Treasury's Bank Account Plummets $170B, Top Bitcoin Floor of Exter's Pyramid Sways Wildly

We're down to the last $568B before the debt ceiling must be raised and bank reserves get vacuumed out of the system, followed by the final crunch.

Record Silver Deliveries Incoming

March silver futures just closed with open interest of 15,691. That means we will have at least that many deliveries, plus whatever spot buys are delivered, which will likely be several thousand. We are on track to easily beat all time silver deliveries of 17,294. Last night we already had 10,119 on first notice day. That's 50.119 million ounces.

Gold deliveries ended the month at 76,567, or 7.6567M ounces, previous record 55,102.

Treasury's Bank Account Plummets

We are down to the last $568B.

This past week was the second biggest weekly drawdown in the Treasury General Account [TGA] ever at $170B. Yesterday the biggest expenditures were social security benefits and tax refunds.

Once this account runs out, they're going to have to raise the debt ceiling immediately and then bank reserves are going to plummet as the government sucks them out to refill its bank account. As for reserves now, even with the huge drawdown in the TGA, which should bring reserves higher, reserves are only barely rising. This week up $57B to $3.327 trillion.

Quantitative tightening [QT] continued this week at $16.2B erased off the balance sheet, and we are now at May 2020 balance sheet levels.