The actual data from the Fed is linked here.

The data seems to point to a conclusion that the US banking system is now fully dependent on the Fed for borrowed reserves in that the banks now owe their depositors more money than they could meet from reserves or their ability to borrow from the Fed to meet the demands of depositors.

When there was the bank reserve ratio crisis back in December, the Fed arranged a massive short-term, temporary loan package. I asked at the time if there would ever be transparency to the point the public would discover if those borrowed reserves were repaid. Apparently they can’t be repaid, which has never happened before.

Not knowing what to make of this situation, the global capital markets are clearly in turmoil.

My recent statement is that we are nearing the Trade of the Generation, which will be to Sell Bonds and Buy Gold. I also opined that the international monetary authorities, including the G-20 finance ministers and central bankers, would step in soon to take severe action to suppress the pressures against fiat money, including the $USD. They could do that by lowering the banking system reserve ratio and simultaneously increase the margin requirements in the commodity markets with respect to precious metals and oil. The Fed could reduce the Discount Window to zero, making it easier for troubled banks to arrange Fed loans.

In effect those actions would be a final attempt to draw a line in the sand. Interest rates would drop to the maximum allowable limit and bonds would soar to their highest possible level.

AT THAT POINT, WE MAKE THE TRADE OF THE GENERATION: WE SELL BONDS AND BUY PHYSICAL GOLD.