Tag Archives: Federal Reserve

Just a “Temporary” Measure

02 Thursday Apr 2020

Posted by in News and Notes

≈ Comments Off on Just a “Temporary” Measure

Tags

, ,

The Federal Reserve is easing up on those onerous reserve requirements which banks haven’t had to meet in decades.

The Federal Reserve on Wednesday eased rules around how banks account for their supersafe assets, a move meant to boost the flow of credit to cash-strapped consumers and businesses during the coronavirus slowdown.

The Fed said it would exclude for one-year Treasurys and deposits held at the central bank from banks’ supplementary leverage ratio calculation. The ratio measures capital—funds that banks raise from investors, earn through profits and use to absorb losses—as a percentage of loans and other assets.

Big U.S. banks must maintain capital equal to at least 3% of all of their assets, including loans, investments and real estate. By holding banks to a minimum ratio, regulators effectively restrict them from making too many loans without increasing their capital levels.

The banks are sitting on giant stockpiles of cash, U.S. government debt and other safe assets. By tweaking how the ratio is calculated, the Fed is effectively trying to engineer a swap. Remove Treasurys and central bank deposits from the calculation, the thinking goes, and banks should be able to replace them in the asset pool with loans to consumers and businesses.

Hey, look! The little dog is tugging on that curtain! It’s only temporary, they say – just like income tax withholding! So, what are they planning? To help us borrow our way to prosperity? Or, just out of a gravity well of existing debt? This stuff is so transparent that they may have to move up football season to divert the normies. Oh, already planning that. Carry on!

Remarkable Analysis

30 Monday Mar 2020

Posted by in Legal/Political Columns, News and Notes

≈ Comments Off on Remarkable Analysis

Tags

, , , ,

Just moments ago, the babbling idiots on CNBC BRAGGED!!! about the multiplier effect, noting (correctly) that for every dollar in “public” loans from that hideous $2+ Trillion bailout, five to ten dollars in private bankster loans can be created. *Poof* Instant “money.” This sounds oddly like what Todd Vispoli tried to explain to the sheeple back on St. Paddy’s Day:

There used to be a ratio – nine to one or ten to one. For every dollar in public debt, they could technically manufacture another nine on the private side, though they didn’t always do it or have to. Now, that’s a thing of the past. There are, now, no reserves to manipulate. It’s all debt-based fakery and smoke, and now, they just print whenever and whatever they think will work. Or, that they think they can get away with.

They get away with a lot. And, people brag about it. So, two trillion could become ten to twenty trillion. Like magic.

Meanwhile, Orange Man is bigger than the Batchelor.

Welcome to Clown World, the pandemic edition.

You CAN Go Lower Than Zero

25 Wednesday Mar 2020

Posted by in Legal/Political Columns, News and Notes

≈ Comments Off on You CAN Go Lower Than Zero

Tags

, , , , ,

And, you have.

Just the other week, my avatars, Tom Ironsides and Todd Vispoli (neither of which is me, by the way) discussed the real crisis behind the ridiculous Corona Chan false flag and hoax. Todd said: ‘The funds rate is already effectively below zero, and it has been for some time. All the idiot pundits say, “you can’t go lower than zero,” but that’s just another one of their lies. Of course, you can go lower. The Europeans are below zero.’

Now, US Treasuries are too.

Yields on both the one-month and three-month Treasury bills dipped below zero Wednesday, a week and a half after the Federal Reserve cuts its benchmark rate to near-zero and as investors have flocked to the safety of fixed income amid general market turmoil.

It was the first time that happened in 4½ years, when both bills briefly flashed red and yields fell to minus-0.002% each. The readings Wednesday were well below those.

This comes while the criminals in DC scramble to give away even more value to the masters of usury. (But hey! You’ll get $1200 or something). This, while Americans hide in their homes, leaving only to run around in masks and fight each other for toilet paper. What the rate drop means in real terms is that when you buy a short-term bond and loan the Empire your money, you have to pay them to take your money. That means your money is … worthless. Think about it (if that’s possible anymore) like this: if you have something valuable around the house – gold, timber, stamp collection, etc. – then people will pay you for the privilege of taking it for themselves. On the other hand, you have to pay to have worthless or dangerous things removed from your home – like black mold or toxic waste in the soil.

Extrapolating further, to Wall Street, the relative worthlessness of the cash means that it takes more of it to buy things, like stocks. Thus, the prices of the stocks rise, driving a false sense of prosperity in the DOW. But, as soon as the bailout cash is spent (tomorrow), we’re back to square one and a lack of true value. Those at the top of the chain (the banksters) reap the greatest rewards. The rest pay the price.

A few related questions:

If all non-essential offices are supposed to be closed, then how the hell is Congress open?

If you get $1200 “free” from Uncle Sucker, but there is no toilet paper available to purchase, do you use the fiat to wipe your ass?

If Washington can afford to part with Trillion$ in giveaway cash, then why do we have to continue to pay taxes?

Is a combination of Chloroquine and UV radiation effective against usury and tyranny?

We need answers.

You’re Too Big To Fail

16 Monday Mar 2020

Posted by in Legal/Political Columns

≈ Comments Off on You’re Too Big To Fail

Tags

, , , , , ,

Hey! You’re about to get paid a little – just a tiny bit – of that bankster graft!

What’s happening: A growing chorus of liberal and conservative economists are lining up behind a proposal published in the Wall Street Journal by Harvard professor Jason Furman, who chaired the Council of Economic Advisers (CEA) under President Obama, that calls for direct government payments to households.

What it means: Furman proposes Congress pass a “one-time payment of $1,000 to every adult who is a U.S. citizen or a taxpaying U.S. resident, and $500 to every child who meets the same criteria.”

He adds that the law “should also specify that the payments would continue in 2021 and beyond if the unemployment rate rises to 5.5% and remains there or higher. Hopefully this will not happen, but if it does, the money will be needed.”

What it REALLY means: America is DONE.

The Real Emergency

12 Thursday Mar 2020

Posted by in Legal/Political Columns, News and Notes

≈ Comments Off on The Real Emergency

Tags

, , , ,

It’s not the virus. It’s the economy, the same one we were assured last night was in great shape. Economies in great shape do not require $1,500,000,000,000 in overnight banking giveaways in order to survive.

The Fed announced a bold new initiative in an effort to calm market tumult amid the coronavirus meltdown. In all, the new moves pump in up to $1.5 trillion into the financial system in an effort to combat potential freezes brought on by the coronavirus. This was the second day in a row and the third time this week the Fed has stepped in.

Heretofore, it’s been paltry daily sums, like $165 Billion per day. $1.5 Trillion is…

  • About what the government collects in income taxes in five or six months;
  • About what the federal budget was during Bill Clinton’s tenure;
  • The total amount of federal debt late in Reagan’s first term;
  • The GDP of the entire US economy as recently as 1974;
  • Enough money to pay off ALL students loans (right now, *poof*, gone);
  • Enough to buy 100 new Ford Class aircraft carriers; and,
  • If 1,500,000,000,000 6.14″ dollar bills were laid end-to-end, fashioned into a giant fiat ribbon, the ribbon would be almost long enough to stretch from the Earth to Mars, or from the Earth to Venus and back.

The last one was a ridiculous way to measure money, but these are ridiculous times. There’s no way to be sure, but let’s assume this grafting is split between today and tomorrow – $750 Bn per day. If they keep that up, then they are generating $270,000,000,000,000 per year in fake money, or $.27 Quadrillion. All with the push of a button on a computer. Or with the incantations over a crystal ball. This is financial sorcery and it brings to mind Zimbabwe or the Weimar Republic. And, they’re talking about doing even more “to help.”

Remember to wash your hands.

Confirmation Friday!

06 Friday Mar 2020

Posted by in News and Notes

≈ Comments Off on Confirmation Friday!

Tags

, ,

Yesterday, I quipped: “Like a deadly virus, but to infect everything and everyone. The sorcerors couldn’t stand being away:” I’m not the only one drawing the correlation; Zerohedge noticed too.

The coronavirus is now exposing a far more deadly disease: Namely, the poisonous brew of easy money, cheap debt, sweeping financialization and unbridled speculation that has been injected into the American economy by the Fed and Washington politicians.

…

So both a renewed financial and economic crisis and an abrupt change of course lie dead ahead. The 30-year era of False Prosperity is over.

Accordingly, the Turbulent Twenties have begun. This will be a decade when the chickens come home to roost. It will be a time when the cans of delay and denial may no longer be kicked down the road to tomorrow.

To the contrary, the 2020s will mark an era when today’s economic and political fantasies are crushed by America’s accumulated due bills.

Bubbles will be burst. Speculators will get carried out on their shields. Easy money wealth will evaporate. Fiscal trauma will ensue. The national joy ride will end.

The decade of reckoning that lies ahead is rooted first and foremost in the fecklessly incurred mega-debts of the private and public sectors alike. Together they have soared to the staggering sum of $75 trillion.

That’s 5X more than the $14 trillion outstanding three decades ago.

Even Yahoo! Finance has open eyes: “Liquidity Concerns Build as Key Market Stress Indicator Surges”

Given the massive electronic paper printing of late, is this a crisis of liquidity drying up? Or is it a drought? We may soon find out.

Return of REPO BUCKS!!!

05 Thursday Mar 2020

Posted by in News and Notes

≈ Comments Off on Return of REPO BUCKS!!!

Tags

, , ,

Like a deadly virus, but to infect everything and everyone. The sorcerors couldn’t stand being away:

Big banks’ demand for central bank cash remained very strong on Wednesday, leading the Federal Reserve Bank to add a fresh $100 billion to the financial system.

The Fed added the money via what’s called an overnight repurchase agreement operation, or repo. Eligible banks, called primary dealers, sought $111.48 billion from the central bank, exceeding the $100 billion cap the Fed places on overnight repos.

When a $100 BILLION!!! (OVERNIGHT!) falls short.

3,583 Reasons the Fed will Act

28 Friday Feb 2020

Posted by in News and Notes

≈ Comments Off on 3,583 Reasons the Fed will Act

Tags

, ,

Done deal. They’re going to do something, probably something spectacular if understated (underhanded). The precious GDP, as daily measured by the stock market indexes, must be saved at all costs.

Stocks took another steep dive Friday, deepening a multi-day rout fueled by fears about the coronavirus’ impact on the global economy.

The Dow Jones Industrial Average fell 357 points on Friday, capping a week in which the blue chip index fell 3,583 points or 12.4%. The Dow is down 16.3% from its recent peak on Feb. 12.

The S&P 500 stock index lost 11.5% for the week and is now down 14.6% from the all-time high it reached only last week.

From Repo operations to Sicko tactics. What times! If you’re not a bankster, sorry but you’re on your own. Get one of those trendy masks.

Hey! Maybe we’ll get free masks when we file ourtaxes.

Repo Madness

07 Tuesday Jan 2020

Posted by in News and Notes

≈ Comments Off on Repo Madness

Tags

, , , ,

2020 is off to a rocking great start! That is if you’re a criminal banker. And, the money just flows!!!

… means the Fed just injected a total of $99BN to keep the levitation party going, and confirms that the repo market remains paralyzed.

Worse, any attempts to drain liquidity from the repo market, or generally slow down the shrinkage of the balance sheet, will be met with failure. It is also another indication that the repo market now holds the Fed hostage, with Powell now trapped in not only injecting liquidity via QE4, i.e., the monetization of T-Bills, but continued reliance on repos in the $250BN range.

Of course, should the Fed threaten to pull even a bit more liquidity than the market is comfortable sacrificing, and stocks get it. The flip side too: as long as the Fed keeps growing the balance sheet at a rate of about $100 billion per month, the market meltup will continue.

Best economy ever! As they boasted the other day, it is now virtually recession-proof.*

*”virtually recession-proof” does not preclude the (mathematically certain) proposition of depression or total collapse.