Check out the TB2K CHATROOM, open 24/7               Configuring Your Preferences for OPTIMAL Viewing
  To access our Email server, CLICK HERE

  If you are unfamiliar with the Guidelines for Posting on TB2K please read them.      ** LINKS PAGE **



*** Help Support TB2K ***
via mail, at TB2K Fund, P.O. Box 24, Coupland, TX, 78615
or


ECON Holy Cow! Fed REPO operations sharply accelerating
+ Reply to Thread
Page 4 of 6 FirstFirst ... 2 3 4 5 6 LastLast
Results 121 to 160 of 209
  1. #121
    Quote Originally Posted by hiwall View Post
    Of course we all know that the Federal Reserve is not a government entity.
    Heh....

    All this time I thought since the 1930s the FRBanksters are a boss of most Federal government paid employees.

    Why it makes me so happy our current POTUS doesn't take a salary.

  2. #122
    Join Date
    Mar 2005
    Location
    Maidenhead
    Posts
    29,242
    Quote Originally Posted by hiwall View Post
    Of course we all know that the Federal Reserve is not a government entity.
    Doesn't matter. They use FASB anyway. Just go to their website and execute the search and you'll find hundreds of documents about it.

    https://www.fedsearch.org/board_publ...&submit=Search
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  3. #123
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    70,953
    Now you can believe what you want but when they tell you what you actually see in the chart and if you really don't want to loose money.

    A stranger came to town one day and was astonished to see an array of targets here and there, each with a bullet hole perfectly in the center. Oddly enough, no one in town knew who this most excellent unerring marksman was.

    Then one day the stranger encountered the mysterious marksman, carefully drawing a target around his newest bullet hole.

    One must HAVE money in order to LOSE money. Very few people today actually have money, they have debt based accounting entries but not money. Money is an asset, not a debt.
    The wonder of our time isnít how angry we are at politics and politicians; itís how little weíve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  4. #124
    Join Date
    Oct 2014
    Location
    Southwest (enjoy it!)
    Posts
    4,864
    One must HAVE money in order to LOSE money. Very few people today actually have money, they have debt based accounting entries but not money. Money is an asset, not a debt.
    This^^ goes for individuals, businesses, corporations, and government entities.

  5. #125
    Join Date
    Jun 2019
    Posts
    244
    Quote Originally Posted by Dozdoats View Post
    Now you can believe what you want but when they tell you what you actually see in the chart and if you really don't want to loose money.

    A stranger came to town one day and was astonished to see an array of targets here and there, each with a bullet hole perfectly in the center. Oddly enough, no one in town knew who this most excellent unerring marksman was.

    Then one day the stranger encountered the mysterious marksman, carefully drawing a target around his newest bullet hole.

    One must HAVE money in order to LOSE money. Very few people today actually have money, they have debt based accounting entries but not money. Money is an asset, not a debt.
    You can change a definition to anything you want. Take marriage for instance. You are not changing the facts on the ground. If they expand the base and it shows up in the charts you have (however you chose to fool yourself I do not care) more .

  6. #126
    Join Date
    Jun 2019
    Posts
    244

    When I first USed leverage.

    Quote Originally Posted by Dozdoats View Post
    Now you can believe what you want but when they tell you what you actually see in the chart and if you really don't want to loose money.

    A stranger came to town one day and was astonished to see an array of targets here and there, each with a bullet hole perfectly in the center. Oddly enough, no one in town knew who this most excellent unerring marksman was.

    Then one day the stranger encountered the mysterious marksman, carefully drawing a target around his newest bullet hole.

    One must HAVE money in order to LOSE money. Very few people today actually have money, they have debt based accounting entries but not money. Money is an asset, not a debt.
    Around 1980. I took a credit card maxed it out and opened a account at the only other company that did at the time what they did. Monex was the other. Play leverage on the spot market. Cost me 5 bucks a card and payed back before the 30 days. No interest. In 6 months I ran a little over 700,000 through the account. You call things anything you want. You walk away from the basics and think that by reading a Tyler Durden you are going to make a lot of debt. LOL. off the folks that pay millions for algorithms that know how you think and will react. Move your target and change whatever you want. Don't effect me.

  7. #127
    Join Date
    Mar 2005
    Location
    Maidenhead
    Posts
    29,242
    They are very busy today. Only about $112 billion dollars in one day. With that you could just about replace our aircraft carriers fleet.....in one day of operations.
    Attached Images
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  8. #128
    Join Date
    Oct 2014
    Location
    Southwest (enjoy it!)
    Posts
    4,864
    It's only money - -kind of.

  9. #129
    Join Date
    Mar 2005
    Location
    Maidenhead
    Posts
    29,242
    We kind of grow numb to it. Wonder where we are on the vertical hockey stick of money growth now? The REPO panic the last 8 weeks should be telling us something.
    Attached Images
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  10. #130
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    70,953
    The REPO panic the last 8 weeks should be telling us something.

    Hey, I only panicked when the Fed did
    The wonder of our time isnít how angry we are at politics and politicians; itís how little weíve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  11. #131
    Join Date
    Oct 2014
    Location
    Southwest (enjoy it!)
    Posts
    4,864
    Today's repo operations were about 106 billion.
    In the time of 10-31-19 to 11-13-19 (2 weeks) the daily amounts totaled roughly 806 billion. But in that same time span the Fed balance sheet only went up by about 28 billion.

  12. #132
    Join Date
    Mar 2005
    Location
    Maidenhead
    Posts
    29,242
    Fed Braces For Year End Repo Turmoil: Announces $55 Billion In 28, 42-Day Repos To Flood System With Cash

    Just moments after we reported that according to Bank of America, the US financial system's reliance on repos could "short-circuit the market's ability to accurately price the supply and demand for leverage as asset prices rise", and implicitly, facilitate the next financial crisis because "the Fed has entered unchartered territory of monetary policy that may stretch beyond its dual mandate", the Fed confirmed just how reliant both it, and the entire US financial system is on the repo market, when it released its latest term repo schedule, one which for the first time included 28 and 42-day repos which would mature into the new, 2020 year, yet which amount to just a total of $55 billion collectively, an amount which we fear will be far too little to meet year-end liquidity demands, and represents just the first shot in the Fed's scramble to flood the system with year-end liquidity. Meanwhile, the NY Fed is maintaining its $120BN in overnight repos indefinitely.

    This is what the Fed released today at 3pm:

    The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of repurchase agreement (repo) operations for the monthly period from November 15, 2019 through December 12, 2019. In accordance with the most recent FOMC directive, the Desk will continue to offer at least $35 billion in two-week term repo operations twice per week and at least $120 billion in daily overnight repo operations.

    The Desk will also offer three additional term repo operations during this calendar period with longer maturities that extend past the end of 2019. These additional operations are intended to help offset the reserve effects of sharp increases in non-reserve liabilities later this year and ensure that the supply of reserves remains ample during the period through year end. They are also intended to mitigate the risk of money market pressures that could adversely affect policy implementation. The Desk will adjust the timing and amounts of repo operations as necessary to maintain an ample supply of reserve balances over time and based on money market conditions, consistent with the directive from the FOMC.
    The calendar of specific term repos is below:



    Indicatively, this is just how "temporary" the Fed's overnight repos...



    ... and term repos have become:



    Appropriately, the Fed admitted that it is starting to freak out about year-end liquidity just minutes after we published a scathing critique of the Fed's "repo regime" by BofA, which among other things said the following:

    Repo matters more than ever

    The repo channel, which is one ingredient within overall financial conditions, is becoming more important as reliance on overnight funding and leverage continues to rise. While banks and security brokers have greatly reduced reliance on overnight funding as a result of Dodd-Frank, the rest of the market has approximately doubled its reliance on overnight funding since the 2008 crisis.

    While one can argue that the proper metric is repo funding as a percentage of Treasuries and MBS outstanding, we think that such a ratio misses the bigger picture. The bigger picture is that if repo markets stopped functioning today, the amount of Treasury and MBS securities held outside of banks-dealers requiring liquidation (for lack of funding) would be about twice as large as 2008, and with today's surprisingly low levels of liquidity in the "liquid markets" the impact could be massive. In this context, we view the Fed's purchase program as integral to the promotion of easy financial conditions and supportive of asset prices, which is Chair Powell's second criterion for QE.
    Why is the above a problem? Because as BofA concluded, "Everything has a cost"

    In our view, the most worrying part of the Fed's current asset purchase program is the realization that an ongoing bank footprint in repo markets is required to maintain control of policy rates in the new floor system. While we are confident that beyond year-end, the additional reserves will have the required soothing effect, what is less clear is that the Fed can make sure the bank repo lending footprint is resilient to dips in the bank credit cycle. While repo is fully collateralized and therefore contains negligible counterparty credit risk, there may be a situation in which banks want to deleverage quickly, for example during a money run or a liquidation in some market caused by a sudden reassessment of value as in 2008. In this environment, it seems implausible to expect banks to maintain their level of repo lending. If repo lines were drawn down far enough and for long enough in time, it could lead to deleveraging at institutions that were otherwise healthy. The new monetary policy regime therefore may increase systemic financial risk by making repo markets more vulnerable to bank cycles. This increases interconnectedness, which is something regulators widely recognize as making asset bubbles and entity failures more dangerous.

    Some have argued, including former NY Fed President William Dudley, that the last financial crisis was in part fueled by the Fed's reluctance to tighten financial conditions as housing markets showed early signs of froth. It seems the Fed's abundant-reserve regime may carry a new set of risks by supporting increased interconnectedness and overly easy policy (expanding balance sheet during an economic expansion) to maintain funding conditions that may short-circuit the market's ability to accurately price the supply and demand for leverage as asset prices rise.
    When the time comes for the Fed to unwind its "temporary" repos, we hope it will be more successful then when it tried to "renormalize" monetary policy, which lasted for a few months and then the Fed admitted defeat in a dramatic U-turn, and is now cutting rates instead.

    https://www.zerohedge.com/markets/fe...ing-2020-start
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  13. #133
    Join Date
    Mar 2005
    Location
    Maidenhead
    Posts
    29,242
    The above is what panic smells like but it's too late. Got preps?
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  14. #134
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    70,953
    I panicked in Sept when they started this nonsense.
    The wonder of our time isnít how angry we are at politics and politicians; itís how little weíve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  15. #135
    Join Date
    Oct 2014
    Location
    Southwest (enjoy it!)
    Posts
    4,864
    I admit I am being pretty free with my money lately to build up preps of anything I think I could use. Preps are not just food but most anything tangible that has value to me.

  16. #136
    Join Date
    Jun 2019
    Posts
    244

    Tell me about it.

    Quote Originally Posted by Dozdoats View Post
    I panicked in Sept when they started this nonsense.
    Now if you want to watch these two testimonies( J. Powell last two days) on c-span they go over everything that we have been over since before sept.

    You can see how basic this is. Who knows their job and who has not done their job in so long they don't even seem to realize what their job is. Anyway for anyone who wants to know how the real world works.

    Senate joint economic committee.
    http://www.google.com/search?q=j+pow...ommity&ie=&oe=

    Congressional budget panel.

    http://www.google.com/search?q=j+pow...mittee&ie=&oe=

  17. #137
    Discussing these repos with a coworker today.

    Decided to revisit the movies out there about the 2008 melt down

    documentary/ interviews with the 2008 players about what happened
    ďwe were days away from closing the banksĒ
    https://www.youtube.com/watch?v=wyz79sd_SDA

    movies available on Amazon [and perhaps elsewhere]
    This is the movie about the wall street bankers who saw the 2008 crisis comingÖ.
    THE BIG SHORT
    https://www.amazon.com/gp/video/deta...ref=atv_dl_rdr


    MARGIN CALL this is a movie about a Lehman like company dumping its stock before a failure
    https://www.amazon.com/Margin-Call-K...t-video&sr=1-1


    TOO BIG TO FAIL this is a docudrama about what happened
    https://www.amazon.com/Too-Big-Fail-...t-video&sr=1-2
    God's idea of grace is far bigger than your idea of karma-Alan Cohen

  18. #138
    Join Date
    Oct 2014
    Location
    Southwest (enjoy it!)
    Posts
    4,864
    There is more talk about deutsche bank being insolvent. If Germany allows that bank to go under it will produce either major ripples or tsummais

  19. #139
    Join Date
    Mar 2005
    Location
    Maidenhead
    Posts
    29,242
    Well, something has broken within the system now that they are trying to paper over. At first the repo operations were only going to last a week or so and it was said that it was because of the end of the quarter and start of the new fiscal year. Despite billions of dollars pumped into the system every day liquidity is still dangerously short. The system is vacuuming up everything being injected and is still demanding more. And now the Fed has gone from 14 day terms to 28 and 42 day terms. This is starting to feed on itself. Trump wants to keep everything afloat thru the election cycle but this is starting to really grow vertical now. The whole system is propped up by confidence and is a giant confidence game now. And I am thinking that DB or one of the other TBTF globally important banks is in deep trouble and thanks to globalization and things done since 2008 if a big one goes it's going to be a domino effect.

    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  20. #140
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    70,953
    https://wallstreetonparade.com/2019/...tion-requests/

    The Fed Has Created the Big Lie for Congress on its Repo Loans while the New York Fed Blocks Freedom of Information Requests
    By Pam Martens and Russ Martens: November 14, 2019 ~

    Yesterday Federal Reserve Chairman Jerome Powell testified before the Joint Economic Committee of Congress. Only one Congressman, Kenny Marchant (R-TX), had the courage to ask Powell about the Fed’s intervention in the repo loan market beginning on September 17. Since that time the Fed has been pumping hundreds of billions of dollars each week (that the New York Fed creates electronically out of thin air) into its 24 primary dealers on Wall Street. These primary dealers are not commercial banks that might be inclined to use the funds to make loans to local businesses or to consumers to buy a house and help their local economies. No, 23 of the 24 primary dealers are stock brokerage firms and investment banks that engage in leveraged bets in the stock, bond, commodities, and derivatives markets. The 24th is a foreign bank. (See primary dealer list below.)

    There is nothing in the legislation that created the Fed, the Federal Reserve Act, that allows it to be the lender-of-last-resort to the trading houses on Wall Street. The Fed’s Discount Window, which is legally allowed to make emergency or seasonal loans, is restricted by law to just deposit-taking banks – not Wall Street trading houses.

    And yet, bailing out Wall Street is exactly what the Fed has been doing since September 17 of this year and what it did secretly to the tune of $29 trillion during the financial crisis from December 2007 to the middle of 2010. The Fed does have some leeway in an emergency situation but that has to be brief and defined. The Fed has announced that it’s planning to keep its current money spigot to Wall Street flowing into at least January of next year. But according to Powell’s testimony to Congress yesterday, there’s no pressing crisis on Wall Street. Powell stated that “The core of the financial sector appears resilient, with leverage low and funding risk limited relative to the levels of recent decades.”

    Powell knows that it’s a fallacy to say that leverage is low on Wall Street. It’s only low if one ignores the hundreds of trillions of notional (face amount) derivatives residing at the mega Wall Street banks.

    Powell and the Federal Reserve have apparently decided that they are going to push the narrative with Congress and the media that these hundreds of billions of dollars each week that are being pumped out to Wall Street at the preposterously low rate of interest of between 1.55 and 1.59 percent are simply “technical” open market operations that the Fed does routinely as part of monetary policy. Of course, the last time it did this was during the financial crisis so it’s pretty hard to call it routine.
    This is how the exchange went between Congressman Marchant and Powell:

    Congressman Kenny Marchant (R-Texas) Questions Fed Chairman Powell on Repo Loans During Joint Economic Committee Hearing, November 13, 2019
    Marchant: “The disruption in the repo market that took place in September. Anticipated? Not Anticipated? Do you anticipate keeping the expansion at the level it is until you’re sure that won’t happen again?”

    Powell: “Well, so, anticipated or not. It’s a different world post-crisis. And really because of all the expansion in our balance sheet and essentially what we’ve done now is we’ve now required financial institutions to have a lot more liquidity on their balance sheets so that the Fed doesn’t have to run in with our own liquidity. [Actually, just the opposite is true. The Fed allowed JPMorgan to reduce its reserves at the Fed by $145 billion since September 30 of last year and the Fed is now the major source of liquidity in the repo market.]

    “So I think that’s a big benefit to the financial system. But a lot of that liquidity is held in our reserves. We used to manage the interest rate by keeping reserves scarce and we had a total of $20 billion. Right now we have in excess of $1.5 trillion in reserves. And so that means that we’re trying to find that level as we allowed the balance sheet to shrink, where reserves would become scarce, and there was really no way to know.

    “I think the data that we had suggested that we were not close to that point until September. I think we’re still very much looking at what happened in September. But I think we learned in September that we needed to make sure that reserves didn’t go under that level we were at in mid-September, which is a little bit shy of one and a half trillion. So that’s really what we’re doing.

    “It’s technical. I think we have it under control. We’re prepared to continue to learn and adjust as we do this but it’s a process. I would say it’s one that doesn’t really have any implications for the economy or for the general public though.”

    Thus, the new talking points are: it’s too technical for the common brain so move along and leave it to the geniuses at the Federal Reserve. The second talking point is: nothing to see here because it doesn’t impact the economy or general public.
    But, of course, this is dangerous propaganda. The Fed is back to creating the same kind of moral hazard that it created when it secretly pumped trillions of dollars into the Wall Street trading houses and global foreign banks during the financial crisis and then waged a multi-year court battle to keep it secret from the American people.
    The Fed’s current money spigot impacts the U.S. economy because it further enriches the top 10 percent who own the vast majority of all stocks and bonds in the U.S. It impacts the economy because it is ballooning the size of the Fed’s balance sheet (now back above $4 trillion) which the U.S. taxpayer is ultimately on the hook for. It impacts the U.S. economy because it is worsening the existing bubble that already exists in the stock market, thus making the inevitable bursting of the bubble worse. And it impacts the U.S. economy because this big propaganda lie further undermines the trust the American people have in the Federal Reserve and U.S. banking system.
    And right on cue, the New York Fed, the regional Fed bank that directly controls this money spigot to Wall Street and was the stonewaller-in-chief during the financial crisis, is back to its old games again of denying, thwarting or stonewalling requests for information on these repo loans from the public and the media.

    The Federal Reserve in Washington, D.C. is considered an “independent Federal agency.” Its Board of Governors are appointed by the President and confirmed by the U.S. Senate. The New York Fed, on the other hand, is owned by the banks in its region (as are the other 11 regional Fed banks). So while the Federal Reserve is required to comply with the Freedom of Information Act (FOIA), the New York Fed is not. But to save face, the New York Fed likes to say that it “complies with the spirit of FOIA.” Which it decidedly does not do when it comes to any matter that might pierce the dark curtain it has drawn around its activities with the mega banks on Wall Street.

    Yesterday, the Gold Anti-Trust Committee posted a letter it had received from the New York Fed on its website from Shawn Elizabeth Phillips, the New York Fed’s corporate secretary. The letter denied the Gold Anti-Trust Committee’s request for information on the repo loans by cleverly pretending that these repo loans had somehow magically become part of the loans made at the New York Fed’s Discount Window, which are subject to a two-year delay in releasing names of borrowers.
    As we previously explained in this article, the Discount Window is not allowed to make loans to securities firms, just deposit-taking banks. So this is just the typical stonewalling tactic by the New York Fed.

    Wall Street On Parade filed its own Freedom of Information request with the New York Fed on October 2. First we were told it would be responded to within 20 business days, which would have been October 31. On that date we received an unsigned email from the New York Fed telling us our request would be delayed until at least December 5.

    We have filed a complaint with the Federal Reserve’s Inspector General, seeking an inquiry into the matter.

    The New York Fed is the most inherently conflicted Frankenbank in the history of central banks. Not one member of its Board or management is elected by the American people and yet it can create trillions of dollars at the push of an electronic button and make that money flow to benefit the interests of the top ten percent of Americans. (It’s no wonder that New York is home to 70 billionaires.)

    Henry Steele Commager, an American historian, once wrote that “The generation that made the nation thought secrecy in government one of the instruments of old world tyranny and committed itself to the principle that a democracy cannot function unless people are permitted to know what their government is up to.”

    Tragically, the U.S. government has outsourced its money-printing to an unaccountable, privately-owned facility in lower Manhattan that has no respect for the public’s right to know. The New York Fed has a long history of denying basic information to Wall Street On Parade in order to keep a very dark curtain around its interconnections to Wall Street’s trading houses.

    In 2013 Wall Street On Parade attempted to obtain a simple photograph of the trading floor of the New York Fed, which interacts daily with the trading floors on Wall Street. No photograph was forthcoming. Instead, we had to spend weeks researching other sources until we located photographs from an educational video.

    On April 6, 2015 William (Bill) Dudley, the President of the New York Fed at the time, stated in a speech that “the Federal Reserve already is very transparent and accountable to Congress and to the public.” Two days later, Wall Street On Parade attempted to get one piece of very basic information from the Fed. Again we were stonewalled. We wanted to know if JPMorgan Chase, a bank operating under a deferred prosecution agreement for two felony counts and under a criminal investigation for potential currency rigging (it pleaded guilty to that count in May 2015) was still the custodian of $1.7 trillion of mortgage backed securities owned by the Federal Reserve, as we had reported on November 3, 2014.

    The Federal Reserve Board of Governors in Washington, D.C. has also been a party to protecting its interactions with Wall Street from public scrutiny. Ben Bernanke, the Fed Chairman during the financial crisis, stated that one of his priorities was to “make the Federal Reserve more transparent.” But in December of 2013, when we asked the communications office of the Fed for Bernanke’s 2007 and 2008 appointment calendar, we were told we would have to file a Freedom of Information Act (FOIA) request for it – an obvious stalling tactic for something so basic.

    When we finally received the appointment calendar, there were redactions of 84 meetings that occurred between January 1, 2007 and the pivotal collapse of Bear Stearns on the weekend of March 15-16, 2008. Bernanke’s calendar for March 7, 2008 shows a full day of appointments redacted. On Saturday, March 8, Bernanke had an anonymous conference call with unnamed parties. At 11 a.m. the following Monday, March 10, he held a meeting in his office from 11 a.m. to 12 noon but whom he met with was completely blacked out.

    The Fed might possibly justify this level of secrecy in the midst of a financial panic, but we received the deeply redacted materials six years after the crisis.

    We are far from the only media outlet to have difficulty unleashing federal records from the iron grip of the Federal Reserve. Bloomberg News battled the Fed in court for years to obtain details about the unprecedented trillions of dollars in revolving loans the New York Fed made to Wall Street for almost three years during the financial crisis. On October 28, 2010, Matthew Winkler, Editor in Chief at the time of Bloomberg News, wrote an OpEd in his competitor’s newspaper, the Wall Street Journal, titled “Time for Bailout Transparency.” Winkler was attempting to shame the Fed into complying with the law and the courts, which had ruled in favor of Bloomberg News. Winkler wrote:

    “There is no history that shows opacity is better for markets and the economy than transparency. Money flees secrecy. Unanswered questions engender suspicion, which undermines the financial system while giving some participants an unfair advantage.”
    Fed Chairman Powell can’t open his press conferences saying that the role of the Federal Reserve is to represent the interests of the American people and then deny those same people the right to sunshine on its actions if he hopes to maintain any semblance of credibility. If he continues on this path, the history books will be as unkind to him as they have been to Bernanke and former Fed Chairman Alan Greenspan.
    The wonder of our time isnít how angry we are at politics and politicians; itís how little weíve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  21. #141
    Join Date
    Oct 2001
    Location
    around
    Posts
    573
    I have read several things on twitter that say deutsche bank has already declared bankrupcy and it is being kept under wraps. Apparently deutsche bank is going to need a major bail out since it will take down literally EVERYTHING if it truly goes belly up.
    "I would gladly give my life for a man who is searching for the truth........and I would gladly kill a man who thinks he has found it."

  22. #142
    Join Date
    Oct 2014
    Location
    Southwest (enjoy it!)
    Posts
    4,864
    Well over 100 billion today. But I saw a couple differences this time. There was a billion in Agency bonds and a big uptick (14 billion) in Mortgage-backed bonds. Are the banks running out of Treasuries so they are putting up whatever they have as collateral?
    I personally think things are getting worse. But maybe the Fed has a handle on it.

    https://apps.newyorkfed.org/markets/autorates/temp

  23. #143
    Quote Originally Posted by hiwall View Post
    Are the banks running out of Treasuries so they are putting up whatever they have as collateral?
    Fair guess, and not a good sign. Once the Fed starts accepting anything, the banks will hand them the trash and keep anything of value.
    Better to be a warrior in a garden than a gardener in a war.

  24. #144
    Join Date
    Jun 2018
    Location
    Mississippi
    Posts
    3,961
    I check this thread every day looking for some good news. I'm just not seeing any.

    Thanks to all of you for keeping me informed!
    Sherree

  25. #145
    Join Date
    Mar 2005
    Location
    Maidenhead
    Posts
    29,242
    Quote Originally Posted by hiwall View Post
    But maybe the Fed has a handle on it.
    Baw HahHah!

    Good one...
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  26. #146
    Join Date
    Oct 2014
    Location
    Southwest (enjoy it!)
    Posts
    4,864
    Quote Originally Posted by Hfcomms View Post
    Baw HahHah!

    Good one...
    I kinda said that just for you.

    So the Fed has openly stated that they have so far given the banks 300 billion dollars to bail them out in the last couple months. And apparently that number will just continue to rise. It does not look good.

  27. #147
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    70,953
    QE that is NOT QE!

    Schiff must be consulting with the Fed....
    The wonder of our time isnít how angry we are at politics and politicians; itís how little weíve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  28. #148
    Join Date
    Jul 2003
    Location
    Idaho
    Posts
    12,522
    Quote Originally Posted by Dozdoats View Post
    QE that is NOT QE!

    Schiff must be consulting with the Fed....
    What would we be talking about if Schiff wasn't hogging the spotlight?

  29. #149
    Join Date
    Oct 2014
    Location
    Southwest (enjoy it!)
    Posts
    4,864
    The new QE has not yet even started yet (the end of this month). This is just the repo market.
    The Fed did not want to do this. It was not on their 'to-do list'. But one or more of the banks got in very serious trouble. So the Fed jumped in and now it appears the Fed is stuck in the mud alongside the banks.

  30. #150
    Join Date
    Sep 2012
    Location
    East Central Texas
    Posts
    4,376
    Quote Originally Posted by SouthernBreeze View Post
    I check this thread every day looking for some good news. I'm just not seeing any.

    Thanks to all of you for keeping me informed!
    I'll second that, but I look several times a day expecting all heck to break loose!

  31. #151
    Join Date
    Oct 2001
    Location
    around
    Posts
    573
    I don’t mean to be a negative pessimist or anything but does anyone please have an educated guess or idea how long we have until the dollar is toilet paper or economy implodes, etc? Thanks ��

    Also, on a good note....my wife and I worked everything out and aren’t getting divorced. We learned we need to communicate better and talk more. And just spend more time sitting around together doing nothing at all like watching Netflix or cuddling. Quality time is what is important is the lesson I guess
    "I would gladly give my life for a man who is searching for the truth........and I would gladly kill a man who thinks he has found it."

  32. #152
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    70,953
    how long we have until the dollar is toilet paper

    It is NOW.

    And we have until Joe Sixpak realizes that before it all falls down. Of course ol' Joe will only know about it when he hears it on the news, which will be well after it happens ….
    The wonder of our time isnít how angry we are at politics and politicians; itís how little weíve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  33. #153
    Truthsearch... that's wonderful news!

    As far as "when"... that's the million (trillion?) Dollar question! I don't think anyone knows... unless they're part of a group planning on taking it down.

    For ourselves, just in terms of general preps, I think we have a year. But I think the next election is IT... whether President Trump wins or loses, I think this country is going to explode. I'm not sure exactly how you prepare for that, but I suspect we're in as good a place as any...

    Summerthyme

  34. #154
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    70,953
    See this at the link, too many graphics to copy over.
    ===========

    https://www.peakprosperity.com/the-f...izing-us-debt/

    The Federal Reserve Is Directly Monetizing US Debt
    In a very real way, MMT is already here
    by Chris Martenson
    Friday, November 15, 2019, 3:30 PM

    Tags banking banks central banks debt Federal Reserve Federal Reserve Act Jerome Powell JP Morgan Not-QE NotQE QE quantitative easing repo market treasury Treasury bill TreasuryDirect US Treasury

    The Federal Reserve is now directly monetizing US federal debt.

    Sure, it’s not admitting to this. And it’s using several technical jinks and jives to offer a pretense that things are otherwise.

    But it’s not terribly difficult to predict what’s going to happen next: the Federal Reserve will drop the secrecy and start buying US debt openly.

    At a time, mind you, when US fiscal deficits are exploding and foreign buyers are heading for the exits.

    How It’s Supposed to Work
    Here’s how it’s supposed to work when the US government issues new debt:
    If the US Treasury needs to raise new funds, it announces an upcoming auction of US Treasury bills/notes/bonds.
    A date for the auction is set.
    Various participants bid for those bills/notes/bonds (including ‘regular folks’ like you and me if we’re using the government’s Treasury Direct program). This is the ‘auction date.’

    A few days after the auction, the actual bills are “issued” which is when the money actually changes hands and the bills are live in the market.

    At a later date, the Fed can buy those US Treasury bills/notes/bonds. The various holders of that debt submit offers to sell, and the Fed (presumably) selects the best offers on the best terms.

    The Federal Reserve, under no conditions, buys Treasury paper directly. The Federal Reserve’s own website still maintains that this is the case:

    (Source)
    There are two important claims plus one assertion I’ve highlighted in there, each in a different color:
    Yellow: Treasury securities may “only be bought and sold in the open market.”
    Blue: doing otherwise might compromise the independence of the Fed.
    Purple: the Fed mostly buys “old” securities.

    So according to the Fed: it’s independent, it follows the rules set forth in the Federal Reserve Act of 1913, and it mostly buys “old” Treasury paper that the market has already properly priced in a free and fair system.

    But that’s not really what’s going on…

    What’s Actually Happening
    It’s now clear that something spooked the Fed badly in September.

    We still don’t know what exactly went on, but the Repo market blew up. While this was a clear sign that something big was amiss, the Fed has not yet explained what the cause was, who needed to be bailed out, or why.

    And it’s not going to anytime soon. It recently announced that its records on the matter are going to be sealed for at least two years.

    While the Fed is ostensibly a public institution, and yes transparency should be extremely important — at least to maintain the appearance that it’s being careful with public monies — the Fed is prioritizing secrecy here.

    Whatever’s going on has been serious enough for the Fed to openly lie. And not just in regards to the repo market.

    “It’s not QE!” Fed chair Jerome Powell recently declared upon relaunching an asset purchase program that has already expanded the Fed’s balance sheet by hundreds of billion of dollars.

    Given all the secrecy, obfuscation and lies, the Fed is now in clear violation of the spirit of the Federal Reserve Act of 1913.

    Recall from above that the Fed “only buys Treasury securities in the open market”, meaning from other banks and financial institutions. That’s how the Federal Reserve Act of 1913 is written:

    (Source – the Fed)

    Let’s walk through an example that connects the dots here.
    Just know that this is but a single example out of many.
    Data point #1
    Each and every Treasury offering comes with an identifying number called a “CUSIP” number (referring to the Committee on Uniform Securities Identification Procedures).
    On October 31st, 2019 the Treasury Department held an auction for a series of 8-week T-bills with the CUSIP number 912796WL9.

    November 5th, 2019 those T-bills were “issued”, meaning that was the actual date that they were to become active. Before that date, nobody had possession of them and nobody was earning interest on them:

    From the Treasury Offering Announcement above, on November 5, 2019, $40 billion of CUSIP number 912796WL9 were issued to the market.

    It’s worth pointing out that no money changes hands on auction day (Oct 31 in this instance). It only does when the bills are issued (Nov 5 in this case).

    Data point #2
    Looking at the Federal Reserve’s website, we can see what they bought and when (but not for how much).

    There we find that very same T-bill with the CUSIP 912796WL9 showing up as having been purchased by the Fed Nov 5, 2019 — the very date of its issuance:

    (Source)

    The Fed bought more than $4 billion of this CUSIP. If these T-bills were out in the “open market” they weren’t there for long. At most, less than a day before the Fed scooped them up.

    Does it really matter if a big bank sits ever-so-briefly between the Fed and the Treasury debt it buys?

    Maybe to a trial lawyer seeking to get a guilty client off on a technicality. But this certainly doesn’t qualify as “old” paper.

    This is the Fed buying huge amounts of very freshly minted – not even a day old! – government paper using the power of its electronic printing press.

    What’s the practical difference between the Fed buying this directly from the US government and buying it same day it issues from a big bank?

    Virtually nothing — except the big bank probably took home a very hefty paycheck for conducting this “service” as a middleman. Later JP Morgan, et al., can report magnificent “profits” from their ”trading activities”, which amounted to little more than calling the Fed the week before and asking how many $billions of these Treasury bills they wanted.

    Just a temporary middleman who, if only skimming a single basis point (1/100 of a percent), would have gotten $400,000 in “trading profits” for holding onto a big pile of government paper for less than a single day, with a guaranteed buyer with infinitely deep pockets already lined up. Great work if you can get it, eh?

    But not very fair. Nor even remotely in line with the spirit of the Federal Reserve Act. Or what capital markets are supposed to be about. Or the Fed’s actual mandate.
    The summary here is this: the Fed is buying US government paper on the day it’s issued.

    The Fed is directly monetizing US debt.

    Which means…

    MMT is Already Here!

    The debate over whether or not MMT (“Modern Monetary Theory” see here for background and discussion) should or should not happen is now moot.

    It’s already here.

    Over the past year, the US government has spent ~ $1.3 trillion more than it took in. To cover the shortfall, it had to raid the Social Security piggy bank for (another) $170 billion and tap the “markets” for another $1.1 trillion.

    If not MMT, what other name should we give a program where the US government spends $1.3 trillion more than it takes in and the Federal Reserve covers the shortfall by by purchasing US government debt on the day of issuance?

    Does it matter if the US government issues it out of thin air, or if the Fed creates the same cash money out of thin air? Does it really matter in the slightest what the precise mechanisms are if the results are identical?

    I would argue they don’t matter in the slightest.

    All that remains now is to argue over what to spend all that fresh cash on.

    Sure, some might like to debate whether we should be doing this or not. But the reality is: there’s little point in arguing over whether something should happen if it’s already happening.

    Now all that’s left to debate is how much larger or smaller the Fed’s government debt monetization efforts might be.

    Further, we might debate exactly what the government is spending all that money on. Or what the repercussions will be of the dangerous monetary road we’re now careening down.

    But I’m not aware of any particular representative of mine even being aware of the situation, let alone concerned.

    Conclusion
    This is a very serious and extremely important conversation to have. But it’s not being had at all.

    During Jay Powell’s last news conference, the Chairman of the Federal Reserve (and defender and champion of the largest wealth transfer to the rich in world history) was not asked a single question on this topic.

    Nobody asked anything about the extreme and accelerating wealth and income gaps, both direct outcomes of the Fed’s policies.

    Nobody expressed concern about the Fed’s secretive actions, its direct debt monetization, or its violation of the Federal Reserve Act.

    The US media is toothless. I assume today’s journalists are simply too afraid of losing their jobs to speak truth to power, and have slipped into quiet acceptance of a mere stenographer’s role.

    “Yes, Mr. Powell, you’ve reversed course and have started lowering interest rates again, and have resumed growing the Fed’s balance sheet via new QE. Oh yes, you’re right, it’s ‘not QE’. How silly of me. But despite those emergency measures, the economy is ‘in a good place’ and we all should be super optimistic? Got it. Yes, sir — very inspiring. Anything else?”

    You’d think, given the enormous troubles that tend to follow central bank debt monetization that there’d be some curiosity on the topic, but no. No pushback from the media or Congress, direct or tangential.

    Meanwhile the Fed has tossed a mind-boggling $285 billion of permanent new money into the “markets” over the past couple of months, and is conducting daily operations that put additional tens of billions of dollars of short-term money into the markets as well.

    All while claiming everything is fine.

    Sure doesn’t feel that way, does it?

    In Part 2: Why The Risk Of A Correction Is So High Right Now, we demonstrate why the faith today’s investors are placing in the Fed’s ability to push prices ever-higher is dangerously overextended.

    Stock gains have already zoomed way ahead of the Fed’s recent excess liquidity measures, and it will not take much to topple them.

    Click here to read Part 2 of this report (free executive summary, enrollment required for full access).
    The wonder of our time isnít how angry we are at politics and politicians; itís how little weíve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  35. #155
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    70,953
    Repo money goes further than just repos-
    ==========

    http://www.321gold.com/editorials/mo...rty111919.html

    The Daily Sentiment Suggests a Major Market Top is Near
    Bob Moriarty
    Archives
    Nov 19, 2019

    As of November 18th, sentiment for The S&P futures and the Nasdaq Index is approaching nosebleed territory. The infusion of hundreds of billions of dollars on the Fed’s balance sheet since Mid-September has pumped the stock market higher in response. But no matter how big the balloon, if you keep puffing it up, sooner or later it is going to blow. The DSI at 90 for the S&P and 91 for the Nasdaq Index suggests a top is coming soon. Not today but soon.

    In addition, the sentiment indicator for the VIX is nearly at a record low at a reading of 10 saying investors show little fear. When the DSI for the stock market indexes is high and for the VIX is low the fireworks are about to begin.

    At the very least we should have a correction. If the stock market bubble bursts, life is about to get very interesting. Combined with sheer panic on the part of the Federal Reserve, caution on the part of investors is probably a good idea.
    The wonder of our time isnít how angry we are at politics and politicians; itís how little weíve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  36. #156
    Join Date
    Oct 2014
    Location
    Southwest (enjoy it!)
    Posts
    4,864
    Don't bank on a correction just yet. The Fed is still pumping at minimum $60 billion per month into the 'economy' at least until spring.
    When the value of money goes down it shoots the markets up.

  37. #157
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    70,953
    https://www.armstrongeconomics.com/w...e-repo-crisis/

    Understanding the Repo Crisis
    Blog/Banking Crisis
    Posted Nov 15, 2019 by Martin Armstrong

    COMMENT: Marty, thank you for a great conference. The comments out there on the liquidity crisis have been just domestically focused. Thank you for keeping my eyes focused on international events and your analysis about the crisis at Deutsche Bank
    GH

    REPLY: The raid on Deutsche Bank in Germany back in September over the money laundering probe of Danske Bank, which is the biggest lender in Denmark, contributed to the sudden collapse in confidence. The governments are desperate for money and they are hunting it on a global scale. Deutsche Bank served as a correspondent bank to Danske’s Estonia branch. That is where the latest money laundering is alleged to have occurred. The banker there in the Estonia branch of Danske, Aivar Rehe, was found dead by police there in Estonia. He had been previously questioned by prosecutors and was considered to be THE key witness in the money laundering probe. As always, just like Jeffrey Epstein, his death was declared to be a suicide. This is standard whenever they need to cover something up. Boris Berezovsky suddenly commits suicide being very remorseful for making billions I suppose. Anyone who could expose things others do not want always seems to commit suicide.

    The crisis in liquidity is that American bankers will NOT lend to Europe. Because of the European Banking Crisis, banks just do not trust banks. Nobody knows who will be standing after a failure at Deutsche Bank. The Fed has had to step in to be the neutral lender NOT because of a crisis in the USA, but because of the collapse in confidence in Europe’s banking system as a whole. Stay alert – this is just getting started.
    The wonder of our time isnít how angry we are at politics and politicians; itís how little weíve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  38. #158
    Join Date
    Jun 2019
    Posts
    244
    Understanding the difference between the feds balance sheet and the monetary base.

    http://thismatter.com/money/banking/money-supply.htm

    They got this.

  39. #159
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    70,953
    No. They DON'T got this. But if it makes you feel better to believe they do, carry on.

    Here are the last two paragraphs from a long book review I just ran across -

    ====================

    https://www.nybooks.com/articles/201...nst-economics/
    Against Economics
    David Graeber
    December 5, 2019 Issue

    [book being reviewed] Money and Government: The Past and Future of Economics
    by Robert Skidelsky
    Yale University Press, 492 pp., $35.00

    /snip/
    Economic theory as it exists increasingly resembles a shed full of broken tools. This is not to say there are no useful insights here, but fundamentally the existing discipline is designed to solve another century’s problems. The problem of how to determine the optimal distribution of work and resources to create high levels of economic growth is simply not the same problem we are now facing: i.e., how to deal with increasing technological productivity, decreasing real demand for labor, and the effective management of care work, without also destroying the Earth. This demands a different science. The “microfoundations” of current economics are precisely what is standing in the way of this. Any new, viable science will either have to draw on the accumulated knowledge of feminism, behavioral economics, psychology, and even anthropology to come up with theories based on how people actually behave, or once again embrace the notion of emergent levels of complexity—or, most likely, both.

    Intellectually, this won’t be easy. Politically, it will be even more difficult. Breaking through neoclassical economics’ lock on major institutions, and its near-theological hold over the media—not to mention all the subtle ways it has come to define our conceptions of human motivations and the horizons of human possibility—is a daunting prospect. Presumably, some kind of shock would be required. What might it take? Another 2008-style collapse? Some radical political shift in a major world government? A global youth rebellion? However it will come about, books like this—and quite possibly this book—will play a crucial part.
    The wonder of our time isnít how angry we are at politics and politicians; itís how little weíve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  40. #160
    Quote Originally Posted by Dozdoats View Post
    Any new, viable science will either have to draw on the accumulated knowledge of feminism
    Pretty much came to a screeching halt right there.
    Better to be a warrior in a garden than a gardener in a war.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts


NOTICE: Timebomb2000 is an Internet forum for discussion of world events and personal disaster preparation. Membership is by request only. The opinions posted do not necessarily represent those of TB2K Incorporated (the owner of this website), the staff or site host. Responsibility for the content of all posts rests solely with the Member making them. Neither TB2K Inc, the Staff nor the site host shall be liable for any content.

All original member content posted on this forum becomes the property of TB2K Inc. for archival and display purposes on the Timebomb2000 website venue. Said content may be removed or edited at staff discretion. The original authors retain all rights to their material outside of the Timebomb2000.com website venue. Publication of any original material from Timebomb2000.com on other websites or venues without permission from TB2K Inc. or the original author is expressly forbidden.



"Timebomb2000", "TB2K" and "Watching the World Tick Away" are Service Mark℠ TB2K, Inc. All Rights Reserved.