The Fed’s reverse repo facility is nearly drained—signaling a looming liquidity crisis that could force stealth QE and devastate the dollar.

The Reverse Repo Facility: Wall Street’s Pawn Shop

The reverse repo facility (RRP) lets big financial players park Treasuries overnight in exchange for cash, then buy them back the next day. It’s been quietly holding the system together since 2013.

• 2022 Peak: $2.5 trillion in the facility
• Today: Less than $100 billion left
• Translation: The “excess liquidity” from pandemic stimulus is almost gone

When the pawn shop is full, liquidity flows. When it’s empty, credit seizes, rates spike, and crisis follows.

A Crisis Already in Motion

The setup today mirrors 2019 and 2020—only worse:

• Debt issuance at record highs while foreign buyers vanish
• Treasury shifting from long-term debt to short-term T-bills
• Money market funds buying the short-term debt… and draining the RRP dry

This is a game of financial whack-a-mole: each “solution” creates two new problems. Once money markets are tapped out, the only buyers left are U.S. banks—already sitting on massive unrealized losses from the last Treasury bubble.

Why the Fed’s “Fix” Could Break the Banks

Treasury Secretary proposals to loosen Supplementary Leverage Ratio (SLR) rules would allow banks to gorge on Treasuries again. But:

• Banks already hold devalued bonds from the pandemic surge
• Selling them would crystalize losses and spark deposit flight
• Silicon Valley Bank proved how fast this can implode

Loading banks with even more unwanted debt is not stability—it’s systemic risk on steroids.

The Inflation Spiral Ahead

If the RRP hits zero and buyers disappear, the U.S. will be forced to issue debt at higher rates:

• Higher rates → Higher interest payments on the $34+ trillion national debt
• Higher interest payments → More money printing
• More money printing → Higher inflation (or worse, hyperinflation)

This is the death spiral of fiat currency—seen in Weimar Germany, Turkey, Venezuela. Every time, currency holders pay the price.

Stablecoins: Another Band-Aid

Washington’s latest “innovation” is to back U.S. stablecoins with Treasuries—creating artificial demand for debt. But this:

• Props up the market temporarily without fixing the root problem
• Risks expanding government control and surveillance over money
• Sets the stage for patriotic propaganda campaigns to “do your part” by using them

Gold & Silver: Real Wealth Preservation

Fiat currencies always return to their intrinsic value—zero. Gold and silver have survived every currency reset in history because they:

• Are tangible assets, not paper promises
• Hedge against inflation and dollar devaluation
• Hold value independent of political and central bank manipulation

When the dollar’s purchasing power collapses, gold doesn’t just protect—it positions you to thrive on the other side of the reset.

The reverse repo crisis is not an obscure policy glitch—it’s a signal that America’s financial system is running on fumes. The Fed’s only real option is stealth QE, which means more inflation, more debt, and less control over your money. History is clear: in every currency collapse, it’s the savers in fiat who lose. Those holding gold and silver endure.

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