Printing currency from thin air is the only thing propping up the fragile financial system right now, but almost nobody knows it.
A few weeks ago, the Federal Reserve quietly re-started quantitative easing (printing money from thin air to monetize debt), which I noted here. This indicated the 2008/9 crisis was actually never resolved, and is about to return, much worse than before.
CNN characterized this event as "cracks appearing in the pipes".
Today, the Federal Reserve did what they said they wouldn't do - dramatically ramp up the amount of currency being created, to save the collapsing "overnight repo" market.
CNN reported an analyst's description of this development: "There is something wrong with the plumbing of the financial system".
Sounds to me like they're full of SHIT
Here's what actually caused this mess, and what it means.
DTCC is a private financial corporation owned by certain private banks, and provides financial services as part of the backbone of the financial system. For years they've been fraudulently distributing the same treasuries/bonds/equities to multiple (competitor) banks, leaving these banks now scrambling to get rid of the fraudulent instruments. This is overloading the overnight repo market and causing the Fed to have to print billions of dollars, every day, just to keep the other financial markets from capitulating.
In other words, we are finally at the moment before the full conclusion of the financial collapse which began in 2008. This is the new Bear Stearns.
CNN's next article on this topic will include the euphemism "a pipe has burst in the financial system".
How much are they pumping into the banks? Think of it this way: It's $10 USD for every year the universe has existed... EVERY DAY. Or, it's a dollar for every homo sapien that has ever lived, EVERY DAY. It's an amount of capital that we have trouble even comprehending, and they're doing that daily now, as an emergency measure while they try and think of something else to do.
Possible actions for everyday people like us:
- Have NOTHING to do, financially, with banks. Store nothing there, own no stocks, own no bonds, get out of debt, etc.
- Own tangible assets with intrinsic value and store them in your home. Tools, precious metals, food storage, protection, etc.
- Own cryptocurrency and store it in your home. Secure your keys and never store your funds at an "exchange" (crypto bank).
- Educate yourself and mentally prepare for a lifestyle change.
DRutter