(The Economic Collapse Blog)—What is the Fed not telling us? The numbers clearly indicate that big trouble is brewing in the banking system. I wish that I could specifically tell you which banks are in the most trouble, but at this stage we simply aren’t being told anything. They probably figure that the best approach is to try to keep everyone as calm as possible. But they won’t be able to keep a lid on what is going on indefinitely, and when word finally gets out people could start to panic.
In recent weeks, bank reserves have fallen to alarmingly low levels.
In fact, last week they fell to the lowest level that we have seen in more than four years…
US bank reserves have crashed to a four-year low, plunging to about $2.8 trillion, according to the latest Federal Reserve data, sending fresh warning signals across Wall Street and Washington. The steep decline marks the second straight week reserves have stayed below $3 trillion, a critical threshold analysts say could test the banking system’s liquidity strength.
By itself, this doesn’t necessarily signal that we are facing a major crisis.
But everyone agrees that what we are witnessing is certainly unusual.
What is causing far more alarm is what occurred on Friday.
All of a sudden, there was an insane amount of demand for overnight repo cash…
Federal Reserve reportedly pumped about $29.4 billion into the markets via overnight repos.
That’s a big number and it signals something I’m watching closely. According to the data for “Overnight Repurchase Agreements — Treasury Securities Purchased by the Fed” the figure for Oct 31, 2025 is $29.400 billion.
In other words: The Fed is quietly stepping in and stepping up.
To me, this is clear evidence that something just broke.
Who suddenly needed that much cash?
And why did they need it?
The chart that I have posted below comes directly from the Federal Reserve, and it should chill you to the core…
But that wasn’t the end of it.
By the end of the day on Friday, it was quite obvious that something extremely strange had just happened…
Federal Reserve liquidity facilities caught fire on Friday as month-end pressures pushed a key lending tool to a record level of usage.
The Fed’s Standing Repo Facility lent a total of $50.35 billion on Friday to eligible financial firms in two separate availabilities, the highest-ever usage since the tool was put in place in 2021 to provide fast loans collateralized with Treasury or mortgage bonds. At the same time, financial firms also parked a considerable amount of cash on Fed books, with the reverse repo facility seeing inflows of $51.8 billion.
So what is the bottom line? The bottom line is that it very much smells like a major crisis is brewing.
But let’s wait and see what happens on Monday. If we see figures on Monday that are fairly normal, perhaps we have more time before things start breaking loose in the markets.
However, if we see even larger numbers on Monday, hold on tight. In either case, the financial markets will not be able to stay disconnected from the real economy forever.
Just like in 2008 and 2009, large employers all over the United States have been conducting mass layoffs. Sadly, this time around that includes some of our largest and most prosperous employers…
The Trump administration offered buyouts to the entire federal workforce this year, aiming to reduce it by as much as 10%. Roughly 75,000 workers accepted. More recently, Amazon, UPS and Target all announced private-sector layoffs.
Buyouts can sound tempting. A five-figure severance package might be the most money a worker has ever seen in one paycheck. But it’s also the last paycheck your employer will give you.
We haven’t seen anything like this in many years.
Bankruptcies are soaring, delinquency rates are spiking, thousands of stores and restaurants are permanently shutting their doors, and just about everything just keeps getting more expensive.
What we are now facing is being described as “Depression 2.0”.
Unfortunately, this is just the beginning and most of the population understands this.
In fact, one recent survey discovered that 57 percent of Americans expect economic conditions to get even worse over the next year.
Many of you are going to be facing some very hard decisions in the coming months.
If you currently have a job that you highly value, I would recommend holding on to it as tightly as you can.
But if you feel that it is absolutely necessary to go somewhere else, you will just have to do what you have to do.
Just understand that if you leave your current position it will not be easy to find a new one at all.
In 2008 and 2009, millions of Americans lost their jobs.
Many of them didn’t have anything to fall back on, and so large numbers of them also lost their homes.
This is one of the reasons why it is so critical to have a sizable emergency fund. At this point, even the mainstream media is stressing the importance of this…
Most people live paycheck to paycheck, and when the economy crashes, that leaves no room to breathe. Having three to six months of essential expenses tucked away can make all the difference when cash flow dries up or jobs disappear overnight.
Keep your emergency savings in an easily accessible account, not tied up in volatile investments. It’s not about hoarding—it’s about buying time and peace of mind. When others panic, you’ll have the stability to make smart, calm decisions.
I expect things to start moving very quickly now.
If the problems in our banking system bubble to the surface and start becoming highly visible, it will create a lot of fear.
And it is just a matter of time before our absurdly overvalued stock market takes a dramatic tumble.
Of course all of this is happening at a time when so many other elements of “the Perfect Storm” are coming together.
We are right on the brink of multiple major wars, global food supplies are rapidly getting tighter, we are being told that the next worldwide pandemic could break out at any moment, and on average the U.S. has been getting hit by a “billion dollar disaster” about every two weeks.
I expect so much chaos to be unleashed during the weeks ahead, and that means that we should expect the turmoil that we are currently witnessing on Wall Street to escalate quite a bit more.
Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
Why the National Debt Is the Looming Threat to Your Retirement Plans
The Hidden Crisis No One Is Talking About
Every day, headlines warn about inflation, market volatility, and global instability—but the greatest looming threat to your retirement might be something far more fundamental: America’s skyrocketing national debt.
You can learn more about how the national debt affects you by reading this 3-minute report titled, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now“.
With debt growing faster than most Americans can possibly fathom, the government’s borrowing habits have reached historic—and dangerous—levels. To cover spending, Washington is making moves with their budget packages, tariffs, and taxes. Is it enough? No. It’s not even close to what would be necessary to stop out-of-control debt, let alone reverse it.
How Debt Erodes Your Nest Egg
There are only so many levers government and the Federal Reserve can pull to try to protect Americans, assuming that’s even a top priority for them. Unfortunately, pulling one level to relive one pressure invariably adds pressure from another direction. This is why prices keep going up even as inflation reportedly slows.
For retirees and pre-retirees, that’s a perfect storm. The dollars you’ve worked hard to save lose value, and your cost of living increases while your investments lag behind.
If you’re relying solely on paper-based assets—stocks, bonds, or mutual funds—you’re essentially tied to the same system that’s creating the problem. It’s a system that was designed to work well in the 20th century, not in today’s world with people living longer and the dollar rapidly losing value.
This is why the 3-minute report, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now,” is so important.
The Precious Metals Hedge
Thousands of Americans are looking for a tangible, time-tested hedge: physical gold and silver.
Unlike paper assets, precious metals aren’t dependent on government policy or the stock market’s mood swings. They’re real, finite resources that have maintained value for thousands of years through wars, recessions, and inflationary periods.
In fact, during times of high inflation and fiscal instability, gold often performs its best—because it’s seen as a store of value when faith in the dollar weakens. This is why prices have skyrocketed this year and are expected by many economists to continue going up in the future.
Take Control with a Gold IRA
One of the most effective ways to protect your retirement from national debt fallout is through a self-directed Gold IRA. This IRS-approved account lets you hold physical gold and silver within your retirement portfolio, giving you:
- Direct ownership of your assets
- A hedge against inflation and dollar decline
- The control to diversify beyond Wall Street
Augusta Precious Metals specializes in helping Americans just like you take this step with confidence. The company has earned a strong reputation for transparency, education, and personalized service—making it one of the most trusted names in the industry.
The Next Step: Secure Your Financial Future
Augusta Precious Metals has helped thousands of Americans with at least $50,000 to invest from their IRAs, 401(K)s, TSPs, and other retirement accounts safeguard their savings through precious metals.
If you’re concerned about what the rising national debt could mean for your future, now is the time to act.
Read this 3-minute report titled, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now“ and learn the simple steps you can take to protect your retirement.