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VOODOO ECONOMICS: ‘The Covid-19 Dominoes Fall’, The World Is Insolvent

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Of Two Minds

– By Charles Hugh Smith

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Source – oftwominds.com

“…Everyone expecting the financial markets to magically return to January 2020 levels once the pandemic dies down is delusional. All the dominoes of crashing market valuations, crashing incomes, crashing profits and soaring defaults will take down all the fantasy-based valuations of bubblicious assets: stocks, bonds, real estate, bat guano, you name it….The global financial system has already lost $100 trillion in market value, and therefore it’s already insolvent”

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Subtract their immense debts and they have negative net worth, and therefore the market value of their stock is zero.

To understand why the financial dominoes toppled by the Covid-19 pandemic lead to global insolvency, let’s start with a household example. The point of this exercise is to distinguish between the market value of assets and net worth, which is what’s left after debts are subtracted from the market value of assets.

Let’s say the household has done very well for itself and owns assets worth $1 million: a home, a family business, 401K retirement accounts and a portfolio of stocks and other investments.

The household also has $500,000 in debts: home mortgage, auto loans, student loans and credit card balances.

The household net worth is thus $1,000,000 minus $500,000 = $500,000.

Let’s say a typical financial crisis and recession occur, and the household’s assets fall 30%. 30% of $1 million is $300,000, so the the market value of the household’s assets falls to $700,000.

Deduct the $500,000 in debts and the household’s net worth has fallen to $200,000. The point here is debts remain regardless of what happens to the market value of assets owned by the household.

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Federal Reserve to Offer $270 Billion in Loans to Wall Street Tomorrow

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By Pam Martens and Russ Martens: March 11, 2020 ~

John Williams, President of the Federal Reserve Bank of New York

John Williams, President of the Federal Reserve Bank of New York

The little people in America will have to continue to wait to hear any concrete plans for their government to provide financial relief to them for business disruptions resulting from the coronavirus. But Wall Street banks and their sprawling trading desks got the word today that the Fed’s money gusher (repo loans) that began on September 17 of last year will offer them up another $270 billion in cold hard cash at unprecedented low interest rates tomorrow.

The Fed announced that its 1-day emergency loans that it has been making each weekday will increase to as much as $175 billion a day beginning tomorrow; its 14-day loans, which will continue to be offered twice a week, will remain at the elevated amount of $45 billion; and the Fed will add three one-month loans of a whopping $50 billion each. The first one-month loan will be funneled out tomorrow, along with a cap of $45 billion in a 14-day loan and up to $175 billion in a one-day loan, bringing the one-day tally to the astounding sum of $270 billion – all without so much as a vote, or debate or even a hearing in Congress.

All of this money gusher will be dispensed by the New York Fed, the same regional Fed bank that funneled the bulk of the secret $16 trillion in aggregate emergency loans to Wall Street during the last financial crisis. (See chart below.)

For detailed background on this stealth bailout of Wall Street that has now been running without making headlines for the past six months, see our in-depth series here.

GAO Data on Emergency Lending Programs During Financial Crisis

Government Accountability Office Data on Fed’s Emergency Lending Programs During Financial Crisis

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FEDERAL RESERVE TRANSPARENCY

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OldeReb

proliberty@fairpoint.net

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The Federal Reserve’s lack of transparency, which is perceived to be impenetrable, is an erroneous assumption.

Volume 12 C.F.R. § 261.2(i)(1) Identifies public FOIA requests for records (of) any Federal Reserve Bank in connection with the transaction of any official business.” are authorized. A Federal Court of Appeals has concurred. Ref. Bloomberg L.P. v. Board. of Governors of Federal Reserve System, 649 F. Supp. 2d 262, 274 (S.D.N.Y. 2009), aff’d, 601 F.3d 143 (2d Cir. 2010). Exemptions 4 and 5 are not applicable. The deceptive CRS Report 42079, Federal Reserve; Oversight and Disclosure Issues relates to a public perception; it does not relate the law. Ref. https://thedailycoin.org/2020/02/02/federal-reserve-foia-and-audit/ (updated).

The Federal Reserve’s creation of fiat currency [a credit extended by the FR system] depends upon the Treasury Department issuing a debt instrument [Treasury security] containing a promise to pay back the principal plus interest. The interest does not exist nor has it been created. The only way to procrastinate bankruptcy is to issue more debt (principal) and pay the prior interest due from the new principal. This results in an exponential increase in the amount of debt [inflation] that will be created. The National Debt can never be paid off. It is a classic Ponzi scheme. [Fractional reserve multiplication of currency by commercial banks does not alter this conclusion.] A contract that cannot be culminated, or does not convey consideration for funds, is an act of fraud and is void upon its inception.

The manner in which the Fed is used to assist Wall Street conceal >$3 billion daily from the government [and the public] using the auction accounts of Treasury securities for the benefit of TBTF banks is alleged at https://www.spartareport.com/2019/11/the-federal-reserve-a-different-view/ ; https://thedailycoin.org/2018/08/21/the-federal-reserve-a-different-view-updated/ ; https://ppjg.me/2019/11/18/the-federal-reserve-a-different-view/ , https://ncc-1776.org/tle2019/tle1019-20190505-05.html. The analysis has been sullied; it has never been discredited.

The Treasury security auction accounts are exclusively controlled by the FRBNY and handle more than $11 trillion annually. The accounts have never been audited and are a proper subject for public review using FOIA. [The cited CRS report broadens the meaning of audit to imply two reviews of FRBNY’s security procedures are audits.] TreasuryDirect identifies the apparent commingling of government funds with private funds. The destination of new cash is not disclosed.

Benjamin Ginsberg in FATAL EMBRACE reminds readers of historic similar related banking systems resulted in repeated economic exploitation, societal collapse, and civil disruption in medieval Europe. John Perkins [CONFESSIONS OF AN ECONOMIC HIT MAN], Douglas Valentine [CIA AS ORGANIZED CRIME] and others have identified covert Wall Street actions as the origin of world-wide chaos and subjugation. The use of these funds for world domination and national chaos, which is occasionally projected war mongering  to include the United States, has been documented by William Blum, Greg Palast, Michel Chossudovsky and many others. Pathological Wall Street  using the CIA, US military, the IMF, and the WB to impose economic control or for destruction of industrial rivals is standard procedure. https://thedailycoin.org/2019/07/25/war-mongering-brought-to-you-by-wall-street/; WHENSE THE DEEP STATE ?, https://ncc-1776.org/tle2019/tle1050-20191208-10.html .

Potential national financial chaos resulting from the US economic instability is mentioned in current US headlines. How the TBTF banks can utilize the existing legal structure to collect on the $22 trillion (and growing) national debt is theorized at https://ppjg.me/2019/11/18/scenario-of-national-bankruptcy/. The resultant social chaos would be similar to that found in Greece and Argentina, and could involve seizure of demand deposits and pensions, slashing of wages, confiscation of national assets, etc. Wall Street representatives’ testimony before congress has confirmed destruction of government sovereignty does not hamper their collection of alleged national debt. Apparently the fly [US citizen] on the spider web is enjoying the view but has not visualized the next meal.

Is this concern a proper cause for FOIA action to preserve the government from total Wall Street domination?

Note: This writing is not copyrighted. Feel free to distribute.

Fed Has 10-Year Plan to Save Banks, But No Plan to Save Americans Devastated By Fallout, Admits Powell

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Is the Fed’s latest money funnel to unnamed trading houses on Wall Street part of the plan?

By Pam Martens and Russ Martens of Wall Street on Parade.

During his testimony to the Senate Banking Committee yesterday, Federal Reserve Chairman Jerome Powell let it slip out, for the first time, that the Federal Reserve has had a 10-year game plan to deal with the financial crisis. In response to a question on cyber threats from Senator Ben Sasse of Nebraska, Powell stated the following:

“They kind of pay us to be awake at night worrying about things. I would say that if you look at what happened in the financial crisis, we had a game plan there. We implemented it over the course of 10 years. I won’t say that it’s perfect or anything like that, but we have a plan that is meant to address those kinds of things.”

“Those kinds of things?” The financial crisis, fueled by corruption and lax regulation of Wall Street banks, destroyed the housing market in the U.S. and left the U.S. economy in tatters. Millions of Americans lost their jobs and their homes to foreclosure. The New York Fed was the supervisor of key Wall Street banks that caused this problem – shouldn’t it have had a 10-year game plan to prevent “Those kinds of things” instead of creating the game plan after the damage had been done?

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FISCAL BLISS* = * Ignorance is Bliss

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proliberty@fairpoint.net

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What difference does an increase in the National Debt make? We owe it to ourselves.” Nancy Pelosi has declared. Such a paraphrased statement, reflecting on the exoskeleton structure of the Federal Reserve, ignores the inner historic mechanisms of Rothschild banking, the intense subterfuge and arm-twisting of the Fed’s creation, and the proven destructive forces inherent but hidden therein. 1 More

Obama’s Doctrine of Destruction of America as we know it, and the March to a New World Order

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This is a good synopsis of where we are heading and how we are getting there.

A NATION BEGUILED

http://www.pakalertpress.com/

TRUTHER

We could not have a better person in office than President Obama, if you want someone to do everything he can to destroy the country that is. This President has gone out of his way to make sure not only just a few of his Socialist policies ruin us, but that his whole time in office is dedicated to the destruction of the United States as we know it.

From supplying terrorist organizations such as Al Qaeda, the Muslim Brotherhood, and countless other Islamic Jihadists in N. Africa, the Mid-East, Indonesia, and Europe with billions of dollars in weapons, billions in financial aid, and actual military help, to purposely busing and flying in hundreds of thousand illegal aliens per day via Homeland Security.

This President expects his agenda of anti-Americanism to continue with breaking our economy and with the EPA’s anti CO2 regulations, which are based on…

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NEW WORLD ORDER—DEAD AHEAD

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strip banner

new-logo25Jim Carter

contact: ppj1@hush.com

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(revised Dec. 27, 2013)

Also, Mark Carney, CEO Bank of England; Carlos Moedas, Secretary of State Portugal; ex Goldman men.

It would be the epitome of human folly to ignore the repetition of the same Wall Street financiers–

who have routinely inflicted financial chaos and abject poverty by debt upon the under-developed world for decades;

who now have leading roles in enforcing national IOU’s in Europe which they created and they are now devastating each nation;

who created and manage the $17 trillion debt of the United States;

who are additionally the putative recipients of hidden profit from their Federal Reserve Ponzi scheme that embezzles trillions of dollars from the U.S. government;

who permeate and use the U.S. Treasury and other government departments to profit their international business conglomerates;

who are additionally major lobbyists and the largest campaign contributors for political candidates.

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The 2008 worldwide financial chaos started on Wall Street with a sudden realization mortgage backed securities (MBS) were junk bonds. Some pundits claim the bonds were fraudulently represented to European bankers. European banks holding these securities panicked from devalued reserves. (do you think some European bankers told some NYC bankers they would be swimming with concrete boots if they did not buy $700 billion of toxic bonds real quick ?) Loans ceased to be available. Construction ceased while taxes from manufacturers and retailers plummeted. Tax revenue could not cover government fixed expenses. Financial operations of European nations became managed by creditors to guarantee payments on sovereign debt while social programs and government salaries have been slashed. Economists without a PhD would say a bubble burst.

Is there evidence the International Monetary Fund (IMF) and World Bank (WB) have similarly created debt in lesser-developed nations for decades and the same financiers are now moving up to European nations? Is this the advance of the New World Order that has been touted by the Council on Foreign Relations (CFR) for 70 years? Is the $17 trillion debt of the United States handled by the same financiers and is it now in the initial stages of collection? Has the major funding for these financiers for the past 80 years come from profit concealed by the Federal Reserve Bank of New York (FRBNY) which legally belongs to the U.S. government?

The answer is a collective YES.

The frustrating part is that the financiers received and hid the entire value of the U.S. debt when it was created that funded the conquest but they will also garner lavish $100 million annual remuneration when their fraudulent Ponzi scheme plunges the U.S. society into gut-wrenching poverty.  More

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