A Commentary On Our Global Reset & US Dollar Collapse by Mitch Santell
The craziness that you witnessed today in the financial markets has been planned for over 100 years.
The Powers That Be, the Global Elite, the 1% love what is happening!
They are laughing their asses off.
Question: Why are they doing this?
Answer: It is called the Federal Reserve, and it is neither “Federal” Nor Is it A Reserve!
THE FEDERAL RESERVE SYSTEM
Anyone who is in Banking & Payments and is a bit of a history buff, would know essential flow of how our money is made. I use the word flaw deliberately, because that is what it is.
Money today is created out of thin air. It has been for decades now. There is no tangible commodity at the back end to cover it. It is all created at will and then pushed into the money supply.
There is indirect taxation because of this, i.e. inflation that is a monster by itself to deal with.
Now, whether you are a history buff or not, conspiracy theorist or not, the following videos and books are illuminating at the very least, and for those who dig deeper into it, eye-opening would be the term that comes to mind.
There is a great documentary (on which I will post separately), but I could not help but transcribe the following passage from its opening:
There is no system that is taken for granted or misunderstood as the monetary system. Taking on nearly religious proportions, the established monetary institution exists as one of the most unquestioned forms of faith there is.
How money is created, the policies by which it is governed, how it truly affects society, are unregistered interests of the great majority of the population.
And whether we are aware of it not, the lifeblood of all of our established institutions and thus society itself is … money.
Therefore understanding this institution of monetary policy, is critical to understanding why our lives are the way they are.
Unfortunately, Economics is often viewed with confusion and boredom.
Endless streams of financial jargon, coupled with intimidating mathematics quickly deters people from attempts at understanding.
However, the fact is, the complexity is so seated with the financial system, is a mere mask. Designed to conceal one of the most socially paralyzing structures, humanity has ever endured.
I don’t want to come across as a person to influence you, however, I would want that you read, watch and listen and draw your own conclusion. This is precisely one of the reasons why Bitcoins are touted as the monetary system that would serve as our savior.
When I discuss what is written above (and below) with friends and colleagues, there is almost a comical irony in it, considering I am a Banking & Payments consultant. Am I cognizant of the money flaw? Yes, I am. Can I do anything about it? Probably not a whole lot, other than educate others. What am I trying to achieve here? Nothing! Just simply sharing a book and its story.
A Commentary On The Collapse That Is Here Now by Mitch Santell
Hi, how are you? Me? I am phenomenal because I don’t own the city hall, I just work here.
You may or may not follow this blog, and guess what? We are in the most massive global collapse since the Great Depression.
If you don’t believe me, you need to know about something called Quantitative Easing.
Barrack Obama introduced Quantitative Easing. President Obama did not invent Quantitative Easing; he brought it into our economic structure based on the Banking Collapse of 2008.
Quantitative Easing is where the Federal Reserve (our central bank, which is neither Federal nor a Reserve creates money out of debt to keep our markets liquid).
Now that I realize that over two-thirds of high school students in America are illiterate, I realize that you are going to have to take care of yourself and your family first. There is no reason to argue with anyone anymore.
Now the time has come to enjoy the bigger picture. Not only was 75 Billion Dollars+ pumped into the market daily over the past few months, over the next two-plus weeks, the Federal Reserve is also going to pump 500 Billion into the Banking System.
How long do you think this can continue?
In previewing today’s Fed statement regarding repurchase operations, on Tuesday Curvature Securities repo expert Scott Skyrm said that he expects the Fed to announce a $50 billion (at least) term operation for Monday December 23 (double the current term ops) and a $50 billion (at least) term operation for Monday, December 30. This prediction was in response to Zoltan Pozsar’s warning that reserve levels are too low and the result would be a market crash that could spark QE4.
Well, moments ago the NY Fed did publish it latest weekly “Statement Regarding Repurchase Operations” as expected laying out the Fed’s expected repo operations for the period December 13 – January 14… and it blew Skyrm’s expectations out of the water
According to the statement, the NY Fed 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, just as Skyrm expected.
A Commentary About Corruption And Misinformation by Mitch Santell
The country is divided because it was planned this way. Most significant events that happen are all planned, and the “illusion” that it just “happened by accident” is fantasy.
Do you remember the term “Quantitative Easing?”
This was started during the Obama Administration.
Here is what was written:
The federal government has run massive deficits since President Obama became president in 2009, but the deficits, and the government’s interest payments on the cumulative federal debt, would have been even greater if the Federal Reserve had not intervened with a massive and unprecedented bond and securities buying program.
Beginning in 2009, the Fed began its multi-stage program of quantitative easing through large-scale purchases of Treasury and other securities. In the aftermath of the financial crash, the agency had quickly lowered the targeted federal funds rate to between zero and 0.25 percent. In early 2009, the bank’s leaders, especially Ben Bernanke, sought to provide further monetary stimulus to the national economy and settled on large-scale asset purchases as the most viable way to expand the monetary base with interest rates already at the lower bound.
As of September 2008, the Fed held $477 billion in federally-issued debt, out of a cumulative total of $5.8 trillion. Thus, the Fed owned about 8 percent of all federal debt before the quantitative easing program began. In fiscal year 2009, the Fed then made net purchases of Treasury securities totaling $292 billion, followed by nearly $900 billion over the two-year period of 2010 and 2011 and $800 billion over the three-year period from 2012 through 2014. The Fed now owns $2.5 trillionin Treasury securities, or about 18 percent of all outstanding federal debt, which is well outside the historical norm.
The purpose of quantitative easing was to stimulate asset valuation by lowering long-term borrowing costs and thus also to encourage business expansion and consumption by households. It was also intended to make it easier for the federal government to run larger deficits and thus to provide fiscal stimulus to the national economy. This month, the average interest rate on a newly-issued 30-year mortgage is 3.43 percent, near the lowest level ever recorded. Fixed-rate 30-year mortgage rates have been below 5 percent continuously since January 2011.
Other central banks around the world have followed similar policies. The result has been a long-period of extremely low borrowing costs for governments. Amazingly, in 2016, the Congressional Budget Office (CBO) expects net interest payments on nearly $14 trillion in outstanding federal debt to total just $253 billion — the same level of interest payments that were made by the federal government in 2008 on $5.8 trillion in debt.
Answer: Instead of the Federal Reserve Pumping 75 Billion Dollars a month into the economy, they are now pumping in 75 Billion Dollars a day, five days a week until November 4, 2019.
Don’t Believe me?
Here you go:
(Reuters) – The New York Federal Reserve will continue to boost liquidity in money markets into November, the bank announced on Friday.
The bank will offer daily repurchase agreement, or repo, operations, offering at least $75 billion a day in daily cash injections through Nov. 4. The Fed also announced term repos for firms wanting to borrow cash for longer, with most offerings lasting two weeks. This extends a policy that was initially supposed to end next week.
The continuation of the daily repo operations ensures that financial firms will be able to turn to the central bank to borrow cash until at least the next Fed meeting, when policymakers are expected to discuss a more permanent solution.
The New York Fed began holding daily repo operations on Sept. 17, after a key borrowing rate in overnight lending markets for cash spiked to 10%. The central bank succeeded in calming markets through the operations, but some investors and former Fed officials have been calling on the central bank to deliver a long-term fix.
Some investors say the Fed should permanently increase liquidity in the banking system by expanding the size of the balance sheet or introducing a standing repo facility, which would allow firms to borrow cash as needed at a fixed rate.
The pre-emptive action from the New York Fed could help minimize market volatility in the near term because firms now know they can turn to the central bank if they need liquidity, said Blake Gwinn, head of front-end rates strategy for NatWest Markets. “It’s a full fledged lean into providing repo liquidity through these temporary operations,” he said.
This was just reported this morning (October 16, 2019):
“Something Snaps: Repo Locking Up Again As Overnight Fed Operation Oversubscribed, Repo Rate Jumps”
Now Read this:
First it was supposed to be just a mid-month tax payment issue coupled with an accelerated cash rebuild by the US Treasury. Then, it was supposed to bejust quarter-end pressure. Then, once the Fed rolled out QE4 while keeping both its overnight and term repo operations, the mid-September repo rate fireworks which sent the overnight G/C repo rate as high as 10% was supposed to go away for good as Powell admitted the level of reserves was too low and the Fed launched a $60BN/month Bill POMO to boost the Fed’s balance sheet.
Bottom line: the ongoing repo market pressure – which indicated that one or more banks were severely liquidity constrained – was supposed to be a non-event.
Alas, as of this morning when the Fed’s latest repo operation was once again oversubscribed, it appears that the repo turmoil is not only not going away, but is in fact (to paraphrase Joe Biden) getting worse, because even with both term and overnight repos in play and with the market now expecting the Fed to start injecting copious liquidity tomorrow with the first Bill POMO, banks are still cash starved.