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Old 09-27-2019, 03:04 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,847
Funding problems as far as the eye can see

Negative interest rates are destroying everything they touch. Savers are hurt badly.
Ellen Brown explains why America does not need NIRP. She also mentions other problems.
"First is the massive market for money market funds, which are more important to daily market functioning in the U.S. than in Europe and Japan. If interest rates go negative, the funds could see large-scale outflows, which could disrupt short-term funding for businesses, banks and perhaps even the Treasury. Consumers could also face new charges to make up for bank losses.

Second, the U.S. dollar is inextricably tied up with the market for interest rate derivatives, which is currently valued at over $500 trillion. As proprietary analyst Rob Kirby explains, the economy would crash if interest rates went negative, because the banks holding the fixed-rate side of the swaps would have to pay the floating-rate side as well. The derivatives market would go down like a stack of dominoes and take the U.S. economy with it."

Assuming the large-scale asset purchases made at some future date were of federal securities, the federal government would be financing its debt virtually interest-free, since the Fed returns its profits to the Treasury after deducting its costs. And if the bonds were rolled over when due and held by the Fed indefinitely, the money could be had not only interest-free but debt-free. That is not radical theory but is what is actually happening with the Fed’s bond purchases in its earlier QE. When it tried to unwind those purchases last fall, the result was a stock market crisis. The Fed is learning that QE is a one-way street.
The FED is, of course, trapped. I believe that "they" prefer formalized UBI over haphazard QE.

9/26 Dozens of failed climate predictions stretch 80 years back – Epoch Times
Yep, they ignored space weather until Piers Corbyn came along.
I do have to mention Jennifer Lawson who was doing space weather work / predictions before everybody else.
9/26 First gas station to ditch oil for electric vehicle charging now open – CNBC
Tesla Police Car Runs Out of Battery During High Speed Chase

Parting gift from Super Mario Draghi,
9/26 Euro-area money supply grows at fastest pace since 2009 – Bloomberg

9/26 California’s pension debt cannot be ignored – OC Register
A decade ago, at Gov. Arnold Schwarzenegger’s request, I supervised a graduate student team that performed a comprehensive analysis of public pensions in California.

The goal was to calculate California’s pension debt, the difference between assets and liabilities.

The team’s conclusions: the unfunded liability was over $500 billion—seven times the number officially reported. That was in 2008.
Based on recently-reported public pension assets and estimated liabilities, that figure is now more than $1.109 trillion, an increase of $56 billion. That translates into $81,300 of pension debt per California household.
9/26 SF residents buy boulders, place them on sidewalk to thwart homeless tents – SF Gate
But, but, what about sanctuary status?

9/26 U.S. business investment much weaker in Q2 than previously estimated – Reuters
9/26 Second term repo oversubscribed as funding shortage keeps getting worse – ZH

The various private banks are finding more and more garbage to dump on the FED for cash.

Why is this important? Because it means that there is a supply/demand shortfall. Multiple banks and corporations need to borrow money on a short term basis to keep their operations functioning. This makes sense; US companies are currently weighed down by more debt than they were before the crash of 2008. The problem is, no one wants to lend that cash to them right now.
I wonder why.

Warren Buffet's company, Berkshire Hathaway, for example, is holding a record $122 billion in cash. What do Berkshire and other cash heavy companies know that we do not? Generally, companies hoard cash when they are expecting an economic crisis, and, in a way, this cash hoarding can actually contribute to an exponential credit collapse.

I assert that the Fed is deliberately maintaining the liquidity crisis while trying to make it look like they are “taking action”. The Fed creates bubbles and then pops those bubbles by tightening liquidity into economic weakness. When they do ease credit conditions, it is almost always well after the avalanche has already started.

They did the same thing at the onset of the Great Depression, causing the crash to expand rather than retreat, as Ben Bernanke publicly admitted in 2002. They also kept crash conditions in credit markets hidden when Alan Greenspan shut down all conversation with the public on the housing bubble. And, today the Fed continues to fraudulently claim the US economy is strong and in recovery, and has even fired Simon Potter, the official most equipped to handle a repo lending crisis – the same official that warned the Fed response is basically too little too late.

The Fed Created The Everything Bubble And A Liquidity Crisis - What Happens Next?
"first by a process of inflation,, then by deflation, the banks come to own everything"

The attacks on Trump may very well bring down everything.
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