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130
swift_water 130 points ago +130 / -0

I remember this. I remember thinking this was exactly why they let the virus loose in the first place.

The lockdowns and everything seemed to be them preparing for the backlash of global economic meltdown.

Buckle in.

63
Olds777 63 points ago +65 / -2

I wonder if it was China trying to break us. George Soros broke the Bank of England with far, far less money than China is able to wield and China may have known what positions to take to bring our banks to their knees.

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Barack-Obama2 61 points ago +61 / -0

I get on my knees for free.

22
QuickHands 22 points ago +23 / -1

u/PraiseBeToAnaconda wants to know your location

11
OldSchool2 11 points ago +11 / -0

Dont let Big Mike see this post Bathhouse Barry.

2
LoneStarDangler 2 points ago +2 / -0

Every time!

13
gustodog 13 points ago +14 / -1

China's had Western (((support))) for a long time.

11
TheSarcasticSlav 11 points ago +11 / -0

China's banks are in their own disaster situation much worse than the US banks.

9
kernel 9 points ago +9 / -0

China is just a boogeyman, they are owned by the same masters.

1
Liberty0rdeath 1 point ago +1 / -0

China lockdowns is indeed interesting timing.

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War_Hamster 36 points ago +36 / -0

The Great Reset was being timed.

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gustodog 18 points ago +18 / -0

And the Great Reset is the official debut of the decades-long green de-industrialization plan.

3
HKgoneWild 3 points ago +3 / -0

Green in that everyone is fertilizer?

29
rulesforpatriots 29 points ago +29 / -0

The whole covid thing is all about the monetary system. They needed to inject trillions into the ponzi scheme to debase the currency as major financial institutions would become insolvent otherwise. The covid shit was the excuse to print the money and do fiscal stimulus as the economy can no longer be stimulated via interest rates as we have hit the zero lower bound. Lockdowns are to keep the velocity of money down so inflation doesn't blow through the roof and lead to changes in inflation expectations which is a major driver of actual price inflation along with obviously printing stupid amounts of money. It also kills old and sick people who are the major beneficiaries of social security, medicaid, medicare, and government/private pensions. This makes the government more solvent as well as inflates the national debt away. You can look at the basic quantity theory of money equation and the corresponding measures such as M1 and velocity on feds FRED website. Total scamdemic.

6
kernel 6 points ago +6 / -0

Fucking hit nail on the head here.

3
educatedandfree 3 points ago +3 / -0

It's a one-size-fits-all solution to the problems you listed, plus a few more.

Mostly, its about the concentration of power into ever fewer hands.

That's why we can see the chinks in the armor. That's why we can resist.

That's why it won't work, unless we let it.

2
test_pattern 2 points ago +2 / -0

“Controlled” demolition. Except it’s a runaway reaction now.

13
ShampocalypseWOW 13 points ago +13 / -0

True if big...

One last cash grab to help them prep their doomsday bunker fortresses, no doubt.

14
deleted 14 points ago +14 / -0
4
HKgoneWild 4 points ago +4 / -0

Let their fortress become their prison?

4
stormybanks 4 points ago +4 / -0

Some would say "tomb" - not "prison"

2
kernel 2 points ago +2 / -0

That is the most likely explanation now as well with all the evidence we got.

64
TheScream 64 points ago +65 / -1

This should be stickied.

24
chahn1138 24 points ago +26 / -2

IT SHOULD!

45
AsapBobandi 45 points ago +46 / -1

It’s all very interesting, but what does it all mean Basil?

111
-jjjjjjjjjj- 111 points ago +112 / -1

Basically, its just pointing out that the United States stays afloat by inflating the monetary supply through the fed and creating artificial growth via loaning the monopoly money to financial institutions that then use the free money to make risky trades to drive up equity prices.

The net result is your savings are devalued and the monopoly money drives returns for the elites. Its all an income redistribution scheme from Americans to the elites.

61
War_Hamster 61 points ago +61 / -0

100% correct. And it's the same damn Mercantilist system, also known as corrupt crony capitalism, that our ancestors came here to get away from. Damn private central bankers just couldn't leave us alone.

22
Capitalism_Fuck_Yeah 22 points ago +22 / -0

It's called socialism. Government ownership of the means of production and the wealth of a nation.

At this point the money printer is the means of production.

10
hoppy-kangaroos 10 points ago +10 / -0

It was Feudalism before Democracy made them incorporate pretending to care about people with Socialism.

6
Capitalism_Fuck_Yeah 6 points ago +6 / -0

Feudalism was a medieval version of the patron system. Wealth was suppose to go to a local lord which would handle taxes and make sure to distribute goods among his subjects because they were too uneducated to handle it themselves. The lord's we're suppose to help their subjects and keep them productive.

Instead they just looted them and took everything. Just like socialism. It's really the same system but with extra steps and more "healthcare".

6
Mynamesprivate 6 points ago +6 / -0

Feudalism---> monarchy corporatism( not sure what to name it but all kings n queens chartered colonies and companies like the dutch east indies, east india company, etc) --> democracy.

6
War_Hamster 6 points ago +6 / -0

Yes and no.

An argument can be made that now the government is pretty much controlled/owned by private corporations, and that would be called Corporatism or Fascism.

But we also get to hung up on the definitions of the isms. The current iteration of tyranny uses the tactics of several different historical isms and it'll probably deserve its own term when we look back on this period.

-2
Capitalism_Fuck_Yeah -2 points ago +1 / -3

Fascism is the government focusing on non-material things so all material things are left in the hands of corporations. The corporations then tend to control everything because they produce things of value instead of worrying about "duty, honor, chastity, sanctity, etc".

If corporations control the government and use it to control the means of production (COVID) then it's socialism.

13
deleted 13 points ago +13 / -0
10
War_Hamster 10 points ago +10 / -0

I've been naming them since I walked away from Wall Street 12 years ago.

Of course, my voice isn't loud enough to draw their attention.

4
AnomalusCitizen7375 4 points ago +4 / -0

Sorry, your answer was not in the form of a question. Also: An Album Cover

37
Tallsie 37 points ago +37 / -0

And the institutions loan out the money to political parties that they favor, such as LGBT loving and BLM loving groups.

16
thethrowaway 16 points ago +17 / -1

It’s a wealth redistribution scheme, much worse than income redistribution

7
gustodog 7 points ago +7 / -0

Get out of cash, people. Gold. Land. Crypto.

7
spinometer 7 points ago +7 / -0

it's the commies printing money for themselves while the rest of us think we still have capitalism

63
educatedandfree 63 points ago +63 / -0

It means that these guys are able to access YOUR LABOR at below market rates and bill it TO YOU through taxation and inflation, goosing the stock market and making BILLIONS a year.

You are paying for this.

Your children will pay for this.

If we don't stop it, your gradnchildren will have significantly decreased standards of living. They will own nothing and eat bugs and they had BETTER like it.

14
gustodog 14 points ago +14 / -0

We're going to have to divest from their fiat currency or they will hang us with it.

1
Error404 1 point ago +1 / -0

shit... we won't be able to bemoan to our grandchildren how much worse life was for us. ie going to school uphill both ways in a snowstorm.

/s

1
deleted 1 point ago +1 / -0
1
Liberty0rdeath 1 point ago +1 / -0

Thank McConnell for raising the debt limit.

50
Tedskis 50 points ago +51 / -1

What I took from it.

A bit of banking info first. Banks have a reserve requirement, usually around 10% of the money they loan out they have to keep on hand. If they don't have this, if they are even a penny short they go out of business. This is why banks close early. Overnight if they are short they have to take out a loan. The fed sets this interest rate

What the 4channer was saying: Banks have not been able to meet the reserve requirements, an not just your local banks (maybe you have noticed local banks are dropping like flies). These are the biggest banks in the world. The only way they can stay afloat is of they keep getting larger and larger loans.

How many loans can they take out before people start to notice, and realize the banks are insolvent. When they decide to take their money out of the banks (out of the 10% reserve requirement) the burden for the banks gets higher, and they need to take out bigger loans, and so on.

The end result the banks go out of business, the US economy collapses, the world economy collapses. Years later someone writes a book entitled "the rise and fall of the American empire"

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deleted 30 points ago +30 / -0
29
Trumpican 29 points ago +29 / -0

Yep, raise rates more than 1% in a 6 month period and near instant collapse

26
QuickHands 26 points ago +27 / -1

And why they hate Cryptocurrency

That's hundreds of billions of dollars being taken out of banks, counting against their reserve requirements

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Tedskis 24 points ago +24 / -0

Yep, crypto, silver, gold, real estate, guns, and ammo. Even food would be a smart bet.

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Magapede1111 20 points ago +20 / -0

My canned chicken has gone up in value like 20% in a few weeks. I can't wait to eat my gains.

5
SecedeNOW 5 points ago +5 / -0

Duuuuude, I have those big packs of canned chicken from Costco from 3 years ago that have gone way up. Sick gainz!

2
Error404 2 points ago +2 / -0

same. "I'm Riiiiiiich Biiiiiyitch!"

5
LoneStarDangler 5 points ago +5 / -0

And turn them into gains.

Double gains

5
ChinaFlu 5 points ago +5 / -0

Long term freeze dried food, like Augason farms. Buy it while it is cheap now, resell online later. Some foods store longer than others. Butter, powdered cheeses, etc are 5 years or less, Potatoes and grains are 20+.

2
wethepepe 2 points ago +2 / -0

I’ve always thought paying hodling crypto would have to be a thorn in the side of fiat money and lead them to just inflating more and more

7
WhiskeyDreams 7 points ago +7 / -0

The thing is is that the reserve requirement is not an option. They have to have it or the would have already closed down. Now the loaning part is right, banks lend and send money to each other constantly. I wish someone could explain why this is all an issue.

16
Tedskis 16 points ago +17 / -1

They claim to $100 but only have $10, because they know it is rare that over 10% of people will take out their money at any given time. If you new a bank only have $10, and told people they had $100, would you keep your money in the bank. Now imagine on top of that they were in debt to other banks for $1000. Eventually people take out their money, and other banks refuse to loan them money.

Now remember they only had $10, but said they had $100. Once customers withdraw the only $10 the bank has , the bank can't pay the other $90.

In short imagine that everyone in America, and the world, only can access 10% of their money. Why because banks dont have it. That is the reality we face. Collapse. The only solution is for the fed to print money and loan it to the banks. At a faster and faster rate, wich leads to hyperinflation.

7
WhiskeyDreams 7 points ago +11 / -4

I’m in the industry. It’s so much more highly regulated than you can imagine. Look, the fed is bullshit and there’s a lot of bullshit out there but if you had any idea how much they have cracked down on the industry it would blow your mind. There’s hundreds of investigators just dying to catch this kind of shit, it will get them a raise and maybe public praise.

A lot of this 4chan stuff is just from people who don’t understand it.

5
almond_activator 5 points ago +5 / -0

There’s hundreds of investigators just dying to catch this kind of shit,

Fractional reserve banking in action? I don't think that would raise too many eyebrows, unless laws have substantially changed.

3
Tedskis 3 points ago +3 / -0

I admit I only know the surface, but for some reason the big banks get bailed out at tax payer expense. Maybe tell your friends to look them. It seems they didn't see 2008 coming, I don't think you know what you are talking about. I'm sure the are looking for things, but not where they should be.

5
RuleoVicus 5 points ago +5 / -0

They're looking at the smaller fish pretending to keep the bigger fish in line.

3
GorillaTactics 3 points ago +3 / -0

Are these people related to the same ones that Bernie Madoff pulled the wool over for so long? As another poster posited, it seems these regulators spend their energies on the smaller fish while they run protection on the bigger fish. See also: IRS looking at $600 accounts and the FBI relationship with Clinton Inc. and the DNC heavy hitters.

1
PaulRevere01 1 point ago +1 / -0

Your share is 26 c. How I figured it out was 10 years ago I had a check for over 70k I demanded cash took 2.5 weeks they had to get the money from three other states. If you divide the cash in the USA (most us currency is stuck in exchanges over seas.) by population your amt is 26c. A run on banks is serious isssue.

5
aKekabove 5 points ago +5 / -0

And they just coup de tat the FDIC ... interesting

3
bananafone 3 points ago +3 / -0

The Federal Reserve requirement is no longer A thing. Banks do not need a reserve of Money. this was gone away with in 2020

1
BigIronBigIron 1 point ago +1 / -0

Years later someone writes a book entitled "the rise and fall of the American empire"

Or not.

13
WomenShouldntVote 13 points ago +13 / -0

It means Shit is fucked.

12
yudsfpbc 12 points ago +12 / -0

Wall Street has lost everything. The federal government is giving them free money so they don't go bankrupt via the Federal Reserve. The secret loans made 2 years ago are just now being revealed.

Did they give you secret loans at ridiculously low interest rates wheb you were in trouble?

35
DinosRFake 35 points ago +35 / -0

Extremely interesting. Anons have been speculating for a while that the real reason for lockdowns is to do with financial collapse. This has been the only explanation that's ever made sense to me. And the timing here is interesting isn't it? Not conclusive, but certainly evidence, both in the bailout, and the eventual release of info. They've robbed everyone blind, again. And been bailed out, again. But lockdowns and force jab are a step too far, frens. They gotta pay.

8
burner123 8 points ago +8 / -0

the other reason that makes sense is lockdown + mail-in voting fraud

2 birds, 1 stone

32
mojorisen 32 points ago +32 / -0

Face it frens, we are a failed state, only being held up by tricks and slight of hand. Be prepared.

13
Capitalism_Fuck_Yeah 13 points ago +13 / -0

We failed at the fed creation.

32
Verrerogo 32 points ago +33 / -1

I am confused. These posts are made today, but the events discussed happened two years ago in 2019. So why are they talking about them now?

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2008RonPaul2012 55 points ago +55 / -0

The Fed just released details of those loans.

17
donkey_do_right 17 points ago +18 / -1

Maybe dumb question, where do those details get released?

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QuickHands 41 points ago +43 / -2

ILYSM war hamster, literally every useful non-meme discussion thread, you're there dropping facts and sources

Please never abandon us

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War_Hamster 33 points ago +33 / -0

Awww shucks, thank you.

I'm not going anywhere. This is my home.

1
deleted 1 point ago +2 / -1
1
War_Hamster 1 point ago +1 / -0

Thanks, I'll do that when the new video is done rendering.

Our round table gets into Devolution and other related topics so the GA.win audience will probably appreciate it.

2
Deadpool 2 points ago +2 / -0

Are these really just from 2019 or is some of this reshuffled from 2008? I did look through the press release page you posted, then saw this article and wasn’t sure (and you seem to be the Pede expert on this) https://wallstreetonparade.com/2020/04/fed-plans-to-release-names-on-bailout-recipients-just-not-on-9-trillion-in-secret-loans/

4
War_Hamster 4 points ago +4 / -0

I'm not entirely sure what your question is?

The article you linked to is correct; the Fed is ridiculously non-transparent. They always have been, and that's a big part of the problem.

When it comes to secret bailouts, just take a look at the banks, US and Euro, who are allowed to participate at the Fed Window. Every single one of those is a beneficiary of taxpayer and Fed welfare.

In other words, the zombie banks have never really recovered from 2008.

2
Deadpool 2 points ago +2 / -0

Ok so I did read that right. Just making sure. It appeared that it was a continuous mess and reshuffling of the debt 2008 forward

Thank you fren. I am not used to reading such a murky mess. 🐸

3
War_Hamster 3 points ago +3 / -0

The fun thing about murky messes is that sometimes you can find a gem hiding among all of the muck. I've got a friend who is a forensic accountant and he's REALLY good at wading through federal documents. I quite often defer to him on some of the more complex documents.

11
I_Love_45-70_Gov 11 points ago +13 / -2

4Chan.

The Fed always releases their info to 4Chan first so the Deep State LARPS can stack on ever more soul-crushing fear into our hollow lives.

Or possibly News Max...

It's definitely one of those two.

12
RachetQueen2020 12 points ago +12 / -0

Thank God for those fucking autists. They never forget anything.

8
BigIronBigIron 8 points ago +8 / -0

Maybe deodorant

2
2008RonPaul2012 2 points ago +2 / -0

Perhaps someone else knows more concrete details, but if I had to guess, it might be at their FOMC meetings they hold every few months.

6
almond_activator 6 points ago +6 / -0

This version of the post doesn't explicitly state the reporting requirement - these loans have to be reported eight fiscal quarters (two years) after they are made.

So the Fed has been sitting on the news for two years, and now media outlets are refusing to cover it.

4
Verrerogo 4 points ago +4 / -0

So the Fed is on schedule, and not in the wrong, if I understand right.

The media is just reluctant to report such scary news. And scary it did sound.

I wonder what happened to cause this. Do you know?

It was 2019, in the Trump presidency.

2
flashersenpai 2 points ago +2 / -0

other than the schedule itself being bullshit i guess?

1
almond_activator 1 point ago +1 / -0

The banks own the Fed. The President, legally, has no control over it, unless there's an empty seat on one of the regional boards.

1
Verrerogo 1 point ago +1 / -0

You cannot have a Caesar who runs the banking system in addition to being the chief executive and commander in chief of all armed forces. Too much in one pair of hands. Do not lament that the president doesn't have direct control over the Fed.

We like to have distributed power. Not too much concentrated power. Federal system, no pun intended. The hope is, that if one leader is an idiot, another one will not be. The hope is that somewhere, somebody in government will have some sense.

This is a good idea. Our government is magnificently structured. The hard part is staffing it with people with stuffing. That, the nation has to produce. From the ground up.

1
almond_activator 1 point ago +1 / -0

The only power I want the President to have over the Federal Reserve is to have all its members summarily executed for treason... and I'd like to see him use it. Frequently.

18
Trooph-Hurts 18 points ago +19 / -1

This money finds its way to pay journalist. Don’t expect them to say anything….

17
chicagoindustrial 17 points ago +17 / -0

When does the music stop?

15
BigIronBigIron 15 points ago +15 / -0

When the last Gulfstream lands in New Zealand

2
hoppy-kangaroos 2 points ago +2 / -0

They have to keep printing more money faster to keep things from crashing. Raising interest rates even marginallg would certainly bring us back to reality quickly.

2
Captainlizard 2 points ago +2 / -0

Standing here tonight, I'm afraid that I. don't. hear. a. thing. Just silence.

2
PaulRevere01 2 points ago +2 / -0

When trump or us military takes over. But they have no idea that it’s been handled.

16
GA_Logic 16 points ago +16 / -0

Basically they let the big banks and China gamble away retirement money from the Boomer generation.

So when will they admit that the world is broke?

7
OriginalDuplicate 7 points ago +7 / -0

Not to mention all the fake Chinese companies they let on our stock exchange.. WTF. You think China would let Jimbo's Tire Factory in Detroit, MI with a bunch of fake P/L and orders get on their exchange? Fuck no.

5
hoppy-kangaroos 5 points ago +5 / -0

The Great Reset. They're running the economy into the ground so they can have their Commie utopia.

5
SuperMagat 5 points ago +5 / -0

As soon as they finish killing off the boomers with all this Novel CoronabiologicalweaponVirus.

No retirees...No mo problems.

2
__bryan 2 points ago +2 / -0

but what do they do with the retirees 401k funds?

2
PaulRevere01 2 points ago +2 / -0

Confiscated for commie skiing trips.

1
SuperMagat 1 point ago +1 / -0

It's already gone. Embezzled, siphoned, mis-used, frittered, pissed away, snorted. Blown on hookers, trophy wives, beach houses and fractional jet ownership.

Like Gamestop and the shorts, it's all vapor. How do you know that whatever your 401K is based on is actually what they say it is, is where it's supposed to be or is not collateral for some insane financial shenannigans?

I'm not even a doomer, but human nature is such that giant pots of money will be targets of the morally challenged. The bigger the pot, the bigger the moral challenge.

2
Traveling_Thru_Time 2 points ago +2 / -0

The world isn't broke - The American people are. The banks have looted trillions from us.

2
holytrpbatman 2 points ago +2 / -0

It's all debt issuance based fiat currency. Worthless from the start.

15
2
burner123 2 points ago +2 / -0

holy shit. the event201 shit and kung flu all makes sense now

13
chahn1138 13 points ago +13 / -0

END THE FED

12
Dckman 12 points ago +12 / -0

THAT'S A LOT OF MOOLAH, SO THAT CRASH IS COMING BAY BAY. BUCKLE UP.

6
nunyabz 6 points ago +7 / -1

That does it. I'm draining my savings account to cash. I'mma walk right in there and demand the cash (6 figures).

8
yudsfpbc 8 points ago +8 / -0

You haven't already?

Who hoards cash during inflation?

8
OriginalDuplicate 8 points ago +8 / -0

Exactly, that's a stupid thing to do. Convert it to hard assets immediately! Spread over Crypto, Gold, and maybe even real estate if you can find a good deal on land that doesn't move in price much.

1
nunyabz 1 point ago +1 / -0

Not hoarding. It just got put there for a project. I'll convert to cash and just pay out the contractor. I'm sure he won't mind.

4
bumblebeefree 4 points ago +4 / -0

That will trigger a lot of paper work. Post sep 11 you can only take out like 10k at a time without triggering red flags. Going to deposit it can be a pain too. Think it through before you deal with the hassle

2
nunyabz 2 points ago +2 / -0

Thanks for the tip. I was thinking of $9900 withdrawals. This money is for a project and I'll just as soon pay cash than write a check. My contractor will be pleased.

1
Bongo_Occidental 1 point ago +1 / -0

It’s just a hold on funds for a week or two.

3
Captainlizard 3 points ago +3 / -0

Why do you keep 6 figures in a savings account? They offer virtually no interest.

1
nunyabz 1 point ago +1 / -0

Because it's for a project operating account. It's not an investment.

6
ajmlecciones 6 points ago +6 / -0

Jp, Morgan, and citi all happen to also be exposed to China's impending real estate bubble doom. Are US citizens going to bail out China through these wall street firms because they don't want to go bankrupt for their corruption with communists?

6
patrioticwinning3 6 points ago +6 / -0

I could use some background and context please.

4
kernel 4 points ago +4 / -0

Note that this was, what a coincidence right ;), few months before they released covid.

Were good report here https://wallstreetonparade.com/2022/01/theres-a-news-blackout-on-the-feds-naming-of-the-banks-that-got-its-emergency-repo-loans-some-journalists-appear-to-be-under-gag-orders/

And the source data here https://www.newyorkfed.org/markets/OMO_transaction_data.html#rrp <- just open the latest Q4:2019 XLS .... and yes BlackRock and Vanguard is there as well getting "few" billions.

This should be stickied.

4
DonaldisHuge 4 points ago +4 / -0

End the FED

4
DelectablePastries 4 points ago +4 / -0

Why do people comply with gag orders… just release the shit on national tv and ruin the fuckers…

3
Pal360 3 points ago +3 / -0

I convert the dollar ASAP when I get it!

2
wheresgonewild 2 points ago +2 / -0

So, are we the baddies?

2
Con_Canuck 2 points ago +2 / -0

Watch this series if you heven't already: https://www.youtube.com/watch?v=DyV0OfU3-FU&ab_channel=GoldSilver%28w%2FMikeMaloney%29

Thank me later.

2
gaijin_ronin 2 points ago +2 / -0

Ridiculous evil demons running useless money. ... These fools deserve nothing less. Hope they burn.

2
BostonVoter 2 points ago +2 / -0

How do we know if this is all real. Where's the sauce

1
Miztivin 1 point ago +1 / -0

The news won't cover it because the news is compromised.

1
Cdope45 1 point ago +1 / -0

Probably to cover illegal shorts

1
Sansa_Belt 1 point ago +1 / -0

They were named... J.P. Morgan Chase, Goldman-Sachs and Citigroup.

https://twitter.com/RudyHavenstein/status/1448684275981713410

1
deleted 1 point ago +1 / -0
1
Pray_for_Trump 1 point ago +1 / -0

Can someone ELI5?

1
JKillen 1 point ago +1 / -0

Joocy find, Anon Thank you

1
me-no-likely3 1 point ago +1 / -0

That’s it, I’m selling everything first thing tomorrow morning

1
kernel 1 point ago +1 / -0

you are reading it backwards, you need to buy everything (to get rid of the fiat money)

1
LugNuts 1 point ago +1 / -0

Posts on the chans are not real.

2
XCorneliusX 2 points ago +2 / -0

Not real until they are.

1
QueensOwn 1 point ago +1 / -0

People will be really shocked to find out that the US Federal Reserve (aka taxpayer) has not only bailed out US banks but FOREIGN banks and institutions. This included major UK and Swiss banks.

1
Serioush 1 point ago +1 / -0

Is it possible that the mass de-valuing of the dollar, is their strategy for giving China less power, because their massive amount of dollars because useless?

"You can't use our currency we gave you to hurt us, because it's now useless bwahaha"

2
__bryan 2 points ago +2 / -0

I mean at least it would show we have a since of humor

1
Serioush 1 point ago +1 / -0

I mean, we do live in clown world, it would fit right in.

1
kernel 1 point ago +1 / -0

no, sorry, it's much more sinister than that

-2
FAAFO -2 points ago +1 / -3

Man you guys sure don’t understand the fed repo, reverse-repo market AT ALL do you?

2
Hassayamper 2 points ago +2 / -0

No we don’t. Feel free to explain it to us in a couple of paragraphs. Please comment on why the business press remains silent on unprecedented amounts of money changing hands.

1
FAAFO 1 point ago +1 / -0

Collateralized Debt.

Banks are required to have a certain amount of cash on hand vs their liabilities. In 2008 we ran into an issue where the banks had assets to sell but no one to buy (let alone the debate of wether or not they should have sold for pennies on the dollar and gone under anyways). The us Congress said we can’t have that happen again: enter the fed reserve repo facility. Banks would now have the means to prevent this from happening again and hopefully averting 2008 pt.2.

We continue to trundle along merrily merrily with banks using this minimally to ensure their balance sheets are squared with the cash:liability requirements at the close of each business day. Then comes the start of 2008 pt.2 (the crash hasn’t happened yet) in 2019 people start losing their minds and buying houses like crazy. Banks are lending money (cash) and assuming mortgages (liabilities) at a rate unseen since the start of the repo facility. This causes the banks to exchange liabilities for cash with the federal reserve. The fed needs a way to get these liabilities back into the hands of the bank when that day comes. (2021) Enter the reverse-repo facility where the banks can trade liabilities for cash (this cash comes from all the money printing that has to go into the banking system by law). Fed prints money, gives to banks, banks exchange cash for liabilities and tighten up lending.

There’s a major problem with these facilities but it’s not what you all seem to think it is.

1st problem; the Congress is allowed to set up another tool that insures banks don’t fail, which encourages more poor risk mitigation by banks and consumers.

2nd problem; Congress can then authorize the manipulation of the money supply to keep their schemes afloat.

The banks are doing what they do…the problem is with congresses ability to subsidize bad policy decisions. PERIOD.