The Federal Reserve has funneled roughly $500 billion into the repo market since September 2019 in what were originally pitched as temporary operations. Now, it wants to bring the same efforts to smaller institutions in an unprecedented extension of its influence over the economy. On this episode, Colin and Peter discuss Bitcoin Magazine's cover story about the Fed's actions and what they tell us about our financial system. If this reminds anyone of the climate before The Great Recession, then Bitcoin could be a solution
The Fed Has Pumped $500 Billion Into the Repo Market. Where Does It End? by Colin Harper
In September 2019, the interest rate for the overnight money market — a short-term lending market where banks borrow cash from each other to meet reserve requirements at the end of a business day — surged to 10 percent.
In regards to writing this paper, Hasu said on Twitter that "This journey challenged everything I thought I knew about the economics of mining and Bitcoin in general."
