Hemke: 'Pawn Shop' Repo-Market "Signals Fed Panic-Mode"

Via Greg Hunter’s USAWatchdog.com,

Early this year, financial writer and precious metals expert Craig Hemke predicted the Fed would be forced to return to QE, just like in the 2008 market meltdown. Looks like Hemke’s prediction has come true because the Federal Reserve is printing billions in cash in the Repo market every week. Hemke explains, “At the last Fed meeting in September, we were told that the Fed was ‘neutral’ right now, and they were just going to be ‘data dependent’ and everything is fine..."

"Just three weeks later, (Fed Head) Powell is out there saying we are going to have to restart buying T-Bills, and these repo facilities we have set up are going to become a permanent thing.

Wait, whoa, what happened here? Just three weeks ago, you said everything was fine. These repo facilities they have set up are basically like a Fed pawn shop where banks can come to the Fed and say here are some Treasury bonds... we are going to give you these Treasury bonds and you are going to give us some cash.

We thought this was temporary back at the end of September, and now it’s a permanent deal. Every single day, banks are showing up at this Fed window demanding dollars. Powell has also said don’t you dare call this quantitative easing, and the Fed is going to start monetizing $60 billion in U.S. debt every single month through June. . . . That’s over $500 billion in debt they are going to monetize, but don’t call it QE...

The point is the central bankers are moving into a panic mode. I thought this was going to be more gradual... all of a sudden, the signs are there that this is a panic.”

Hemke says there are plenty of signals being put out that things are getting much worse for the global economy. Hemke points out a new financial report out this week that says, “More than half of the world’s banks may not be able to survive the next financial crisis or recession because they don’t have the liquidity reserves - more than half..."

"Let me hit you with one more. Mervyn King, who used to be Head of the Bank of England . . . earlier this week, said, ‘It’s time for the Federal Reserve and other central banks to begin talks behind closed doors with politicians to make legislators aware of how vulnerable they would be in the event of another crisis. What? Talks behind closed doors?

...They are doing everything they can to keep the illusion going. They are doing everything they can to keep the markets propped up. In the end, there is going to be a loss of faith in the central bank’s ability to keep it all going. This will bleed over to the demand for gold and silver. We are seeing that at the retail level, the institutional level and even at the central bank level. This is going to be a great year for gold and silver, and prices are only going to keep going higher.”

Is there an imminent financial crash near? Hemke says,

“Yes, right, exactly. I think this explains the near panic move, not only by the European Central Bank (ECB)...but by Powell and the Fed when everything was fine in September to all these emergency measures now...

So, there is some pretty nasty stuff brewing out there. There is some real liquidity monetary tightness that is pushing things to the verge of collapse, really. They are doing everything they can to stave it off. . . . The curtain is being pulled back on central bankers, and it reveals them to be charlatans...

They are not these all-knowing masters of the universe looking out for the world. No, they don’t know what they are doing. They are just trying to maintain this illusion...

The demand for all the massive amount of money from the central banks and the Fed leads to a crisis of confidence in their ability to keep things going. Why would you not want gold and silver? There is a global awakening to that, and that is why prices have hit new all-time highs in 70 currencies around the globe, and we will see new all-time highs in dollar terms, too, next year.”

Join Greg Hunter as he goes one-on-One with Craig Hemke of TFMetalsReport.com.

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