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The "Repo" Fiasco; the Fed's Cash Injections Send Stocks Soaring
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A five-alarm fire has broken out in a little known, but critically important area of the financial system where high-quality bonds are swapped for cash. The “repo” market, which is short for repurchase agreements, is part of the nondeposit, shadow banking system that remains largely unregulated despite the fact that it was ground zero in the 2008 financial crisis.

On September 17, 2019, the repo market was whipsawed by a sudden spike in short-term interest rates that rose from the Fed’s target rate of roughly 2% to an eye-popping 10% in a matter of hours. The incident, that put traders into an immediate frenzy, sent the Fed scrambling for the printing presses where it swiftly rolled-off $75 billion to finance additional short-term loans and to add liquidity to a market badly in need of cash. The Fed’s efforts did in fact bring rates back down to the 2% target-range but at great cost to its credibility. Despite repeated assurances that the financial crisis was over, the Fed has resumed pumping $60 billion per month into a market that is liquidity-starved and dangerously out-of-whack. In truth, the only thing preventing another spike in rates followed by an excruciating debt cascade, is the Central Bank’s ability to bury the problem under a mountain of freshly-minted dollar bills. Absent that, another cataclysmic crash would be unavoidable. Check out this excerpt from an article from Wall Street on Parade:

“According to the data made available on the public website of the New York Fed, since September 17, 2019 it has funneled a cumulative total of $6.6 trillion to some of the 24 trading houses on Wall Street that are known as its “primary dealers.” The giant sum has been sluiced to Wall Street in the form of repurchase agreement (repo) loans without any details being provided to the elected representatives in Congress as to which firms are getting the money or what it’s being ultimately used for.” (“Fed repos have plowed $6.6 trillion to Wall Street in 4 months”, Wall Street on Parade)

The Fed is swapping cash for collateral of unknown quality. The public doesn’t know the terms under which these agreements have been made nor do they know whether the banks are concealing their own insolvency as they did following the collapse of Lehman Brothers in September 2008. What we do know, however, is that the Fed has provided a “cumulative total of $6.6 trillion” at the discounted rate of 1.55% to the most distrusted institutions in America without any congressional oversight, without any independent review of the process, and without the American people having the slightest idea of the risks that are involved in blindly rolling over trillions of dollars of short-term loans to these thoroughly corrupt and totally unreformable financial institutions.

The Fed has no intention of allowing the public to know what’s really going on behind the scenes. Remember, the Fed “battled in court for more than two years to keep the details of its loans a secret from Congress and the American people”, so they’re certainly not going to do an about-face and open up today. No, what they are going to do is push the envelope as far as they can, operate far beyond their legal mandate, and conceal their inappropriate or illegal activity behind an iron wall of obfuscation and denial. Keep in mind, no one knew the extent of the Fed’s lavish handouts until years after the dust had settled. Check it out:

“When the nonpartisan investigative arm of Congress, the General Accountability Office (GAO), tallied up the cumulative total that the Federal Reserve had secretly sluiced to Wall Street from December 2007 through July 21, 2010, it came to $16.1 trillion. But the GAO did not include all of the programs that came out of the New York Fed. When those other programs are added, the Levy Economics Institute, using the Fed’s own data, arrived at the tally of $19.559 trillion to the Wall Street trading houses and another $10 trillion in central bank liquidity swaps, bringing the bailout figure to over $29 trillion.” (“Fed Repos Have Plowed $6.6 Trillion to Wall Street in Four Months”, Wall Street on Parade)

So “over $29 trillion” was shoveled into the banking system without congressional approval and without the American people having any idea of how they were being finagled. We should probably expect the same underhanded goings on in the current crisis, in fact, that looks to be the case. The Fed is not going to acknowledge what it is doing and the media is not going to publish the details. It’s a conspiracy of silence.

Some readers may remember the $700 billion Troubled Asset Relief Program (TARP) that was created to purchase the “toxic assets” that were supposedly “clogging” the financial system and dragging the Wall Street banks towards insolvency. Originally, that program was rejected by Congress which triggered a panic on Wall Street sending stocks into a steep 700-plus point nosedive. Following that bloodletting, the Fed decided to bypass Congress in the future and, instead, usurp extraordinary powers it was never intended to have. And since the Fed has never been challenged on the matter, it has made the brash assumption that it can meddle in the markets whenever it chooses printing as much money as it likes.

The results of the Fed’s chronic interventions, its uber-accommodative policy, and its perennial low interest rates, are plain to see. Stock and bond prices have gone through the roof soaring to record highs on an almost daily basis. To appreciate the magnitude of this unprecedented 11 year bull market, it helps to know where it all began, that is, with the first round of Quantitative Easing (QE) that was launched in December 2008 when the Fed purchased $600 billion in mortgage-backed securities(MBS) and $100 billion in other debt. Naturally, when hundreds of billions of dollars are pumped into the financial system, prices rise. And rise they did. Take a look at the “highs and lows” of the three main indices since the end of the Great Recession in 2009:

On March 6, 2009, the The Dow Jones Industrial Average (DJIA) touched a low of 6,547. Today, (January 28, 2020) the Dow is 28,722 points, more than 4 times higher. On March 9, 2009, the S&P 500 hit a low of 676 points. Today it is 3,276 more than 4 times higher. As for the NASDAQ which dropped to 1,268 on March 9, 2009. Today, the index has climbed to 9,269 nearly 7 times its 2009 value. At the same time, business investment remains at historic lows, personal consumption is flat, wages have stagnated, and the economy is still in the throes of the weakest expansion in the post WW2 era. Bottom line: The stock and bond markets have not thrived because of a strong economy but because the Fed is engaged in the greatest bubble-blowing experiment in history. The $60 billion per month infusions into the repo market just adds more helium to the bubble.

So, what impact have the Fed’s capital injections into the repo market had?

By boosting liquidity and acting as lender of last resort in the daily swapping of cash for collateral, the Fed has been able to calm the markets and keep interest rates where it wants them. But the additional flood of cash has also ignited a stock market rally similar to earlier incidents when the Fed used QE to increase reserves. So, what impact have the Fed’s injections had on stock prices? Check out this clip from market analyst Jim Bianco at Mish Talk:

“There is no such thing as a one-factor model to explain the stock market. Metrics such as the Fed’s balance sheet, repo, etc. cannot explain the stock market’s movements in isolation.

That said, when the Fed injects money, funds generally flow to the best-returning market. During the financial crisis, it was the bond market. Today, as was the case in 1999, it is the stock market….. a big part of this year nearly 30% stock market gain has come on the heels of Fed moves, much like last year’s 20% decline was coincident with the Fed’s hawkish rhetoric.” (“Jim Bianco Says This Is QE, Like Y2K”, Mish Talk)

For more clarity on this point, we turn to a brief clip of an interview with economist David Rosenberg who explains that, when the Fed pumps liquidity into markets, stocks rally.

“This is a liquidity and momentum driven market. It’s been that way for the past four months where the correlation between the S&P 500 and the Fed’s balance sheet has expanded to a 95% relationship. This is a case of a very accommodative Fed policy. The double-digit growth in the money supply is bypassing the real economy and has entered into asset markets broadly, and specifically into equities. So as long as the Fed is in the game priming the monetary pump, shorting stocks is going to be a very dangerous game to play….

The power of the Fed has become so acute that it has replaced the economy as a principle influence over the stock market to the point where there is only a 7% correlation between GDP and the S&P 500. Historically, in any given cycle that relationship was anywhere between 30% and 70%.” (“David Rosenberg Warns “We’re Going To Have Helicopter Money”, Zero Hedge)

The scale of the Fed’s manipulation is truly breathtaking. Stocks are not rising on the strength of the economy, but on the jet-fuel from digitally-generated money produced with the flip of a switch in the basement of the Eccles Building. Has there ever been a bigger fraud perpetrated on the American people?

But what are the downside risks of such an operation?

Once again, Wall Street on Parade helps to answer this question in a recent article. Here’s an excerpt:

“On Monday, a member of the New York Fed’s own Investor Advisory Committee on Financial Markets, Scott Minerd, published a critique which he headlined as follows: “Global Central Banks Fueling a Ponzi Market,” with this scary subhead: “Ultimately, investors will awaken to the rising tide of defaults and downgrades.”

The thrust of the article is that central banks (which include the New York Fed’s Wall Street money spigot that was launched on September 17, 2019) are creating a Ponzi scheme of liquidity that is hiding the true state of risk in both the stock and bond markets. The implication is that without the Fed’s cheap money flooding markets, interest rates on questionable debt would be much higher, thus providing a red flag for investors. Minerd develops his thesis as follows:

“The disturbing trend is that despite the rally in risk assets in the prior year, the number of defaults rose by approximately 50 percent, according to data compiled by J.P. Morgan. Additionally, the number of distressed exchanges increased by 400 percent.

“This correlates well with our observation that the number of idiosyncratic defaults has been increasing. … However, that day of reckoning when spreads rise is being held off by the flood of central bank liquidity and international investors fleeing negative yields overseas.” (“The Man Who Advises the New York Fed Says It and Other Central Banks Are “Fueling a Ponzi Market” Wall Street on Parade)

Defaults are rising because corporations and financial institutions can no longer roll over the prodigious pile of debt they’ve accumulated in the last few years due to the Fed’s easy money policies. So even though stocks continue to steadily climb higher, the rot at the foundation of the system is becoming more and more apparent. As defaults increase, more liquidity will be sucked from the system, deflationary pressures will build, the economy will stall, and stocks will fall back to earth.

But the greatest threat posed by the Fed’s reckless “repo” policy is not the threat of another giant asset bubble but the possibility that US Treasuries will lose their exalted role as the world’s preeminent “risk free” asset of choice. Keep in mind, that the way the Fed finances these repos, is identical to the way it conducted QE, by buying U.S. Treasury bills and other high-rated securities from the banks for cash. These securities serve as collateral for the underlying loan, and the banks buy them back with interest. This unconventional expansion of the Fed’s balance sheet calls into question the true value of USTs which are increasingly used as a tool for preventing crises. Former Fed governor Kevin Warsh pointed out the pitfalls of the Fed’s strategy in an article in the Wall Street Journal titled “The New Malaise”. Here’s what he said:

“The Fed’s increased presence in the market for long-term Treasury securities also poses nontrivial risks. The Treasury market is special. It plays a unique role in the global financial system. It is a corollary to the dollar’s role as the world’s reserve currency. The prices assigned to Treasury securities–the risk-free rate–are the foundation from which the price of virtually every asset in the world is calculated. As the Fed’s balance sheet expands, it becomes more of a price maker than a price taker in the Treasury market. And if market participants come to doubt these prices–or their reliance on these prices proves fleeting–risk premiums across asset classes and geographies could move unexpectedly. The shock that hit the financial markets in 2008 upon the imminent failures of Fannie Mae and Freddie Mac gives some indication of the harm that can be done when assets perceived to be relatively riskless turn out not to be.” (“The New Malaise”, Kevin Warsh, Wall Street Journal.)

With the National Debt hovering at $23 trillion, one would think the Fed would be more cautious in its misuse of USTs to shore up transactions in the repo market. If present trends continue, it’s only a matter of time before foreign central banks trim their stockpiles of USTs and seek a more reliable source of value. Any significant shift away from risk free US debt will send shock-waves through the global economy. It would portend an abrupt changing of the guard and the onset of a new order.

 
• Category: Economics • Tags: Federal Reserve, Wall Street 
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  1. TG says:

    Indeed, well said.

    But here’s another thought: what if our financial system is becoming so complicated and intertwined and unstable, that NOBODY understands it? I mean the basics are obvious: the government is subsiding finance with cheap money and starving Main Street of investment. The fact that regular people now get basically zero percent interest on there savings, is just one aspect of this looting.

    However, the system is still unstable, and can require massive ‘injections’ of newly minted money to keep it from exploding with no warning and no coherent model that can predict it. It may be beyond human understanding. We may be entering a regime where the government has to just brute-force ensure that the bills are paid one way or the other. What’s funny is that, in one sense, this can start to devolve into a “command economy” like the old Soviet Union had. I mean, the market is increasingly not evaluating risk or steering investments to productive enterprises. If the government needs something done, it just prints enough fiat money and decrees that it be done – much as the old Soviet Union did.

    I mean, ultimately money is a fiction. A potentially useful fiction, if it serves the original purpose as a means of exchange for useful goods and services, and to reward success and punish failure. Still, a monetary deficit is not like a deficit in fresh water or food. At some point the government may just ignore the financial system and do things via brute force decree, because it has to. I’m not saying that this will be a good thing, mind you, just that this is one possible outcome.

  2. TG, Are you confusing the government with the private, for-profit “Federal”ReserveBanksters? In NO way is the ‘Fed’ any part of the USA federal government.

    • Agree: Alfred, JamesinNM
  3. There are many ways to prove my point. One way is to access the exquisitely researched book “The Lost Science of Money” by Stephen Zarlenga. It can be found on the internet at: The Lost Science of Money, via most search engines.

    • Agree: Mefobills
    • Replies: @Anon
  4. onebornfree says: • Website

    “the Fed has provided a “cumulative total of $6.6 trillion” at the discounted rate of 1.55% to the most distrusted institutions in America without any congressional oversight, without any independent review of the process, and without the American people having the slightest idea of the risks that are involved in blindly rolling over trillions of dollars of short-term loans to these thoroughly corrupt and totally unreformable financial institutions.”

    So what’s new? What you are talking about here has, “by hook or by crook”, been pretty much “standard operating procedure” since 1913, [although not necessarily via Repo purchases].

    This just in:

    Lending money to ” thoroughly corrupt and totally unreformable financial institutions.” [aka the Federal government and sycophants] is what the Fed does best- that’s its job, fer chrissakes!

    After all, the Fed itself, just like the government it lends money to, is a “thoroughly corrupt and totally unreformable financial institution”, so what do you expect?

    Regards, onebornfree

    • Replies: @Parfois1
  5. The Scalpel says: • Website
    @TG

    It’s not complicated. The Fed creates money out of thin air and backs its value with B52 bombers and aircraft carriers, color revolutions, etc.

    The result is a tax on the rest of the world’s physical assets which the rest of the world can dispute at its own peril

    • Replies: @anon
    , @Parfois1
    , @anon
    , @JamesinNM
  6. onebornfree says: • Website
    @TG

    TG says : “At some point the government may just ignore the financial system and do things via brute force decree, because it has to.”

    This just in:

    Everything any government does is always done by brute force, or the threat of it. That’s the way that all governments past, present or future, work .

    “Governments are based pincipally on force and deception. Democratic governments are based chiefly on deception, other governments on force. And democratic governments, if you get too uppity, give up on the deception and resort to brute force, as a lot of us found out in the sixites. Those who didn’t find out in the sixites will find out in the near future because we’re going to have a rerun.”
    Robert Anton Wilson

    “Because they are all ultimately funded via both direct and indirect theft [taxes], and counterfeiting [central bank monopolies], all governments are essentially, at their very cores, 100% corrupt  criminal scams which cannot be “reformed”or “improved”,simply because of their innate criminal nature.”   onebornfree

    “Taking the State wherever found, striking into its history at any point, one sees no way to differentiate the activities of its founders, administrators and beneficiaries from those of a professional-criminal class.”      Albert J. Nock

    Regards, onebornfree

    • Replies: @sally
  7. A123 says:

    Both the Euro and Chinese Yuan have even worse Repo style pumping and it is not working for them. Thus, something other than the Repo theory must be causing improvement in the U.S.

    U.S. stocks are soaring because of the reduction in trade abuses that artificially limited the competitiveness of U.S. Manufacturing. Both USMCA and China Phase 1 will increase blue collar employment. Those U.S. blue collar employees will have wage income to spend. That spending produces revenue for U.S. businesses. Those businesses can then hire even more blue collar workers.

    Short Term — Trump has built a virtuous cycle that will help U.S. Citizens.

    Long Term — There is still a problem with the USD and debt. Step #1 to any solution is economic growth. We have seen the consequences of the ‘German Austerity’ solution imposed on Greece. Trump will not lead the U.S. into an ‘Austerity’ recession.

    PEACE 😇

    • Disagree: Tom Welsh
  8. anon[161] • Disclaimer says:
    @The Scalpel

    It’s not complicated. The Fed creates money out of thin air and backs its value with B52 bombers and aircraft carriers, color revolutions, etc.

    The result is a tax on the rest of the world’s physical assets which the rest of the world can dispute at its own peril

    Well said, Scalpel. Incisive and concise!

    • Agree: Biff
    • Thanks: The Scalpel
  9. d dan says:

    This “repo” news should be on the front page because it is potentially a fuse to light the bomb to bring down the dollar reserve status and the house of card calls US economy. Idiotically, Trump’s trade war with China, supported by the typical dumb anti-China trolls, is reducing Chinese demands for the dollar, and fuels the growth of non-dollar transactions throughout the world. China, Russia and Iran (plus others) are actively promoting the use of petro-yuan. Concurrently, central banks throughout the world are secretly or openly buying gold in record numbers.

  10. Svevlad says:
    @TG

    Oh, they do fucking understand. It’s very fucking simple.

    It’s just all smoke and mirrors to hide the fact that the entire economy isn’t even real anymore

    People underestimate how hard this thing will crash, except maybe Michael Hudson. I’m talking about literal centuries of trickery being chucked to the garbage

    It will be quite a singularity moment – we can’t fathom how the new economy will even function until we see it. Those who weren’t born to see this, will probably have a hard time thinking about it when they study economic history

    • Replies: @Astuteobservor II
  11. Anon[347] • Disclaimer says:
    @AllWarsRbankers'WARS

    Why do people disagree on nature of money ? Whether it’s economic book or Nobel prize winner like Paul Krugman or Bank of England’- answers are evasive , contradictory , or simply vague ,

    Money is created when commercial bank lends
    That money is destroyed when that money is returned to bank by the borrowers . Sounds understandable ,but what happened to the labor the borrowers put in to earn that money and what happened to the house he bought with that money ? How did that impact economy ?

    Now the borrowers might give that money at higher interest rate to some pay day loan seeker . He can buy stock and raise the price of the stock .
    He can return the money after making money on that fiat money . Bank makes money by taking interest or by simply asking cost for paper work and time . Financial system accumulate wealth
    , money supply goes up .

    Bank creates wealth for themselves and for those who can borrow millions .

    • Replies: @Tom Welsh
    , @Mefobills
  12. Bitcoin is NOT the answer. It is super-fiat money. We need money backed by something rare and compact and valuable. Like gold or platinum or palladium.

    • Replies: @Mefobills
  13. Alfred says:

    Martin Armstrong, who certainly does not need the money, has a report on the Repo Crisis. He charges $495 for it. By limiting readers, he hopes not to get the blame for triggering a collapse.

    This is a special urgent report available to clients only. We have detailed the progression of the Liquidity Crisis we had forecast would erupt at our Rome World Economic Conference come September 2019. The early warning signs were right there in a our face if you just looked. The next stage emerged into the Repo Crisis and the third stage will unfold as the Mother of all Financial Crises. We are not publishing this for everyone to see because it is too sensitive and we must keep in mind that while the crisis is set in motion by governments, they will never accept responsibility and will always try to hang someone in the private sector for their own mistakes.

    The Repo Crisis & Mother of all Financial Crises Report

    If you have not heard of Armstrong before, it suffices to say that he gets called by many central bankers worldwide when there is an ongoing crisis.

    • Replies: @mp
    , @Republic
  14. Horton says:

    FED repos are liquidity keeping the banks solvent.
    Stocks are up; banks loan companies, flush with liquidity are buying their own stocks.
    Vulture capitalism mergers and acquistions of the dying, temporary sustenance in dying pool.
    Dry freight orders record lows, BDI Capesize lost 98%, orders for shipping approaching record lows.
    Rail bulk cargo and trucking recession.
    Derivatives over a quadrillion.
    Unfunded liabilities $122 trillion.
    And on, and on… unpayable.

    Artificial valuations based on speculation schemes backed by unpayable debt denominated in fiat script.
    Existentially neccessary economic expansion reliant on finite resources managed by greed.
    A perfect confluence of economic disasters are coinciding.

    This particular time event Protocol: problem, reaction, solution primed for pandemic, economic collapse, war, turmoil the logical next phase of integrated socio-economic reordering.

    Innate imperative for justice in human will.

    Cabal believes in their illusion.
    In the reckoning will be perfect recompense.

  15. Parfois1 says:
    @onebornfree

    After all, the Fed itself, just like the government it lends money to, is a “thoroughly corrupt and totally unreformable financial institution”, so what do you expect?

    At least we agree on something.

    • Replies: @onebornfree
  16. Miro23 says:

    But the greatest threat posed by the Fed’s reckless “repo” policy is not the threat of another giant asset bubble but the possibility that US Treasuries will lose their exalted role as the world’s preeminent “risk free” asset of choice. Keep in mind, that the way the Fed finances these repos, is identical to the way it conducted QE, by buying U.S. Treasury bills and other high-rated securities from the banks for cash. These securities serve as collateral for the underlying loan.

    IMO the Fed already knows about the worthless rubbish status of US treasuries , and so do the New York Primary dealers. But while the credibility is there, they can convert them into cash and feed it into real stock market gains.

    It looks like a high class version of a “Pump & Dump” Bucket Shop. The Fed pretends that worthless treasuries have full face value and exchange them for cash which is delivered to their bucket shop friends. They use the cash to pump up stocks (and draw in the public).

    In the Dump phase, they all exit together – take their profits – and let the public deal with the stock market collapse (and the Fed’s fake surprise discovery that their collateral is worthless). The US doesn’t have much a financial system left at this point and has to handle rampant inflation while the perpetrators are long gone.

    A artistic touch would be to co-ordinate the Dump phase around the initiation of an Iran war (Don’t you see that the Iranians have collapsed the world’s financial system?).

  17. Tom Welsh says:
    @AllWarsRbankers'WARS

    On the other hand, no private person or institution would be allowed to create $29 trillion of counterfeit money either.

    So what’s going on? Is the Fed part of the US government, or an organization subordinate to the US government, or what?

    By the way, for anyone who finds sums such as $29 trillion hard to come to grips with… it’s a little north of $87,000 for every US man, woman and child.

    Seems to me that a citizen ought to know when someone issues $87,000 of debt in his name.

    • Replies: @Miro23
  18. Parfois1 says:
    @The Scalpel

    The result is a tax on the rest of the world’s physical assets which the rest of the world can dispute at its own peril.

    Correct. That explains it all … summarily though.

    It is by enforcing compliance with US financial needs/wants the reason why wars have been declared on any country trying to get out of the US stranglehold on international finance and why the Jewish shithole in the ME is so important for the international cabal. It provides a cover for US presence there (by “coincidence” where most oil is) while at the some time it guarantees protection to the Jewish state: a profitable symbiotic relationship whereby the financial oligarchy – predominantly Jewish – derives great profits as in double dipping. Of course, because the world out there pays through the nose for that rip-off by sustaining the USD (otherwise valueless) as trade and reserve currency as well as Treasury notes.

    Yes, the FED can afford to gift the US corporatocracy trillions because it is stolen as “protection money”. It is not only a Ponzi scheme; it is a Ponzi scheme of thieves.

  19. Tom Welsh says:
    @Anon

    “…but what happened to the labor the borrowers put in to earn that money and what happened to the house he bought with that money?”

    That kind of thing is real wealth, created – mostly – by combining human labour with natural resources.

    Money is just a set of claims on the resulting real wealth.

    As the amount of real wealth is more or less fixed – although wars can destroy a lot of it quickly, and it can be slowly and laboriously added to year by year – giving new money to anyone simply allows that person to claim a large slice of the world’s existing wealth. At the expense of those who already had some money, who can now get less with it.

  20. snake says:
    @TG

    First off, its not our financial system, it is a private financial system, which the Mobsters own. The Mobsters put in place in 1913, after they replaced Article I, Section 9 (paragraph 4) of the 1788 constitution of the USA which read before the Mobster amendment. “No capitation, of other direct tax, shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken” <=the Mobster amendment I call it.

    Mobsters seeking to get America into WWI were stymied? How could the Mobsters gain control over and use the vast economic strength and technical knowledge Americans enjoyed to finance and advance the wars the Mobsters had planned for Europe?

    How could the government that governs Americans (the USA) be made into an agent of the Mobsters?
    The USA coined is own money, had governmental access to vast natural resources, had an efficient technically savvy labor force, and had American farms producing nearly unlimited amounts of foods, and had huge numbers of people in the 50 state America highly qualified to staff large standing armies. The USA governed all of this.

    a little European history => Mobsters depended on the French and British governments to send armies and to make grants both to clear the way for their business interest in foreign lands to make a profit and to also keep the unhappy natives in check. Mobster use of the government as a tool to help the Mobster make his profit was a common practice.

    Unfortunately for Germany the Mobsters were not happy that Germany was doing so well. The German businesses were interfering with French and British profits, can’t have that. And unfortunately there was a lot of oil and gas under the real estate governed by the Ottoman Empire, the Ottoman can’t have that either. Since the British and French were jealous of the German business profits and because the British and French investors wanted the oil under the Ottoman Empire it was only natural that England and France would conduct war against the Germans and the Ottoman.

    But the nations of France and England and most of their allies were broke. The colonies had all been drained, the colonies could no longer be raped to fund the French and British government military Mobsters had a problem, the French and British Governments could not pay armies and buy war goods; the Mobsters were not nation states, but they too were broke. Without money the nation states could not do what a nation states do, so the Mobsters had to find a way to get financial help to fund broke European governments, if the mobsters were to accomplish their goals.

    The Mobsters privately own the industries and the nations arm themselves so they can take-out nations like Germany, whose investors are competing against French and British Investors.

    The Mobsters want control of the vast oil and gas reserves known to be beneath the Ottoman Empire to Mobster<=Mobsters feared that oil in subsurface locations would soon replace their monopoly in Whale oil? Quite a problem it was 1876 for the Mobsters who were used to making massive profits from trading slaves .. <=private Mobsters owned corporations controlled whaling and slave trading; but they were discovering Whales were disappearing and slave trading was becoming illegal in most places.

    [MORE]

    So the Mobsters needed a plan 1) to take German investors and German know how out of the picture and 2) to colonize the Ottoman Empire so the Mobsters could profit from the oil and gas that was beneath the surface of nearly all of the Ottoman Empire (Turkey, Syria, Iraq, Iran, N. Africa, etc.) at the time there was No Israel.

    The plan the Mobster’s came up with was to use the Monopoly on money held and owned by the USA as a funding source for war financing. The government (USA) monopoly was a stumbling block because it was subject to politics, meaning the Mobsters c/n depend on it, to finance their wars in Europe (WWI). You see both France, and England and all of there allies were already broke, Germany was the exception, it was a pain in the side of French and British Investors, Germany was prosperous, growing and its investors were competing with Mobster controlled France and England both for economic growth at home and for theft by colonization abroad.

    Mobsters long ago learned, they can use the power of the nation state that host them because their wealth and privilege allows them to control local politics, but to continue to play their king of the mountain game where the winner takes all prizes (invading and robbing nations, enslaving their inhabitants and selling the slaves around the globe, and looting the resources of the places they invade)[colonialism] the Mobsters needed a steady reliable source of funds. So Mobsters could let France and England proxy their wars against Germany and the Ottoman.

    America was not broke, in fact it was the equivalent of Germany, growing and prosperous, but its laws and constitution were inconsistent with Mobster intentions. Mobsters could not control the USA like they did the nations of Europe. Therefore, it was necessary for the Mobsters to change the majority population in NYC (1908 Irish to 1912 Jewish Majority).

    After the NYC majority was changed, it was necessary to use that political base that NYC majority afforded, to conduct a theft on the USA and, at the same time, to impose on the USA, the obligation to collect from the American people it governs to tax Americans so that America wealth will flow into Mobster banks But how to do that? Humm..

    The USA, the Government Americans were so proud of, owned since its 1788 constitution, a monopoly power to print and coin all money so it was necessary for the Mobsters to get the USA to pay Mobsters for the money Mobsters coin or print. Also someone had to pay off the bad debts and interest on money coined. The mobsters fixed that too, they arranged for the USA to tax the Americans the USA governed. y can can tax those they government to get the money to pay to us the debt incurred each time we coin or print new money <= Awe there is the source of funds say the Mobsters, all we need do is get that monopoly from the government and we can print and coin as much money as it takes to defeat the Germans and to take the oil from the Ottoman Empire and if everything goes right we can even establish in the captured Ottoman lands a government. This plan does care how many bad loans are made because the government of America will tax its citizens to pay off the interest and principal on any money we print. So all loans are fee to us, what do we care if the loans never get repaid..

    Hum how can this be done thought the Mobsters? We need American industries to provide war goods to our European nation states, but the European nations cannot pay for the goods nor can they pay the warriors to fight the war in Europe. We all understand i suspect, that the nations conduct wars for us Mobsters, but we Mobsters make the money and get the spoils of the wars. Smashing Germany and taking oil and real estate from the Ottoman can be fun if you are Mobster; even more fun can be developing a place in the Ottoman territory that can be a nation state <=so we can conduct our business without fear of being considered criminals.

    How did the Mobsters steal the monopoly on coining American money from their American government (USA). The mobsters privatized the USA owned monopoly on coining money and made that monopoly the private property of Mobsters. The Constitution of the USA, granted to congress in Art 1, sec 8, para 5, which reads as follows:

    “The Congress shall have Power to coin money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures “ <==that's a full and complete monopoly power over the making, issuing or restraining the issuance of money anywhere within the world as it turned out. But the Mobsters did not steal the obligation of government to police counterfeiting money.. Art. I, Sec. 8, para 6 reads;
    “The congress shall have power to provide for the Punishment of counterfeiting the Securities and current Coin of the United States”

    So in 1913, the Mobsters accomplished both their goals: they privatized the Art 1, Sec 8, para 5 money coin privilege to themselves in the form of the Federal Reserve Bank, a private banking enterprise by getting the Federal Reserve Act of 1913 passed, and by getting the USA to change the constitution so that it imposed on Americans

    what was prohibited by Art I, Sec. 9 ,para 4 No capitation, or other direct tax, shall be laid, unless in proportion to Census or Enumeration herein before directed to be taken. <==they replaced this clause that blocked privatization , with this the16th amendment to the constitution
    "The Congress shall have the power to lay and collect taxes, from whatever source derived, without apportionment among the several states, and without regard to any Census or Enumeration.

    And the rest is history.. The Great War (WWI) was fought, billions of dollars of war materials were transferred to Europe, Germany was defeated, and because the British and French shared ownership of the defeated land of the Ottoman the Mobsters got access to the Ottoman oil and gas.

    • Replies: @Anonymous
    , @Mefobills
    , @DaveE
  21. At least in 2008 there was some what of a cushion where they could lower rates. Before Powell got intimidated by Trump, the Fed had been steadily raising rates, presumably so there would be some “ammunition” to fight the next inevitable downturn. Now we are facing the unique prospect of a downturn with no room to cut rates. Under those circumstances I’m not sure where anyone could turn – maybe gold and crypto?

  22. Good article. Thank you for the inisghts on this topic.

    They (the so-called Fed) are printing money as they please, supressing interest rates, effectively bleeding everyone dry and accumulating the gains for themselves and their banskter allies.

    I have been highly suspicious of the stock market gains because, I hypothesize, that the DOW and NASDAQ numbers have become propagandized to the point of meaninglessness . That is, the oligarchs have figured out how to manipulate those numbers which are then forced on the public psyche to “prove” how well the US is doing financially. Much like the shape of the earth, they tell you not to believe your own lying eyes and instead trust the so-called evidence being repeated endlessly in the media and schools.

    No question the US is broke as hell. There is no coming back, I suspect, from the endless wars, endless spending and endless corruption from DC that has run debts through the ceiling.

  23. WALL STREET’S HOUSE OF CARDS: LET’S PLAY BANKSTER THREE CARD MONTE

  24. @A123

    Let’s just imagine that DC has the best interest of the US at heart. The first step would be to CURB THE OUT OF CONTROL SPENDING.

    So-called economic growth just means we all have to work harder and longer so that the govt can kick any sense of fiscal responsibility down the road yet again.

  25. Anonymous[191] • Disclaimer says:

    Right after the last debacle the Financial Times ran a now disappeared analysis based on returns detailing why stock prices adjusted for the true rate of inflation, such as the true rate published by shadowstats, should at that time cause the S&P 500 to drop by half. No need for a sharpened pencil to know the same impossible levitation appearing on stage today is more of the same, or that the elaborate efforts at concealment by CNBC and Fox Business of this situation prove their complicity as propaganda. Last I heard the talking heads on Fox evening news were touting this latest round of outright counterfeiting benefitting the 1% as an economic miracle, which of course it is for the 1% and liars who cover up the scam on TV.

    The jobs numbers as always are total bullsh*t, as shadowstats proves using the government’s own prior methodologies to recalculate both inflation and unemployment. The president still reports record growth in employment to the white people who’re getting slaughtered in the jobs market, so I’m scratching my head wondering where he finds such ignorant rubes to fill entire stadiums. According to AARP, half the jobs in 2018 were filled by seniors, which not only doesn’t indicate growth, but suggests the floor has collapsed beneath millions of them to the point they’re taking jobs driving cabs or collecting carts at the supermarket for minimum wage. The majority of the rest of new jobs, if I’m not mistaken, are taken by Hispanics and blacks as janitors and the like.

    As far as where the money goes, remember that back in 2011 Matt Taibbi uncovered a cool $220 million loan to the no-business-experience wives of chairman Mack and some other white collar crook Karches at Morgan Stanley so the girls could buy up worthless student loan instruments they almost assuredly knew were set for bailout. I haven’t looked it up, but I recall thinking I should buy Wachovia when it went to something like 75 cents, knowing it was obviously being positioned for an overnight tenfold rebound. Some companies are slated for extinction as punishment or to make things look real, of course, so this next time I’ll probably sit on the sidelines again despite knowing business fundamentals have nothing at all to do with any of it.

  26. mp says:
    @Alfred

    He charges $495 for it. By limiting readers, he hopes not to get the blame for triggering a collapse.

    Is that a joke or is he serious? If it’s the latter I suggest he charge a thousand dollars. Or even two. That is the only way he can be sure not to get the blame. LOL

  27. Alfred says:
    @Horton

    BDI Capesize lost 98%

    Please forgive me. I could not believe it. I checked it myself. You are correct. That is ridiculous. The fuel alone for the ships costs a lot more than that!

    Rates for giant Capesize ships, typically used to carry raw materials such as iron ore, plunged 90% from a September peak to less than $4,000 a day based on an index that tracks their earnings. A wider Baltic Dry Index more than halved in January to hit the lowest since 2016, as the worsening outbreak brought an already-weak freight market because of the Lunar New Year to its knees

    Commodity Shipping Costs Fall 99.95% After Virus Slams Market (Bloomberg)

  28. Miro23 says:
    @Tom Welsh

    By the way, for anyone who finds sums such as $29 trillion hard to come to grips with… it’s a little north of $87,000 for every US man, woman and child.

    Seems to me that a citizen ought to know when someone issues $87,000 of debt in his name.

    It’s beyond belief – and it’s more than twice as much if you apportion it only over US taxpayers. They’re the ones supposedly guaranteeing this debt ???

    Another question is what happened to all this borrowed money? The public saw hardly any of it, but they were officially “kept safe” through massively expensive Middle East wars and are encouraged (by President Trump) to celebrate the present wild speculation that’s going to wreck the US financial system.

  29. zard says:

    we’ve just been enduring Jewish Rule for all this time since they took over the American government in 1913 and used it to destroy the entire world. There’s no point trying to list all the things they have done because they’ve done it all, with their mind-boggling debt-based currency and endless wars.

    We long ago passed the stage at which there was an alternative to direct action against the international and domestic Jewish enemy. Legal action was never possible and political action was also never possible in our lifetime. The Jewish machine has totally controlled the legal and political sectors of society since the Wilson administration. We are on the short road to extinction and only direct action against the machine can possibly prevent it.

    In our distant past, political action was possible in theory before the passage of the Federal Reserve Act in 1913, though we were originally crippled by the federal Constitution, which put us under a merciless central government and central Jewish bank with the unlimited power to tax and wage war. The Constitution put us under the immediate control of beings such as the Federalists, American and English Freemasons, Alexander Hamilton and always the Jews.

    In 1913 one prominent American attempted to prevent the act’s passage. No one else understood what it would mean to pay foreign hustlers for our own currency, or that they would be doing so, mainly due to the deceptive name of the act. Charles A. Lindbergh, Sr., was a congressman from Minnesota. He spoke against the act at the time, warned that it was racketeering by greedy bankers and he continued to do so for the next ten years. He published a book against the Jewish monopoly on currency and credit (The Economic Pinch) and had just completed another one when his home was raided by J. Edgar Hoover and his new federal secret police in 1923. The Lindberghs were roughed up, their home ransacked and the new manuscript seized, never to be seen again. Hoover reportedly bragged that during the raid he kicked young Lindbergh in the stomach. The senior Lindbergh was disgraced by the raid and died the following year.

    This writer has in the past written harshly of the Kennedy clan due to its Jekyll and Hyde nature and embrace of left-wing policies. The Hyde-types were old Joe, Bobby and Ted. Bobby was a ruthless and reckless double-crosser and Ted was a worthless bum. But we have to give JFK credit for taking on the Jewish machine. He ordered Bobby, his attorney general, to force the American Zionist Council to register as a foreign agency and thus prevent it from continuing to bribe and control US politicians. The Jews managed to stall Bobby long enough until JFK was killed, at which point the registration was forgotten. The AZC was re-named AIPAC and has continued blatantly to control US politics ever since.

    JFK ordered, six months before his murder, the printing and circulation of over four billion dollars in debt-free Series 1963 US Notes, thus depriving the Jewish company known as the Federal Reserve System the interest it was accustomed to receiving on its privately-owned Federal Reserve Notes. He planned to follow this in 1964 with a greater issuance of US Notes in other denominations, which would have quickly destroyed the most outrageous, predatory and lucrative racket in monetary history.
    https://www.jbcampbellextremismonline.com/
    http://www.chuckmaultsby.net/id94.html

    • Thanks: Parfois1
  30. Anonymous[859] • Disclaimer says:
    @snake

    Great stuff!

  31. Anonymous[191] • Disclaimer says:
    @Horton

    As Wendell Berry put it following 9/11, they talk about “world peace,” which will be achieved, but only by a global totalitarian suppression that makes any sort of resistance suicidal. This coming hell on earth has been successfully sold as socialism because the ptb understand Nietzsche’s point that underneath all the do-gooders’ blather about justice and fairness lies hatred and vengeance.

    • Replies: @Astuteobservor II
  32. onebornfree says: • Website
    @Parfois1

    Parfois1 says: “At least we agree on something.”

    Uh oh! Well, that’s not a good sign now, is it? But, but but….there is hope !

    Hopefully you have completely misunderstood/misread/misinterpreted what I said 😂

    As a committed malcontent, misanthrope and outsider, one thing I definitely don’t need round here is people agreeing with me. It’s bad for my health.☹️

    Regards, onebornfree

    • Replies: @Mefobills
    , @Parfois1
  33. “According to the data made available on the public website of the New York Fed, since September 17, 2019 it has funneled a cumulative total of $6.6 trillion to some of the 24 trading houses on Wall Street that are known as its “primary dealers.”

    All part of the original debt from the retracted markets in 2007/2008, certainly several hundred billion was never meant to cover the losses that exceeded even 6.6 trillion, that was assumed by US tax payer.

    Though, this is the first analysis I lave read linking it to repurchases (stock buybacks)

  34. @Svevlad

    That is why make your money in the stock market. Cash out all but leave an amount for continual investment. Transform the cash into something tangible and does not crash in value, become total garbage from a real economic crash.

    I hope you all made some good free money from the stock market in the last two weeks. It was literally free money.

  35. Greg Bacon says: • Website

    Simply put, this is the greatest heist in history. Untold trillions are literally being given away to those TBTF casinos and their Wall Street buddies, which is driving the stock market to absurd levels.

    When the crash finally comes, it will make the Crash of 1929 seem like a picnic.

    But by then, everything of value will have been looted and the gangsters will take their racket elsewhere, while Americans fight over dumpster leftovers.

  36. The big question for me is why this tsunami of printing hasn’t resulted in roaring inflation.

  37. FB says: • Website
    @A123

    What an unbelievable fucking dolt…

    How does it not bother you that King Bezos’ 150 billion stock wealth came at your own expense and that of your children…?

    Why don’t you do the next logical thing and cut a nice big check for King Bezos and the gang…

    Don’t worry about new shoes for the kids…King Bezos is more important…simple morality says so…

    • Replies: @Parfois1
  38. Mefobills says:
    @AllWarsRbankers'WARS

    TG, Are you confusing the government with the private, for-profit “Federal”ReserveBanksters? In NO way is the ‘Fed’ any part of the USA federal government.

    The FED was created by a “money trust” of private banks. Ergo, the FED is not the head but instead is tail of the dog. The private bank system is a group of banking corporations, who wanted their reserves to “link up.” These banks wanted their private emission of credit to be backed by government, be good for taxes, and said credit to easily move through a new reserve system, so bankster legerdemain can be made easy. In effect, privateers capitulated themselves at head of money power pyramid.

    Some history helps: Prior to the FED, private banks would issue their own bank credit, and said credit radiated geographically about that bank. In other words, bank credit notes issued from Midland Texas would not be easily redeemed in Peoria Illinois. The bank credit, like a Salmon, always wants to swim home to its debt instrument where it originally spawned. If Midland credit was still in midland area, then it could find its way home easily. In those days, a debt instrument was a mortgage, or some sort of loan issued by the private bank.

    Midland bank notes to return home from Peoria, the bank in Peoria had to convert it to Treasuries, or Gold (or Lincoln Greenbacks after Civil War). Peoria bank would probably even charge a fee for the hassle of taking Midland bank credit. If you were a Texan in Illinois with your Midland bank credit, it would not easily spend.

    Treasuries, Gold or Greenbacks flowed in Reserve Channels of banks. The Reserve channels are today called the “overnight market” where only banksters can play. Reserve channels are the place where banks work with each other to settle imbalances in their ledgers.

    So, prior to 1912, the Government through its TBills, and holding of physical gold, and issuance of Lincoln Greenbacks (from Treasury), had some control of private bank credit emission, as privateer banks had to exit to Treasury money in order to swap their bank credit and balance bank books.

    Think of it this way, private bank emission of credit was an inverted pyramid, balancing on a small point of reserves, where reserves was high quality government money and a small fractional ratio of the total amount of bank credit. The reserves were of higher quality than bank credit, and thus total amount of reserves limited the amount of credit emitted.

    Prior to 1912 and today, the reserve channels were used by banks to balance check drafts. Checks are an “order” to move things about from one account to another. Prior to 1912, the reserve channels were used to balance “credit” between banks. Prior to 1912, banks tended to hold onto their “debt instruments” that were used to hypothecate new credit. On-Selling of debt instruments into markets was not typically done, because issuing bank wanted to profit from its hard won risk gamble.

    Offloading of risk is part of the game, to then gain risk free purchasing power from civilization. Heads I win and tails you lose.

    Banksters after 1912, had their Federal Reserve, which can emit Federal Reserve Notes. Prior to 1912, there was no such type of money. Federal Reserve has a keyboard where they can emit new FRN’s in a swap for paper. The paper “asset” has to be made available on the overnight market for FED to have access. Note paper as an asset may have little relation to the real economy.

    So, think about line of causality: 1) Private Banks are born in iniquity, where they issue their credit from nothing on the basis of the quality of their reserves (and creation of debt instrument). 2) Private banks in U.S. are controlled by Treasury department in a loose fashion by making said banks convert their reserves to the Treasury type of money. Treasury money is good for taxes. 3) After Federal Reserve, a corporate money trust is formed, and private bank credit is made good for taxes. By making money good for taxes, it now has gained sanction through the law. 4) Federal Reserve now has a keyboard to emit FRN’s in a swap for finance paper, typically Treasuries. 5) All banks within the Federal Reserve System can now easily swap their credit with each other. 6) The System wants to expand – to link up in a spider web with other privateer banks and go international: hence perpetual war for our hidden rulers, who want to become god.

    Today, the “reserve system” has gone international, especially as dollar is reserve. Actually Federal Reserve Notes are the dollar. Nowhere on FRN’s does it say U.S. Notes. Foreign banks have access to the FED at the discount window, to then do swaps of unlike kinds – where foreign money is exchanged/swapped for dollars. The non-bank sector, also called Shadow Banks, now have access to the overnight market and hence the FED.

    Repo Market, especially after Dodd-Frank, has access to overnight market, hence FED is buying (swapping) Tbills from non bank actors, and giving them FRN’s.

    This swapping action is called “expanding the ledger.” FED expands its liabilities i.e. issuance of FRN’s, and in an accounting trick, expands its asset column on double entry ledger, by acquiring TBills, MBS, or whatever kind of finance paper is allowed to enter said ledger.

    Overnight market, formerly quasi controlled by Treasury, is now a place like Tatoonie in Star Wars, where all kinds of miscreants can show up and do swaps.

    Swaps of unlike kinds is a way of swapping risk. Repo market, by having a floor set underneath it by FED, is removing risk from repo market, and transferring it elsewhere… mostly as seen by Stock Market price/earnings ratio.

    In other words, pricing no longer works, so the real economy has trouble buying and selling, as the yardstick keeps changing dimension.

    Note that ledgerdemain continues to work in the new reserve system. Ledgers all balance, so if you are an accountant type, you are happy. You cannot see through the numbers, because the numbers must be equal right? The equal sign in math means equality …. right?

    Money’s true nature is law. Law was grabbed by the usurers by using various ruses. The money power citadel is now occupied by an usurper.

    https://sovereignmoney.site/

    • Thanks: Parfois1
  39. @Anonymous

    The super disconnect I noticed is how people can scream about human rights and democracy, but totally fine with all the deaths we caused in the last 20 years. Not to mention we are currently under an oligarchic govt.

    • Replies: @Anonymous
  40. sally says:
    @onebornfree

    Because they [government] are all ultimately funded via both direct and indirect theft [taxes], and counterfeiting [central bank monopolies], all governments are essentially, at their very cores, 100% corrupt criminal scams which cannot be “reformed”or “improved”,simply because of their innate criminal nature.” onebornfree

    Governments cannot scam. I do not quibble with your scam argument but governments can do absolutely nothing.. Governments are structures outlined on an organizational chart with duties, rights and privilege assigned to each position in the chart. Its the puppets who answer to the Mobsters that the Mobsters put in the positions of power (described in the organizational chart) who scam your wallets and who force you to do things that you should not be forced to do. This is trifling I know.. but I think part of the reason people sleep through the scam is because they fail to identify that it is the person of the scammer, not any government, that caused their concern.

    [MORE]

    Government is a document. Governors are the scammers who fill the positions outlined and described in the founding document. Its important to keep that distinction in mind. The founding document assigns power to the positions: snake charmer and scam artist, it is the charmer and scammer who use the the power assigned to them by the founding document to waste you. <= at no time did the government do anything to you. <It can't, it has no life.

    Governments divide the masses into two classes: governed vs governors. Government did not execute you, government did not fail to pick up your garbage, government did not fail to issue you a visa. Government is a vision of how the masses should be organized and controlled to accomplish peace and prosperity for everyone, which vision has been reduced to writing. nothing more nothing less. That is why every time a government is blamed as a violator of a human right, the governed should hold personally responsible all governors whose positions allowed or ordered the offending violation of a human right. The governor offending human rights should be removed immediately from his governor status and presented directly to the human rights courts for conviction and punishment.

    If you want to change government, you must not only audit the governors who occupy the positions of power in the government, but you must also hold all persons attached to, or who are part of, that human right violation when it occurs. Governments cannot be responsible for anything; but the governors surely can be held personally responsible and made to answer for and be accountable for consequences of happenings during their tenure in a governor position. This is not something that applies to the governors of but one government; it is something that applies to all governors operating as governments of every kind, shape or fashion;. Positions in a government are not authorized to violate human rights because violation of the human right violates the human constitution.

    No document can describe a position and assign authority to act to that position if that authority extends to human abuse, violates human rights, or infringes a human right; because governors are prohibited to violate human rights nor matter their positions.

    If every member of the governed class [you and me]adopted the position that it is the of the duty of every member of the governed class to defend human rights, and that upon discovery that a violation of human rights, it is the duty of everyone of the governed classes to assist in whatever action or actions it takes to remove that governor who used or allowed his position to be used to violate a human right, the world would soon be safe for everyone. Removal should be immediate. It really would take very little effort to make the world into a safe place.

    • Replies: @Stonehands
    , @Parfois1
  41. Agent76 says:

    Dec 17, 2019 The Truth About Gold ETFs & All Time Highs – In Gold We Trust Part 7

    Did you know that holdings in gold ETFs have been spiking?

    May 21, 2013 Why the whole banking system is a scam – Godfrey Bloom MEP

    • European Parliament, Strasbourg, 21 May 2013

    • Speaker: Godfrey Bloom MEP, UKIP (Yorkshire & Lincolnshire)

    • Replies: @gotmituns
  42. Republic says:
    @Alfred

    Wasn’t Martin Armstrong in prison for a long time for fraud?
    Anyone has more details?

    • Replies: @Alfred
  43. Mefobills says:
    @Anon

    Money is created when commercial bank lends
    That money is destroyed when that money is returned to bank by the borrowers .

    To add to the above, and make it a little more defined:

    Money, now called bank credit, is created when a bank hypothecates.

    The act of hypothecating is creating a new debtor for the creation of new bank credit.

    The countervailing double entry ledgers work like this: 1) New Debt Instrument is signed by debtor. 2) Bank credit is created as a counter.

    Bank acquires a debt instrument as Asset, while having an offsetting liability – bank credit as money.
    Debtor (typically you or us… not the banker) now has an asset – the banks credit, while having an offsetting liability, our debt instrument.

    In effect, we have made ourselves debt slaves so the bank who has usurped money power by law, can indebt us.

    Importantly. IMPORTANT. When your asset (the bank credit) returns to the bank .. it does not always pay down your debt instrument – which is the banks asset.

    In other words, the interest you pay on the loan does not land on the bankers double entry ledger. It flows through to another ledger of profits and losses. It is your loss and the bankers gain.

    The interest flows through the bank, and is spun out to purchase goods and services on the economy.

    ONLY when your bank credit as money returns to the bank to pay down principle, does it vanish from existence.

    What comes from nothing returns to nothing, ONLY WHEN IT VECTORS into the ledger to draw down loan principle. Otherwise, the interest is spun out by respending, or hoarding, pushing prices of real physical assets, or whatever the finance class wants to do with it.

    • Replies: @FB
  44. onebornfree says: • Website
    @Irish Savant

    Irish Savant says: “The big question for me is why this tsunami of printing hasn’t resulted in roaring inflation.”

    Most of the price inflation to date seems to be occurring in stock market indices prices and related, instead of the actual $US.

    However, it is also claimed by some that the falling purchasing power of the $US {due to money supply inflation } has been deliberately masked in the official consumer price index [CPI] figures, via methodological changes in how the final figures are arrived at.

    For example John Williams at Shadowstats.com:

    “Shadowstats.com is a website that analyzes and offers alternatives to government economic statistics for the United States. Shadowstats primarily focuses on inflation, but also keeps track of the money supply, unemployment and GDP by utilizing methodologies abandoned by previous administrations from the Clinton era to the Great Depression.” : https://en.m.wikipedia.org/wiki/Shadowstats.com

    I don’t know whether the CPI figure Williams comes up with [around 10% annually versus around 3% annually for the official CPI, last time I looked ], is accurate, the real figure could be higher, or lower- all I know is that the prices of most basic food items I have bought regularly for the last 10 years [ eggs, fruit, vegetables etc. ] have steadily gone up, year in and year out, no matter what.

    And so it goes……

    Regards, onebornfree

    • Replies: @Irish Savant
  45. Mefobills says:
    @snake

    So in 1913, the Mobsters accomplished both their goals: they privatized the Art 1, Sec 8, para 5 money coin privilege to themselves in the form of the Federal Reserve Bank, a private banking enterprise by getting the Federal Reserve Act of 1913 passed, and by getting the USA to change the constitution so that it imposed on Americans

    Let’s expand on who the mobsters are. They are a coalition of privateers who want to manipulate government, so said privateers can profit. Their main profit center is not industry, but instead is finance. War industry and finance hidden leaders have found common cause to profit in an unholy alliance. If you don’t pay your “international debts” then a drone attack or war is forthcoming.

    The debt money system used by finance came into being in 1694 with advent of bank of england, the first privateer stock owned bank to control a country. I must point out that our (((friends))) were heavily involved, as usury is the game that our friends play to fund their nefarious activities.

    The election of 1912 was funded by the (((usual suspects))) to then get Federal Reserve Act passed. Wilson’s progressive era acts include more than just Federal Reserve Act.

    Seventeenth amendment turns Senators into populists. No longer are Senators beholden to their state legislatures, but instead must grovel for money to be popularly elected. Seventeenth upturns Federalism, and turns the U.S. into a money controlled democracy. Senators should wear patches, like NASCAR drivers, to show whom they are indebted to… especially AIPAC and foreign interests.

    Sixteenth amendment is direct taxation, to then back up the money power. Remember TARP? You were taxed to bailout banks. Money is law, and taxes back up money, and force backs up taxes.

    Federal Reserve and IRS are other pieces to the machinery, which usurped the U.S. in 1912. The U.S. was lost in 1912. Think of it like gears working together in a well oiled machine, and this machine overlays the constitution …over-coming it.

    Is it no surprise that the election of 1912 was bankster funded, to then get their man Woodrow elected? Taft was already on record as not signing the Aldrich amendment, the fore-runner of Federal Reserve Act.

    The same bad (((actors))) funded Bull Moose party into existence to then split votes from Taft. Teddy was used as a dupe in the same-way as was Woodrow.

    After Woodrow was installed, his handler (((Colonel House))) kept tabs on him. In meantime, Woodrow was controlled with compromat. The bad guys knew early on that Woodrow was boning another Princeton professor’s wife.

    I call this the most expensive POON in history. I hope she was worth it.

    Woodrow did the bidding of his Zionist handlers, including turning America to world war with the goal of creating Zion… the crappy little bankster bought country in the middle east. Woodrow also installed Jews like Brandeis into supreme court. Money is law, and best to insure law redounds to the new hidden rulers.

    The money power is the most important power, and the founding fathers did not put enough guarantees in place. In defense of the founders, the construct of BOE was only in 1694, so even genius like that of Franklin and Jefferson were slow to learn.

    Consider that most people today are duped and confused when it comes to money, so it is a surprise that the founders got so much correct.

  46. gotmituns says:
    @Agent76

    Hitler proved the jew bankers were frauds by bringing Germany out of he depression and the jews started a world war over it.

  47. FB says: • Website
    @Mefobills

    And here is the problem with that bank profit that comes from interest…

    The interest by mathematical definition grows exponentially…this means more money needs to exist every year in order to pay for that built-in interest…

    And since new money can only be created as debt, it means the banking system MUST find new borrowers…more and more each year…

    Is there an ENDLESS supply of borrowers…?

    Of course not…so the exponential math…like that of the Ponzi Scheme cannot work in the real world…just like the Ponzi Scheme inevitably runs out of new investors, so the interest lending scheme inevitably must run out of new borrowers…

    This is why the central banks have been at zero interest for more than a decade…they ran out of borrowers…this was an existential threat to the whole system…it could have collapsed like any other Ponzi Scheme…

    So what ZIRP has been doing is shoveling free money, without interest, into the oligarchy…which in turn has been using that free money to create wealth for themselves, by means of buying equities..ie stocks…

    This is a strategy to build up a buffer for these parasites…but what they don’t realize is it can’t work…funny money begets funny money…unrealistic equity valuations are nothing more than a soap bubble…

    They are flailing now to save themselves…but even King Bezos cannot repeal the law of gravity…what goes up must come down…

    • Agree: Mefobills
    • Thanks: Nonny Mouse
    • Replies: @Nonny Mouse
  48. My advice is simply this: Beware of the “Greeks” bearing a basket of digital cash with which they want to purchase your useful things for which you worked hard because the euphoria of being suddenly cash rich won’t last long as soon as the ponzi scheme has been exposed but in the meantime, the shysters will end owning your valuable things while you will just have either a screen showing numbers or pieces of currency paper that would hardly be useful in the toilet. And don’t even think about going to the buyer with your gun because he will be in charge of the authority that will finish you off!

  49. Alfred says:
    @Irish Savant

    There is only inflation when the velocity of money increases – not just the volume of money. But the velocity of money keeps on dropping.

    Velocity of M2 Money Stock (St. Louis Fed)

    Hyperinflation is a different beast. What happened in Germany which lead to hyperinflation is a loss in trust of the government. We are not there yet. It is not very pleasant.

    Hyperinflation Unfolds Only When Public Confidence Collapses (Martin Armstrong)

    • Replies: @Mefobills
  50. DaveE says:
    @snake

    Great comment, thanks.

    I think this gets close to the root problem. It’s not so much the form that money takes (gold, silver, banknotes, etc.) it’s WHO is allowed to create the money, HOW they create it and WHEN -WHY they create it. And most importantly, the ability for anyone to view the numbers and hold the money creators accountable, something the banksters will fight to the finish to avoid.

    Right now we have the worst -case scenario as our de facto “economic system.” A ruthless, greedy ethnic Mafia, totally devoid of scruples, totally opaque and unaccountable (the Fed can’t be audited, by law) to the citizenry. Top that off with “trading” of futures, derivatives, repos and a gazillion other digitized scams that are nothing more than gambling instruments used by speculators and cons who contribute NOTHING of value to the world. (Except maybe their own world of other scammers and crooks….)

    The banksters create as much as they want and distribute it at will to their capi and on down they line to finance even more fleecing operations, wars and countless depraved scams.

    I won’t even mention the Chosen nature of the money-changers who decide who gets credit and who doesn’t based on who their mama is/was …… How does the old saying go:

    “Only Gentiles pay retail.”

  51. Mefobills says:
    @A123

    Long Term — There is still a problem with the USD and debt. Step #1 to any solution is economic growth. We have seen the consequences of the ‘German Austerity’ solution imposed on Greece. Trump will not lead the U.S. into an ‘Austerity’ recession.

    Economic growth is the finance class flogging nature. Nature cannot grow in an exponential fashion to pay off debts that make exponential demands. It is a mismatch of type.

    With regards to Greece, that was due to the malformed Euro money system. Greek politicians issued sovereign debt instruments, which landed in privateer German, English or sometimes French banks.

    Greek politicians then spent this new Euro Credit into the Greek economy, where it paid off syncophants, bought votes, and then went on to buy German goods. Euro’s bought BMW’s.

    The Euro’s then end up in the same German banks that house the Greek Debt Instruments.

    Then groups like (((Goldman Sachs))) come along and work out scams to make sure the debts are paid. This includes things like IMF loans. IMF loan is hung on the Greek people, while the Euro’s it spawned spend less than a day in the Greek economy. IMF Euro’s go on to pay bond-holders in Germany and it is mostly banks that are holding greek bonds (debt).

    So, yes.. the German’s are behaving a lot like Jews. Germany’s bond holders (banks mostly) wanted to be paid, and even wanted real Greek assets like islands and airports. Greek women were reduced to hooking to make ends meet.

    Austerity is simply a game to privatize the commons, so finance over-lord class can gain real productive assets in a swap.

    The goal of austerity is to indebt a population, then bust them out through privations. It is a sophisticated form of usury—- state sponsored usury. The hidden goal is to create a class of plutocrats, who become owners, and this will go on in perpetuity as long as there are dupes who are apologists for their slave masters.

  52. Mefobills says:
    @Alfred

    Hyperinflation is a different beast. What happened in Germany which lead to hyperinflation is a loss in trust of the government. We are not there yet. It is not very pleasant.

    German hyperinflation was when Reichsbank was privatized under Dawes plan.

    German hyperinflation was stopped when Schacht took over, and then issued Rentenmarks. Schacht also slammed the heads of private banks within the German system. He did this by not giving access to certain Reichsbank services.

    All hyperinflations in the modern era are through the exchange mechanism.

    Hyperinflation is due to unwanted positive feedback, something like a microphone screeching uncontrolled.

    The debt money system has positive feedback, especially through the exchange rate mechanism and bear raiding (shorting of a nations money using foreign money as a backstop).

    Germany’s money was shorted using dollar and pounds, and the bear raiders would exit their deal with profits, while the German people were abused with hyperinflation.

    I must add that as always our (((friends))) were heavily involved in the destruction of Germany. As late as 1938 a significant percentage of Germany was still owned by our friends, who had bought up Germany during the hyperinflation. (They did this by borrowing foreign credit through internal tribal connections e.g. the international creditor.)

    It wasn’t called Reichsbank at the time, but you get the idea… it was the German central deutschbank, which like the FED was privatized .

  53. @Horton

    What you say makes sense but why then is unemployment at an all-time low while GDP continues to grow? I’m starting to consider that they might be able to keep the plates spinning indefinitely.

    • Replies: @Alfred
  54. Alfred says:
    @Irish Savant

    why then is unemployment at an all-time low

    Please don’t pay too much attention to fake statistics on unemployment. Why do you think 500,000 Americans are homeless if there are so many jobs?

    According to Shadowstats, unemployment is close to 20% in the USA

    Alternate Unemployment Charts

    Essentially, they take out anyone who has given up on looking for a proper job. But these people still exist and they would like to have a job. It is a total con.

    • Agree: Buzz Mohawk
    • Replies: @Carlton Meyer
  55. Here’s a diagram that illustrates how US dollar repo investments and reverse-repo flows to the fed are a central feature of US dollar lending:

    https://www.newyorkfed.org/research/blog/2019_LSE_Markets_Interactive_afonso

    The sudden rise in the repo rate occurred within days of the attack on Saudi Aramco. The repo market was already unstable at that point and a sudden withdrawal by a major repo investor could have triggered a liquidity crisis. Two repo investment flows linked to foreign investment are hedge funds and purchase of repos by foreign central banks or sovereign wealth funds. Another factor is the de-dollarization phenomenon where certain foreign entities have reduced or completely withdrawn from US dollar repo investment.

    • Replies: @Mefobills
  56. Mefobills says:
    @Irish Savant

    The big question for me is why this tsunami of printing hasn’t resulted in roaring inflation.

    Because it is not printing.

    The German hyperinflation was due to private banks creating loans, which in effect is printing money. Physical printing of real notes was increased as a knock on effect.

    QE is the swapping of FRNs for TBills or MBS within bank reserve channels. The FED, or BOJ, or BOE, has access to their private banks. I talk about the overnight market as a place were they can go to do business.

    To use the FED as an example, the FED can merely purchase TBills and swap in dollars. From the private banks point of view, they had one asset (the TBill) swap for another Asset (new dollars).

    The banks asset composition changed, from one type (interest bearing TBills) to a non-interest bearing FRN. Think of it like this, your wife transfers money from your savings account to your bank check account. There is not change in total savings, only a composition change. A change of type.

    To make QE more palatable to private banks, LAW WAS CHANGED by the money masters, to then allow dollars held within reserve loops as interest bearing. This was to prevent a collapse to the zero bound (negative interest rates).

    I have detected the mechanism by which private banks sweep TBills into their reserve accounts, to then make said bills accessible to the FED’s keyboard. (See my earlier comments about expanding the FEDs ledger).

    So, there is some leakage out of the the finance system (reserve loops) into the real economy, by influencing TBill prices.

    Tbill price up = interest rates low. Interest rates low = people taking out loans at private banks = new money as bank credit entering into the real economy.

    It is not really printing, it is swaps of unlike kinds, which then influences pricing – the false signaling of prices is mostly in the finance sector.

    Most of the West can be modeled as two loops with a dot in between… the lower loop is the real economy, and upper loops is finance. Banks can be added as a dot between the two loops, as banks create the credit used by both upper and lower loops.

    Let’s re-order your question: Why hasn’t inflation happened in the real economy of the lower loop. Answer: Because debt money system does not allow direct injection of purchasing power into the lower loop, nor does it allow jubilee of rapacious debt claims. It only allows bankruptcy, which then allows “creditors” to swoop in and buy up real assets like land, buildings, patents, industry, etc. New money as purchasing power entering into the lower loop is done by people taking out new loans, or government spending with deficit money (new loans).

    Also, there is little today in the way of cost push inflation, as goods in the real economy are now produced in robotized factories, and goods demand can be met easily…. especially when you factor China into the equation.

    You do see some inflation in sectors of the real economy, where services are limited. Land is also inflated as most loans in the real economy are hypothecated against land = 70% of the total.

    Ireland got squashed through this mechanism of debt finance housing bubble. And now the Irish are renters in their own lands… subjects to a new feudal aristocracy.

    • Replies: @Irish Savant
  57. Mefobills says:
    @onebornfree

    As a committed malcontent, misanthrope and outsider, one thing I definitely don’t need round here is people agreeing with me. It’s bad for my health.☹️

    Why then would you expect people to take you seriously, as you are defining yourself as a non-serious person?

    Lolbertarianism is part of usury dialectic to ensnare the unwitting. It is a thought construct full of soporifics, designed to lead the unwary astray and hypnotize them with a-priori aphorisms; aphorisms which fail upon even cursory examination.

    And of course, lolbertarian luminaries are from the (((tribe))), which should be your first clue that you have been duped.

    • Replies: @onebornfree
  58. Mefobills says:
    @Autonomous

    The sudden rise in the repo rate occurred within days of the attack on Saudi Aramco. The repo market was already unstable at that point and a sudden withdrawal by a major repo investor could have triggered a liquidity crisis.

    The Panama papers revealed that Saudi’s are running low on Tbills.

    The 73 Kissinger Saudi agreement, which created Tbill/Petrodollar world economy, is predicated on Saudi recycling petrodollars into dollars zones and western banks.

    These petrodollars buy TBills and then they are housed in offshore banking centers, like Panama.

    The attack on Syria was funded in part by Qatar and Saudi, as petrodollars flowed through CIA to buy weapons from MIC. Saved Tbills were likely converted to dollars to fund this tsunami for takfiri mercenary soldiers and american weapons. The air force air-cover in Syria was likely funded by American taxpayers, as it used USAF personnel and weapons.

    The Russian’s spent very little comparative money to undo the “scheming” Sheiks and ZOG in Syria. All Russia had to do was be an air-force for Syrian government army.

    Also, one can see how Mohammed Bin Salam has shaken down other Sheiks to help balance Saudi books.

    Saudi Aramco is a bid to acquire dollars due to depletion from Syrian misadventure. Pricing of oil is now too low for the Saudi superstructure. Saudi’s getting into bed with ZOG in 1973 is paying a bitter harvest.

    Another factor is the de-dollarization phenomenon where certain foreign entities have reduced or completely withdrawn from US dollar repo investment.

    Countries no longer want to be surrounded by U.S. military bases, to be funding their own dispossession. Hudson has described how recycled dollars do this action in his book, “Super Imperialism.”

  59. “A new order.” LOL

  60. FUKUSHIMA, BHOPAL, boiling gas…. Boooom .CAN T COOL THE REACTOR DOWN. The same for the Financial markets. EVEN WITH WILLING – TO- DO GOOD MONETARY POLICIY MAKERS…

    Keynes states that the consumers’ expenses in the economy is a constant (c). But it’s not. When inequalities, like today, are on the rise – all other things equal – (for a given GDP), the consumers expenses c is lower because to speak clearly “a man ten times richer doesn’t eat ten times more hamburgers”. So the return on investments /debt is lower than expected because the consumers expenses is the underlying of this return. Invests then turn to bubbles, systematically.

    So from the get – go the system is fatally flawed, The growth by debt will never meet the required returns. Trump can trumpet in Davos that the growth is fabulous, it won’t make it.
    Helicopter money ? (a true one ) : Riots soon, people rushing to the car sellers to get the cars before others.
    And the opposite ? (Stoping completely the cash injection / monetary policies ): Zombie movie in 15 days in the big western urban centers, people fighting for cash at ATMs etc..
    Can’t cool down the system. No clear solution, at least for now.
    Agree with onebornfree about “brute force” (known maybe as Financial repression in this case).
    Interesting article by Whitney Webb

  61. @A123

    A123, i respectfully disagree. In 2019, Mario Draghi officially announced ECB involvement in obligation repurchasing worth 20 billion EUR per month. Right now, it’s somewhere between 30 and 40.
    However, there is also the European Stability Fund, a mandatory piggy bank obliging all EU-members to together chip in 100 billion EUR per year. This buffer is meant to temporarily prop up EU member states with failing economies and banks. Thanks to fervent lobbying of notably Angela Merkel (with the Deutsche Bank threatening to pull with it the whole German economy when it fails) and to a lesser extent Emmanuel Macron (France also has some banks that are technically bankrupt), the contributions to be made by all EU-members are to rise substantially, but that’s not been decided upon as yet.

    Still, Europe is in better shape than the US, regardless of a ECB being a copy of the Fed. I don’t know about the Chinese situation, so i can’t comment on that. Our relations with Russia are not hostile, and especially Germany does a lot of tech trading there. The North Stream pipeline project is inert at the moment, but if Trump threatens Germany with more higher tariffs on exports, Germany may bond closer to Russia and may find itself appointed as the EU distributer for Gazprom, leaving the French import ports for US-LNG far behind. Our Dutch port of Rotterdam will be one of the terminal distribution points for the Chinese New Silk Route.

    And with Iraq and Iran (important voices within OPEC) joining forces and China already willing to pay for oil in Renminbi or Euros, i do not share your prospects for the USD. I think the present US stock market story is a matter of cooked books, a bit like the cooked reports of Deutsche Bank. The accumulated bad debts and other losses (risen to 350 billion Euros) were removed from the balance sheets of the divisions Private Banking, Investment and Corporate, to be put in a separate division, which is now the “bad bank” within DB. Already, the German Central Bank is in the process of purchasing these bad assets, and the Stability Pact piggy bank will bail out DB in one go, in case of a sudden crisis. Merkel has recuded the chance of Germany ending up in ruins and can sleep better now.

    No such provisions are in place for Wall Street. When it will crash a second time, the rest of the world will abandon the Dollar for sure, and rather be allies of China and Russia.

  62. Anonymous[159] • Disclaimer says:
    @Astuteobservor II

    And not to mention the deaths of over 60 million Russians at the hands of the Bolsheviks or the millions slaughtered in the Vendee in the aftermath of the French Revolution where lovers of liberty, fraternity, and equality showed their actual motives by, for example, locking children into bakery ovens and cooking them alive in front of their parents. The Black Book of Communism plumbs the depths of inhuman cruelty in Russia with actual cases that make finishing the book next to impossible. What’s so lethal and unpredictable with leftist uprisings such as the homicidal POC movement against whites in this country that we see financed by ‘billionaires’ and promoted by the MSM is what Samuel Johnson noted was the signature cruelty of cowards, who in turn characteristically have predominated in every leftist movement known to history.

  63. The shadow banking system practices fractional reserve banking through rehypothecation, that is the root of the crisis:

    https://www.zerohedge.com/news/why-uk-trail-mf-global-collapse-may-have-apocalyptic-consequences-eurozone-canadian-banks-jeffe

  64. @onebornfree

    Cheers onebornfree. And yes, I’ve always suspected the official CPI figures.

  65. @Irish Savant

    Because we’re in a liquidity trap (the one thing Keynes got right).

  66. @Mefobills

    Thanks. I’ve always been impressed by your knowledge of the financial system. Have seen you on ZH too and even on my own ‘umble site. Thanks for the info.

    • Replies: @Mefobills
  67. onebornfree says: • Website
    @Mefobills

    You start off with : “Lolbertarianism “, a none – existent word 😏.

    Used here no doubt to firmly establish [in your own tiny mind, at least] your own “superior seriousness” and “superior intelligence” , 😂. [It never worked before- but why stop now?]

    Followed by :the more common handy catch-words often bandied about to firmly establish self-professed , imagined intellectual superiority: “usury”, “dialectic,” “soporifics” , “a-priori aphorisms”, luminaries “, [ methinks : oooh! cripes! he/ has heard of the term”a-priori” he must be both intelligent, and superior! – should I grovel before him/her now? ] .

    “aphorisms which fail upon even cursory examination” .

    Hah! Tell you what. The only thing here that ” fails” “upon even cursory examination” is your thin veneer of intellectual superiority masking your never-ending , thinly veiled, anti-free market, proto-Marxist from on high , holier than thou, wholly ignorant , “I’m gonna fix the world economy via more government interference in the economy” , pseudo-intellectual gibberish. You might fool the rest of the buffoons here, but not me.

    But keep it up- I need muh entatanemuntz. 😎

    “Regards” onebornfree

    • Replies: @Mefobills
  68. @FB

    Only compound interest grows exponentially. So why not make it criminal, allow only simple interest to be imposed?

    • Replies: @FB
  69. Mefobills says:
    @Irish Savant

    Have seen you on ZH too and even on my own ‘umble site. Thanks for the info.

    Early on, it was me against the entire ZH community it seemed. The Hypnosis runs deep – an entire civilization hoaxed.

    Much of the world is starting to catch on now, so I’m no longer voice in the wilderness.

    I had to learn the money system as my company was one of the first to go to China and give away our patrimony. I wanted to know why I had to teach Chinese how to make what American’s invented. I even trained American engineers on a whiteboard and sometimes it took months for them to get how the money worked. It was always gratifying when the light did go off, and then they started teaching me. During that period early on it was not just me, but some of my acolytes bombing ZH with comments.

    I tried to give people an example of how money was created and channeled in earlier times (in this thread). Today the money system is much more complicated, so it is easier for finance miscreants to hide.

    Pushing land prices in a housing bubble was run in Japan in the 80’s, later in the US. in the 90’s and done in Ireland when LIBOR rates were manipulated low purposefully. Bubble mechanics disenfranchise people from their land and ultimately their history.

    Basically, it is the same tricks over and over with twists. If you want to know what is going on politically or socially, there is money behind it.

  70. Mefobills says:
    @onebornfree

    You start off with : “Lolbertarianism “, a none – existent word 😏.

    Millenials and Zoomers coined the word not me. They are rightfully targeting boomers and lolbertarians (and Jews) for their predicament.

    The inheritors of civilization are wondering how it went wrong… why they are being disenfranchised from the lands of their fathers, why they are being de-racinated with infinity immigration of brown people, and why they have to listen to an (((owned press))).

    Usury is a word long since normed out of the language. Lolbertarians do not acknowledge that the concept exists. Usury used to be a mortal sin, on the same level as murder.

    Lolbertarianism is one of the dialectics that put people into cul-de-sacs of bad thought, and since you promote it, that makes you somebody on the wrong side of history. You also refuse to learn, so probably are a boomer, with a calcified brain, and hence one of the targets of millennial wrath.

    I’m a boomer also, so welcome to the club of the generation who left things worse off for their progeny. I chose not to be a dupe though – a signal difference between us.

    anti-free market There is no such thing. It is retarded to keep up the pretense. There are three kinds of markets: Elastic, Inelastic and Mixed.

    Free-Market ideology is a made up creation to then trap people in bad thought, at odds with reality.

    Your brain is calcified, and you have to undo a lifetime of conditioning, and you cannot summon the will.

    • Replies: @Nonny Mouse
  71. @TG

    It’s already happened.

    When they killed the gold standard, the only thing backing the currency was the military,

    and that is the case to this day.

    • Replies: @Hamlet's Ghost
  72. anon[117] • Disclaimer says:
    @The Scalpel

    Money is created when banks lend. The rules of double entry accounting dictate that when banks create a new loan asset, they must also create an equal and opposite liability, in the form of a new demand deposit. This demand deposit, like all other customer deposits, is included in central banks’ measures of broad money. In this sense, therefore, when banks lend they create money. But this money is fully backed by a new asset – a loan.

    Central banks’ ability to create money is constrained by the willingness of their government to back them, and the ability of that government to tax the population. In practice, most central bank money these days is asset-backed, since central banks create new money when they buy assets in open market operations or QE, and when they lend to banks. However, in theory a central bank could literally “spirit money from thin air” without asset purchases or lending to banks. This is Milton Friedman’s famous “helicopter drop.” The central bank would become technically insolvent as a result, but provided the government is able to tax the population, that wouldn’t matter. Some central banks run for years on end in a state of technical insolvency (the central bank of Chile springs to mind).– https://www.forbes.com/sites/francescoppola/2017/10/31/how-bank-lending-really-creates-money-and-why-the-magic-money-tree-is-not-cost-free/#a049ab03073e

    • Replies: @Miro23
  73. Mefobills says:

    Followed by :the more common handy catch-words often bandied about to firmly establish self-professed , imagined intellectual superiority: “usury”, “dialectic,” “soporifics” , “a-priori aphorisms”, luminaries

    I’ve run into this before. Dumb people who think they are smarter than they are. That or people who are so convinced they are right, they cannot see – blinded by ignorance. They cannot conceive that they are wrong, it is off their cognitive map.

    Usury: It is a power relation, generally where the more powerful steal purchasing power from the weak through the money system. It is the only real source of alchemy.. Ooops another big word.

    Dialectic: Read up on Hegel… the mechanism is widely used. Generally, you know a dialectic is operative when people are being forced into two opposing camps.

    Imagined intellectual superiority. Lol.

    A-priori is the main method used by Lolbertarian’s luminaries (usually Jews who created the concepts). They think it, therefore it must be true, and then monetary history is twisted to make the facts fit the theory. It is upside down thinking, typical of our talmudic friends.

    Real scientists, and the engineering method is for theory to adjust to facts. So, I used a-priori as a word on purpose, because it is entirely relevant to lolbertarianism, as a-priori is the main deception method used.

    • Thanks: bluedog
    • Troll: Beefcake the Mighty
    • Replies: @Mefobills
  74. JamesinNM says:
    @AllWarsRbankers'WARS

    Read Representative Louis McFadden’s speeches to Congress in the early 1930s.

  75. JamesinNM says:
    @The Scalpel

    Yep, they can dispute it and suffer the consequences in this life, but real evil will suffer the second death and burn for eternity.

  76. @sally

    You have battered wife syndrome.

    “He’ll treat me better next time…”

    Insert latest lyin’ weasel into your holy government documents.

  77. @Mefobills

    Huh? No such thing as an anti-free market? Why the talk of free trade agreements then? And does the USA want free markets or captive markets?

    • Replies: @Mefobills
  78. Miro23 says:
    @anon

    In practice, most central bank money these days is asset-backed, since central banks create new money when they buy assets in open market operations or QE, and when they lend to banks.

    It’s actually quite easy to create money (as the Fed is showing) – the problem is how to spend it.

    There’s a world of difference between (19th century) loans to build railways and open up the West (or 20th century loans for computing/digitalization/internet) and just spending the money on ME wars, buying already overpriced stocks (speculation) and funding government deficits.

    The first kind of loan builds the general economy and pays back capital and interest. The second kind only builds a restricted and shadowy economy (the MIC, Wall St) plus the welfare sector, and will never be paid back.

  79. Parfois1 says:
    @onebornfree

    As a committed malcontent, misanthrope and outsider, one thing I definitely don’t need round here is people agreeing with me. It’s bad for my health.☹️

    Never mind, it’s only a slight relapse. Be comforted by the certainty that very soon we’ll be at loggerheads to restore the status quo ante.

    Unless you admit that, in order to destroy the oppressive power of the state, the people will need a social organization of sorts that is committed to the banning of the state itself. As far as I know there is only one – and it is not anarchism.

  80. Parfois1 says:
    @FB

    Don’t worry about new shoes for the kids…King Bezos is more important…simple morality says so…

    That illustrates one of the most puzzling paradoxes in our universe: how common people accept as their guiding principle the idea that they should support a politico-economic system under which the product of their labour is stolen by the capitalist class and its state by taxation. Double dipping robbery where the workers have to pay taxes to support the state as the enforcing arm of the capitalist elite.

    The great majority of the commenters here support that system – some fanatically – yet they are part of the social segment that is blatantly abused by that system. Stockholm syndrome?

    I know there are many plausible explanations from ignorance, indoctrination, cognitive dissonance, defence mechanisms, etc. that affect many otherwise rational people. Still, one wonders whether the powers that be know some other koolaid concoction to keep the plebes selfless idiotic.

    Even the backward Russian muzhiks understood it.

    • Agree: FB
  81. Mefobills says:
    @Nonny Mouse

    Huh? No such thing as an anti-free market? Why the talk of free trade agreements then? And does the USA want free markets or captive markets?

    The U.S. got rich behind tariff walls. If you have a country that has immature industry, then tariffs and other protectionist measures are required. The other method required is the injection of your own state credit, such that it channels into industry and the commons.

    This is exactly what China is doing today, along with sneaky means to acquire American patrimony for cheap.

    Free trade and free market nostrums are applied ONCE A COUNTRY has matured industry and the finance class wants to make gains. The mature industrial country then raids the other country with its goods, and thus forecloses on the foreign countries ability to make things for itself.

    There is no such thing as Free Markets. It is a made up ideological term as cover for predatory stealing of markets and lending.

    Even before the Federal Reserve act, the U.S. produced too much food for its citizens to eat, and hence was under pressure to export. Foreign markets did not have dollars to buy American goods, so the Northeast banking center invented foreign loans.

    The civil war was two different economies at odds: Finance free trade of the South vs Industrial Capitalism of the North. The south was becoming black with negroes, as wall street Jews has created a mechanism by which slave ships were outfitted and had a business plan to always keep the ships full. The south then used negroes as tractors, to then grow cotton and crops, and plantation master would then trade his farm output with England. The south economy was divorcing itself from the protected northern industrial economy.

    England was a mature industrial power, and had finished goods to sell, while the South was agrarian mono-culture using slave labor.

    The south of america slave system then fits into “free trade dogma” of England, where England earns increment of production, while the South is turned into a slavery extraction economy. Of course, our Jewish friends benefit in the trafficking of slaves and turning the West and South of America black. Free trade then ends up as a plutocracy of owners, and indebted servants.

    The English/Jewish colonial system was to move goods about by ship, and take profits on goods movement, and also to create the bank credit allowing trade. England’s colonial system was taking raw material from colonial periphery to make finished goods in England, thus taking the increment of production for herself. Finance then did a rake-off of profits for consummating the “deals.”

    The finance capitalist system pushes “free trade” especially as it wants its “capital” to always be above labor. It’s capital is created at debt and at interest, and hence the debt instruments are used as a method of control. Why do you think wall street was so hot to offshore jobs to China?

    If you go back into an earlier comment in this thread, I explain how the reserve system of private banks has linked up to create world wide reserve channels. This money system does want “free trade” so its debt instruments can be on-sold into markets world wide, and U.S.military can be used as a golem to destroy any debtor who doesn’t pay up.

    OK… Free Trade is a concept that emanated from England, especially after our Usurious Jewish friends took over in 1694. That American’s bleet it out today is no surprise, especially after finance capital took over fully after WW2. The Civil war was fought for nothing, as the bad guys eventually won by stealth.

    Even if your head is filled with noxious nostrums like “free trade,” then consider this. Money’s true nature is law, and hence should never extend past your law, meaning your borders. International finance is in violation of an iron law of economics… never let your money extend past your borders.

    It takes hypnosis to invert reality, and the concept of free trade is hypnosis in action. The only thing approximating free trade are elastic markets, which have competitive pricing. So, elastic market theory has been spun up as free trade theory to allow “international credit” and its owned corporations to conquer the world.

    Industrial Capitalism owns the money power, via the state and injects state credit into industry and the commons. The U.S. had industrial capitalism from its founding mostly up until 1912. State Credit was issued by U.S. Treasury. Protectionism and no free markets in U.S prior to 1912 (to protect nascent industry), and free market theology after 1912, and especially free trade after WW2, when mantle of world control via finance was passed onto U.S. from the British.

    The U.S today wants captive markets in the same way that London wanted U.S. south to become a captive extraction economy. Today’s U.S. wants captive markets so that finance predators can create extraction economies. For example, Russia was turned into an extraction economy in the 1990’s. Think closely on this: Finance wanted Russia to take out dollar loans. In this late stage finance capitalism, finance has gone international and doesn’t care about U.S. workers/labor, nor does it care about Russian labor, as the objective is to dollarize everything in the world. New debts pay off old debts.

    All countries possess the right to issue their own sovereign credit into industry and build up indigenous capability. That means that false free trade nostrums should be junked into the trash can where they belong.

    • Thanks: Nonny Mouse
    • Replies: @Kapyong
  82. Mefobills says:
    @Mefobills

    Beefcake,

    I’m waiting for you to explain where I am wrong. Your Troll attachment is simply an ad-hominiem, because you have nothing of value to add.

    Use your words and defend your position, otherwise you are a weakling who doesn’t like her precious shibboleths punctured.

    • Replies: @Beefcake the Mighty
  83. Parfois1 says:
    @sally

    If every member of the governed class [you and me]adopted the position that it is the of the duty of every member of the governed class to defend human rights, and that upon discovery that a violation of human rights, it is the duty of everyone of the governed classes to assist in whatever action or actions it takes to remove that governor

    Generally I agree with you in your analysis about the nature of Government as a structure set up to enforce the power of the Ruling Elite (Mobsters). And very well put too to make easier for some to understand what it is all about.

    I also agree that under the terms of the covenant of the Social Contract theory, it is incumbent on the governed the obligation to impose their will on the Governor. However, as we know from jurisprudence, the parties to a contract rarely are in a free contractual agreement: usually one party has more power than another, hence the legal tool of fairness to balance the unequal power of contractants.

    Reality steps in and reveals for all to see that, even under that supposed theory, the Governor is actually an insatiable tyrant. It sets the rules book, is the judge, the prosecutor and executioner all in one. It is not a party to an agreement, it is an usurper and a legal fiction. Moreover, and more prosaically, it is only the street gang of Mafia kleptocracy.

    Blimey! I’m agreeing with Onebornfree again!

    • Replies: @Mefobills
    , @onebornfree
  84. So they “repo” the “repo” they “repo’d” that has already been “repo’d” a thousand times…is this to keep on (as they say at DailyReckoning) “kicking the can down the road” (which is defined by division by zero, that is, undefined or eternity) or because “economics” is too complicated these days even THEY have no idea what the word means anymore? And the Rothschilds made this system up…again, Jews simply cannot do the math, and this isn’t about the “800 gentile slaves per Jew” Talmudic garbage scenario either…. Or is 2+2=5 now? Heck Common Core math makes more sense than this nonsense!

  85. JUSA says:

    We’ve gotten a good taste of what it’s like when Jews control the Western world:
    – Wall Street mass financial frauds to concentrate wealth in the hands of the Jews
    – deep state control of both parties
    – spying of citizens using technology
    – censorship of opposing views through media, academia, the courts, antifa and internet lynch mob
    – assassination of foreign leaders at will
    – endless regime change wars
    – endless immigration
    – killing of Christianity through Hollywood, media, academia
    – total and complete moral degeneracy of the populace through gambling, drugs, alcohol, pornography, child sex rings, sex trafficking, LGBTQ madness, sexualization of children through “comprehensive sex ed” now extending even to Kindergarten.
    – The last step is gun grabbing by the Democratic party.

    The “American” hegemony is the Jewish hegemony. The “American” empire is the Jewish empire. There is no longer a USA, it is now JU-S-A, has been for over 100 years.

    It is difficult to wish bad things upon your own country, but America as an empire has grown past its expiration date. Henry Ford warned us in 1920 of the “Jewish Dictatorship” of America even way back when, now it’s past the point of no return. America as an empire and as a country needs to implode, another Great Depression worse than the last. It is perhaps the only way we could get rid of this Jew parasite that has invaded us for nearly 150 years. The only thing that keeps this house of cards economy going is America’s status as the issuer of world reserve currency. Germany, Russia and China need to work together and take away this mantle to help rid the world of this Jew parasite.

    • Agree: Beefcake the Mighty
  86. FB says: • Website
    @Nonny Mouse

    Only compound interest grows exponentially.

    Every loan with a term greater than one year is compound interest…because it is compounded at least once a year…

    The maximum mathematical return on compounding interest is equal to the mathematical constant e which value is 2.71828…

    This is the natural logarithm, also called Euler’s number…

    The minimum is 1 which is compounded once yearly…

    e is for the case of a constantly compounding interest…the maximum possible…

    • Replies: @Mefobills
    , @Nonny Mouse
  87. Mefobills says:
    @Parfois1

    Reality steps in and reveals for all to see that, even under that supposed theory, the Governor is actually an insatiable tyrant. It sets the rules book, is the judge, the prosecutor and executioner all in one. It is not a party to an agreement, it is an usurper and a legal fiction. Moreover, and more prosaically, it is only the street gang of Mafia kleptocracy.
    _______________________________________________________________________

    Blimey! I’m agreeing with Onebornfree again!

    Both you and oneborn freedumb are going to have to come to grips with the notion of hierarchy. You also have to come to grips with the notion that not all human relations are two way, they are also three way – with an interlocutor as arbiter to settle disputes.

    I am a little rough with free-dumb, because he refuses to learn. He is a bitter clinger, who in a more rational age, would be kicked out of the ale house and not allowed to speak.

    This third party interlocutor is law and force. Even primitive civilizations select or elect and elder or king for this role. There is no sense in railing against law and force… only when it is capricious and designed to steal for an in-group of special interests.

    All civilizations have hierarchy. If the brain is corrupt, that is a different concept on whether or not hierarchy is needed. Of course it is needed, to then do the higher planning, otherwise there is anarchy.

    Do you want to live in a civilization like that of Africa, where young alpha males drive around in their technical white toyota pickups, terrorizing the public for a living? So much for free dumb under those conditions.

    How do you go about ejecting parasites, rentiers, usurers, psychopaths and other degenerate humans from the governing hierarchy is a separate problem from that which lolbertarians like one born free propose. They propose magical concepts and wishful thinking as their god.

    Lolbertarian argument is that there is some sort of free-dumb god with “free markets” being especially god-like, and gold having magical properties because it is shiny and doesn’t rust. Then there are other nebulous concepts like human action, as if humans are not governed by prices and money and greed.

    Don’t fall for sophomoric concepts designed to ensnare the unwary and well meaning. The matrix is designed to ensnare the unwary, so that they are rendered dumb, and hence their pockets can be picked. There are groups of (((people))) who are diabolical and psychopathic, who can come up with constructs designed to take perpetual rents on a well meaning law abiding and high-trust population.

    Russia is seriously contending with the psychopath and good governance problem. She is looking to Byzantine method, especially Justinian law. The idea is to have a symphony of church and state, where Church sanctions government leaders as moral and worthy of their important role. The Orthodox patriarchy is so advanced it is conversant with usury techniques.

    There is no other way out… either your hierarchical system works for the people, or it doesn’t.

    Any high civilization must select their best humans for governing hierarchy. How do you think Lee Kuan Yew made Singapore great?

    • Thanks: bluedog
    • Troll: Beefcake the Mighty
  88. Mefobills says:
    @FB

    Every loan with a term greater than one year is compound interest…because it is compounded at least once a year…

    If you have a pond with two water lilies and they double and double again, eventually half of the pond will be covered.

    On the last doubling, the pond will become completely covered.

    The exponential of interest is a doubling and doubling again.

    The rule of 72 is a good way to see the math if you are inclined in that direction:

    https://www.investopedia.com/terms/r/ruleof72.asp

    • Replies: @Been_there_done_that
  89. @Alfred

    This recent headline is from Marketwatch:

    U.S. worker pay, benefits no longer growing faster despite unemployment at 50-year low

    https://www.marketwatch.com/story/worker-pay-and-benefits-no-longer-growing-faster-despite-unemployment-at-50-year-low-2020-01-31

    Its because unemployment is not low!

  90. Mefobills says:
    @Hang All Text Drivers

    Bitcoin is NOT the answer. It is super-fiat money. We need money backed by something rare and compact and valuable. Like gold or platinum or palladium.

    Bitcoin is market money, created by a false identification with gold… as if money must be mined out of the ground. Or in this case, mined with computer energy. Bitcoin gains currency (the ability to flow) by virtue of markets demanding a method for escaping predatory state money, especially excess taxation. The criminal class is a heavy user of bitcoin. The underlying value of bitcoin is block chain technology. The few bitcoins mined make it scarce like gold.

    Bitcoin is good from a block-chain standpoint. National legal moneys will eventually have to use Fintech block-chain to enable lawful money. See link below.

    This notion about gold and platinum as money, is as hair brained as if saying math is metal.

    The entire 2000 year history of gold coins was fiat. As soon as the coin got the King’s stamp of law, it became money.

    The amount of money in circulation has to be scientifically created to match goods and services production.

    In other words, good money is lawful, and its volume and channeling is forced to work for the commons.

    Since everybody uses the legal concept of money, then it is part of the commons.

    https://www.trunews.com/stream/fintech-singapore-the-emergence-of-a-new-global-financial-system

    The link above is important. Future cell phones may have a separate drive, where your block chain ID is kept. So, your money and your personal data is under your control and cannot be intercepted by a third party who intends on doing you harm. This is not fantasy, but is a coming reality as the definitions are already in place, and people (Not Usurped American Government) are working toward this goal.

    • Replies: @KA
  91. @FB

    Yes, but why? Why is there not a rule that interest can only be charged on the principal, the amount explicitly, initially borrowed? There could be further debt accumulation due to interest falling due periodically, but why allow interest to be charged on the portion of the debt that was not initially borrowed? Why does it have to be that way? Why not only allow simple interest, ban compound interest?

    • Replies: @FB
  92. What happened to the movement to “audit the Fed “? Did it fizzle out after Rand Paul got beaten up badly by his “neighbor” ?

    • Replies: @Beefcake the Mighty
  93. Kapyong says:
    @Mefobills

    Gday Mefobills,

    Thanks for your informative posts, keep up the good work 🙂

    I’m curious about how far this goes back into history –

    David Astle (The Babylonian Woe) points back to the ancient Babylonians as the origin of the Money Creation Power, others talk about the ancient Phoenician thalassocracy.

    What do you think ?

    • Replies: @Mefobills
  94. KA says:
    @Mefobills

    How does QE affect frenzy of issuance and buying junk bond ? Bank usually in high demand will sell them collateralized debt obligation and cause financial situation.

    Energy market – shake fracking was the recent example of out of bounds interest in junk bond.

    • Replies: @Mefobills
  95. clickkid says:

    Connecting this issue to the situation unfolding in China.

    China now faces a national emergency, with many people unable to work and massive economic damage. To help deal with this, it would appear logical for them now to gradually liquidate all of their 1.1 trillion dollars’ worth ofUS Treasury bonds over the next couple of months.

    • Replies: @9/11 Inside job
  96. FB says: • Website
    @Nonny Mouse

    Why not only allow simple interest, ban compound interest?

    It’s mathematically impossible that’s why…

    You MUST calculate the principal at least once a year, must you not…so then by definition, if the term is more than one year, you are effectively in compound interest…

    • Replies: @Nonny Mouse
  97. @Mefobills

    You take yourself way too seriously.

    • Replies: @Mefobills
  98. @9/11 Inside job

    Not sure if that had anything to do with it, but it’s worth noting how fake leftists like Warren opposed the effort.

  99. onebornfree says: • Website
    @Parfois1

    Check out mofo bills reply to your comment, if you haven’t already done so. 🤣

    The ugly, presumptively superior ,anti-freedom, anti-free- market, anti-human , collectivist/statist /dictatorial , dare I say it “Hitlerian”, “I know what’s best for everyone else” psychology is on full, glorious display right there.

    If that doesn’t make you want to 🤮, I don’t know what will!

    Regards, onebornfree

    • Replies: @Mefobills
  100. Mefobills says:
    @Kapyong

    I’m curious about how far this goes back into history –

    David Astle (The Babylonian Woe) points back to the ancient Babylonians as the origin of the Money Creation Power, others talk about the ancient Phoenician thalassocracy.

    Hudson’s colloquium points in the same direction, confirming Astle. The book, “and forgive them their debts comes out of that research.”

    The better way to look at it is that there is usually an internal struggle. Man is at war with himself, with those who choose to take, and those who make a choice to live morally. At times the Babylonian rulers tried to put a stop to usury and bad dealings (using floor prices and trying for fixed prices for commodities). Sometimes, things can be a mixed bag with both good and bad as the internal struggle manifests.

    Look at my above comments in this thread with Beefcake and Freedumb… they have made their choices, and the world be damned. If you press them hard enough, their response would be… I got mine, and screw you.

    The economist Thorstein Vleben also circles above the target with his concept of Conspicuous Leisure and Conspicuous consumption. (See Vleben’s works). Malformed humans, including many in the priest class, want to “take” from others so they can be lauded and higher up in the hierarchy, even though they didn’t earn it by merit. Many politicians (most?) would fit into Vlebens evolutionary economics thesis.

    Note also that Astle traces the Haibaru (Aiparu) back to the beginning of recorded time, where the Donkey Caravaneer bones are interred outside of Sumer.

    Our Haibaru Jewish friends have always been merchants, standing outside of the City States, wanting to tear it down.

    Our Jewish friends also took rents and usury on the exchange rate between silver and gold… for thousands of years they operated the secret mechanism. When the Jews massacred tens of thousands of Greeks, it was because Rome had accidentally interdicted the secret East/West mechanism. Jewish Caravans would move Silver West-to-East, while moving Gold East-to-West. They would then pocket the exchange difference, and use the usury for in-group tribal method. Our Jewish friends are an evolutionary construct.

    Even Islam can be seen as part of Jewish maneuvering, with Mecca as an entrepot city on the caravaneer trade routes. No doubt some of that usury from exchange rate takings flowed outward to Jewish merchants in Mecca giving Jews unearned advantage over Arabs.. Mohammed was incensed at Jewish malfeasance, but probably didn’t understand the mechanism.

    So, anybody want to tell me about how great metal as money is, when it fueled the greed and parasitism of the tribe for thousands of years? Even the protocols discuss how “gold has been very good for us.”

    I’m coming to the opinion Jung’s collective subconscious theory may be correct. Or, Sheldrake’s morphongenic field is operative among certain groups of people. That in-groups and certain types of peoples are connected, and hence their behavior is in alignment. Tens of thousands of years of differential evolution would have effected more than just outward looks, but also the brain and other aspects of what it means to be human.

    The Aryan who is seeking out Logos, vs the Jew who has chosen anti-logos, and usury takings as method, would be an example of the internal battle.

    As far as gold as money is concerned, it was made into money by the priest class, probably in Babylon. It was soft and easy to cut off of a rod. The gold balanced on a balance beam scale against barley. Barley was money at the time, and hence the weight of gold today is measured in “grains.” The priest class had plenty of gold because it was tithed as jewelry. Also, gold was easily found in alluvial plains of the the East, especially around India.

    Lolbertarians think that money came out of merchant trading and was spontaneous, so they are wrong on this like just about every thing else. Of course the “merchants” would spin up fairy-tales to make themselves look great… they need self esteem, especially when they didn’t earn it, but instead stole it.

    Small tribes used talleys instead of money, so small tribes simply remember who owed who what. Small groups had credit and debt relations with each other, but no money. Money comes later after some sort of law and civilization comes together. The early middle east civilizations were organized around barley, as humans turned toward farming… it was more fun to get drunk on fermented barley and screw, than do hunter-gathering.

    • Thanks: Kapyong
    • Replies: @Kapyong
  101. @clickkid

    marketwatch.com : “4 reasons why China won’t use ‘nuclear option’ of selling Treasurys to retaliate against the US” :
    “Investors say that China selling Treasurys remains an ineffective form of retaliation “

    • Replies: @clickkid
  102. Mefobills says:
    @Beefcake the Mighty

    You take yourself way too seriously.

    Beefcake… all you got are ad-hominems. You have exposed yourself as operating at a very low level.

    • Replies: @Beefcake the Mighty
  103. Alfred says:
    @Republic

    Wasn’t Martin Armstrong in prison for a long time for fraud?

    He was in prison for 11 years and accused of “contempt of court”. They stole his computers. The receiver of his company, who stole the computers, ended up working for Goldman Sachs as a prize.

    [MORE]

    In the Southern District of New York, around 99% of the accused are convicted. It has nothing to do with justice. Prosecutors can accuse anyone of “conspiracy” and then negotiate a smaller “crime” and a shorter sentence.

    For example, Jason, Alice and Hank plan a bank robbery. They 1) visit the bank first to assess its security, and 2) pool their money and buy a gun. All three can be charged with conspiracy to commit robbery, regardless of whether the robbery itself is ever attempted or completed.

    What Do the Courts Consider in a Conspiracy Case?

    The above means that if you visit a bank, they can later accuse you of planning to rob it. If your alleged partners are not to be found, that changes nothing.

    They accused Armstrong of stealing billions of dollars. The problem is that the Japanese who were supposed to have lost this money never complained because they lost nothing. They accused him of hiding gold coins. The problem was that he could not prove that he was hiding something that he didn’t have.

    If you have any delusions about the justice system in the USA, you should read this one by Martin Armstrong

    Can a Federal Judge Hold You Til you Die in a Civil Case? | Armstrong Economics

    Suffice to say that he is an extremely wealthy man and that he is an amazing adviser with a unique system based on cycles in economics, politics, war and so on. The book that he gave out free recently to attendees at a conference is to be found listed at $3000 on eBay – more than the original cost to attend the conference in Rome.

  104. Mefobills says:
    @KA

    How does QE affect frenzy of issuance and buying junk bond ? Bank usually in high demand will sell them collateralized debt obligation and cause financial situation.

    QE = Tbill price high = Interest rates low.

    QE= Law change to allow dollars kept in reserves to be paid interest. Banks are making money on reserves, changing the model from making “profits” on loans. (Fed pays banks interest on FRN’s held in reserves.)

    Banks and Wall St. come up with re-hypothecation strategies to make mo money. 601 SPV’s (special purpose vehicles) are allowed by law to become method within TBTF banks. These banks are usually also primary dealers.

    CDO’s and other securities are a form of insurance, based on risk and interest rate movement.

    Shale fracking is funded by new debt creation based on predicted future oil prices, and also some sort of guaranteed interest rate (rates that don’t change in the wrong direction – so the future is less nebulous and more profitable).

    All of these sort of rehypothecations can be viewed as insurance, and are “claims” on the future money supply. The claims exceed the actual money supply by many times.

    It is actually pretty stupid stuff. Man is a rent-seeking animal, and his worse impulses must be restrained by a King and moral law. Money’s true nature is law, and these sort of rehypothecation games are unlawful to my eye. It is a way of spreading risk to the entire money supply, which in turn is part of the commons.

    How much observable reality do people need? I know they don’t like me rubbing their nose in it… most would prefer the blue pill and going back to sleep.

    That means you beefcake, yawn and go back to sleep.

    • Replies: @Beefcake the Mighty
  105. Mefobills says:
    @Beefcake the Mighty

    Double yawn.

    That blue pill is tasty. Go back to sleep now.

    • Replies: @Beefcake the Mighty
    , @KA
  106. Mefobills says:
    @onebornfree

    Check out mofo bills reply to your comment, if you haven’t already done so. 🤣
    ___________________________________________________

    What kind of man uses emoticons? Girly men.

    Lolbertarianism is a soft headed ideology designed by Jews to ensnare the honorable, but easily duped (and low IQ for the most part) people, and shuttle them into cul-de-sacs of bad thought. You are an apologist for your slave master.

    One can be honorable and also be a girly man.

    If bad ideology is shown to be faulty, then girly-men cannot sack up and change their behavior. They lack intestinal fortitude and seriousness. They are like girls.

    Girly men and women should not be allowed to vote. Lolbertarians also want unlimited immigration because … you know just because of free-dumb. Never mind that your history is being erased, and wages are being driven down… because of muh free-market!

    It really is quite something to see, when people are wedded to an ideology that is at such a low level of consciousness, and then they cling to it with religious fervor. Women and girly men are emotional and get trapped because it feels good, even if it is wrong.

    Parfois can fight his own battles, he doesn’t need you egging him on like a woman trying to get men to fight over her.

  107. KA says:
    @Mefobills

    Don’t know what you guys are fighting about ?

    Anyway , any thought on how Russia was ripped off by local with no money and with lot of help Harvard and Summers ?

    I understand that asset was sold at a penny. But how did the penny make way to some and not to other .

    • Replies: @Beefcake the Mighty
  108. @Mefobills

    The rule of 72 is a good way to see the math…

    The rule of 69 is closer since most people would use a calculator anyway.

    Rounded: 100 x ln2 = 69

  109. Mefobills says:
    @Beefcake the Mighty

    Why are you butthurt? Both Parfois and Free dumb can fight their own battles. All you add is ad hominems and contribute nothing.

    • Replies: @Beefcake the Mighty
  110. clickkid says:
    @9/11 Inside job

    It wouldn’t be retaliation, simply using savings in an emergency.

    Surely understandable given the circumstances.

  111. clickkid says:

    A nice piece of black humour I saw in a comment on ZeroHedge:

    “The year is 2023 and mankind has been exterminated by the corona Virus. Meanwhle in the basement of the Federal Reserve in New York a computer continues to create money and perform buy orders, pushing the Dow Jones to daily new all time highs, proving that the economy is doing great”

  112. onebornfree says: • Website
    @Mefobills

    Keep it up, you’re doing just great, Mofo Bill !

    You’re a Real man” and I’m a “girly man” because I utilize emoji’s ? 🤣

    Predictable er,”logic” on your part [in other words, a complete lack thereof ] .

    Is that the best you’ve got , you totalitarian, “I’m a real man, you’re not”, retard?

    “Regards,” onebornfree

  113. Parfois1 says:
    @Beefcake the Mighty

    I wonder why you would recommend such tendentious crap to anyone as a guide to anything. Unless what you intended was limited to show how the Harvard Jewish Mafia was in it up their eyeballs.

    When a story starts with a preamble such as this parody:

    “The U.S.S.R.’s seven-decade experiment with Marxist-Leninist {surprisingly they forgot the main engine: Stalinism!} totalitarianism lay in shambles. By 1989, even as the Berlin Wall fell in Germany, the Soviet Union and its economy were imploding.”

    you know whatever follows is likely to be of similar quality and the reader needs to exercise sharp critical awareness to excise any valid material from so much warped chaff.

    • Replies: @Beefcake the Mighty
  114. onebornfree says: • Website
    @Beefcake the Mighty

    You know, I’m now half expecting this dimwitted clown to come up with “my dicks bigger than your dick” as his next brilliant superior er, “argument” 😏.

    Regards, onebornfree

    • Replies: @Beefcake the Mighty
  115. @Parfois1

    Nothing’s more pathetic than a self-righteous Stalinist.

  116. @onebornfree

    Yes, it wouldn’t surprise me. His breathtaking ignorance of libertarianism is surpassed only by his grotesque sense of self-importance.

    • Replies: @onebornfree
  117. Kapyong says:
    @Mefobills

    Gday Mefobills,

    Hudson’s colloquium points in the same direction, confirming Astle. The book, “and forgive them their debts” comes out of that research.

    Thanks, I’ll check it out – just got it free on Kindle.

    Note also that Astle traces the Haibaru (Aiparu) back to the beginning of recorded time, where the Donkey Caravaneer bones are interred outside of Sumer.

    Yup, readers may find Astle’s comments interesting :

    According to professor W.F. Albright (The Amarna Letters from Palestine. Cambridge Ancient History Vol. 11; pp. 14-17.): “There was also a large and apparently increasing class of stateless and reputedly lawless people in Palestine and Syria to whom the appellation Apiru was given, it has now become certain that they were a class of heterogenous ethnic origin, and that they spoke different languages, often alien to the people in whose documents they appear.”

    Further on in the same work, after pointing out the distinct differences between the desert tribes (Bedawin), the grooms, and the SA.GAZ troops (‘Apiru), using an old text relative to the Hittite armed forces as the source of his information (about 1500 B.C.), professor Albright further points out that the word Apiru must mean dusty ones in N. West Semitic, and that it still appears in Syriac conveying the same meaning… “Characteristic of all these terms is the common fact that the bearer of the designation trudges in the dust behind donkeys, mules or chariots.

    Dusty donkey followers.

    So, anybody want to tell me about how great metal as money is, when it fueled the greed and parasitism of the tribe for thousands of years? Even the protocols discuss how “gold has been very good for us.”

    So, they’re going back for another exploitation cycle of metals soon then ?

    Tens of thousands of years of differential evolution would have effected more than just outward looks, but also the brain and other aspects of what it means to be human.
    The Aryan who is seeking out Logos, vs the Jew who has chosen anti-logos, and usury takings as method, would be an example of the internal battle.

    Different groups of re-incarnating souls ? Different categories of souls ? Apparently Talmud and Tanya say just that.

    Barley was money at the time, and hence the weight of gold today is measured in “grains.”

    Seems that ~130 grains of barley fits in your hand, and 130 grains of gold became worth about a cow. (A grain of gold seems like a very small unit.)

    Of course the “merchants” would spin up fairy-tales to make themselves look great.

    They also like to erase themselves from history when it suits them – both Astle and Zarlenga mention that about money creation.

    History is full of holes.

    • Replies: @Mefobills
  118. Goodness! Imagine how scary this would all be if we were using real money!

  119. onebornfree says: • Website
    @Beefcake the Mighty

    “His breathtaking ignorance of libertarianism”

    Ditto for ,modern subjectivist economic theory and marginal utility, the economic necessity of [naturally derived] interest rates, even of the origins of money itself. The list goes on, and on , and on……..

    He can’t even run his own life, but fancies /imagines himself , via government, running everyone else’s lives, top down, for them, according to his supposedly incontrovertible rules/plans/edicts – in other words, a more or less perfect example of the typical [and all to common ] totalitarian mind-rot psychology, which is common both at this site and just about everywhere else these days. ☹️

    “Stupid is as stupid does” . And so it goes….

    Regards,onebornfree

    • Replies: @Mefobills
    , @bluedog
  120. Mefobills says:
    @onebornfree

    “Stupid is as stupid does” . And so it goes….

    Both Freedumb and Beefcake have exposed themselves as two peas in a pod.

    Libertarian ideology is one of “emotion” and its adherents are religious in their fervor….something like a Church Lady.

    I could post links of Dana Carvey’s “Church Lady,” but like an emoticon, it is would be too cute and girly for my tastes. But, you get the idea, there are different kinds of people in the world.

    With regards to this articles theme, “Repo Fiasco,” it is entirely due to the Repo Market having gained access to the Fed”s discount window. Or in other words, to the overnight market. I discuss that connection earlier in this thread.

    The market is a special place that only real banks should go to, not non-bank financial entities.

    But, if you are true to Lolbertarian religious fervor…fever, er…. ideology, then the market is “GOD” and everything should balance out naturally by some sort of magic hand.

    In other words, the rent seeking and transference of risk that repo game is causing, is not codified in libertarian ideology as something that can even happen. Why? Because it’s adherents are dupes.

    As Hudson says, it is J for Junk economics. I will go further and say it is a trap for a certain kind of person, and the extremely weak minded are trapped in its constructs, so it is dangerous.

    When people are bedazzled with something “shiny” their minds are foreclosed.

    • Troll: Beefcake the Mighty
  121. Mefobills says:
    @Kapyong

    Very good Kapy.. you and I are two peas in a pod. Only we are not bedazzled, we follow things to the logical end, even if we don’t like where it goes.

    Do you mind if If I point you a little further on the path? You are already well on your way.

    There was also a large and apparently increasing class of stateless and reputedly lawless people in Palestine and Syria to whom the appellation Apiru was given, it has now become certain that they were a class of heterogeneous ethnic origin, and that they spoke different languages, often alien to the people in whose documents they appear.”

    Think closely on the city-states of this period. They had entrepot cities between the major walled city-states. An entrepot city is something like Tatoonie on star wars. It is a place of loose laws, where pretty much anything goes. Mecca was an entrepot city on the carvaneer routes.

    Now that you are back in that time, then think about if you did a murder or some sort of crime. The punishment was being kicked out of the city-state for a cooling off period. OR, if you were really criminally minded and guilty, you would disappear in the wild areas between city states.

    Who plied the wilds? It was the Caravaneers, who’s blood was continuously refreshed by the outcasts, who in turn were often murderers and criminally minded. The caravaneers, the Aiparu, were made up of outcasts, the refuse of the city-states.

    If evolution, or micro evolution is operative, then we must pay close attention to this aspect. This means that certain groups of people are evolved differential to the point that they are no longer acceptable in civilized company.

    Is it no surprise that they created dogma lauding the “merchant” and came up with “international” money, and concept of nationhood er.. city-states is anathema to them? How about a genetic mono-culture of people who are not dusky or made up of different tribes, would the non-dusky ones be seen as a threat? Would evolutionary changes mean that these Aiparu and their descendants have murderous racial animus toward people’s not themselves, and further would they create a religion based on what is in their black heart?

    • Troll: Beefcake the Mighty
    • Replies: @Mefobills
  122. Mefobills says:

    So, they’re going back for another exploitation cycle of metals soon then ?

    You ask good questions. I won’t be at Unz forever, so take advantage of me.

    Gold as money doesn’t work because it cannot flex to the S shape that a normal economy has, especially economies that have agriculture, due to the natural cycle.

    What will happen if we return to gold, is that it will show itself as inflexible, and the nature of gold is to go off and hide, to become “safe” when there is any sort of economic stress.

    Gold goes off and hides, while the makers of perishable goods and services must sell their wares. They become desperate to sell their wares, as said wares are “on the clock” while Gold is shiny and does not rust.

    So, gold as money is inherently usurious. Usury is a power relation where the makers, or holders of money take sordid gain on the power-less.

    The holders of gold will then put their foot on the neck of the producers, and steal the producers output. Silvo Gessel exposed this aspect of gold as money.

    Also, our Haibaru friends, know that “gold has been very good to us” and they know it doesn’t work, so they will then shill to have their bank credit ride on top of their gold piles.

    Their credit, they will argue, will be able to flex to the S shape of an economy. But, what really happens is that when an engineered depression is created (by them with call loans, etc.), they recall gold out of the economy to pay for their debts. The debt instruments in turn are monetized in their credit.

    So, it is a game, where it is heads I win, and tails you lose. The gold masters will end up with all of the gold. Why do you think that Jewish/Usury parasitized London ended up as a gold center, while London itself was never a gold source? Today, the city carries on the tradition of state sponsored usury as a finance center.

    Don’t fall for anything the “tribe” ever says, you have to consider the source. And for sure, don’t listen to those steeped in the tribe’s ideology, which includes libertarian-ism.

  123. Mefobills says:

    Different groups of re-incarnating souls ? Different categories of souls ? Apparently Talmud and Tanya say just that.

    The Christian Church also said this in the first 300 years or so.

    https://reluctant-messenger.com/origen1.html

    The Council of Nicea put Arien controversy to bed. If Constantine, a secular Roman ruler, maneuvered the council (which he did) to get his desired output (which is what happened), then modern Christianity is apostate. What if the Arienists were right, and history took a massive detour?

    The modern Christian Church has gone further in the wrong direction by becoming Judeo Christian, and Zionist Christian. Judaizer Christianity emphasizes the old testament, which is in abeyance of super-session. Christian pastors who are sucking up to the tax man with 503C status, don’t want to hear of these things, they have become slaves to mammon/moloch – who in turn is the real Jewish god.

    If it is a spiritual battle, then the bad guys are winning. As the protocols say, “We will put spectacles upon your nose.”

    So, modern Christians have occluded spectacles, and are unable to see souls that are at a low level -at the more primitive animal level.

  124. Mefobills says:
    @Mefobills

    Who plied the wilds? It was the Caravaneers, who’s blood was continuously refreshed by the outcasts,

    If you want to follow gentic links, of some 11,000 years ago, Neanderthals were coming down out of the mountains as glaciers retreated.

    The “thall” range was where the black sea is now, before it filled in with glacier melt during a long flood.

    Latent Neanderthal genetic characteristics were more predominate in people of that area due to interbreeding, and this includes Semite speaking peoples, and must also include the Caravaneers who were had more points of contact than did the peoples within the city states.

    If you follow the logic, then a differential race of people would have a different brain construction, and continue on a unique and separate evolutionary pathway.

    Michael Bradley pulls on the above thread in his writings. The chosenites are both ignoring him, and trying to write him out of history.

    https://www.amazon.com/CHOSEN-PEOPLE-CAUCASUS-paperback/dp/0883781743

  125. bluedog says:
    @onebornfree

    Interesting watching two trolls hijacking the conversation with little to nothing to add to the conversation.!!!

  126. Mefobills says:
    @bluedog

    Interesting watching two trolls hijacking the conversation with little to nothing to add to the conversation.!!!

    And the trolls, who keep pushing the troll button like a rabid mouse, are accusing me of projection.

    Some “people” are at a low level in their evolution. This also ties into the discussion of reincarnation that was written out of Christianity.

    It is actually appropriate to the discussion that they continue to hijack the conversation. They are proving the point.

    I want to emphasize that Lolbertarianism is a dangerous ideology because it traps a certain kind of person, and that person can never escape..

    • Replies: @Beefcake the Mighty
  127. @bluedog

    Not as interesting as watching some pompous leftist fools get all pissy when someone doesn’t take them as seriously as they take themselves.

  128. Kapyong says:
    @bluedog

    “Interesting watching two trolls hijacking the conversation with little to nothing to add to the conversation.!!!”

    So strange –
    it’s like two tribes of polar-opposites, matter and anti-matter.

  129. Mefobills says:
    @Beefcake the Mighty

    Yawn.

    Beefcake, you just want attention. You are operating at a very low emotional level.

    The better response is to sack up, and maybe change some behavior and thinking patterns. Maybe you are a girl and cannot sack-up, and in that case, never mind.

    You have no logical responses to anything we are saying, all you got are ad-hominems and emotion. When your core belief system is faulty, then change it – otherwise you are intellectually dishonest. It is no good to lie to yourself about things.

    When you become constructive, then people will treat you fairly… even I will defend you in that case.

    • Replies: @FB
    , @Beefcake the Mighty
  130. FB says: • Website
    @Mefobills

    Meef, got a question for you…

    On September 17, 2019, the repo market was whipsawed by a sudden spike in short-term interest rates that rose from the Fed’s target rate of roughly 2% to an eye-popping 10% in a matter of hours. The incident, that put traders into an immediate frenzy, sent the Fed scrambling for the printing presses where it swiftly rolled-off $75 billion to finance additional short-term loans and to add liquidity to a market badly in need of cash.

    The Fed’s efforts did in fact bring rates back down to the 2% target-range but at great cost to its credibility. Despite repeated assurances that the financial crisis was over, the Fed has resumed pumping $60 billion per month into a market that is liquidity-starved and dangerously out-of-whack.

    That’s Whitney describing what started this latest round of money printing…

    Now what he doesn’t explain is what exactly this ‘repo market’ is…who are the people selling those bonds [what kind of bonds?]…who are the buyers…?

    It sounds to me like an unregulated used car lot…hence the ‘shadow banking’ descriptor…

    Those guys selling the bonds think they can make a buck off speculation…likewise those buying…

    A bond with a low face value [yield] should, in theory, push higher the interest rate those seeking to hold that bond are willing to pay…not sure about how that works, my econ 101 is a bit fuzzy…

    Anyway, it sounds like just more flim-flam casino games that the parasite sector use to enrich themselves…

    My reaction would be to just to pull the plug on this whole shithouse…let the parasites take a haircut…if they get flushed down the drain of history, wave bye bye…

    This will never end…until the day that the dollar itself is worthless…and the reckoning has to be faced up to…there is no alternative outcome…they are just pushing the timeline down the road…

    • Replies: @FB
  131. FB says: • Website
    @FB

    Ok…here’s my fuzzy take on this…

    If a bond face value is 100 dollars, and it is selling for 90 on some market…it means that if the bond matures in a year, it will pay 10 percent ‘interest’ to that person holding it…

    If someone wants to pay 95 for it, then they think that bond is worth that cash they are giving today, for the certain return of five bucks in a year…

    That means they think that this is their best use of that 90 [or 95] bucks, as opposed to other ‘investments’…

    Now if that repo market saw interest rates going to 10 percent, by this logic it would mean that the buyers aren’t willing to trade cash for anything less than a 10 percent return…ie they won’t pay more than 90 bucks for that 100 dollar bond…

    So the Fed steps in and provides a massive amount of cash to these cretins [wall street banks and other creatures] so they can continue trading that cash for bonds at 98 bucks [which equals 2 percent interest]…

    How can this brilliant plan possibly end badly…LOL

    Also why is it important to keep up the illusion that those bonds are worth more than they are…?

    That seems to be the whole thing…can’t risk people knowing the real value of those ‘premium’ bonds…

    PS…I may have been using the term ‘yield’ incorrectly in the previous comment…I think that is the ‘coupon’ value attached to the bond…ie it pays 3 percent a year or whatever…

    A bond doesn’t necessarily have to have a coupon at all…

    • Replies: @Mefobills
    , @MrFoSquare
  132. Mefobills says:
    @FB

    A bond doesn’t necessarily have to have a coupon at all…

    A bond is a debt instrument. A bill (money) can be created off of a bond if said debt instrument is hypothecated. A bond (debt instrument) can recall existing money from money supply, or it can be used to hypothecate new money at a bank. Read over the above sentence several times to learn it.

    A TBill is misnamed. To get over the confusion, call it a TBill Bond in your mind. A coupon can have different kinds of behavior, and I would need to know more about the specific coupon.

    Always pay attention to the action, not the name. Try to figure out the entire monetary circuit if you can.

    These sort of confusions in naming are done on purpose. You have to look at the underlying mechanism and not the names.

    Bond/Bondage/Debt. The root word matters. Mortgage is a death pledge and a debt instrument.

    OK, now that you know TBills are really a bond, they are also near money. I’m sure that blows your head. They are near money because they can be readily swapped for money at any time, due to the law.

    TBills monetary circuit: 1) Deficit spending is authorized by Congress 2) New TBill is typed up by Treasury 3) TBill enters the secondary market and existing dollars flow toward government, to then allow treasury to spend these dollars. 4) The New TBill may eventually find its way to the FED (through some trickery) to then expand the FED’s ledger. 5) New FRN’s are created as ledger entries to account for the new TBill also called hypothecation.

    In this way the money supply is expanded. It is also expanded when people take out private debts.

    Private debts and new Public Debts via hypothecations are the only way new money can enter into the real production economy that everybody uses. It is the same story in other debt based economies like Australia and Canada.

    TBills serve as surrogate purchasing power by those who hold it, ergo it is considered “near money.”

    The Repo market is something like a Pawn Shop. Non Bank entities that want cash, put TBills (usually) in for short terms, and then take out cash. The next day or next couple of days, they return the cash and take their TBill back.

    The FED was able to step into the repo market without political approval due to Dodd Frank, which gave away additional money power to private banking.

    I don’t usually include links, but below is informative, and answers your question about the spike.

    Pay close attention to the leverage of rehypothecation (where more than one entity is claiming the same TBill, at about 2.5X). Pay close attention to words “transmission to the real economy.” The financial economy does not have much in the way of a transmission path to the real economy, but it DOES spread its gambling risk onto the general money supply and real economy.

    Quote:
    “Some hedge funds take the Treasury security they have just bought and use it to secure cash loans in the repo market. They then use this fresh cash to increase the size of the trade, repeating the process over and over and ratcheting up the potential returns.”

    In other words, Hedge funds are using tricks to gamble, and then they spread risk to the entire money supply via the FED’s discount window. Why are they even at the discount window when these are non bank entities?

    This is a huge mistake, but then again the entire private banking (corporate control) of money is a huge mistake.

    https://ellenbrown.com/2020/01/10/the-fed-protects-gamblers-at-the-expense-of-the-economy/

  133. onebornfree says: • Website
    @bluedog

    Here’s what it comes down to. You [and everyone else] have 2 very clear choices.

    On the one hand there’s a mofo here [mofo bill in this particular case] who wants to run yours and everyone elses lives for them, [including what individuals might otherwise freely choose to accept as their preferred medium of exchange] , and who is so deluded and self important [in his own tiny mind] as to actually believe that he is superior to you and therefor should run yours and everyone elses lives for them,

    On the other hand there is a very[very!] small minority of individuals here who believe that almost everyone, including yourself, is a fully sovereign individual who is fully capable of running their own lives, and making their own choices, and who therefor don’t need any self-deluded, self important, holier than thou meddling mofos [who cannot even run their own lives], trying, [and always failing]to run everyone elses lives , “top-down”, for them via the enforcement of their own particular favorite “rules for everyone else” horseshit.

    So make your [free] choice.

    Regards, onebornfree

    See: “You,Trump,Sanders Etc., Vs “Dictator Syndrome”” :
    http://onebornfree-mythbusters.blogspot.com/2015/08/do-you-suffer-from-dictator-syndrome.html

    • Replies: @Mefobills
  134. @FB

    Usually there is a technical or seasonal issue involved when RP or FF’s rates spike to abnormal levels. Then the the Fed intervenes and injects “reserves” until the markets return to normalcy. I’m not exonerating the system. A usury-based regime is always headed toward insolvency. I don’t know exactly what the circumstances were in this particular situation; could be any number of market aberrations.

  135. Mefobills says:
    @onebornfree

    On the one hand there’s a mofo here [mofo bill in this particular case] who wants to run yours and everyone elses lives for them

    You cannot have freedom unless a country is sovereign, and that especially means monetary sovereignty. Your degrees of freedom is a product of what your racial and national for-bearers created for you, usually before you were born.

    This entire discussion of Repo madness, and other schemes is done by INDIVIDUALS trying to take rents and unearned income. We are failing in the freedom department because we are leaving the world worse off by allowing rent seeking to become codified in law.

    The entire corpus of Lolbertarianism is predicated on this false notion that people are rational actors and they come to some sort of natural balance through human action, and that money isn’t law… and other easily disproved fantasies.

    You cannot have free-dumb, when there are invisible hands picking your pocket. Having monetary freedom (freedom to keep you labor earnings) is a pre-condition to political freedom.

    The very thing you want you cannot have, because your ideology gives away your wealth to invisible pick pocket hands, all in the name of nebulous concepts that are proven falsehoods.

    Lolbertarianism is very low IQ stuff, designed to trap “certain people” with shibboleths that sound nice in theory, but are actually pernicious.

    I’m sure you would say (in a little girls voice),… oh front running the stock market is ok, it is the market forces at work. Never mind the reality is that front running is a sneaky way of preventing the holder of a stock from making profit.

    I don’t want to run things, but I sure as hell don’t want predators picking my pockets (or yours). I want highly qualified non-predators to be selected for the governing hierarchy, and I want the law and force to watch them. Ideally law and force would be organized citizens with guns watching them, and if the money citadels become occupied by rent seekers or usurers, then they are punished.

    Money is law, it is part of the commons, and the commons are to be watched over by rational men (citizens) with guns.

    Lolbertarianism is a failed ideology that lacks even basic concepts for describing the world, its concepts actually are a smoke screen to foreclose a mind; and your mind is a perfect example.

    • Troll: Beefcake the Mighty
    • Replies: @Mefobills
    , @anon
    , @barr
  136. Mefobills says:
    @Mefobills

    And the rabid troll Beefcake, who has no counter argument or anything rational to say, hits the Troll button again.

    You are only making my case. Certain people are low IQ, and they feeeeeeel things. They then substitute their feelings for logic.

    That is the case with Lolbertarianism – it is a feel good, and hence feminine like ideology.

    A word of advice: Keep your lolbertarianism to yourself… don’t be public about it. There are young people in the world (I’m not one), who have blood in their eyes, and are looking for someone to blame, and possibly do harm to. They are enraged.

    They have identified boomers and lolbertarians for denying them their rightful patrimony. The generational prerogative of making life better for their children was bypassed by boomers due to greed and false doctrine.

    Millenials and GenZ don’t like looking around and seeing infinite brown people invading their country, and then having lolbertarians bleeting out feel good aphorisms about free-dumb. They are becoming radicalized, and you would do well to keep your mouth closed in certain company.

    Your blind ignorance and pathetic misplaced altruism has put yourself at risk.

    • Replies: @Beefcake the Mighty
  137. anon[341] • Disclaimer says:
    @Mefobills

    The world pays when Fed pours money in the US system. It’s a taxation without representation. The dollars buy stuff abroad on which the local in India or Egypt depends . They see value of their labor goes down .

  138. KA says:

    “ The scale of the Fed’s manipulation is truly breathtaking. Stocks are not rising on the strength of the economy, but on the jet-fuel from digitally-generated money produced with the flip of a switch in the basement of the Eccles Building. Has there ever been a bigger fraud perpetrated on the American people?

    But what are the downside risks of such an operation?”

    I have to work to earn same wage whose value goes down every time stock , housing ,commodity go up because of the free or heap money acquired by hedge fund and bank. People dealing with stocks ( connections proximity advanced knowledge nepotism and lack of negative consequences ) can see their worth going up without any input of labor . People owning those stocks or control of other people stock can enslave us . They have already done so.

  139. GeeBee says:
    @Beefcake the Mighty

    It is clear that all you have to contribute to this otherwise erudite discussion is a desire to go to bed (understandable when a child is bored by grown-up’s talk). I suggest that you follow your instincts and when you wake up (physically – you’re unlikely to do so mentally) you should seek appropriate company among other children. In this way you will have the pleasure of avoiding the risk of ever becoming bored again. Now run along children, it’s way past your bedtime.

  140. onebornfree says: • Website

    “A word of advice: Keep your lolbertarianism to yourself… don’t be public about it. There are young people in the world (I’m not one), who have blood in their eyes, and are looking for someone to blame, and possibly do harm to. They are enraged.”

    Send your young, dimbulb “enraged” commie friends/acquaintances with “blood in their eyes” , and yourself right on over and you all might get to personally discuss who’s to blame with me and my buddies AR15’s and AK47’s, mofo.

    No regards, onebornfree

  141. @FB

    You don’t calculate the principal at all. If I borrow $100 from you at 10% per annum simple interest the principal is and remains $100. At 1 year I owe you $110, at 2 years I owe you $110, at 10 years I owe you $200. In the next year I don’t pay interest on the $200 total owed. The accumulated total owed is not what simple interest is paid on. The principal is still $100. The accrued interest is owed but interest is not owed on it, only on the $100 you originally handed me.

    It is strange that that had been made so mysterious.

    • Replies: @Nonny Mouse
  142. @Nonny Mouse

    You are confusing debt with principal. The principal is only the initial debt, not the debt grown by interest falling due.

  143. barr says:
    @Mefobills

    Neel Kashkari asked “someone” to explain to him “how swapping one short term risk free instrument (reserves) for another short term risk free instrument (t-bills) leads to equity repricing.”

    How could he get away with this lie?
    Can you shed some light?

    • Replies: @Beefcake the Mighty
  144. onebornfree says: • Website

    Article: “The Overnight Lending Intervention That Wasn’t”:

    The article reveals that all of the hoo-ha about increases in the Feds repos merely was/is simply the Feds attempt to rebalance the [since 2014] preponderance of reverse repos, and that as of now, the two opposite instruments appear to be pretty much cancelling eachother out:

    “Viewed in terms of the net effect of activity by the Federal Reserve, the recent accumulation of repurchase agreements has only just recently offset the contractionary effects on overnight lending exerted by its holdings of reverse repurchase agreements. “:

    See: https://www.aier.org/article/the-overnight-lending-intervention-that-wasnt/

    A Bigger Picture:

    However, the [almost biggest] “big picture “is that expecting the Fed and the government to be able to “stimulate” , or control the economy by repos, reverse repos or whatever else, and then “investing” accordingly, is a complete waste of time.

    See: “Federal Reserve as Risk Regulator: An Impossible Task”

    “This task is effectively impossible. It is similar in some respects to the general problem of socialist calculation. A central authority or planner cannot know everything that is known to the individual participants in markets. Furthermore, financial crises have certain similarities, but the differences probably are at least as important as the similarities. The risk regulator is in danger of fighting the last war: averting the conditions that led to the last financial crisis but doing nothing to prevent the conditions for the next financial crisis.”:
    https://www.aier.org/article/federal-reserve-as-risk-regulator-an-impossible-task/

    The biggest “big picture” [at least for the individual investor ] is:

    “No one can consistently and accurately predict “big picture” future economic events and scenarios. No investment advisor, no money manager, no economist, no politician, no computer program, no fortune teller- not even you 😎 [although any one of these, including yourself, might get it right on occasion, purely by chance]. ”

    “For various underlying, fundamental reasons, the “big picture” financial and economic future must always remain unknown.”

    And yet,despite the fact that the economic future cannot be reliably/consistently predicted by anyone, it is still possible to easily protect the future value of your savings against the ravages of that unknowable economic future!”

    See: “Got Money You Can Afford To Lose?[How to Safely Profit In Stocks,Gold,Crypto’s etc.]
    http://onebornfreesfinancialsafetyreports.blogspot.com/2016/11/speculations-got-money-you-can-afford.html

    Regards,onebornfree

  145. @Robert Dolan

    I’m reminded of the scene in Goodfellows where Joe Pesci is approached by a restauranteur for payment of his tab and the guy gets a wine glass smashed against his head for his insolence.

  146. In 1992 the Clinton campaign coined the phrase: “It’s the economy stupid”.
    That is actually the slogan of a depraved and materialistic generation. But it’s true. People vote their pocket book. Retarded boomers vote according to how their 401K is doing.

    Trump knows the economy is completely fake. Listen to what he said before he was president. The problem is the system. The problem is the Fed. The Fed has to be dismantled. There has to be a crash and a rebuild. Whoever lets the crash happen will not get re-elected. Something like this has to happen in the second term, and by someone who knows what they are doing. I think this is Trump’s plan.

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