Thursday, October 24, 2019
Red Alert : The Fed Injects Another $134 Billion
The Repo Market is nothing more than a "Pawn Shop" of the Banking Cabel, as described by Craig Hamke. A short term loan facility in exchange for safe liquid assets. Something occurred to freeze the Pawn Shop exchange. Was demand more significant than available cash on hand? Is that why the Fed came into the rescue? What's this $60 Billion per month Treasury Bill purchases by the Fed about? Oh yea, QE-4! QE=Money creation from thin air. Welcome to The Atlantis Report. It appears that with every passing day, the liquidity shortage is getting worse. In a statement published at 15:15 ET, precisely when the S&P ramp started, the New York Fed confirmed it would dramatically increase both its overnight and term liquidity provisions beginning tomorrow through November 14th. That was a massive 60% increase in the overnight repo liquidity availability (from $75 billion to $120 billion) and a 28% jump in the term repo provision (from $35 billion to $45 billion). But wait there's even more, because while the upsized term-repo saw the biggest (oversubscribed) uptake in one month, demand for the Fed's overnight repo also soared, with dealers submitting 89.2BN in securities for the newly up-sized, $120BN operation. Boy, oh, boy! Once again, we're spending tens of billions of dollars a month to bail out the bankers, spending even more than we spend in a month on our entire military because "the markets demand it." Meanwhile, there are literally millions of people in this country living on the streets or in their cars. The current form of capitalism is not working well for the general public. If we do not find a more equitable way of capitalism and implement it soon (aka 'new deal' or 'Nordic model' or whatever), we are going to end up with socialism/communism, as sure as the sun rises. Whatever is happening, it is most definitely, 100% for certain, beyond a shadow of a doubt, reliably and unquestionable, that the Fed is not monetizing the debt since there is a total lack of demand for massive deficit spending of US Treasuries. Let us not forget, the Federal Govt was financing a 21 Trillion debt, much in the short end. NOW, there is an extra Trillion to raise, that's about an EXTRA 83 BILLION A MONTH Keep that in mind, when trying to figure out the liquidity issue. And the Fed is trying to hold rates down as this goes on, they hold the beach ball underwater and wonder why the level of the pool went up. Is anyone still trusting the Fed at this point? Does anyone still not see the ponzi scam that is US Dollar? Give the banks more cash so they can buy more stocks and bonds and treasuries. I see this ending badly. As prices go up up and up. First, it's assets, then commodities. When there's a liquidity shortage on banker street, there's recession/depression on the main street. Welcome to the hyper-inflationary street. It's one way with no red lights or stops signs. what's going on is not just a "liquidity shortage." A couple of big banks have been maintaining the system, and now have decided to opt-out. The big banks can crash the system at any time. The banks are the Fed. And the banks/Fed have been cruising on this cooperative deal that apparently the big boys have just opted out of. The big boys are doing something else with their cash besides helping out the small guys, that's it in short strokes. So the Fed can't pretend "the system" is balanced. So this is supposed to coerce them to loosen up globally. This suggests the big boys are front-running the trend, and that is where they have put their money, instead of repos. Seems pretty clear to me. Does Powell have a choice? Sure, he can keep doing what he's doing. It's all fiat, and it cost them, big boys, a few bucks a day to hold the position, and the Fed can keep this up forever. Of course, the repo business is itself liquidity - that is probably what the FED is counting on. And of course, Trump is out there screeching that he wants lower rates, which is in my humble opinion the dumbest thing Trump has ever said, and the only one that makes me question his fitness for office - it goes against all of his other economic positions. He doesn't seem to realize it. All fiat currencies are an instrument of plunder, a virus meant to infect and bleed the host dry unless they are tied to something tangible (like gold), in which case they are only nominally fiat currencies. Paradoxically, fiat currencies can be a force for good, but those are truly historical aberrations, such as nations under the financial stress and economic sanctions that have no other means of obtaining international budget financing other than pumping inflationary money. Clearly, we are not in that position (yet). They're just buying time, so our overlords escape scot-free. The sheep will fight over water, milk, and bread, blaming the other team's candidate as the reason. 80 % of all Americans have less than $1000. The next crisis will wipe out millions instantly. One black swan and everything changes. Meanwhile, the Government is racking up trillion-plus annual deficits. The Fed is completely out of control. Europe and China are even bigger basket cases. Bring on the four horsemen of the apocalypse. And massive wealth transfer is in-progress. All that new debt money is your burden. banks walk away with big checks. And no one gets angry. Because we are stupid. It's so ridiculous, and nothing will change until the whole thing blows up. The best thing Americans can do is work for themselves and carry. Republicans and Democrats, You are both like Coke and Pepsi. You are competing but have the same business model and the same corporate owners: you should make up and exchange a big wet kiss (and more if affinity). Freemasons are laughing their asses off all the way to the bank while we are fighting each other. The perfect dictatorship would have the appearance of democracy, a prison without walls in which the prisoners would not dream of escape — a system of slavery where, through consumption and entertainment, slaves would love their servitude.
The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more
No comments:
Post a Comment