MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘bailout’

FDIC Cash Balance Covers 1.27% of ALL Insured Deposits

Posted by M. C. on May 3, 2023

Now we know that all western DATA is forged.   We also know that Yellen, sobbing over a looming debt default, has the mind of a slug of jello and she will do whatever she is told without – a thought.   Literally.

Watch The Mergers.   This will determine their next Play Act on the Stage of the “Global Bust” as written by

~ The Protocols.

FDIC Cash Balance Covers 1.27% of ALL Insured Deposits

Before helping to Bailout SVB Bank and Republic Bank – the FDIC had $128 billion cash on hand representing 1.27% of all insured deposits.   Still think your money is insured?   Not if the FDIC has no more funds.   They are funded by banks – when banks are no more, their funding takes a dive.   The Rothschild Economist declared a few weeks ago that the largest banks needed to absorb ALL other banks to recreate a banking Cartel of just 3-5 mega banks.   This is the only means to CONTROL via social credit scores.

Today, The Economist is suggesting that mining companies begin the same absorption process.   Lauding the agenda as the creation of a super commodities group or “Cartel”, the industry includes green metals as well as coal and other minerals such as lithium. Monopolies are the end goal.

Within this western trend, newly crowned King Charles has altered his coronation to add a ‘pledge’ that all Brits are called to recite in unison proclaiming their obedience to the King.   Not to the Land. Not to the Constitution.   But to Charles the man who intends to expand his Kingship duties so as to fully indoctrinate the British Empire that was and isn’t.  Hail Britain’s Totalitarian Rule!

The problem with going forward with the World Economic Forum Agenda is too many countries have sabotaged the global outcome.   Without a global response, with waning allies, and with awakened populace across the globe, the Cartel will need more than simple monopolies doling out rations.

In the event the Mafia Cartel manages to obliterate the western economies who will they govern?   Exodus from major cities will cue chaos should the chaos puppets choose to invade suburban and rural communities.     Which is why the importance of gun confiscation becomes a pre-eminent need to solve before the wave moves outward.  Their timing is off…

In nearly all mergers, employees are the first casualty.   Employees who reap benefits, lucrative salaries and whose job is largely a stage effect go first.   But in every restructure the slashing is crisp and finale.   There is no begging.   There is no mercy.   Thus the mergers being ordered by the Cartel will have an unemployment fallout.   Given all statistics are now algorithms, we have little ability to scrape together facts from the dung pile.

Unemployment is already a side show of fraud – operating on the same ideology established by Communist China.   We used to laugh at how China manipulated its GDP, its employment, its death rate, its wealth, its stock market, all DATA.   It is relatively easy once the government is onboard.   Now we know that all western DATA is forged.   We also know that Yellen, sobbing over a looming debt default, has the mind of a slug of jello and she will do whatever she is told without – a thought.   Literally.

See the rest here

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Cash is Trash, Especially for the Post-COVID World — Strategic Culture

Posted by M. C. on May 13, 2020

https://www.strategic-culture.org/news/2020/05/06/cash-is-trash-especially-for-the-post-covid-world/

 Tom Luongo

There’s been a concerted effort recently among the oligarchs I like to call The Davos Crowd to demonize cash. From hedge fund manager Ray Dalio pronouncing ‘Cash is trash’ earlier this year to the fear-mongering surrounding COVID-19 making people fearful of dealing in cash because it might be tainted the anti-cash rhetoric has been amped up to eleven.

And it’s been no secret that the elite of the world want us to stop transacting in cash because it is something they can’t track. Sweden has flirted with the cashless society while the European Union did away with large denomination bills the same way the U.S. has been phasing them out.

A few years ago, India created a huge stir removing the 500 and 1000 rupee note from circulation. All of these moves have been, nominally, in service of stamping out corruption. They are sold to the public as a way to punish criminals and money launderers.

But the reality is that the push for removing cash from society is to put all of our financial dealings in databases which gives authorities a record of everything you do. As governments around the world become increasingly bankrupt they naturally look for ways to improve tax compliance as well as create profiles of anyone they deem a threat to their continued existence.

That’s the real reason for why ‘cash is trash’ to authorities. And the moves towards digital only versions of national currencies is an extension of the power grab currently underway as a response to the crisis of COVID-19.

But, more than that, the reason for this demonization of cash has as much to do with the understanding that the current global financial system is broken and will need a global coordinated bailout.

The easiest way to effect that is to be able to create digital money at the stroke of a keyboard.

The crisis of 2008 was bigger than the Federal Reserve. To survive it required the coordinated effort of all the major central banks along with support from the International Monetary Fund (IMF).

So, color me not shocked when I see this report from Sputnik that the head of the Shanghai Gold Exchange publicly make the case in favor of a transnational digital currency to replace the U.S. dollar as the world’s trade settlement currency.

According to Wang Zhenying, quoted by Reuters, the dollar, as a weapon of US pressure and a source of vulnerability for other countries, can no longer be the standard global currency. He admits that gold is also not an ideal means of exchange, as its quantity is limited and it cannot meet the needs of growing international trade. Therefore, a supranational currency for settlements independent of any country is needed.

This idea is not something new and was already promoted by China during the last financial crisis of 2008-2009. Then Chinese central bank chief Zhou Xiaochuan proposed to reform the system of international settlements through special drawing rights (SDR).

Author and commentator Jim Rickards has been making this point for more than a decade. He’s talked openly in his previous books The Death of Money and Currency Wars about the plans for the IMF to assume the role as the world’s central bank because the crisis in process will be greater than all the central banks.

I agree with Jim on this and have for years. The world’s elite have discussed these things openly. They’ve written white papers on this.

But what is interesting now is that Mr. Wang is modifying this idea slightly, talking in terms of a hard currency of some form to replace the U.S. dollar. But, look at his argument closely and you’ll see the bait and switch for while he doesn’t believe we’ll get consensus on using IMF Special Drawing Rights (SDR) as a way to settle accounts he doesn’t believe gold is viable either.

So what will it be, then?

Countries, like China, are already working on digital versions of their national currencies. The U.S. Congress tried to slip this language into the recently-passed first CARES Act authorizing trillions in bailouts and stimulus money.

Russia has been working on a digital as well as a cryptocurrency version of the ruble. The EU desperately wants member states to agree to debt mutualization and fiscal integration under the auspice of the European Central Bank to create digital only euros and end physical euros once and for all.

Gold ownership in Germany is now highly suspect with the German government openly tracking all gold sales greater than 1000 euros, less than one ounce.

Financial privacy is, effectively, already a thing of the past. Even the cryptocurrency markets in the so-called first world have to be AML (Anti-Money Laundering) and KYC (Know Your Customer) compliant to get the ability to operate with the existing financial infrastructure.

The push for the end of cash is a real thing. It’s a dangerous and worrying trend because it assumes all taxes and fees demanded by governments are legitimate. It assumes that if you want to remain private you are a money launderer and a cheat.

And what’s most worrying is that opposition to U.S. hegemonic behavior, weaponizing the dollar the way the Trump administration has, will be used as the rallying cry for an even worse system of social and financial control.

I’m all for the multi-polar world but we don’t need a global trade settlement currency as administered by governments. Do you really think that any other country wouldn’t eventually come to look like the U.S. after nearly a century of dominating the world’s financial landscape?

If you do then I assert you are either terminally naïve or a shill.

That’s what this story is really all about. The Davos Crowd never sets up a dynamic like this which leaves people with anything other than a Hobson’s Choice. You can either suffer under the tyranny of the U.S.’s rapacious banking oligarchy or you can choose an equally bad one administered as a global one.

But that isn’t the only choice. Mr. Wang isn’t wrong that something new is needed but it needs to be a real hard currency based on antecedent value, not birthed out of thin air or backed by future labor (debt).

The dollar reserve standard is in the process of dying. The great financialization of the world and the multiple levels of credit bubbles its engendered are bursting. People are open to alternatives. And in the great game of global capital a country only has to be slightly better than the current dominant player to attract the lion’s share once the outflows begin.

China is positioning itself to be a bigger player here but the IMF, governed and controlled by the U.S., is not the solution. That’s a ‘meet the new boss, same as the old boss’ scenario.

Right now gold is seeing a strong bid the world over and Bitcoin is rising into the halving of its reward pool which occurs every four years. There has never been a better opportunity for people to reject the pronouncements and solutions of the very people who have so thoroughly destroyed our ability to assess risk and value.

And it will be the discipline of cash tied to real assets, birthed from human toil but free from human manipulation that will return sanity to our markets and local economies. That’s what a hard currency is. That’s what Mr. Wang administers at the SGE and that’s what needs to come back.

 

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2 Trillion Dollar Bailout

Posted by M. C. on April 9, 2020

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The ‘Coronavirus’ Worm Has Turned: It Is Now Time To Face the Truth – LewRockwell

Posted by M. C. on April 9, 2020

When the Fed brags about it’s “tools” they amount to nothing but a plastic hammer. The Fed knows a massive correction (recession) is in the cards due to their easy money. They don’t have a clue as to how to remedy this situation.

The correction is the remedy.

The take away is bailout money is not going to you. Boeing, McDonnel Douglas, bankster cronies and boondoggles like solar panels, electric cars and politically correct social engineering projects will reap the benefit.

It is a bad sign that many companies previously bailed out are no longer viable. Think Obama’s electric car poster boy – Chevy Volt. Bankrupt solar panel and electric car battery companies.

The other item is no reserve banking. Until now banks had to keep something like 15% in reserve for people withdrawing savings.

That is now zero.

Theoretically a bank can now lend out every penny of customers savings leaving nothing for withdrawal.

https://www.lewrockwell.com/2020/04/gary-d-barnett/the-coronavirus-worm-has-turned-it-is-now-time-to-face-the-truth/

By

“A society becomes totalitarian when its structure becomes flagrantly artificial: that is, when its ruling class has lost its function but succeeds in clinging to power by force or fraud.” ~ George Orwell (1956). “The Orwell Reader: Fiction, Essays, and Reportage”, New York : Harcourt, Brace

It is time for some hard truth that seems to escape nearly every American, but in reality, it is truth that is purposely hidden from view by the entirety of the mainstream. With this coronavirus fraud, the bigger picture is left in the shadows, and this of course is by design, and easy to accomplish in a country consumed by fear. The bigger picture that is only being addressed by a small number of people is the real elephant in the room, but virtually invisible to the masses. This is certainly due to deceit and corruption, but also is made so complicated as to assure that the common man does not understand it, and in fact will not pursue the real story behind this pandemic facade. These hidden enemies of all people and freedom are the Federal Reserve Banks and those controlling the monetary system.

If one travels back in time just a few years to the 2008 economic breakdown, many lessons could be learned, but apparently never were learned by those most adversely affected by such criminal behavior. During what should have been a collapse, banks and corporations, mostly those favored by the political class and the Federal Reserve, were all bailed out at the expense of the taxpayers. Actually, most everyone in this country was harmed except those favored players, but buying up the markets and claiming to save the country by printing money out of thin air has led to this current situation now in place. The economic debacle faced by all in this country today is not only far greater than what happened in 2008, but is not even comparable at any level. It is the equivalent of comparing a gentle rainstorm to a Category 5 hurricane.

Since the average person, and frankly most all others as well, ignore the workings of the Federal Reserve, it is time to expose what is actually going on with this criminal and scandalous private central banking system, and how this false flag called the Covid-19 pandemic is being used by the Fed to achieve agendas that will change the economic structure of this country and others forever. This is no accident, and it has nothing whatsoever to do with coronavirus, but that excuse is the impetus for restructuring the entire monetary system. A statement issued by the Federal Reserve through the Federal Open Market Committee on March 15th of this year stated that due to the coronavirus outbreak:

“The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals.”

This surpasses propaganda, and is an outright lie with very sinister intent, as the Federal Reserve fully understands that increasing its balance sheet reserves has absolutely nothing to do with helping average people, households, or businesses in this country. Those reserves are not bank money, and cannot and will not ever be distributed to common people. In fact, all bank reserve requirements have been eliminated, so no reserves are now even necessary for banks to make loans. The entire process is a fraud, and is only meant to prop up the Fed so as to bail out its allies in crime in banking and corporate America, not those families being purposely destroyed due to a lie.

The U.S. economy has continued to worsen since the 2008 housing disaster and banking implosion, and has continued on its way to an imminent collapse. The Fed claims to be printing massive amounts of money and increasing its reserves due only to this coronavirus scare, but that is ludicrous and is also a flagrant lie. In September of last year, well before the so-called coronavirus pandemic was known, the Fed was in a dire position, and began dramatically increasing its balance sheet reserves and daily repurchase agreement (REPOs) “loans” to the banking sector, this in advance of any virus, not due to it. Massive Fed and banking problems began many years ago, and have worsened continuously, causing this economy to be on the edge of total failure. This has been known for a long time, so given the obvious lies, it is prudent to ask if this coronavirus was created as a cover for a failed economy. In my opinion, that is not only possible but also probable.

The 2 trillion dollar bailout also said to be for working Americans is also a lie, as only a few pennies on the dollar will ever get to working people. The bulk of all monetary distribution, and handouts will go to the inside accomplices at the top of the heap. Anyone paying attention should understand that all government is based on lies, deceit, corruption, and power growth, and the only way to achieve success in this atrocious venture is to retain tight control over the populace by striking fear in the hearts of all of society. Hence the coronavirus, which if purposely manufactured and introduced or not, is being used to accomplish agendas that are so far-reaching as to be nearly impossible to conceive. I lean heavily toward the side of this virus and the politics of fear being intentionally created, and that the panic and manipulation was due to a false pandemic, and not an accidental event. While this position will seem extreme to most, time will change that posture. The biggest world governance and monetary reset in history is coming soon due to this ruse.

The government that is telling you they are going to save you from a virus is the same government that is going to destroy your lives. That same government is expecting and leveling economic destruction on the country, and the Fed stated that unemployment just in this quarter alone would reach 32%, which equates to 47 million people out of work. Rocket science is not required to figure out the ramifications of this kind of unemployment tragedy. It is possible that before or during the third quarter of this year unemployment per capita could be double what it was at the height of the Great Depression.  This is something that cannot be overcome by Fed policy or political interference, and in fact would signal an end to this economic system.

What will you do when the banks close? What will you do when you have no access to savings due to a monetary collapse? What will you do when riots, looting, and civil unrest are a normal part of your lives? What will you do when it is too late to do anything?

Keep in mind that the Fed balance sheet, money that will never be seen by any normal citizen, will most likely reach 10 trillion to 12 trillion dollars in the near future. Consider that regardless of any more coronavirus aid packages created by government, that little if any will reach or help the general population, but will go to government cronies. Consider that any and every “emergency” declared by government in the future will lead to in-house imprisonment, as has been openly admitted by the current administration officials. Consider the prospect of living in fear and isolation for life!

This is much more complicated and sinister than I can present here, but we are in the midst of a complete global restructuring of the monetary system, and one that will be devastating to all but those few with trillions in assets and in the most powerful positions. The rest of us will not only suffer, but will be left with poverty, despair, and death. This coming global reorganization, whether its finality is during this current “crisis” or not, is now inevitable in my opinion unless a very dramatic turnaround by the masses is forthcoming. Without a mass uprising against this tyranny, this nightmare will never end.

I cannot know exactly how this will turn out, but the writing on the wall would indicate that an abolishment of the world economic and monetary systems, and replacement with a new system is in the works. One thing is certain, if I am right about this, it was planned long ago, and all the pieces have been put into place to construct a new world economic order.

See this link to gain an understanding of current Fed fraud and of government corruption during this current crisis.

Also see these links here, here, here.

Be seeing you

 

 

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Day of Shame: US House Approved $2 Trillion Everything Bailout on a Voice Vote – LewRockwell

Posted by M. C. on April 1, 2020

https://www.lewrockwell.com/2020/04/david-stockman/day-of-shame-us-house-approves-2-trillion-everything-bailout-on-a-voice-vote/

By

David Stockman’s Contra Corner

Did we say it’s getting stupid crazy down there in the Imperial City?

Well, we probably have….ad infinitum. And we are doing so again but not merely owing to today’s abomination in the once and former Peoples’ House, which thinks so little of its oath to defend the constitution and the rights of current and future taxpayers that it approved the $2 trillion Everything Bailout without even a roll call vote.

Then again, like the late night TV pitchman says – wait, there’s more!

Consider the chart below, which surely the Fed heads have not. To wit, it took the Fed 85 years after its doors opened in 1914 to print enough money to fund a $600 billion balance sheet.

It wasn’t exactly the Ohio State offense – three yards and a cloud of dust – which accomplished this. But it was pretty close – even including Greenspan’s first years at the helm. Between the famous Treasury Accord in 1951, under which the Fed was liberated from Treasury-ordered yield pegging, and 1999, its balance sheet grew at a modest 5.2% per annum.

And, by your way, the Fed’s relative stinginess with the printing press was a great big no nevermind. Real GDP grew at 3.4% per annum over that near half-century period, and real median family income more than doubled from $35,000 to $74,000.

We are pondering the number “$600 billion” today because its capsulizes the insanity loose in the Imperial City. What took 95 years to accomplish in the purportedly benighted 20th century, has now taken just five days!

You truly cannot make this stuff up. The Fed has purchased $622 billion of USTs and MBS since March 19th, meaning that its balance sheet has expanded from $4.75 trillion last Thursday evening to $5.372 trillion last night….

The rest here

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Here Is The Real Reason The Fed Restarted QE | Zero Hedge

Posted by M. C. on October 20, 2019

I don’t pretend to understand all this but it appears to me it didn’t help the first couple times.

https://www.zerohedge.com/markets/here-real-reason-fed-restarted-qe

by Tyler Durden

In the past month, a feud has erupted in the financial media and across capital markets between defenders of the Fed, who praise the return of its unprecedented easing in the form of $60BN in monthly T-Bill purchases, by refusing to call it by its real name, and instead the Fed’s fanclub calls it “not QE” (just so it doesn’t appear that ten years after the Fed first launched QE, we are back to square one), and those who happen to be intellectually honest, and call the largest permanent expansion in the Fed’s balance sheet, meant to ease financial conditions and boost liquidity across the financial sector, for what it is: QE.

It is this same “not QE” that has boosted the Fed’s balance sheet by $200BN in one month, the fastest rate of increase since the financial crisis.

Yet while the Fed’s desire to purchase Bills instead of coupon Treasuries was dictated by its superficial desire to distinguish the current “Not QE” from previous “True QEs”, even though both tends to inject the same amount of liquidity into the system, which as a reminder is what the Fed’s bailout role in the past 11 years has all been about, and only true Fed sycophants are unable to call a spade a spade, the Fed’s choice raises a rather thorny question of where the Fed will source those T-bills, because as JPMorgan calculates, the net supply of Bills in 4Q19 and 1Q20 is around $115-$130bn while JPM’s economists estimate that at least $200-$250bn of purchases could be required to return reserves to around $1.5tr where they were in early September this year.

That means the Fed might need to source purchases from money-market funds and foreign central banks – which paradoxically would serve to further drain liquidity out of the system. As such, given the limited alternatives, JPM’s Nikolas Panagirtzoglou believes that the Fed may be reluctant to do so and if they do, some may chose to leave cash in the Fed’s ON RRP facility which would represent a drain on reserves and make T-bills a less efficient vehicle for reserve creation.

Another key question: what if just returning to the previous reserve baseline is not sufficient, and the Fed needs to return reserves to a higher level than $1.5tr? Indeed, with close to $200bn of reserves injected via overnight and term repos for much of this week…

… helping to return reserves to around $1.5tr on a temporary basis from less than $1.4tr in mid-September, money markets appear especially vulnerable to volatility.

Indeed, in a week when the Treasury’s General Account with the Fed increased by $60bn, depleting reserves, both Fed Funds and the broader OBFR rates median rates rose again to 10bp above IOER on Tuesday Oct 15th after having settled at around 3bp above IOER and at IOER respectively after the quarter-end hurdle had been cleared. And the SOFR median rate rose to 20bp above IOER after having settled at 2-5bp above IOER after the quarter-end effects had settled.

There is another reason why the Fed’s stated intention to only buy Bills will soon have to be adjusted to incorporate short-maturity (at first) Treasury bonds, and it has to do with the total open market purchases planned by the Fed. If the Fed would need to return reserves to a higher level, say to around the $1.7tr level in Dec 2018 when the 75th percentile of the Fed funds market began to persistently print above IOER, this could imply a further $200bn of purchases. JPM finds that “in principle” this could be completed in 2Q20 if the Fed were to sustain T-bill purchases at a pace of $60bn per month, which it set as the initial pace, but it would still imply a longer period of reserves being at a relatively tight level than if $1.5tr would be a sustainable level. But that would assume purchases at a continuous (rather than initial) pace of $60bn/m pace are sustainable, and ignores the prospect that purchases from MMFs and foreign central banks could prompt them leaving cash in the Fed’s ON RRP facility thereby draining some of the intended reserve injection.

Currently, close to $300bn of cash has been deposited with the Fed via the ON RRP facility, primarily by foreign RRP counterparties for whom the nearly $300bn is close to its recent highs. By contrast, other, largely domestic,  counterparties’ use of the ON RRP facility has collapsed to just $2bn, well below a high of nearly $450bn in late 2015, as institutions have a far more pressing needs for cash (liquidity) than collateral securities (“collateral shortage” was the big story in 2014-2017, just ask Zoltan Pozsar).

If T-bill purchases start to put upward pressure on ON RRP facility use, the Fed may eventually need to extend purchases to shorter-maturity Treasury bonds….

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Quantitative Easing….Forever! - Verified Tasks

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