From SurvivalBlog


I just read on a[nother] blog about an imminent Federal Reserve disaster.

There's no [mainstream] news coverage on it yet so this qualifies as a serious heads up.

Note the second numeric column. $40 Billion, has been since 1913, by law. Then notice it suddenly drops to $198 million and then two days ago the report lists the banks as minus $8.7 Billion, something which has never happened before.

How bad is it? Think Weimar Republic. The Fed can no longer stop inflation because the banks can't secure new money with debt. People aren't buying debt anymore. Ergo, hyperinflation is the natural consequence. Mark this day on your calendar. Best, - InyoKern

JWR Replies: In case you missed it, I mentioned the following in Friday's Odds 'n Sods: Hawaiian K. pointed out this Federal Reserve chart, showing that the Net Free or Borrowed Reserves (NFORBRES) of Depository Institutions just fell off a cliff. Let's pray that there aren't any bank runs soon, because the till is empty. It is a jolly good thing that the Fed is handing out so much cheap money these days, so the member banks can list part of these funds as "reserves."