Repo Market is Costing every American $183 Per Day

So this Not QE” Is Costing Every Man, Woman, & Child in America a whopping $183 Per Day. Fed is on track to commit $11.5 trillion in gross cumulative support. Minsky - Moment comes when stability begets sudden instability. This hundred and eighty-three dollars a day every man woman and child in America is paying; that's this QE4 or what Powell called not QE. Thanks to the benevolent powerful steering committee at the FOMC, the federal open markets committee. So we have established the price of peace; we have found the price of calm at this moment: sixty billion dollars a month, roughly two billion dollars a day. And again if that seems like an expensive habit or you know what it would take to kind of maintain a perpetual buzz. You just look at that national addiction divided by every man woman and child. It's a measly hundred and eighty-three dollars a day every day. That's what's costing every and each American citizen. Which at some point, if we're not careful is merely gonna be the cost of a cup of coffee. Nothing called free is free. Free is something you get for nothing, but somebody else pays for it. Everyone is going to be working to pay the interest on all the loans. No wonder the banks rake in so much money. Banks screw up a system. The government bails out Banks with taxpayer money. Banks continue to act irresponsibly. Government prints money to give to banks to directly inject into the stock market. Banks screw up the stock market with the taxpayer, money bailout, and QE money printing. And probably steal half of Americans 401K by the end. Welcome to Atlantis Report. It looks like the balance sheet of the Fed grew by 260 billion, and it is growing. Remember, the balance sheet was only 800billions before the crisis and grew to over 4 trillion with the promise that it will be unwound. Well, it didn’t, so they monetized just over 3 trillions of debt. Why isn’t the Fed using the discount window to lend to those entities that can’t manage their cash flow? Why are they getting free money from the Fed? If I don’t have enough cash to do my payroll at the end of the month, no one will make me a 1% interest loan. So why is the Fed subsidizing those speculators? And who are they? One question that remains unanswered is what sparked the Repo panic. I still believe a block of cash left the market and has not yet returned. Well, who took the cash? Was there a robbery? Were the police called in to investigate JP Morgan Chase? The banks had a good thing going, squeezing the repo borrowers. The fed stepped in and took away their rice bowl. Big banks are the Fed. Now figure it out yourself. The banks own the FED. The FED does what the owners tell it to do. It's funny to watch these big banks extort the Fed. The Big banks ARE the Fed. They're being bailed out as we speak. That's what the repo madness is: a bailout. Could it be Deutsche Bank that is the black hole that's sucking liquidity? Banks can take the Fed hostage now since the world banks are all intertwined. These are not overnight loans anymore. Some of them last weeks. And some of them that have already come due have been given extensions. What was once an occasional infusion of liquidity on a 24-hour basis is now a continual process with no money or time limit for payback. It is a rolling bailout of immense proportions. A filthy mess that is being kept under wraps. Wall Street knows. We all know what that means. Banks are holding the Fed hostage now. Give us liquidity (free money) or else. The corollary to that is that some banks don't trust other banks for an overnight loan, even at loan-shark rates. And their fears are substantiated when the Fed extends the repayment time. There are a lot of rotten apples out there. A bank in China can say to the Fed, "give us liquidity in dollars, or we will crash the financial system"! All crisis is every time is a lack of liquidity; that's what financial crisis always is. So what they do; they just create out of thin air the liquidity. But what bothers me is; we're not talking about side joint kinds of countries. We're talking about the two most powerful countries in the world, the United States and China. both countries now are scrambling to provide enough liquidity. The Chinese they're also involved in their own repo and reverse repo market. I think it's fascinating that we have got the two most significant contributors to global GDP; The US and China. They're both actively influencing the credit markets, and they want to facilitate calm. Many have argued why the market went wrong so fast. The Federal Reserve was so freaked out that it did not wait for answers before intervening. The central bank’s gross cumulative support for the market — which allows banks and investors to borrow cash in exchange for Treasuries and other high-quality collateral — will top $11.5 trillion by the end of January, according to estimates. The Fed did not just stabilize the repo market. Now, it is the repo market keys to the kingdom. It is a de facto nationalization. Whether it's sixty billion dollars a month in QE, which is not QE. Or that eleven point five trillion dollars de facto nationalization of a part of the lending markets. We are coming up with what I would describe is the price for oblivion. Oblivion is defined as the state of being unaware or unconscious of what's happening, and that is precisely the state which is being funded by the Fed. What is the price of oblivion ? A 183 dollars per person per day. Repos were once the liquidity-providing plumbing of the financial system. Now, they have taken on another role because post-crisis rules demand that financial institutions hold far more significant balances of safe assets — at a time when yields on such assets are low or even negative. The repo market symbolically reminds me of the East India Company of Britain, which ruled a vast global empire with its private army, exceeding the power of Britain. The FED armies are the Banks and other affiliated financial Institutions. Fed became the market-maker of last resort, lowering rates whenever equity markets trembled. So FED is active in Money begetteth Money, so as to spread the virtual currency and to conquer the World. We don’t have free markets and free enterprise, and hence, the entire understanding of our system is now false and existing political frameworks redundant - which is why we have populism. The decision-makers are trying to stave off a downturn/depression, but as prices get higher, the serfs give up hope of returning to normal and fair, realizing they can't win. And are indeed getting poorer by the month now as prices continue to rise. Say hello to inflation. Markets are now addicted to Hopeium. The rigged market never looked better. So the banks/cash bundlers colluded to raise rates by keeping cash out of the repo churn. They sucked at least $150 million out of the borrowers, and then the Fed stepped in. This means there is no repo market but rather a churn and burn manipulated screw palace. So REITs and other shadow borrowers should soon be disclosing these losses on their reports to investors? The only thing preventing this collusion from happening again is the Fed shoveling cash into the repo market. This means that the Fed is permanently a daily interventionist now in the repo market as it is in the stock market, as it is in the bond market - and wherever the next crack in the dam appears. Markets are dead. No downside risks because the Fed will bail you out. Soon they will be limiting the upside. The financial system is speed surfing down the slippery slope of government-controlled everything, i.e., socialism has taken over the commanding heights of the financial system. Creating money from nothing by the Trillions. Imagine buying up every asset on the planet using colored toilet paper. This system is broken in so many ways. It is crumbling under its own weight, and it will implode like a massive star. Nature's laws rule this earth, and only human's stupidity thinks they can defy gravity. Historical lessons will be learned the hard way again and again and again. Greed has always been the Achilles heel for humans. The Fed will (obviously) continue to use its magic Dollars wand to plug the forming holes in the financial infrastructure. That is clear. But the Fed doesn't realize that they are zombifying the markets. No reasonable venture with good connections will go without a cash market from which to borrow at low rates. But the Fed is now on subconscious autopilot to blanket the world with Zero interest-rate. And, contrary to their published intentions, lower and lower interest rates don't lead to inflation anymore. Ultra easy money has unleashed hyper-competition, where the growing number of respective segment participants are all driving down the price of their goods to gain market share. Watch the price of oil as an indicator of these deflation pressures that the Central Bankers are slowing unleashing as the pall of Zero interest-rate spreads. Banks do not lend from deposits. Banks do not lend anything. They create computer digits that represent an amount equal to the remaining value of the collateral. They evaluate the borrower as to whether the customer can provide income to the bank that is equal to the value of the computer digit, which represents the remaining value of the collateral. Also, they evaluate that if the borrower quits giving the bank income, that the collateral can be sold in the real world and provide income to the bank when the borrower wouldn't be taking over the collateral and selling it for income. The bank gives you a computer digit, and you give the bank your income or your house. At closing on the property, the computer digit from the lending bank electronically transfers to the digital account of the seller's bank. When the seller wants to take cash out his account, the cash does not come from the loan, but from cash on hand at the bank. There is no such thing as a non-performing loan because there never was one. There was only ever a computer digitized entry at the lending bank. There is non-performing income when the buyer does not meet the contract agreement, and the amount of the computer digit does not get reduced because there was no income payment. The bank did not lend gold equal to the amount that the borrower needs to purchase the collateral. No, because that would be a real loan, and that would be a real risk to the bank. The bank didn't even give currency equal to the value of the collateral. That also would have some semblance of risk and of actual real things being exchanged that the bank might never see again. In the computer era, it is difficult to separate what is the physical world of actual risk and what is a digit floating in the ether. All those digits floating in the ether represent someone's investment, so as the reserve requirements. Once a bank run begins and all those investors come looking to collect their digits, it all becomes very real. 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