by Theodore Butler
A new thought occurred to me about the extraordinary circumstance of the explosion of Federal Reserve accommodation in the repurchase (repo) market that erupted in mid-September. I’d be lying if I claimed to understand exactly what’s going on, except to know that truly astounding amounts of money (many hundreds of billions of dollars) are involved and that certain facts seem clear. Most reports point to JPMorgan as being at the heart of the expanding repo drama. Up until now, there has been no suggestion that the repo drama burst onto the scene by other than financial preconditions being ripe for the crisis to have erupted. What follows is unadorned speculation about a possible connection or motive between JPM’s role in gold and silver and the developing repo saga.