EURODOLLAR SHADOW BANKING
Jim Bianco gives out the game here, but few understand it, only insiders do, and from those only few talk about it sporadically. Jim Bianco admits it here.
It's me explaining it to the Greater Fools, it's been since 2014.
1/
Jim Bianco gives out the game here, but few understand it, only insiders do, and from those only few talk about it sporadically. Jim Bianco admits it here.
It's me explaining it to the Greater Fools, it's been since 2014.
1/
https://twitter.com/ForwardGuidance/status/1576609882010431488
What The Federal Reserve is doing, it is in effect what Gosbank did in the Soviet Union for 70 years, type up digits on papers or now computers.
THAT BROKE DOWN SUPPLY CHAINS.
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THAT BROKE DOWN SUPPLY CHAINS.
2/
Matt King in 2008 also gave out the game, few paid attention to.
repowatch.files.wordpress.com/2012/01/arethe…
Leverage in shadow banking.
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repowatch.files.wordpress.com/2012/01/arethe…
Leverage in shadow banking.
3/
What is essentially happening now in Shadow Banking is what Marx envisioned theoretically and what Lenin actually applied how Banking and Supply Chains would work in their hallucinations.
Just type up digits on papers (or now on computers) and people would just produce goods.
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Just type up digits on papers (or now on computers) and people would just produce goods.
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The opposite but equally clueless argument is made by the other side of such financial and supply chain analphabets, the Libertarians.
Imaginary Fantasists like Libertarians hallucinate a world where each human is an angel, so they call EVERYTHING a .....MARKET.
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Imaginary Fantasists like Libertarians hallucinate a world where each human is an angel, so they call EVERYTHING a .....MARKET.
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What we have in Shadow Banking in essence right now is a lethal anti human combination of Marxism/Leninism and Misesism/Hayekism/Friedmanism, an alliance of Bolsheviks and Libertarians, the lunatics of the lunatics.
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On one side Marxists/Leninists assert that the Federal Reserve MUST type up digits on computers to give to shadow banking.
On the other side we have the opposing lunatic Libertarians that this is a Free Market, so let the market sort this out, Gov must not intervene.
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On the other side we have the opposing lunatic Libertarians that this is a Free Market, so let the market sort this out, Gov must not intervene.
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In the meantime supply chains keeps breaking down because digits on computers have replaced goods and services for Shadow Banking Marxists/Leninists (JP Morgan, Goldman Sachs etc).
Whereas the libertarian lunatics call for shut down of the federal reserve.
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Whereas the libertarian lunatics call for shut down of the federal reserve.
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Misesists/Hayekists/Friedmanists assert that shut it all down until the angelic market would solve it all. These morons don't notice supply chains breaking down, hallucinate that supply chains are a videogame to be turned on/off at will.
Supply chains keep breaking down.
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Supply chains keep breaking down.
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We thank Jim Bianco for giving out the game, though quickly and briefly, not expanding on it.
It's like the creation of shadow banking Eurodollar system in the 1960s as result of Marshall Plan. You never talk about it, just among themselves.
Internet stays undefeated.
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It's like the creation of shadow banking Eurodollar system in the 1960s as result of Marshall Plan. You never talk about it, just among themselves.
Internet stays undefeated.
10/
So, back to what Matt King explained in detail and to what Jim Bianco revealed only briefly, Shadow Banking Derivatives, repo, rehypothetication, collateral.
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Jim Bianco quotes the statement from Bank of England that the UK Treasuries would have to have a ....higher price....otherwise all collapses.
Questions:
1) Why does the gilt's price matter!
2) Why would pension funds collapse if gilts' prices fall under a certain level?
12/
Questions:
1) Why does the gilt's price matter!
2) Why would pension funds collapse if gilts' prices fall under a certain level?
12/
Answer to both questions:
Margin calls on Shadow banking derivatives.
And why London?
Because as the inimitable @Halsrethink has explained, London is where the shadow banking games are played out, as UK law allows infinite rehypothetication.
13/
Margin calls on Shadow banking derivatives.
And why London?
Because as the inimitable @Halsrethink has explained, London is where the shadow banking games are played out, as UK law allows infinite rehypothetication.
13/
Even Lehman in 2008 imploded in London.
What it has essentially happened, your life, supply chains, your work, commodities, US treasuries, UK Treasuries, stocks, corporate bonds, have been all ....gambled ....in shadow Eurodollar system.
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What it has essentially happened, your life, supply chains, your work, commodities, US treasuries, UK Treasuries, stocks, corporate bonds, have been all ....gambled ....in shadow Eurodollar system.
14/
Shadow Gamblers have rehypotheticated UK gilts in extreme leverage, that when the Gilts' price dropped below the Margin Call requirement, shadow Bankers were obligated to fire sell UK gilts and go bankrupt.
They had actually gambled UK pension money into it as collateral.
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They had actually gambled UK pension money into it as collateral.
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As I said, the exact same thing is done currently with your own life. Your entire life is put up as collateral in shadow banking, anything, stocks, bonds, factories, US treasuries, commodities, anything, you name it.
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Jim Bianco revealed there was a specific Number that Bank of England cannot allow gilts to fall under, otherwise margin calls
I have been telling you about these specific numbers repeatedly, as the internet remains undefeated. Somebody from inside shadow banking reveals it
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I have been telling you about these specific numbers repeatedly, as the internet remains undefeated. Somebody from inside shadow banking reveals it
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The rumor for UST 10 year yield specific number has always been 3%.
Opec has revealed that the specific number for crude oil is $90 Brent.
Rumor now for S&P specific number is 3600.
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Opec has revealed that the specific number for crude oil is $90 Brent.
Rumor now for S&P specific number is 3600.
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That means that when (not if) values for these assets drop and stay there below those specific numbers, a chain of margin and collateral calls begins which gradually works its way through the eurodollar shadow banking, causing fire sales and further drops. It takes time.
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As the internet remains undefeated, shadow Bankers are now admitting that it is far too late to reverse implosion of shadow banking margin calls, as US treasuries have been above 3% yield for too long already, now at 4.2%, exactly as #krisonomics told you since 2016.
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There is no return back. Federal reserve will be obligated to raise rates as high as needed to allow for supply chains to actually supply goods and services.
10% is baked in the cake.
Crude oil ought to be at $10-20 for 10 years to have economic expansion.
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10% is baked in the cake.
Crude oil ought to be at $10-20 for 10 years to have economic expansion.
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Rates will rise as high as keeping commodities available for use, not stored in shadow inventory as collateral for Eurodollar shadow banking.
If 10% and DXY at 120 would be inadequate, then the Fed and Treasury Department will cooperate to bring them up to 15% and 130.
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If 10% and DXY at 120 would be inadequate, then the Fed and Treasury Department will cooperate to bring them up to 15% and 130.
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Unwinding of shadow Banking Derivatives which were suffocating the supply chains is absolutely inevitable and it is under way, as the other option is straight forward starvation.
23/ end
#krisonomics
#SupplyChainWar
#EnergyStarvation
23/ end
#krisonomics
#SupplyChainWar
#EnergyStarvation
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