While the mainstream financial media talks about tapering QE because of the hundreds of billions in cash parked by US banks at the Fed’s reverse repo facility, this is a total misdirection from the real problem.
How the Biden administration is proposing spending to increase to $6 trillion in 2022 (and growing more after that) without anymore foreign net buyers (Japan and China are not buying anymore) of US Treasuries.
Biden to push $6 trillion U.S. budget for next fiscal year -NYT www.reuters.com/world/us/bide…
Biden Unveils $6 Trillion Budget That Will Raise Federal Spending To Highest Post-WW2 Level www.zerohedge.com/political/b…
Tavi Costa Tweet on how the Fed’s balance sheet increased by $32 billion this week and the Fed made the largest US Treasury purchase in the last 6 months: twitter.com/TaviCosta/status/…