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Strategies & Market Trends : Coming Financial Collapse Moderated -- Ignore unavailable to you. Want to Upgrade?

To: Agamemnon who wrote (404)	6/29/2001 5:18:26 PM
From: pater tenebrarum	Respond to of 974

George, a repo op. is basically a temporary injection of reserves into the banking system. repos have terms, the longest usually have 28 days before they need to be rolled over, or reversed. the mechanics are similar to a coupon pass, insofar as the Fed buys government debt from the banks. only a coupon pass is a permanent monetization of govt. debt. i don't think overseas dollar demand is behind this. note that the rest of the world is sitting on VAST dollar reserves, in fact the accumulated external liabilities of the US now amount to $80,000 per person residing in the US. these reserves increase month after month, via the trade surplus the world has with the US. the world is drowning in dollars, which makes the strength of the dollar rather perplexing, but presumably the introduction of Euro notes and coins will change that in a hurry. if you want the Fed to help you out, you need to get a bankster license first. :)