Notifications
Clear all

Followup to Finacial Adivce with Urgency

 

Uly The Cunning
Admin
Joined: 3 years ago
Posts: 2850
Topic starter  

"It is believed the Federal Reserve has lost control of Open Market Operations. - i.e., their March 13th Treasury rate cuts (now at 0% - 0.25%) and continuing QE4 overnight repo (500 billion - 1.5 trillion nightly) plus other stimuli to calm markets are having little effect on the selloff and based on the futures markets which are all trading continually at Limit Down this will continue to be so.

At the present time the Fed can only continue with two things to try to keep the retracement as gentle as possible :
1. Buying of everything not nailed down (Japanification)
2. To continue with NIRP (Negative Interest Rate Policy) in the bond market.

Both of these are now being seen in Open Market Operations we speak - I will not go into the details here. The banks have stopped lending to each other - the Fed is injecting money on a nightly basis to keep the liquidity alive, the bond market open and propping the stock market as the 'Nuclaer Triad' of operations. We believe this is necessary to avoid a total freeze of the system.

What this means for you is
1 .your bank savings may soon be subject to negative interest rates
2. the banks most likely have to freeze physical withdrawals to stop bank runs and to maintain whatever liquidity they have left.

The system is undergoing a massive deflation as cash is being sought by everyone and shorter-term bond yields have already today turned negative in Asian futures markets. The Fed will continue to print and print but there will be no inflation as no one will be spending. This will be the scenario for the next few months (if not longer) as the US economy keeps shutting down in phases. It is not clear what will happen after that. But the scenario is very simialr to the Wiemar Republic back in 1914. It may end the same way.

Our prior recommendations still stand - except the timeline may be earlier than we anticipated. Regardless of whether your bank is FIDC - insured or not (many smaller ones are not) you may have difficulty with full access for some time. This may be in the form of plastic and not cash per se. So be prepared for this possibility from some banks or commercial houses. If all else fails you may have to look for a secondary market (black market) or barter. That is the worst case scenario.

My best to you all."

"Remember, you're fighting for this woman's honor, which is probably more than she ever did."
Groucho Marx: Duck Soup (1933)


Beered by Don Keyknob
Quote
Don Keyknob
Moderator
Joined: 3 years ago
Posts: 2034
 

As I've said before, I'm no financial wizard - but negative interest rates seems a lot like legalised thievery to me. 

They'll get the lot one way or another.

 


Beered by Uly The Cunning
ReplyQuote
Xanthine
Founder
Joined: 3 years ago
Posts: 381
 

I've been thinking the banks might fail for quite some time, all it would really take is a big enough pin to prick the everything bubble. Looks like that pin is here.

If we weren't in a recession before we sure as fuck will be now. A lot of these banks have huge amounts of cash tied up in risky financial assets, and that's their only source of income. It's not like people are saving, so all their money is borrowed on credit.

Obviously central banks will try to save the banks, but all the QE in the world won't fix this problem. There are hundreds of trillions of dollars in these hedge funds.


Beered by Uly The Cunning
ReplyQuote
Warrior Angel
Man
Joined: 2 years ago
Posts: 650
 
Posted by: @xanthine

IA lot of these banks have huge amounts of cash tied up in risky financial assets, and that's their only source of income. It's not like people are saving, so all their money is borrowed on credit.

Obviously central banks will try to save the banks, but all the QE in the world won't fix this problem. There are hundreds of trillions of dollars in these hedge funds.

This reveals a glaring systemic problem, an 800 lb gorilla in the room that too few in the financial sector are willing to acknowledge.  

Central Banks have been flooding the financial system with cheap money for over a decade.  Big banks know they can rely on Central Banks to bail them out if they get into a bind.  So what do they do?  They take all that cheap money and make high risk investments that they shouldn't make. 

Talk about socialism for the rich.  The way that the Central Banks and the financial sector run the current financial system makes Bernie Sanders look like Ebenezer Scrooge. And by the way, as a taxpayer, you're the one who ultimately pays for the party that makes them rich and is currently devastating hundreds of millions of lives. 

A long-term fix would be to enact laws that would prohibit such high-risk investment paradigms. That would save a lot of taxpayer $$$$$$$ and the Central Banks wouldn't need to print trillions of $$$$ to keep the financial system running.  

Of course, big banks finance political campaigns, so I don't think that any needful financial reforms enacted are going to be as stringent as they should be.  After all, it is a form of government regulation and lots of narcissistic talking heads in the media are paid a lot of $$$$$ to manipulate people into believing that any form government regulation is evil. 


Beered by Uly The Cunning
ReplyQuote
Travis3000
Moderator
Joined: 3 years ago
Posts: 1793
 

No one asked for my take, but I'll give it anyway.  The banks can fail, the economy can stall and tank, business can go bankrupt, and everyone can sequester themselves all they want to.  I don't care either way, like at all.  Why is that? Bad behavior frequently, though not always, has bad consequences.  So the banks are doing stupid shit.  They'll keep doing stupid shit until the consequences get so bad that people hold them accountable.  Name any other stupid ass garbage that you can think of and it's the same thing, the very same principal applies.  So, I'll be going about my business the same as I always do regardless.  Why? Like I said in my opening line, no one askes me for my take.  Literally no one... ever.  So, the banks can fail, single mothers can destroy their kid's lives, people can freak the fuck out over a virus that is literally less dangerous than the common flu, drunk drivers, AIDS, Malaria, divorce court, diabetes, gun violence, and fire.  I'll be eating a hamburger at the local burger joint and possibly playing free poker online.  


ReplyQuote
Warrior Angel
Man
Joined: 2 years ago
Posts: 650
 
Posted by: @lonestar

So, the banks can fail, single mothers can destroy their kid's lives, people can freak the fuck out over a virus that is literally less dangerous than the common flu, drunk drivers, AIDS, Malaria, divorce court, diabetes, gun violence, and fire.  I'll be eating a hamburger at the local burger joint and possibly playing free poker online.  

Radical acceptance is a path to peace of mind.


Beered by Uly The Cunning
ReplyQuote
Don Keyknob
Moderator
Joined: 3 years ago
Posts: 2034
 

China kicks out US journalists - Donald Trump responds in kind.

This ain't looking good folks.

We'll have to join in at some point - if the Chinese blow up our one functioning toilet roll factory, Don's going to go mental.

I can only take so much!! 😆 


Beered by Uly The Cunning
ReplyQuote
Travis3000
Moderator
Joined: 3 years ago
Posts: 1793
 
Posted by: @don-keyknob

China kicks out US journalists - Donald Trump responds in kind.

This ain't looking good folks.

We'll have to join in at some point - if the Chinese blow up our one functioning toilet roll factory, Don's going to go mental.

I can only take so much!! 😆 

America can not exist without China.  America as it is today is dependent on China propping up it's economy.  China is more important to the United States than the US Constitution, it's tax base, its media, its educational system, even its military.  So the president can do whatever dumb shit he wants to, in the end he knows he can't bite the hand that feeds him, more specifically feeds the American people's insatiable need for cheap shit made by people who's lives are even cheaper.   

 


Beered by Don Keyknob
ReplyQuote
Don Keyknob
Moderator
Joined: 3 years ago
Posts: 2034
 

That's why I don't understand what he gains from keeping prodding them.

He's pushing it intentionally. What's his end goal? 


ReplyQuote
Travis3000
Moderator
Joined: 3 years ago
Posts: 1793
 
Posted by: @don-keyknob

That's why I don't understand what he gains from keeping prodding them.

He's pushing it intentionally. What's his end goal? 

You can bet your ass Mr. Trump has SEVERAL angles he's moving on.  He's done it in business for decades with people more wealthy and powerful than either you or I can comprehend.  Does that mean he's fool proof? No.  Does that mean whatever he's doing is going to be sucessfull? No.  What it does mean is the dude knows how to negotiatle and battle on that front like a heavyweight champion with something to prove.  Eventually we'll all see what he's up to, but until then Trump's going to be Trump.

 


Beered by Don Keyknob
ReplyQuote
Warrior Angel
Man
Joined: 2 years ago
Posts: 650
 
Posted by: @don-keyknob

That's why I don't understand what he gains from keeping prodding them.

He's pushing it intentionally. What's his end goal? 

Power elites use a tactic known as "scapegoating" to attract, manipulate, and control their people.  A power elite will target others who are different from their people based on the others' location of origin, belief system, race, etc.  

The feminist power elite is particular fond of targeting people who were born with penises of European origin.  Big hint - It's a form racism and gender bias. 

When a target group has been identified, a campaign of hatred begins. People are told that the target group is responsible for many of their problems and that the power elite can lead the people to victory over the target group if the people believe in and do what the power elite says. 

Not infrequently, the power elite will unleash its people against the target group. This aggression may take a relatively mild form like burning a cross in a vacant field or a downright horrific form like putting others in gas chambers.

This process serves as an outlet for the people's  frustrations with their lives and their anger over not having their expectations met. 

Scapegoating is a tool of disinformation used to distract and control others. People love to hate and are given targets to hate which makes them feel better. Usually, it works quite well. Except when it doesn't. Like now.  


Beered by Narrow road and Don Keyknob
ReplyQuote
Advertisements