The
New York Federal Reserve Bank has announced that it will be dumping a
previously unfathomable amount of money into the liquidity market
beginning Friday.
The
Fed’s statement reads:
“In
accordance with the most recent [Federal Open Market Committee]
directive, the Desk will conduct repo operations to ensure that the
supply of reserves remains ample and to mitigate the risk of money
market pressures around year end that could adversely affect policy
implementation.
“The
Desk will continue to offer two-week term repo operations twice per
week, four of which span year end. In addition, the Desk will also
offer another longer-maturity term repo operation that spans year
end. The amount offered in this operation will be at least $50
billion.
“Overnight
repo operations will continue to be held each day. On December 31,
2019 and January 2, 2020, the overnight repo offering will increase
to at least $150 billion. In addition, on December 30, 2019, the Desk
will offer a $75 billion repo that settles on December 31, 2019 and
matures on January 2, 2020.
“The
Desk intends to adjust the timing and amounts of repo operations as
needed to mitigate the risk of money market pressures that could
adversely affect policy implementation, consistent with the directive
from the FOMC.”
Translation:
The New York Fed will continue to offer two-week term repurchase
operations twice per week. Four of those will span the end of the
year. It will also offer one more longer-term “repo” operation
that also spans the end of the year. That operation will be at least
$50 billion.
Also,
in order to prevent an avalanche of liquidity issues to end the year,
the Fed will continue its daily repo operations through the end of
the year. The amount that will be offered each night will be
increased to $150 billion. Additionally, there will be a $50 billion
term repo, followed by daily $35 billion repo offerings, which will
total $365 billion.
Adding
in $50 billion for the expanded overnight repo, and another $60
billion in T-bill purchases, the total injection in the next 30 days
will be $500 billion. Added to the current Fed balance sheet, by
mid-January, it will hold more than its all-time high of $4.5
trillion.
Repocalypse!
Former Fed Repo Czar Warns Possible Banking Crisis Within Days -
TruNews 12 10 19
Today
on TruNews we discuss the trillion dollar repurchase agreement crisis
placing the U.S. economy potentially days away from a crippling crash
at Christmas. We address the statements by repo founding father
Zoltan Pozsar and the predictions of Billionaire hedge fund manager
Ray Dalio, that a new world order is emerging from this financial
malfeasance, and China has already won the trade, capital, and tech
war for control of the next century. Rick Wiles, Doc Burkhart, Edward
Szall.
The
Market is On The Edge
of the Abyss -- Meltdown
before Christmas
It
used to be that the Fed was there for short term liquidity issues
because banks lend long term and borrow short term.
THEN,
the Fed started micromanaging the economy and the stock market.
Then
they became the liquidity spigot for Wall Street.
QE
to save the system, in 2009.
QE
to save the all time highs in the stock market , in 2019 and record
employment .
Same
medicine for diametrically opposite conditions.
Now,
how can that be?
The
Central Bankers have disallowed the cycles that flush these excesses,
and now the Fed is confounded by the mess they have created.
The
system requires constant expansion", so it warrants constant QE.
The
Fed is trying to keep all charts running low left to upper right and
its effing ridiculous.
They
have created a beast they cant handle.
More
QE will only lead to a bigger crash down the road and $20 Big Macs.
If we don't, then the compounding interest on the debt will get us,
you can't fight the math in the end.
There
is no rescue; they have been re-animating the corpse for 10 years.
the
liquidity and fiat flows are all that is left;but the $120 Billion a
night is not providing enough 'free money' in the system.
The
FED will try to keep on propping up the markets by printing more
money until they break the workers with inflation, then there will be
a collapse much worse than the great depression that will bring in
the mark of the beast.
Cash
and gold my friends.
Welcome
to The Atlantis Report.
I
bet the FED and Trump will do anything and everything in their power
to prevent the stock market from crashing before the election, even
to the extend of going full Zero Interest Rates ;plus QE; plus REPO
;plus Helicopter Money; plus Whatever as soon as the crisis arrives.
But
remember , Printing will work until it doesn't.
History
is filled with lurid examples.
When
it doesn't work will be decided by many unusual factors already in
play.
Never
before has the world had to contend with derivative markets -
unregulated. This system was wired to 'pull it' decades ago. Pain,
lots of it then a new system minus the banks.
This
is the game we are in:
The
Debt must ever expand or the whole system implodes.
Interest,
my friends, is ever eating up the dollars that were created by debt.
If the debt is to be paid, then more must be created constantly to
keep enough "money" in the system to pay the interest.
When
we can't pay the interest, it's game over.
Money
is DEBT.
Bill
Holter - Confidence Going to Break Biggest Debt Bubble in History
Financial
writer Bill Holter has long said, “This is the biggest debt bubble
in history.” He says we are in the perfect geopolitical and
financial storm that can shake people to the core. Holter says, “I
believe it breaks confidence. Others say arrests and indictments
will increase confidence. I agree with that in the long term, but
initially, it breaks confidence, not only in the United States, but
outside with foreigners. If there are no arrests, we live in a
complete banana republic land. . . . This was and is a coup attempt.
. . . This is by far the most intricate coup attempt in the history
of history. If they don’t do something about this, then what does
that say about our form of government? . . . Confidence is going to
break, and confidence is what markets basically rely and trade on.
Confidence is the largest factor in the credit markets, and the world
runs on credit.”
So,
is this why so many top money managers and financial experts are
telling people to buy gold? Holter says, “They see that confidence
is going to break. . . .What kind of asset doesn’t get affected,
and not only affected negatively, but it gets affected positively?
The answer is gold and silver. They are non-liability money. They
are not issued by anyone. . . . It is real money.”
Join
Greg Hunter as he goes One-on-One with financial writer and precious
metals expert Bill Holter from JSMineset.com.
It is really difficult to get reliable and credible background on what is turning out to be a civil war of sorts in the United States. I found this to be a credible and rational voice and in my mind it is worthwhile spending the time to listen.
Trump
Blaming Fed for Next Market Crash – Dave Janda
Radio
host Dr. Dave Janda says everybody in Washington knows the next big
crash is right around the corner. It’s been 10 years since the Fed
reflated the last meltdown, and Dr. Janda says President Trump is
already blaming the Federal Reserve for killing the economy that his
policies revived. Dr. Janda explains, “President Trump has been
pointing the finger at the Fed. He’s been pointing the finger at
the Fed, and that is exactly where he should be pointing. The
globalist syndicate’s tentacle is the central banking system, and,
in particular, in the United States, the Federal Reserve. The Federal
Reserve is one of the entities that is directly responsible for this
financial mess our country is currently in. You would never see Obama
or the Bushes, or Bill Clinton, point at the Fed and say what Trump
has said. Trump said, ‘I think the Fed has gone crazy. I think the
Fed is making a mistake. They’re so tight with interest rates. I
think the Fed has gone crazy.’ Just the other day, Trump said, ‘My
biggest threat is the Fed. . . . The Fed is raising rates too fast,
and it’s too independent.’ Now, wait a minute, listen to that.
It’s too independent. When was the last time a president of the
United States said the Fed was too independent? . . . . Banking
groups, that is their priority. So, when the President says the Fed
is raising rates too fast, and it’s my biggest enemy, and too
independent, what he is saying is they are looking out for their own
interests. They are not looking out for the interests of our country
or for you or for me or for any American, and he’s right. I don’t
know of any other president that has had the guts to say this.”
So,
what happens next? Dr. Janda says, “Trump knew this thing was
rigged to blow, the economy, the financial system, and when the right
time came, he would start pointing the finger at the globalists, the
Fed. I believe that’s where we are right now.”
On
the Democrats taking back control of the House, Janda says the blue
wave will turn into a red tsunami. One Democrat after another,
including Hillary Clinton, has threatened violence if Democrats do
not take back the House of Representatives. Janda says, “These are
not statements from people that are in positions of power or people
that are riding a blue tsunami to victory in the midterm election.
These are people that are potentially drowning in a red wave, and
they know it because their internals are telling them that. This is
why they are acting out.”
On
the subject of Deputy Attorney General Rod Rosenstein, the short
story is he has flipped and is working on the Trump team.
In
closing, Dr. Janda says, “I would say we are winning. The reason I
say that is all these judicial appointments. . . . I believe we have
a five to four rule of law majority in the Supreme Court. I believe
(DOJ prosecutor) Huber has been working on these indictments behind
the scenes, and they will be unsealed as soon as the declassification
occurs. I believe military tribunals have been set up and will become
more overt in their operation, but that doesn’t mean we have
already won. We are winning, and we are in the process of winning. We
have not won. That’s why I believe these midterm elections are so
important. This is why we are seeing the hysteria out of the Deep
State players that are the mid-level puppets. This is why we see the
Bookers, the Clintons, the Obamas and Bidens all lashing out. They
know if people vote for rule of law candidates across the board and
don’t buy into this agenda that the globalists are putting forward
such as no border security, sanctuary cities, raising taxes, and if
you don’t vote for us, we are going to beat the hell out of you, if
they don’t buy into that agenda, the Deep State players know the
rule of law will be implemented like it’s not been implemented for
decades in America. The Deep State globalists are in the crosshairs
of a true justice system as opposed to a justice system that is just
smoke and mirrors.”
Join
Greg Hunter as he goes One-on-One with Dr. Dave Janda, host of the
popular radio show “Operation Freedom.”
(Program
note: The interview is nearly 1:45 minutes long, but it is packed
with cutting edge information and analysis.)
Dr. Mark Skidmore - $21 Trillion “Missing” Money Huge Implications for Dollar
Greg Hunter - USA Watchdog
Michigan
State Economics Professor Mark Dr. Skidmore says there is a limit to
money printing even when all the global central banks are doing it.
Skidmore says, “What does it mean when a central bank is buying
equities, or buying debt with printed money in order to suppress
interest rates and keep this game going? I think, overall, the whole
world is awash in debt, and it’s expanding at a rate that is
unsustainable. The only way it has been sustained is that interest
rates have been falling for 30 years. Now, interest rates are no
longer falling, and we are running up against a constraint. Now, if
this $21 trillion in “missing” federal money really represents
spending above and beyond what the official records indicate, then
that has huge financial implications and huge implications for
confidence in the dollar as the reserve currency. This is an
enormous priority to address and not just cover up and say we are all
good.”
In
closing, Dr. Skidmore says, “How can you have a democracy if you
don’t have any transparency whatsoever? Having integrity and
confidence is so essential to the whole system, and this just puts
everything in question. . . . We should clean this up and show we are
legitimate. If we don’t, we are just shooting ourselves in the
foot.”
Join
Greg Hunter as he goes One-on-One with Dr. Mark Skidmore, Professor
of Economics at Michigan State University.
We
have so far avoided the worst with economic collapse and the most
dire predictions have not, so far, come to pass.
My
instinct tells me that with what is happening in the United States
and a geopolitical earthquake in the making that the threat might be
real.
The
article below suggests the economy might be COLLAPSED and then blamed
on Trump.
I
have my own views which I will share when the time is right. I have a
busy couple of days right now.
The
Collapse Is Coming! Prepare For The Imminent Economic Collapse 2017
Stock Market CRASH!
There
are some dire predictions that say in the next year, or 18 months, we
have something arriving worse than 2008 and 2009, the downturn is
much worse. The biggest stock market crash and economic collapse
imminent.
The
Economic Doomsday is here. The second financial bubble is going to
soon burst, and there’s nothing anyone can do about it. The Federal
Reserve has set up the American economy for financial collapse for
printing trillions of dollars back in 2008 and 2009. The next crash
is coming, and the decision by central banks to paper over their
economy's troubles with a massive injection of debt likely means that
the next economic collapse and stock market crash is already overdue.
“The
Federal Reserve’s policies of printing trillions of dollars back in
’08-09 have locked into place a serious financial crisis at some
point in our future,” Going so far as to intimate the financial
collapse and market crash will occur at least some time in the next
two years, “It’s unavoidable, and even Donald Trump can’t stop
it.”
Top
economists predict that within the next 18-24 months, the imminent
economic collapse will happen. The Federal Reserve has set up the
American economy for financial collapse and market crash for printing
trillions of dollars back in 2008 and 2009.
The
Federal Reserve’s policies of printing trillions of dollars back in
’08-09 have locked into place a serious financial crisis....
This
Is How Trump Is Going To Be Blamed For The Next Financial Crash
On
Wednesday there were a lot of Trump fans who were celebrating the
latest progress in the stock market.
For
the first time in over 100 years,
the DOW gained 4,000 points over the course of 200 working days.
That’s 4,000 points since Trump was elected, so it’s easy to draw
a connection between the stock market’s dizzying new heights and
Trump’s ascent to the White House.
The
elites simply can’t wait to pull
the plug on the many financial bubbles that
are haunting our economy. If
they do it now, they’ll walk away with a lot of money while Trump
is left with all the blame, since
he took so much credit for the stock market’s remarkable
performance.
Of
course, a financial crash won’t look so bad for Trump if it comes
out of nowhere.
What
the elites really need is a financial crash that can be easily pinned
on the President,
and it appears that they may finally have it.
You
may recall that Trump recently
said that
he will veto the next spending bill that’s due in September, if the
Senate and Congress don’t include funding for his border wall. He
basically threatened to cause a government shutdown if the Democrats
don’t cooperate with him.
Coincidentally,
the House will likely need to raise the federal debt ceiling next
month. That effort could be seriously hindered if our representatives
and president can’t agree on a new spending bill.
Credit
ratings agency Fitch Ratings on Wednesday said a failure by U.S.
officials to raise the federal debt ceiling in a timely manner would
prompt it to review the U.S. sovereign rating,
“with potentially negative implications.”
Fitch,
which currently assigns the United States its highest rating — “AAA”
— said in a statement that the prioritization of debt service
payments over other government obligations, should the debt ceiling
not be raised, “may not be compatible with ‘AAA’ status.”
The
U.S. sovereign debt rating is Fitch’s measure of
confidence in the soundness of the U.S. economy.
Without
the ability to sell more debt, the
government is expected to run out of cash,
possibly in early October, and faces the risk of not paying the
interest and principal on its debt on time. The
United States defaulting on its bonds, traders fear, would rattle
financial markets worldwide.
It’s
understandable that Trump wants to put his foot down and demand that
our legislative branch fund his border wall. It was the crux of his
campaign, and his base will grow restless if he doesn’t get it
built.
But
if he causes a government shut down in the process, it could trigger
the next financial crisis, and lead to the demise of his presidency.
And the people who turned out economy into a casino will walk away
without receiving any blame.
It's
So Quite You Can Hear A Pin Drop, Is Something About To Happen?
The
signs are everywhere for those willing to look: something has changed
beneath the surface of complacent faith in permanent growth.
This
is more intuitive than quantitative, but my gut feeling is that the
economy just stumbled off a cliff.
Neither
the cliff edge nor the fatal misstep are visible yet; both remain in
the shadows of the intangible foundation of the economy: trust,
animal spirits, faith in authorities' management, etc.
Since
credit expansion is the lifeblood of the global economy, let's look
at credit expansion.
Courtesy
of Market
Daily Briefing,
here is a chart of total credit in the U.S. and a chart of the
percentage increase of credit.
Notice
the difference between credit expansion in 1990 - 2008 and the
expansion of 2009 - 2017.
Credit
expanded by a monumental $40+ trillion in 1990 - 2008 without any
monetary easing (QE) or zero-interest rate policy (ZIRP). The
expansion of 2009 - 2017 required 8 long years of massive
monetary/fiscal stimulus and ZIRP.
This
chart of credit change (%) reveal just how lackluster the current
expansion of credit has been, despite
unprecedented trillions of stimulus pumped into the financial sector.
Here
are two other snapshots of debt: margin debt and private credit.
Both
have hit new highs.
Note
the tight correlation of margin debt to the S&P 500 stock index:
when punters borrow more on margin to buy more stock, stocks keep
rising.
When
credit stops expanding, the economy stumbles into recession.
Back
in the real world, have you noticed a slowing of animal
spirits borrowing
and spending?
Have
you tightened up your household budget recently, or witnessed
cutbacks in the spending habits of friends and family? Have you
noticed retail parking lots aren't very full nowadays, and once-full
cafes now have empty tables?
According
to the conventional economic statistics, everything's going
great:
there
are millions of job openings, unemployment is near historic lows, GDP
is expanding nicely and of course,everyone's
favorite signifier of wonderfulness,
the stock market, is hovering near all-time highs.
The
possibility that the real economy just stumbled off a cliff creates
instant cognitive
dissonance
,
as the official narrative is the economy is expanding slowly but
surely and everything is nominal: there's plenty of everything, from
oil/gas to consumer credit to jobs to student loans.
Nonetheless,
I feel a disturbance in the Force: once
credit expansion slows or ceases, the economy will roll over into
recession, as wages have been stagnant for the past 17 years, and the
bottom 95% of households can only spend more if they borrow more.
Recessions
are not mechanical processes; they are ultimately measures
of human emotions and assessments:
greed/complacency
gives way to fear and caution, and denial /magical thinking is
brought to Earth by reluctant acceptance of less-than-ideal realities
(for example, we really can't afford to borrow more, it makes no
sense to buy negative-interest rate bonds, etc.)
Though
it's bad form to mention it,
everyone's
favorite signifier of wonderfulness,
the stock market, is by most measures overvalued and priced to
perfection.
Meanwhile,
after failing to normalize interest rates and its balance sheet years
ago when the economy had already recovered some stability, the
Federal Reserve (and a few other central banks) are hurrying to make
a grand show of ticking rates a bit higher before the next recession
reveals the systemic failure of their 8-year long campaign of
permanent monetary stimulus and near-zero rates.
Everything
that could rescue the stock market from swooning has already been
done:
buy
hundreds of billions of dollars of stocks via index funds? Done.
Constantly communicate the god-like powers of central banks to fix
anything and everything in global equity and bond markets? Done, to
the point of boredom.
How
can anyone trust a market that has been massaged and manipulated for
8 long years?
What
sort of price discovery is possible if central banks have been major
buyers for years?
Beneath
the surface of complacent tranquility and absolute faith in the
god-like powers of central banks, a skittish awareness of risk and
fragility is rising.
I
would contend that this is true not just in moneyed circles with
access to the best private research, but in households that are
sensitive to the first tremors of the coming earthquake, and alert to
the note of alarm in the canary's warblings down in the coal mines of
the economy.
I
suspect all those who have placed their trust in everyone's
favorite signifier of wonderfulness,
the stock market, have forgotten that signifiers can work both
ways:
nothing
signals recession and a panicky urgency to sell everything that isn't
nailed down like a sharp swoon in stocks that fails to respond to a
"buy the dip" buying frenzy.
The
faith in "buy the dips" (i.e. "the Fed has our backs")
is not based on an immutable law of Nature; stocks can (gasp!)
actually succumb to gravity.
And
when they finally do feel the tug of gravity, the belief that "buy
the dips" is a permanent strategy will be revealed for what it
is: a long, heavily-juiced run that eventually ends.
The
signs are everywhere for those willing to look: beneath the surface
of complacent faith in debt-fueled permanent growth, the economy is
stumbling.
Recessions are typically identified after months of
squinting in the rearview mirror, but we don't need an official
declaration to sense that something has changed.
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