Fed quietly paying 108 huge financial entities over $100 million per DAY in interest

Most Americans have heard of "Treasury bills"--T-bills: essentially bonds issued by the government with a maturity of a year or less, touted as the world's safest investment since it's backed by the full credit of the U.S. government.  (Not the same as Treasury bonds or treasury "notes.")

The equivalent to interest paid by T-bills is called the "discount rate."

A year ago the discount rate on the 182-day T-bill--again, the effective interest rate--was 0.06 percent.  That's not "six percent" but six one-hundredths of one percent.

That was a year ago.  A month ago that rate had ballooned to 1.71%, and today it's 2.5%.  That's over 40 times higher than a year ago, and 40 percent more than a month ago.  Given the VAST amount of money the regime must borrow to cover its spending, what do you think that's gonna do to the amount of interest the government will have to pay?  

Wait, it gets WAY more exciting:

Odds are most of you have never heard of a "reverse repo."  It's a tool used only by the biggest insiders.  It's a way entities with billions of dollars--money market funds, banks, GSEs and other financial institutions--can let money they haven't committed earn essentially the same interest as T-bills, by parking their cash with the Federal Reserve for as little as one day.

That cash-parking fund is called the Fed's "overnight facility," and at the moment 108 huge (and mostly un-named) investors have an astonishing $2.33 Trillion in that account.

At current interest rates the Fed is paying the 108 counterparties that are parking cash in that facility $100 million in interest every DAY.  And with the latest increase in the discount rate that's expected to balloon to $250 million per DAY soon.

Just thought you might like to know.  And don't worry, citizen:  Duh pipo running duh gruberment are reeeally smaht.  And totally non-corrupt.

Source: Zero Hedge