Big Beautiful Bill To Lead To Big Beautiful End Game

Trump's bill really is big and beautiful. Just not in the way those who voted to pass it, think it is.

Big and Beautiful

Repos to Reserves Ratio Backs off Slightly

People have been asking me about the repo to reserves ratio lately and if it's still important. Yes, it is, and when we consistently pass somewhere around 83% there's going to be a crisis. We made it all the way up to 95% and have now backed off to 78%, which was expected and I said explicitly that the 95% figure was artificial due to the tax day drain. The trend, though, as you can see, is still up, and will continue to be so until the final crisis and the Fed intervening.

Reserves are bouncing around $3.3 trillion. There are two main factors here. On the one hand, the Treasury is spending down its cash balance, which increases reserves. On the other hand, banks are putting a bit more cash into the reverse repo facility, which decreases reserves. The amount the Treasury is spending is slightly higher, so reserves are gradually creeping higher again since Tax Day. Overall, these countervailing forces will continue simultaneously until the Treasury runs out of cash and has to raise more from bank reserves some time in August, and then the repocalypse should hit shortly after that, and hard.

Kootenay Silver (KTN) (OTCPK:KOOYF) Nears Maiden Resource Silver Estimate for Columba (Sponsored)

Kootenay Silver, a company I personally own shares in and an EGI sponsor, is on the verge of issuing a maiden resource estimate for its Columba silver project in Chihuahua, Mexico. Maiden, meaning the area has never been explored via modern methods. It's a 3x4km area acquired for $3.3M and fully paid for as of 2023. Once the report is issued, we'll have a good idea of how much silver is in the area, and how much it could potentially be sold for at various silver prices. This should help triangulate a more meaningful price for the company,

This follows news two weeks ago regarding drilling results at the site including grades up to 7,630 gpt silver and 30.57% combined lead-zinc. I recently interviewed CEO Jim McDonald on the news, which you can listen to here. We talk about Canadian and Mexican politics, a 15:1 silver ratio; life, the universe and everything, but not Douglas Adams or 42.

$475B Left Before X Day

The Treasury has $475B left before it has to raise dollars that do not exist in order to fund its deficits, extended by Trump's "Big Beautiful Bill".