US Fed intervention raises specter of

The US Fed is in active, accelerated intervention. It wants to keep interest rates (the cost of money) low. To achieve this, it seeks to pump tens of billions of dollars a day into the financial system. The reason for the casual outlook among the chatter-class is simple. Today's backdrop of trillion-dollar market cap companies and extremely low unemployment fortify those whose safe positions remain underwritten by the Fed. By any means, the US financial economy is tottering. Wednesday's repo agreements surpassed the 2008 crisis.

When George Orwell (real name Eric Blair) wrote of Newspeak, he was lamenting the politicization of language, which meant the severing of tacit knowledge in the pursuit of the goals of the governing class. Having lived under the jackboot of fascists and communists, Orwell understood how tyrannical despotic leadership works.

Words no longer embodied a real connection to the world, but instead became social instruments fortifying those who command the heights of power. Witnessing Jerome Powell, the US Federal Reserve chairman, talk of "mid- cycle adjustment" was an Orwell moment for me. It is clear that US dollar shortages are wreaking havoc on the American financial system. In fact, the US financial economy today resembles the panic of 2008.

By any means, the US financial economy is tottering. Wednesday's repo agreements surpassed the 2008 crisis

What started as a temporary fix in late September regarding the target overnight rate has jumped to skyrocketing levels resembling panic. The Fed spoke of temporary liquidity shortages when, in fact, we're witnessing the drying-up of short-term credit.

The kind of credit that keeps the financial plumbing running.

This is no short-term crisis, we're looking at a permanent need for the Fed to support the entire US financial economy with injections of cash.

The $75 billion of initial intervention dried up. It now requires a daily dose of $120 billion. Can anyone surmise why a stable economic system needs this level of support? Chairman Powell spoke of funding issues, but this isn't a temporary problem; its a structural one. What