Skip to main content

The Giant Money Spigot

While the fundamental circulation media is so all in favour of Trump and the pending impeachment assignment the Fed within the period in-between continues to funnel cash to Wall Avenue to the tune of $ 690 Billion per week. Either the media is in collusion with the Fed to salvage this records from reaching the general public or they're too preoccupied with Trump, global affairs after which all yet again they'd perchance very properly be proper too blind to ask what is genuinely going down to the economic system.

The New York Fed is at the 2nd loaning $ 120 Billion a day to Wall Avenue Securities shopping and selling companies. Sooner than they had been proper loaning $ 75 Billion a day. However, as of October 24 of this yr they've increased it by $ 45 Billion a day. And, will proceed to loan these Securities companies that amount each day until they're compelled to quit or your complete US economic system collapses.

It is reasonably attention-grabbing to voice that these Wall Avenue Companies are getting these loans being incessantly being rolled over. So, successfully they're permanent loans. The irony is that this is precisely what took space all the procedure thru the 2007-2010 Financial Crisis. Some Wall Avenue companies at that time {let's name them what they genuinely are Wall Avenue Casinos} purchased in my belief over $ 2 trillion in cumulative loans that had been rolled over for 2 and a half of years. Nowadays, because it modified into once achieved in 2007 these loans are with out the authorization and even the explore of Congress or the American public. One monetary institution, Citicorp purchased over $ 2.5 Trillion in Fed loans at interest rates underneath 1%. This at the time when it modified into once insolvent and couldn't possess obtained loans within the originate market.

This latest news from the Fed follows it's October 11th announcement that it is launching a program to get rid of up $ 60 billion a month in US Treasury payments for the following yr and a half of. It all comes down to this: what the New York Fed is doing is unheard of in US historical past. Calm, there'll not be the type of thing as a mention of this on any entrance web page of any newspaper. No Wall Avenue disaster has been announced to the public, reasonably the opposite. There has been no longer one listening to held sooner than Congress to existing these big loans and Treasury buybacks. Not one elected official has licensed these loans. Nowadays, because it modified into once doing in 2007 the New York Fed is the utilization of highly questionable tactics and need to peaceable be unlawful exercise when no longer one officially elected has even been contacted or licensed these actions by the Fed.

One other predominant level of exclaim is the truth that these loans are no longer being supplied to industrial banks which by the capacity would possibly perchance well re-loan the cash to stimulate the US economic system. Essentially these loans are going to the New York Fed's predominant dealers which would possibly perchance well be stock and bond shopping and selling houses on Wall Avenue who by the capacity depend hedge funds amongst their largest debtors. More than a few the fundamental dealers are units of international banks. The Fed is making these loans at 2% interest rates. These interest rates these companies accumulate ingredients to the one other predominant exclaim. The Fed is playing favorites and no longer in the least bright in stimulating the US economic system. These hedge fund managers are getting interest rates a ways underneath what they'd perchance produce on the originate market.

It is these same international banks are counter events to mega US banks spinoff trades. This all raises the recommendation that this is proper one other bailout of Wall Avenue's derivatives mess that passed off in 2008. The Dodd-Frank monetary reform laws of 2010 modified into once speculated to rein on this right trend of abuse by the New York Fed. And yet, the Fed is totally ignoring the truth that the Dodd-Frank invoice stipulates that Congress needs to learn as to the put apart all this cash goes to. Extra importantly to make certain that no cash goes to failing monetary institutions akin to Citicorp. This raises yet one other predominant self-discipline that's strikingly an identical to what brought on the monetary disaster of 2008.

It modified into once proper final week that the New York Fed pumped out over $ 134 Billion to Wall Avenue below it's unusual loan program. The $ 45 billion in 14 day loans modified into once over subscribed by over $ 17 Billion which procedure the ask for liquidity on Wall Avenue is rising and no longer subsiding. Congress and the mainstream media failed to conclude their job in 2008 and in addition they're failing the American public yet once all yet again. Presumably this next presidential election the American public will finally accumulate up to the harsh truth of what the total greed on Wall Avenue is doing to the US Economy.

Popular posts from this blog

Commoditizing the world

Let's discuss commodities; With the latest Enron situation, it is important to understand the way things work. A commodity is anything useful, especially a transportable agricultural product or mining product. This comes from the Latin word "commoditas" meaning roughly advantage, convenience. So then what is a commodity? Well we consider Gold, Silver, wheat, corn, pork bellies, coffee, etc all commodities. If you look in the back of the WSJ or Investors Business Daily you will see a listing of all the commodities traded on the commodities exchange. Enron made some errors no doubt, but let's not judge all commodity markets in haste. Commodity trading works best when there is a stable instrument of trade. Sometimes the instrument of trade is actually the commodity. If you looked most countries of the world today you would find that there are three basic instruments of trade; money, as in currency, precious metals and gems, drugs; like cocaine, opium, and

Virtual Currency Games

Every little boy's (and many grown men's) dream of making a living by playing video games is edging closer to reality. The recent release of HunterCoin and the in-development VoidSpace, games which reward players in digital currency rather than virtual princesses or gold stars point towards a future where one's ranking on a scoreboard could be rewarded in dollars, and sterling, euros and yen. The story of the millionaire (virtual) real estate agent... Digital currencies have been slowly gaining in maturity both in terms of their functionality and the financial infrastructure that enables them to be used as a credible alternative to non-virtual fiat currency. Though Bitcoin, the 1st and most well known of the crypto-currencies was created in 2009 there have been forms of virtual currencies used in video games for more than 15 years. 1997's Ultima Online was the first notable attempt to incorporate a large scale virtual economy in a game. Players could collect gold coins

Forex MegaDroid - The Trading Robot That Applies Two Trading Strategies

It is important for novice traders to gain the basic knowledge of Forex trading at the very beginning of their attempts. After you get the rough ideas of what those charts, tables and axis mean, then you should study in details about which trading style suits you the most. Currency trading involves completely different styles. People should opt for their own strategies, but basically there are two primary types of analysis: the technical and the fundamental. A few traders would choose one of the two, some will combine them, others just follow what the robot tells them. Forex Megadroid belongs one of the few automated programs that applies both trading strategies. Forex traders who choose to use technical analysis always base their analyzes on the currency market trend. They read charts and recognize the common patterns for the price movement. Different traders may employ various reporting system to make the analysis easy to read or update. For the users of technical analysi