Rebel Capitalist News Reverse Repo WARNING! McDonalds Reveals Truth About Economy, Huge Investment Opportunity
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Feb 11, 2025 Dive into a deep analysis of the economy, contrasting encouraging GDP growth with falling labor participation. Uncover vulnerabilities like job security issues and stagnant housing, while deciphering consumer sentiment's impact on the future. Discover overlooked investment opportunities in coal, driven by rising demand in emerging markets. Learn about the implications of the Federal Reserve's dwindling reverse repo account and how McDonald's performance serves as a mirror to the current economic challenges.
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Reverse Repo and Liquidity
- Some experts believe the Federal Reserve's reverse repo account nearing zero will force them to stop quantitative tightening.
- They argue this is because the demand for treasuries is linked to the cash in this account.
Commercial Banks as the Center
- George Gammon disagrees with the focus on the Fed's balance sheet, arguing commercial banks, not the Fed, are central to monetary systems.
- He believes bank reserves don't significantly impact banks' decision-making, except during bailouts.
McDonald's Sales Decline
- McDonald's US sales declined, even with value meals, as consumers are spending less.
- This decline suggests a weakening US economy, despite the E. coli outbreak.
