US Federal Reserve Will Print And Inject $425 Billion This New Year

The latest cryptocurrency news show that more than double of the market cap’s value will be printed by the US Fed this year and injected into the economy as nonexistent money. In an official statement which was released on December 11, the US Federal Reserve confirmed the news and pointed to a so-called repurchase (known as “repo”) with operations on key dates over the new year period.

This time of the year is crucial for the US Federal Reserve and requires extra assurances for banks, as the organization claims. In that way, repo operations are designed to support their day to day operations.

“The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of repurchase agreement (repo) operations for the monthly period from December 13, 2019 through January 14, 2020,” the statement from the US Federal Reserve reads.

As it continues, the Fed confirms the following:

“In accordance with the most recent FOMC directive, the Desk will conduct repo operations to ensure that the supply of reserves remains ample and to mitigate the risk of money market pressures around year end that could adversely affect policy implementation.”

Right now, repo offerings by the US Federal Reserve are scheduled to be set in place on December 31 and January 2 with a valuation of $150 billion. By the January 14 deadline, the minimum that the Fed expects to generate is $425 billion as per the report.

Even though moves like these are common, they are certainly involving conjuring vast new liquidity based on zero backing which is basically money printing without the physical printing of any money. This is why critics have long hailed the policy as an example of the failure of central banks to “manage” their economies.

One Bitcoin news advocate known as Rhythm recently commented on the news about the US Federal Reserve printing and injecting $425 billion and said that the amount is over three times the size of Bitcoin’s market cap. Ironically, he said that “everything is fine” but did not mean that.

The Federal Reserve will inject at least another $425 billion into the financial system with the next month.

That's three times the size of the entire marketcap of Bitcoin in a single month.

Everything is fine though. 🙃

— Rhythm (@Rhythmtrader) December 13, 2019

Meanwhile, recent reports showed that the US national debt is now at $23 trillion since November, which is around $12 million for every Bitcoin that will ever exist.