice that they’re stopping the printing of any paper currency ‘this holiday season’. This is all due to the virus of course. Because any new money they print could be contaminated, just keep using old, clean, used currency.
“I’ve talked about the money issue, the push for a cashless society. Remember, they stopped minting coins this summer. You’ve seen people begging for coins, businesses saying they’ll round up to the nearest dollar, or others saying they’re not going to accept cash at all anymore, which is what they want.”
“Now, a listener sent me a notice that was sent to a credit union saying, ‘Federal Reserve has suspended orders for new bills in 2020. During the holidays, members often request newly printed bills to give as gifts, unfortunately, this holiday season newly printed bills will not be available due to COVID-19.’ The Federal Reserve is using this as an excuse to do what they’ve wanted to do for years.”
The excuse offered is that by ceasing printing new currency, it helps to “meet demand”. Does that makes any sense? No wonder ever accused the Federal Reserve of understanding supply and demand. Maybe they understand it but don’t respect it.
“The notice goes on to say, ‘This is a proactive measure to allow the reserve banks to continue to meet the daily demand for currency and coins.’ So if you stop printing paper currency that wears out, that’s the way to meet the daily demand for currency. The Orwellian doublethink is strong with this one.”