Friday, November 1, 2019

The Big Squeeze on Banks is Back and Badder than Ever! (Clone)









Debt service is about $500 Billion in 2019; the deficit is right about $1 Trillion. The US government is borrowing money to pay the interest on the Debt. A standard definition of Bankruptcy. And, it's during what is called an Economic Expansion. The only source of funds that could pay off part of the Debt, maybe a 1/3 of the $22 Trillion, is, to tell the truth about the Mortgage-Backed Security mess. Cleaning up that mess may have cost a few $Trillion - but many more $Trillions were made "on the way up" - via fraud. The US gov. has a legit reason to claw back some of those Credit Derivative profits, but it would involve seizing the wealth of a demographic that is obviously given preference in US society - Jewish Bankers. Since the US gov. doesn't have the stomach for that, they have no options but to print digitally. Welcome to The Atlantis Report. It's no longer just me using terms like "Armageddon, crisis, devastating, chaos, Great Depression;" it's leaders of the world's most noble and conservative central banks! The big banking squeeze that began in September never went away. In fact, repo auctions last week looked worse than ever, in spite of the Fed's launching of QE4ever. With a new $60 billion a month in permanent re-inflation of money supply pouring back into the economy now, the Fed still has found itself back to where it began in September with its repo operations becoming hugely oversubscribed, meaning it has more takers than what it is offering to give. Dealers submitted $52 billion in securities for two-week "loans" of new temporary money this past week against the Fed's offer to do $35B worth. The question here is who has access to Repo, and where does the money go?? The repeating issue of a dollar shortage in overseas demand comes to the front. And it may be nothing more than Turkey dollar debt and the invasion of Syria. On a larger scale it goes to China, thats' Doug Nolands read, the Fed is not simply liquifying US markets he is pumping global markets. Why? The usual signs of credit tightness are not there, LIBOR has been steady lower. So no cracks in the system they are frantically patching? May just be the dollar markets reacting. It's a one-day creation of new money in the system until they roll it over and over again, as they are doing. So, the one day, added only $75 billion ever since that repo began. "Only." Sheesh. That was not enough, however, so they upped it to $120 billion that they now keep rolling over indefinitely. Because those one-day repos do not aggregate (just as you say they do not), the Fed added a repo operation with a fourteen-day term, and they have up to three of those running at the same time because they do one or two fo those operations a week. They set that at $30 billion per operation; so, at any given time, the term repos were adding another $90 billion in aggregate into the monetary system. That was not enough, so they upped it to $60 billion per term repo, which means at any given time the term repos are adding $180 billion into the monetary system in addition to the $120 billion added by the constantly rolling-over overnight repos for a total of $300 billion in new money in the system at any given time since all these operations began. That was not enough, so they started $60 billion per month in permanent QE which they claim is not QE simply because they are doing it at the short end of the interest curve to uninvert the curve, which, of course, is utter nonsense because it is still new money created out of nothing that goes into the monetary system. Since this would be QE4, if they were calling it QE, I'm going with the term QE4ever because we have already seen they have NO capacity ever to remove this from their balance sheet. Therefore, it does monetize the US debt as permanent new money created out of nothing to buy government bonds. It is technically QE since it expands the FED's balance sheet. Would it unwind the repo's then it would be QT since it decreases the balance sheet? In the end, it is just a twist by the FED, because they have too. Bernanke lied under oath that it was not monetizing the Debt since they would unwind it once the economy was stable again. Well, they proved that to be impossible. Returning to QE would instantly prove to the market that it would be QE4ever and send the long end rates spiking and the Dollar crashing. So they come up with this, but of course, it is just REPO in perpetuity. In the meantime: the three month - 10-year yield spread up from 15 bp this morning to 20 bp now. So it looks like markets already start to move, specifically the long end. The FED can't undo the tightening by starting QE again. The FED was able to pull off the increase of its balance sheet because it promised it was only a temporary fix, which would be unwound when the economy was stable again. Investors believed that, and therefore the Dollar didn't crash. Now they are beginning that the FED can never go back without deflating the financial markets and the economy. This, by definition, means that inflation expectations will be revised, and the long end of the bond market will shoot up. This will blow op the junk part of the bond market (and very likely the triple B part), and it is game over. Also, the increase in the 30 years will blow up the housing market. As of this morning, the 10-year yield is up another four bp to 1.84% and the 30 years to, to 2,33%. Spread three month-10 years up to 15bp. The FED is stuck; they can try to prevent the wheels from falling off. But they have no idea how long they will succeed in that. That is why it is now an unrecoverable disaster. We have to keep compounding the Debt by half a trillion each year just to maintain interests payments, AND that half a trillion in interest has to increase each year by the interest on the additional Debt we take out each year to make the interest payments! And that is where we are with nearly record-low rates. So, the whole government would blow up if rates rise, which is why the Fed is forced to keep them low and to go back and stay with QE in order to keep monetizing the government debt (while claiming, of course, that it is not doing that as monetizing the Debt is illegal in the US). What a charade! And nearly everyone goes along with it and doesn't even question it because they don't want to deal with the question.









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“Control oil and you control nations; control food and you control the people.” Henry Kissinger


once a standing army is established, in any country, the people lose their liberty.”
George Mason

“Military men are dumb, stupid animals to be used as pawns for foreign policy.”
Henry Kissinger

“If you are an ordinary person, then you can prepare yourself for war by moving to the countryside and building a farm, but you must take guns with you, as the hordes of starving will be roaming. Also, even though the elite will have their safe havens and specialist shelters, they must be just as careful during the war as the ordinary civilians, because their shelters can still be compromised.”
Henry Kissinger

"We don't let them have ideas. Why would we let them have guns?" Joseph Stalin

The people who cast the votes decide nothing. The people who count the votes decide everything.
Joseph Stalin

Governments keep a lot of secrets from their people . . .
Why aren't the people in return allowed to keep secrets
from the government?

PHILIP ZIMMERMAN, DER SPIEGEL

“Some call it Communism, I call it Judaism.”

Rabbi Stephen Weiss

“Anti-Communism is Anti-Semitism.”
Jewish Voice, July - August 1941

Taxing People is Punishing Success
UNKNOWN

There's the rich, the poor, and the tax payers...also known as the middle class. Robert Kiyosaki

The Tax you pay is The Bill for Staying Stupid

Stefan Molyneux


“The modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency.” Major L L B Angus

The few who understand the system will either be so interested in its profits or so dependent on its favours that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests.
The Rothschild Bros

"Debts must be collected, bonds and mortgages must be foreclosed as rapidly as possible. When, through a process of law, the common people lose their homes they will become more docile and more easily governed through the influence of the strong arm of government, applied by a central power of wealth under control of leading financiers.

This truth is well known among our principal men now engaged in forming an imperialism of Capital to govern the world.

By dividing the voters through the political party system, we can get them to expend their energies in fighting over questions of no importance. Thus by discreet action we can secure for ourselves what has been so well planned and so successfully accomplished."

USA Banker's Magazine, August 25 1924


Cutting Tax Rates stimulates Economic Growth creates more Profit , more Jobs and therefore The Treasury ends up with more Tax Money
UNKNOWN

Taxation is legalized Theft
UNKNOWN

"The Objective of the Bank is not the control of a conflict , it's the control of the debt that a conflict produces . The real value of a conflict , the true value is in the debt that it creates . You control the debt , you control everything . this is THE VERY ESSENCE OF THE BANKING INDUSTRY , to make us all , whether we be nations or individuals , SLAVES TO DEBT " An UNKNOWN Banker

Patriotism is the last refuge... to which the scoundrel clings .... Steal a little and they throw you in jail ..steal a lot and they make you king ....

Bob Dylan


"Corporations are stealing billions in tax breaks, while the confused, screwed citizenry turn on each other. International corporations have no national allegiance, they care only for profit." Robert Reich


There is NO political answer to a spiritual problem!
Steve Quayle


Po
litical Correctness is a Political Stand Point that does not allow Political Opposition , This is actually The Definition of Dictatorship
Gilad Atzmon

The modern definition of racist is someone who is winning an argument with a liberal
Peter Brimelow


When People lose everything and have nothing left to lose , They Lose It !

GERALD CELENTE

Your Greatest Teacher is Your Last Mistake
DAVID ICKE

The one who Controls the Education System , Controls Perception
UNKNOWN

"The world will not be destroyed by those who do evil, but by those who watch them without doing anything."

Albert Einstein

In The Left Nothing is Right & in The Right nothing is Left
UNKNOWN


No man escapes when freedom fails; The best men rot in filthy jails. And those that cried 'Appease! Appease!' Are hanged by those they tried to please
UNKNOWN

Freedom is not Free
UNKNOWN

Don't Steal The Government Hates The Competition

Ron Paul

"Buy The Rumor , Sell The Fact " Peter Schiff


You can love your Country and not your Government

Jesse Ventura


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Glenn Beck

"Tyranny will Come to Your Door in a Uniform "
Alex Jones

"The Government is not The Solution to our Problems , The Government is The Problem "

Ronald Reagan


"The price good men pay for indifference to public affairs is to be ruled by evil men." Plato


The world is a tragedy to those that feel, and a comedy to those that think...Beppe Grillo

"The people should not fear the government for it is the government who should fear the people" UNKNOWN

"If You are looking for solutions to the world's problems , look in the Mirror , You Are The Solution , You have the power as a human being on this planet " UNKNOWN

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"Serial Killers do on a Small Scale What Governments do on a large one..."

Serial Killer Richard Ramirez

There is a Class War going on in America, & unfortunately, my class is winning." Warren Buffet

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Thomas Jefferson

"College is a waste of Money"
Albert Einstein

Schools manufacture people who think that they're smart but they're not.
Robert Kiyosaki

Education is what you learn after you leave School
Robert Kiyosaki

" ‏Schools were designed to create employees for the big corporations."
Robert Kiyosaki


"If a law is unjust, a man is not only right to disobey, he is obligated to do so" Thomas Jefferson

Dissent is the highest form of patriotism
Thomas Jefferson

“True education makes you feel stupid. It makes you realize you have so much more to learn.” Robert Kiyosaki


"One day your life will flash before your eyes. Make sure it's worth watching." - Gerard Way

"Aspire not to have More but to be More "
UNKNOWN

The losers in life think they have all the answers. They can’t learn because they’re too busy telling everyone what they know.
Robert T. Kiyosaki ‏

"Failure is simply the opportunity to begin again. -This time more intelligently." Henry Ford

What You Own Owns You
UNKNOWN

If you expect the government to solve your problems, you have a problem. Robert Kiyosaki

"Those who give up their liberty for more security neither deserve liberty nor security." Benjamin Franklin

"None are more hopelessly enslaved than those who falsely believe they are free.” -
Johann Wolfgang von Goethe

"Always trust someone who is seeking the truth , never trust someone who found it" Jordan Maxwell

Be The Change you want to see in The World
UNKNOWN

Failure inspires winners but defeats losers
Robert Kiyosaki ‏

“If you are planning for a year, sow rice; if you are planning for a decade, plant trees; if you are planning for a lifetime, educate people” A Chinese Proverb

"First they came for the Socialists, and I did not speak out--
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out--
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out--
Because I was not a Jew.
Then they came for me--and there was no one left to speak for me." UNKNOWN