Massive Liquidity Hitting the Markets

1. The Federal Reserve announced the establishment of a temporary repurchase agreement facility for foreign and international monetary authorities (FIMA Repo Facility). They are now the central bankers to the world. There has been a real issue for foriegn countries to get U.S. Dollars. This FIMA Repo Facility will make it much easier for them. In these transactions, FIMA account holders temporarily exchange their U.S. Treasury securities held with the Federal Reserve for U.S. dollars, which can then be made available to institutions in their jurisdictions. Basically, this will ease the strains in the global U.S. dollar funding markets.

2.  D.C. is reportedly preparing a $600 billion relief package for mortgage markets, the travel industry, and states. They are flooding this market with liquidity right now and planning on more. Down the road this will be really bad, but for now it's very bullish for stocks and markets.

3. All of this liquidity news is very bullish for gold and gold mining stocks.