always...kek
got some stuff ta do but keep an eye on this here.
FOMC Minutes: Concern about "supply chain bottlenecks and input shortages"
In their comments about inflation, participants anticipated that inflation as measured by the 12-month change of the PCE price index would move above 2 percent in the near term as very low readings from early in the pandemic fall out of the calculation. In addition, increases in oil prices were expected to pass through to consumer energy prices.
Participants also noted that the expected surge in demand as the economy reopens further, along with some transitory supply chain bottlenecks, would contribute to PCE price inflation temporarily running somewhat above 2 percent. After the transitory effects of these factors fade, participants generally expected measured inflation to ease. Looking further ahead, participants expected inflation to be at levels consistent with achieving the Committee's objectives over time.
'''and left unsaid is wut the true nature of "the committee's goals" are....
A number of participants remarked that supply chain bottlenecks and input shortages may not be resolved quickly and, if so, these factors could put upward pressure on prices beyond this year. They noted that in some industries, supply chain disruptions appeared to be more persistent than originally anticipated and reportedly had led to higher input costs. Despite the expected short-run fluctuations in measured inflation, many participants commented that various measures of longer-term inflation expectations remained well anchored at levels broadly consistent with achieving the Committee's longer-run goals.
https://www.calculatedriskblog.com/2021/05/fomc-minutes-concern-about-supply-chain.html
https://www.marketwatch.com/investing/index/dxy
https://www.marketwatch.com/investing/bond/tmubmusd10y
82-8000 USAF 747 departed Quonset Point ANGB, RI back to JBA
th-th-that's all for Not AF1 Joe today
09-0017 USAF C-32A departed Portsmouth Int'l Airport, NH back to JBA
US Coast Guard C6034 Jayhawk in it's usual stand-by postion
NICE19 USAF DC-10 extender tanker off-shore as the mobile filling station
>>47697 pb Federal Reserve Bank of New York Reverse Repo(s) April 8-23: $625.35B
>>49822 pb FRBNY Reverse Repo Operations April 26-30: $766.523B
>>51731 pb Federal Reserve Bank of New York Reverse Repo operations week of May 2nd, 2021-$757.09b
>>53526 pb Federal Reserve Bank of New York Reverse Repo Operations Week of May 9th-$1.042T
>>53564 pb This is the FRB balance sheet-Credit and Liquidity Programs/Balance Sheet.
Fed Alert: Overnight Reverse Repo Usage Soars Above Covid Crisis Highs
In today's FOMC Minutes there was a brief section that received little focus amid the broader analysis of the Fed's tapering, inflation language, yet which could be far more important in coming weeks in light of the violent move higher in overnight reverse repo usage.
This is what the Fed said in its discussion of money market rates and the Fed's balance sheet:
Reserve balances increased further this intermeeting period to a record level of $3.9 trillion. The effective federal funds rate was steady at 7 basis points. However, amid ongoing strong demand for safe short-term investments and reduced Treasury bill supply, the Secured Overnight Financing Rate (SOFR) stood at 1 basis point throughout the period. The overnight reverse repurchase agreement (ON RRP) facility continued to effectively support policy implementation, and take-up peaked at more than $100 billion. A modest amount of trading in overnight repurchase agreement (repo) markets occurred at negative rates, although this development appeared to largely reflect technical factors. The SOMA manager noted that downward pressure on overnight rates in coming months could result in conditions that warrant consideration of a modest adjustment to administered rates and could ultimately lead to a greater share of Federal Reserve balance sheet expansion being channeled into ON RRP and other Federal Reserve liabilities. Although few survey respondents expected an adjustment to administered rates at the current meeting, more than half expected an adjustment by the end of the June FOMC meeting."
This language confirms what we said last night when we discussed the spike in overnight reverse repo usage as part of the coming QE endgame...... and where we quoted from former Fed staffer Zoltan Pozsar, who warned that "The heavy use of the o/n RRP facility tells us that foreign banks too are now chock-full of reserves."
We concluded with the following bottom line: "keep a close eye on the daily reverse repo facility usage: at the rate it is rising it may soon surpass its all time high of $475BN reached at the end of 2015. At that moment the Fed will have no choice but to start the long overdue "tapering talk."
And just in case there was confusion, we elaborated that "it also means that every tick higher in RRP usage means we are that much closer to the next, and far more violent, taper tantrum."
Which is why the biggest news of the day may not be the crash in cryptos or even the Fed Minutes, but what the Fed published at 1:15pm ET when it revealed that in the latest overnight repo, 43 counterparties parked reserves worth $294 billion with the Fed, a number which not only surpassed the March 2020 covid crisis highs, but was the highest since 2017!
Funny we've been talking about that for about a month nao....kek!
Translation: the Fed is taking Treasurys out of the market through QE purchases and putting them right back in via the RRP
Not only does this impair the proper functioning of the repo market which is rapidly running out of collateral and is forced to unwind what it just got from the Fed back to the Fed, it also means that while the Fed still has plenty of assets to monetize courtesy of the Treasury's breakneck debt issuance spree, the banks that end up holding the resulting excess reserves are running out of space and are forced to park these brand new reserves right back with the Fed in the form of the O/N RRP.
In short: the US financial system is starting to groan at every incremental new reserve created by the Fed's QE... and considering that there is at least $1 trillion more in QE to go, even with tapering, things could turn ugly soon. This, much more than any flip-flopping commentary from the Fed, confirms that we are rapidly approaching a critical moment when the Fed will no longer be bale to conduct $120BN in QE every month, as sooner or later someone will figure out that the Fed buying up hundreds of billions in securities only to turn around the then repo out the resulting reserves each and every day, amounts to outright debt monetization with potentially calamitous consequences for yields and the US dollar.
https://www.zerohedge.com/markets/fed-alert-overnight-reverse-repo-usage-soars-above-covid-crisis-highs
OSHA drops BOMBSHELL: Employers who mandate covid vaccines may be held liable for “any adverse reaction”
The federal Occupational Safety and Health Administration (OSHA) is warning employers that they will be held liable for any adverse events resulting from mandatory Wuhan coronavirus (Covid-19) “vaccination” policies. If an employee who was forced to be injected with experimental mRNA gene therapy becomes paralyzed or dies, for instance, that injury or death will be considered “work-related,” meaning the employer will be held responsible.
In the “Frequently Asked Questions” section of a new OSHA guidance that was issued on April 20, the agency explains that all employers who mandate experimental Chinese Virus shots are required to record any adverse events that result from the injections. In response to the question, “If I require my employees to take the COVID-19 vaccine as a condition of their employment, are adverse reactions to the vaccine recordable?” this is what OSHA says: “If you require your employees to be vaccinated as a condition of employment (i.e., for work-related reasons), then any adverse reaction to the COVID-19 vaccine is work-related. The adverse reaction is recordable if it is a new case under 29 CFR 1904.6 and meets one or more of the general recording criteria in 29 CFR 1904.7.” What this means is that employers who try to force their employees to get injected are opening themselves up to lawsuits, worker’s compensation claims and a negatively impacted safety record. Tread at your own risk, employers. This clarification from OSHA comes as an increasing number of employers seek to mandate Wuhan Flu shots on their employees. Such employers include Houston Methodist Hospital, GCI Communication Corp., the Boys & Girls Clubs of the Peninsula, JBS USA Holdings Inc., Lastique International Corp., and Delta Airlines.
Some smaller, independently-owned restaurants and boutiques run by “woke” fascists are also hoping to force the employees, and possibly even their patrons, to get injected. Each one needs to be identified and targeted with lawsuits to prevent this disease of medical fascism from spreading. “The Houston Methodist Hospital network is mandating vaccines for both existing employees and new hires, barring an exemption,” announced Chip Cutter from The Wall Street Journal about the scheme. “Those who fail to comply will at first be suspended without pay, and later terminated.” Our hope is that Houston Methodist Hospital will be among the first to be held liable for vaccine-injured employees, who will surely be entitled to large financial compensation for their company-caused injuries.
Even though vaccine manufacturers themselves are not being held liable for injuring and killing people with their injections, companies like Houston Medical Hospital that try to force them certainly can, and will, be. The latest data from the U.S. Centers for Disease Control and Prevention (CDC) suggests that nearly 200,000 people in the United States have been injured by Chinese Virus injections so far. Nearly 4,000 people have died from the vaccines and nearly 20,000 have suffered what are considered “serious” injuries. Forcing Chinese Virus injections on employees may also be a violation of federal law, America’s Frontline Doctors (AFLDS) has warned. Because all of these injections are approved for emergency use only, they legally cannot be mandated by anyone. “The U.S. Food and Drug Administration’s emergency use authorization (EUA) specifically states that individuals must have the free ‘option to accept or refuse’ these vaccines,” LifeSiteNews explains, reiterating that Chinese Virus vaccine mandates are illegal.
“Many argue the prospect of being terminated from one’s job by refusing such vaccines certainly undermines such necessary freedom.”
https://vaccinedeaths.com/2021-05-18-osha-employers-mandate-covid-vaccines-liable-adverse-reaction.html