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<p>[QUOTE=&quot;Ainslie Bullion, post: 2255024, member: 75209&quot;]Financial analyst and commentator Mike Savage recently highlighted a little talked about occurrence in global debt markets.&nbsp; But first he reminds us of the context…</p><p><br /></p><p>“It appears to me that day-by-day more people are recognizing that the past 7 years has been an experiment where we had a debt problem, it imploded in 2008, and we attempted to fix it with more debt. Now, after it has been proven not to work- not just here [US] but also in Europe and in particular Japan the same actors that started all of this are calling for- MORE!”</p><p><br /></p><p>And then…</p><p><br /></p><p>“A chart put out recently shows that at the height of the crisis in 2008 the Fed had around a $100 billion in reverse repos. These are used to replace defaulting debt with supposedly good debt. In the last 2 months the Fed is now holding over $640 billion in reverse repos. By the way, that is up from about $225 billion just 2 months ago. $400 billion in a couple of months? What is REALLY happening under the hood?”</p><p><br /></p><p>The RRP spike may be explained by the Fed experimenting with how to raise rates when they have flooded banks with so much free money.&nbsp; But on any level it is another clear sign of a system swamped in debt figuring out how to deal with the consequences.&nbsp; Too many people seem to somehow dismiss “Government” debt as not being real in the sense that your mortgage, personal loans or credit card debt is real.&nbsp; Debt is debt.&nbsp; The GFC gave us a little glimpse before it was temporarily fixed with more debt and likewise Greece.&nbsp; It must come home to roost…[/QUOTE]</p><p><br /></p>

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