bintananth
behind a desk
The only difference between a repo and a reverse-repo has to do with who is holding the cash and who is holding the piece of paper which says they're going to get that cash at a certain time and date in exchange for the piece of paper. That the government is or is not one of the involved parties does not matter at fucking all.Facepalm. We are specifically talking about the Federal Government doing it. Actions taken by the government to alter the supply of money are very much not the same as private transactions.
(There's more to it but I don't feel like writing a dissertation on a Friday evening)