Home

SCENARIO OF NATIONAL BANKRUPTCY

4 Comments

Author: OldReb

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Doom and gloom are appearing with increased frequency in U.S. and global financial writings but specific details of a potential economic catastrophe are never given. Let us speculate on what could happen in the United States.

Is a view into an economic catastrophe available ?

ANSWER: Sure, that is easy. Read what has happened to Greece and Argentina. William Blum, John Perkins, and Chossudovsky give many more examples. Bank deposits have been seized; pensions have been wiped out; jobs have been terminated; real estate and assets are selectively confiscated; the economy crashes; national assets are sold at fire-sale prices to financiers; financiers must approve every government action; etc. The same New York City parties, and their proxies, are repeatedly involved.

How might it be handled in the U.S. ?

ANSWER: The Federal Reserve Bank of New York City will handle it. They have exclusive handling of funds to redeem Treasury securities—as a fiscal agent for the government. They will select who gets funds which the government has available. Ref. 31 CFR 375.3.

Who will benefit from the crash?

ANSWER: Primary Dealers currently receive >$10 trillion annually for redeeming Treasury securities. Some of them were involved in creating the Federal Reserve. The concept that they hold ownership of the Board of Governors, in a closely held corporation that does not have to file with the SEC, should not be overlooked. Furtive acts abound in the creation of the Fed. Their derivatives creations have obtained super-priority status in bankruptcy. More

Fed’s Latest Plan for Bailing Out Wall Street Banks: Let Them Overdraft their Accounts at the Fed

1 Comment

By Pam Martens and Russ Martens: October 31, 2019 ~

Victoria Guida, Reporter for Politico, Was First Reporter to Question Fed Chair Powell on Repo and Liquidity Problems on Wall Street During Fed’s October 30, 2019 Press Conference

Yesterday, following the announcement of another 1/4 point interest rate cut by the Federal Reserve’s Open Market Committee, Fed Chairman Jerome Powell held a press conference at 2:30 p.m. It proved to be an embarrassing and shameful example of New York City-centric business journalism.

Seven business journalists from leading business news outlets that cover Wall Street asked questions in the first 23 minutes of the press conference. Not one of these reporters asked about the liquidity crisis on Wall Street that has resulted in the Fed offering $690 billion a week to 23 Wall Street securities firms and one foreign bank as well as a newly launched “don’t call it QE4” operation by the Fed to buy up $60 billion a month in Treasury bills from Wall Street dealers.

The Fed began its repo loan interventions on September 17 of this year for the first time since the financial crisis. That crisis grew into the worst economic collapse in the U.S. since the Great Depression. What the Fed is now doing has all the same earmarks as the actions it took in the early days of the last crisis. (See our ongoing series of articles on the Fed’s actions and the liquidity stresses on Wall Street.) And yet, despite these frightening similarities, not one of the following reporters (in this order of asking questions within the first 23 minutes of the press conference) could summon the nerve to broach the subject: Michael McKee, Bloomberg TV; Heather Long, Washington Post; Jeanna Smialek, New York Times; Steve Liesman, CNBC; Nick Timiraos, Wall Street Journal; Edward Lawrence, Fox Business; and Brendan Greeley, Financial Times.

It was not until the eighth reporter was handed the microphone that we heard a question on the most critical financial topic of the day. More

%d bloggers like this: