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@@joemammon6149 no it's not its actual Marxism its amazing how westerners think they know what communism is and than saying Soviet union was not. I'm from Ukraine I know what communism is and was!
It's a big criminal ponzi scheme. Lol Dollar shortage>> all dollars are debt and are derived as a loan with interest attached. There is always more debt outstanding than dollars in the system to pay it back. The debt based dollar creates it's own demand for more dollars hense there will always be a dollar shortage with debt based currency.
@@johnjones4502 Yep, but the banksters have sold all the pensions funds trash and the banksters take down mainstreet with them. It's horrible and they are a big protected criminal cartel
Dont be an idiot, FIRST and FOREMOST........American needs to get rid of the Federal Reserve and unprivatise it. THAT is the main problem is the free printing of money.
@@dugdogg Under the instructions from the Fed who in turn gets it from its PRIVATE beneficiaries and owners. i.e Rockafellas, Rothchilds, Masons etc....
There’s only one reason why banks won’t lend to each other. It’s because they don’t think they’ll get their money back or it’s because they think they may need that money at very short notice themselves. That tells you something about the insider view on what is really going on in the banking system.
There's a lot to be said for an expert who is willing to admit when he doesn't understand something. That is an important data point right there. It means something in the system is broken because it is not functioning in a rational manner.
@@hongyang3620 I would rather that then the "everyday" person (i.e. poor person) who dreams up some ridiculous narrative about how they are the victim of the system as an explanation
The top bullet point on the final screen nails it: "THE REAL PROBLEM IS TIED TO A SHORTAGE OF PRISTINE COLLATERAL." This is exactly what led to the 2008 crises in mortgage backed securities. Banks not taking advantage of the spread between repos and the EFR indicates raised risk perception of the collateral underlying repos. The Fed needs a way to monitor and regulate the value of collateral in the repo market - not an easy thing to do in the diffuse and opaque Eurodollar markets beyond the reach of U.S. regulations.
The FED cannot "monitor and regulate" this market because it is GLOBAL. No central bank has the capability or the authority the handle this problem. Truth is, a small number of of very wealthy entities have the ability to affect the overall system and there is absolutely nothing anyone can (legally) do about it.
As an analogue, J.P. Morgan was de facto "head of the Federal Reserve" before there was a Federal Reserve. He managed the 1905 banking crisis, without federal mandate, and without statutory power. Now the Fed is in a similar position over the world economy. The US dollar is the reserve currency, but much of what happens to it is beyond Fed statutory control.
🔊 Global business has slowed, therefore lending too. As he says, the system needs to spin faster on high credit expansion. The underlying issue is the global monetary system the world has known for 300 years is based on growth, on credit expansion and IS INHERENTLY UNSTABLE! It is also unethical, manipulated and kills nature and the true nature of man.
You asking Boomers and Gen-Xers to stop pumping stocksmarkets is like grannies telling Millennials to buy houses and breed 3 children each. They can't and they won't! :)
@@nachannachle2706 I read that as culture differences between generations. However these differences are gross stereotypes that can't be applied without enquiry to any one individual. Secondly, these differences have roots in blatant lies and deception. May I ask your racial and country of origin?
@@kevinslattery5748 too few humans grow beyond their initial level of "maturity", therefore, they are forever stuck in the same reality that's their comfort zone.
The reason why banks are refusing to get involved in the repo market is because some of those banks are so insolvent that when economic conditions begin to get tight (recession) those insolvent banks won't be able to pay back borrowed cash. So the fact that the repo market is a mess indicates that the recession has begun.
0:18 "I take a particular focus on something ... Eurodollar sistem ..." explained 1. Never written, created by the British in the 60s 2. If British banks are to intermediate between two non-resident in a foreign currency (in this case $) this particular intermediation (this bill) will NOT be considered by the Bank of England UNDER it's own jurisdiction NO REGULATION 3. banks began to create a market for $ in London called Eurodollar market = it's about providing a legal space in which you pretend activity is taking place somewhere else 4. when American banks realized that London offered the ability to AVOID us regulation - they moved their international operations to the City of London 5. to differentiate their Euromarket activities from the the domestic ones - Banks kept two sets of accounts ... and BE (Bank of England) declared that the "London Euro $ market accounts were NOT in London" In other words These are dealings in $ that are outside of the view of US & British REGULATORS
It's broken but how will it actually break? My hypothesis: physical gold price soars and separates from paper gold, and real interest rates separate from central bank interest rates, inflation runs away and separates from published stats, eroding all trust in governments, central banks and fiat currency. Unemployment and poverty and severe unrest will also escalate, until there are runs on banks and they all go bust (or they outlaw cash), at which point banksters and casino capitalism will explode, and inequality will be revolutionised. My vision is 2020 (pun intended).
So here we are 2020, physical gold didnt soar as much but separated from paper gold and many times you couldnt even get physical gold. Interest rates remain stable low tho. Inflation in recent years was higher than CPI due to extremely low energy prices and CPI not measing asset price inflation (stocks, real estate) so yes, separated from published stats. Covid also caused spike in distrust in government, but people still have faith in central banks, banks and our currency system. Unemployment skyrocketed, social unrest due to BLM and elections increasing, too. But fiat currency stays strong.
@@tenpoundsterlingtn7756 you need to know jargon in order to spot double talk bs as has become standard amongst fools trying to legitimize their lack of real skill
Overview:The Western World has reached the pinnacle in infrastructure- housing and business- expensive and modern. And we cannot really keep expanding- all we need now is repair and replacement.
Yes. Back to basics. Developed nations really have no reason to be terrified of "no growth" economies. 3rd world nations have had flat economies for 1/2 a century...and their people are still alive and breeding. :)
I think the issue is Corp. Bonds via money market operations...For example, if I get a home improvement loan from Home Depot, what takes place in the system is that my account is debited a loan from HD, and HD is credited a note from me. HD CFO will combine hundreds of notes created from sovereign debt (like credit cards, & Net30 accts.) Into securities backed by secured parties, and combine those assets with other “assets” backed by equip. and buildings, along w/ their paper investments (like stocks n bonds) from other companies that HD now holds...all of these Corp. “assets” in HD possession will be used to underwrite and transform the assets into Corp. issued HD bonds. Banks around the world will have access to buy HD Corp. Bonds. As a result, HD takes hard cash from the banks and gives the banks their Corp. Bonds. The magic here is that the banks can go to an insurance bank and swap a HD Corp. bond for a REPO, which maintains a suppressed repo rate and keeps the system afloat...So, one would have to wonder, is the rise in junk rated corp. related to the rise in REPO rates? Have banks completely aborted the Corp. Bond market? Are we living in a world full of Zombie Corporations waiting to die?
That sounds awfully posthegelian. D'ya not know how unstable hystereses always end? "If r consistently continues to exceed g, system explodes." Repeat through levels until _everything_ is broken. I like to put it like this; "What use is shorting an index or a sector, if it's the whole market that has or _is_ the problem?" What's your getaway plan? You can have a helluvalot of contracts, but the counterparty has to be able to buy, friend. Learn the tale of the Golden Goose.
They do know what is going on. The financial system is insolvent. Try filling a sink with the plug out. That's exactly what is happening here. Money is going down the drain. They need more debt to service the already debt. When they run out of collateral - game over!
Even the collateral 's value is nothing but pure speculation (30-year bond? As if anybody will be there to see the end of it, lol!). People underestimate how unreal the whole mastodon of US economy is, compared to other countries. The USA have nothing for themselves apart from the rotten record of "American dream" that everybody inside and outside the USA now know is bogus. No mount of Trumpeting is going to save this dying narrative.
Jesus. I worked this out when I was 19 and studying the Roaring 20s, Great Depression and then World War 2. K economics did not bail the world out, though some of the macro reforms (Glass-Stegal Act) were great. (Another discussion) In fact we were heading into a recession in the late 1930s. We were "bailed out" by WW2. Huge capital controls were put in place.. basically a highly socialistic economy, wealthy people were taxed heavily, (70% or more from memory). This forced them to invest in business and government bonds. People were put to work for the war effort. Unemployment dropped, men went to war or to factories to such an extent that women entered the workforce en masse too. Thus the Great Depression ended. The annoying part is that K economics then became validated as the be all end all of economics.. yes it has some function, but the paradigm has shifted. The reality is, if you have more children or people you have more growth. Can easily provide for the smaller generation that is above you (post-war boomers however...). Right now in Japan and Southern EU. That is not the case... too many old people to few young. Resulting in long, protracted period of anemic growth that will not end till their population stops its decline. There are, from what I can see two solutions to this; 1- accept poor growth or even recession and maintain standards of living as best as can be managed, whilst the economy shrinks. Till the population of that nation maintains a sort of equilibrium and or growth. 2- Mass migration programs that selectively choose young people from around the world that replace the lack of children those countries are having. Both of these will have "problems". 3 - (unlikely scenario) nations with negative demographic growth, start having above replacement level childbirth, beyond 2.1, 2.5 to 3? There is your answer.
The fact that debt has to grow exponentially just to keep this financial Ponzi system going does Not work long term. Central banking has never worked or last forever thus the reason why financial system is broken. Solution is to change it back to national banking system and back it by gold at much higher gold prices. Then tell these politicians to balance the budget and live within their means.
That’s because he’s rambling and not saying very much in this infomercial. “First the dot com bust and then bad things happened in 2008..and I said ‘what’s going on’”. yakity yak 🙄
@@conduit242 guy was pretty clear from what he understood, which he admitted is not everything. He pointed to another red flag similar to 2008, meaning it's probably time to get defensive and out of the stock market, so he literally called the top of the market. He also said it is based on dollar shortage, meaning add long positions on the USD and he's again proven right here. I'm convinced he's from he future.
The state of the global financial system is so frightening. I find it even more frightening that even experts cannot fully explain what is going on in the system; only that something is going on.
@@EMichaelBall - It's worst than that, the foxes guarding the henhouses have no real clue on how the system is working. they only know and care about taking a share out of it for themselves. When they can't do that, they hold off and the economic house of inflationary cards begins to crumble. The only real point of Jeff's commentary is that the global economic system is based on expansion. Like all empires before it, their power and growth are based on constant expansion. Once the expansion stops, the empire collapses.
What the heck is a collateral multiplier? How to quantify it's multiplication -- the velocity of asset backed securities? What is the role of insurance companies here, where there should be an epic amount of collateral & liquidity?
The simplest and strongest explanation of the Repo problem (the underlining issue with the entire financial system) - ta da: lack of assets to back up the short term loans between banks or any number of other loan and credit based transactions. We have identified a new asset segment to back up today's entire system - small biz. We - Raghu-nomis - suggest using today's over inflated stocks as the funding source for small biz expansion. All the Quantitative Easing programs served as a back door to funnel money to the stock market wherein the feds bought bonds from banks who then took that money and bought stocks. The stock market therefore has a 20% to 40% bubble from this indirect fed financing. By taking 20% to 30% of today's stocks and 'loaning' those over to small biz for say 5 years - and for small biz to use the income from those stocks for biz expansion, would be a way to translate the artificially inflated gains of the stock market to now create real wealth via small biz expansion. This will 'reserve' of stocks now partitioned over to small biz will serve as a back stop from market meltdowns for now, investors now that there will always be at least 30% of any given company's stock that won't be sold. It creates a floor to a market downside. The 2nd advantage is that it will create real value 'behind' all this stockmarket boom. Third, the redistribution of these stocks to 30 million small biz owners will in fact super charge the value of the stock market with a 20% to as much as 80% value jump on those stocks because you have now added another 100 million additional players into the sotck market. Jef Snider provided me the missing piece to complete our new program. Thank you thank you.
@@Baamthe25th The more important question maybe: 'What's the downside of not doing this?' An implosion of both the US stock market, the dollar as well as real estate. I've added to the concept since I posted the first note to u. I think a stronger move would be to use about 20% of our stock market value - about $10 trillion of today's nearly $35 trillion in stocks - to pay down about $7 to $10 trillion of (the $35 trillion in) USA real estate mortgages that are less then $750k homes for a total reduction to homeowner of as much as 40%. These stocks would be given to the banks to hold for 2 to 4 years thereby providing a market bottom wherein 30% of all stocks won't be sold during the coming crash. The banks write-off about 40% of their most vulnerable real estate holdings thereby creating instant new value out of their mortgage assets and knocking out $10 trillion in US debt - over night. This gives upto 200 million Americans trillions in added spending money as their rents and mortgages are slashed by half. The billionaire class are the same party holders to mortgages, bank investments and Wall Street bonds so they are in fact simply using thier one asset class (stocks) to boost their other asset class (mortgages). This will serve to remove the risk to both market assets and provide an instant new value to bank holdings, knockout one of the most vulnerable areas of our economic system - the real estate bubble, reduce trillions in debt and liability to the dollar and all the while offering this great new stimulus to the average American consumer whose new found spending will in turn fuel Wall Street values further. Please let me know if u think u can find any downside to this and I'm fairly confident I can show u there are none. Maybe we can make a challenge of it. I pay u if u find a notable downside against the solution to the problem if I can not reconcile the issues u raise. I then pay u $2k to $4k. However, if I can satisfy your challenge with a viable solution; you will make a video of it. Maybe better yet, let's make a video of u challenging the concept. If I prove viable, u post it. If the concept proves useless, I pay u. Part 2 of the proposal is financing small biz with gov't loans.
The first downside is that you're just another guy on UA-cam, so to get anyone high up enough to even try to implement this would be difficult. But assuming this wasn't a problem, wouldn't people at large not oppose this for whatever reason ? Out of principles ? Or just because they don't want to ? You're basically ignoring the human factor entirely. Also, tons of problems could be solved by doing some similar shuffles with debts, yet, as far as I know, they never have been done/tried ? Why ? Well, the answer as always is power.
So you don't think they're all holding another ton of overinflated toxic assets, buyback inflated stocks etc. You'll learn. All the global QE just overinflated all major asset classes. 🙄
I'm trying to understand what would happen if/when the United States dollar can no longer be relied upon to be the global reserve currency. How will banks respond? I am guessing Jeff Snider believes banks didn't want to lend after 2008 because of a crisis in collateral when only pristine collateral was acceptable. My admiration to Jeff Snider for causing me to ask questions. Sadly, I don't understand enough, and can only ask questions. If I follow Jeff Snider's line of reasoning, banks stopped lending because of fear banks could go out of business, right? If I am not mistaken President Trump launched tariffs on steel and aluminum around May 29-31, 2018. Did banks become afraid to lend globally, as a result? Did foreigners become afraid to use the United States dollar as the global reserve currency for fear of being the target of sanctions and tariffs? I heard foreigners still use the United States dollar as the global reserve currency in much of their trading, but they are trying to move away from it. If Bear Sterns and Lehman Brothers and A.I.G. could pose such dire consequences to the global economy, what consequences would the collapse of the Chinese economy pose? Will this danger make banks afraid to lend? I fear President Trump may well succeed in destroying the Chinese economy, destroying the global economy in the process, and destroying the United States economy along with the global economy. If the United States economy goes into recession, and individuals and corporations can no longer service their debt, will this make banks afraid to lend? Do we have to go into a deep depression to flush all the debt out of the global and national economy? Can the debt ever be repaid? Does this give banks a reason to fear? Will this fear of the large banks to lend continue until the large debt load is resolved and a new, globally trusted, resistant to being used as a weapon, global reserve currency replaces the United States dollar as the global reserve currency? Will we go back to a gold standard or something like a gold standard?
Bank reserves are a number on a paper, they dont actually exist on a broken system like the US finantial system. That is the simple truth that explains this video and the fact that the dollar is losing importance to the euro
What a great video. Need to watch it again to fully absorb it. Hope everyone else watching this is helping spread awareness of these things with their family and friends!
Have you all heard the Federal Reserve's new theory on QE? They call it the Big Bang Theory: Perpetual Accelerating Expansion. They were going to call it the Buck Rogers Monetary Theory, "To Infinity and Beyond!", but didn't feel it was appropriate to make Americans pay the naming rights to his heirs...nor Toy Story creators.
We can do something about this broken system. We can stop using it. We can choose to use an honest monetary system. You can choose what you consider to be honest money. For example you can choose silver, or gold, or BCH, or DGB, or whatever you consider honest money. Your choice. You can make this a free market in choice of money. May the best money win and dominate. If we do this, dishonest money will become irrelevant.
The free market determines level of interest rates not a private central banking organization. This is the reason why Public national banking system work.
@ The hierarchy of power is supposed to be American citizen (top), State (middle), and the Federal Government (bottom level). But when central banking was established, our government changed Federal Government (top level now), State (remains in middle), and the American citizens (placed on the bottom level now). It is all about power and control. They use debt as a way to control the people. It is ashamed 😔.
Banks are loaning money to corporations which is using money to buy back stock shares. Retail customers are tapped out and not borrowing money. Only Corp are borrowing.
@alexander44444 If both the taxpayers and the banks are broke, then where is all the money? Where did it go? Research terms: alcuinbramerton the-white-spiritual-boy-off-ledger
@@LL-sk3do : Yes I know. And for the record it was done on the qt. Ask anyone what it is and you'll get a blank stare. If you want the real story on the Fed Reserve and the IMF, check out G Edward Griffin 'The Creature From Jeykle Island'. As damning as it gets. You'll find it I'm sure in local library. The topic of how the FED came into being is something not discussed in High School.
The problem is that the capital requirements for banks have gone up In some places even bank capital has been taxed. There's a large overhang of bad debts, not recognize, but banks know they have them End result less available to lend, even via Repos.
Whats wrong?? Maybe some of the big financial institutions are in trouble and they do want people to panic. Gata World Gold l Council wrote NY Fed about what is going on Repro market but met a brick wall see this.
I have no idea if this guy knows what he is talking about. Did anyone notice that he did not use ONE example?! I could talk like this and so could Barnum.
So if I understand Jeff, the Fed repo is supplying 90B in loans daily that banks won't touch for fear of default. That's not a comforting thought. Especially since the number rises every week and is expanding in duration.
So if banks aren't willing to provide liquidity due to lack or quality of collateral, is it possible the repo market is flooded with toxic assets (over valued collateral) that banks fear could depreciate in the incoming reset?
All things are touched by the financiers will be broken very badly. Industry collapsed; corporations are sold; farmers lost; people lost their houses; people lost their high-paying jobs; people and government are in debt; the economy lost because of bail-outs and tax cuts for financiers; the infrastrucutre is callopasing; military forces have won no wars; prisons are fully occupied with innocent people; enviorment is dying; and now Trump is asking the Fed for negative interest rates to loot people's deposits.
Is some of this happening when China ducks in and takes money out of our system? And then pumps up their "investments" in the world's market. How many currencies are involved in the world markets? All I have is more questions....
Why do these dollar shortages keep recurring? Is it because many borrowers have borrowed more USD denominated debt than they can realistically expect (in the aggregate) to repay? If so, is not the logical solution to let the defaults happen until the excess USD denominated debt is purged from the system? Yes, I know that will probably mean a global recession/depression, but I think that is probably the least bad outcome. Digging our hole deeper is not a long term solution, and hyperinflation would still wreak the economy and also wipe out people's life's savings.
I know what that something is. It is China. China is suffering from a slowdown in growth. They are our biggest creditor. Also, their stock market isn’t restricted like the American stock market is. And that is whats missing. We dont get true numbers out of China.
May 29th: - Sell in May and Go Away - Oversea countries are starting to reduce their reliance on US dollars and will no longer want to put up their quality collateral assets to get those US Dollars. Only left is Bitcoin and subprime mortgages left to put up as Collateral. - Shift in recognition of reserve currency from West to East.
Could the Exchange Stabilization Fund be gumming up the works? Or in combination with the European Financial Stability Facility (EFSF), could the dynamics be dualistic in nature - a savior and a foe?
We want out pilots to be unflappable experts on every weather pattern under the sun. I come away from this thinking Jeff knows a lot less than he should know, though it's hardly his fault. The monetary system has reached an apogee of unknowableness. Most butchers and bakers would be hard-pressed to define the yield curve. And frankly why should they? Oh yes, we're in the Age of Financialization where every bartender is obliged to tout a pet stock. Here's a bright guy who's spent two decades studying the plumbing of the Global Monetary System and what overriding sense does he impart? Knowledge steeped ultimately in perplexity. The Repo collateral world is shrouded in mystery and non-systematic capriciousness. Here today, gone tomorrow. Our entire monetary regime rests on growing institutional risk-aversion, counter-remediating new Basel restrictions and deteriorating collateral quality. Why should the Repo dealers continue to behave like rational free-market actors when the system is half-pregnant with socialism and suspended price discovery? That's asking a lot. The rational response to a half-in, half-out 'free market' might be paranoia. Will the Repo dealers release a group-memo informing the world it's a week way from curtailing a 150-year credit expansion? Do weird algorithms even bother to listen? The eurodollar is essentially the world's reserve currency. However it's not answerable to any identifiable human agency. We're not talking about Goethe's Sorcerer or his Apprentice. We're talking about the spirit behind their incantations which pretends to lend both of them permanent agency. The Sorcerer may in fact be more infected by hubris than the Apprentice. Credit expansion was a nifty euphemism for the yoking of every crevice of worldly value in inescapable indebtedness. In hindsight, it was a gigantic century-and-a-half mousetrap designed to foster the illusion of Everyman prosperity (all assets are contingent liabilities, except maybe gold) until the yoke became ubiquitous and the trap could be sprung. No one believes that a planet with an annual income of $80T will ever address an ever-growing debt load that amounts to $255T now. Especially when we're not headed to Weimar hyperinflation, but Japanized deflation. The bankers welcome inflation since they're interested only in perpetual interest. Absent inflation (the wearing away of debt by 'natural attrition'), mass social unrest is assured. Look around the world. The monetary system collapses if it can't careen continually into an ethos of diminishing dollars. So, the eurodollar system is completely unbeholden to national or regulatory provenance i.e. existing everywhere and nowhere like a dark subterranean brain in the middle of the visible monetary system, dwarfing the visible too. To the extent it possesses sentience, it's probably highly distributive. You'd be hard-pressed to track it down for a hurried interview in order to address its grievances. Remember, Hank Paulson was told over the phone by Wall Street in 2008 that he had THREE HOURS to engineer a fix before the whole system collapsed. Modern civilization will end before we get a word in edgewise. We know nothing has been fixed over the intervening decade. On the contrary, we've added $50T to the debt load. At least back then the Fed could augments its hand-waving with balance sheet expansion. But how are its powers of sentiment-telegraphing impeded among smart market participants when they know its already hobbled by a $4 trillion balance sheet? Central bank activism will be curtailed in the next event. So will we 'fail up' to the IMF's 'relatively clean' balance sheet (aka Jim Rickards) and sort of slip into One Worldism during the ensuing social chaos? Maybe they'll advantage the interregnum by starting WW3 as one final grand trauma-infliction before total population-lockdown. The weapons exist. The cost is sunk. Why not? Only the height of naivete would suggest an endgame hasn't been fully contemplated. Green totalitarianism seems like one of the pincers. Apologies for length. I've been mulling this all weekend and am now off to watch the Eurodollar, the Witch and the Wardrobe series. Maybe that will render some of this initial thinking moot. But I'm thinking not.
It’s a debt based system. For the system to grow, debt must be created. As long as bankers are allowed to print debt, the system (debt) will grow. Not that hard to understand.
There is no mystery here. The Fed had been withdrawing liquidity for some time using QT - and this met with the Treasury ramping up cash balances at the Fed plus a corporate tax payment period. Plus the fact that the deficit is about to blow the doors off. You're welcome. But yes, there is a huge problem in the collateral market inasmuch that the value of collateral is linked to the amount of debt in the system.
If no one knows what’s going on in the repo market, except the players, AND there is a potential systemic threat involved, then hey, I got a bright idea... Why doesn’t our Federal Reserve leadership set up a meeting, or series of meetings, with said key repo market players! Geez...
Funny. I did repairs on the altusa clay tiles on the roof of the Alhambra building in Jupiter, Fl after Hurricane Wilma. Had I known then what I know now I'd have tried trading my labor for trading tips.
@@johnallen3585 Ya, its messed up. I'm just pointing out Bankster have the most protection and immunity for thier crimes. Listen to All The Plenarys Men on John Titus's site called Best Evidence. All 9 of his vids are amazing
Also, speaking of a shortage of dollars. Didn’t the pentagon supposedly lose a couple trillion a few years ago??? Are we just now starting to feel the effects?
May 29th for those wondering was the Italian leadership change that had the market freakout that they would no longer adhere to the EU debt framework so that they could keep getting loans to prop up their banks. Take a big guess why our banks would be concerned. EU banking system is a ticking timebomb.
So banks are scared, won't participate, are holding excess reserves, which causes a liquidity issues, then the Fed has to try and inject liquidity. If the Fed doesn't backstop, which maybe should be the case, then bankers should be holding more than usual. The question becomes how long does the post crash hang over last? It's already been a decade. How much longer until confidence can be restored. Might be one to two decades longer. Government debt is too high, so they may not be able to juice the economy much. What's left, just printing money to keep the system moving along albeit at reduced capacity?
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My humble opinion, Real Vision Finance and this guy should take a look at Ripple Labs and what they are trying to do with the digital asset XRP.
Communism: we just haven't done it right. Fiat collapses: We just didn't print enough.
Soviet Union's communism is actually Marxist-Leninism, not classical Marxism. It's like calling a donkey a horse. Similar but different.
@@joemammon6149 no it's not its actual Marxism its amazing how westerners think they know what communism is and than saying Soviet union was not. I'm from Ukraine I know what communism is and was!
@@Dimabuildingadventures Your people are alcoholics, I wouldn't trust them to recite their own names correctly.
dima m westerners are idiots taught by idiots. American society is failing and I personally am taking steps to ensure prosperity when it does.
@@joemammon6149 Marx never visited a factory and his house keeper was abandoned once she was with his child.
This stuff does my head in, but I appreciate Jeff doing his best to explain this absurdly complex subject matter to regular people
There are some banks that are not solvent. The others know it, so the rates go high to justify their risk. Fed has to come bail them out.
It's a big criminal ponzi scheme. Lol
Dollar shortage>> all dollars are debt and are derived as a loan with interest attached. There is always more debt outstanding than dollars in the system to pay it back. The debt based dollar creates it's own demand for more dollars hense there will always be a dollar shortage with debt based currency.
No the fed doesn't have to do anything specialy bailing out banks. That is the banks problem. No one else,
@@johnjones4502 Yep, but the banksters have sold all the pensions funds trash and the banksters take down mainstreet with them. It's horrible and they are a big protected criminal cartel
@@johnjones4502 If they want to keep this fake economy propped up like they're doing. Of course they do.
@@Michael-qy1jz
Yeah
This guy Snider should be the Secretary of the Treasury!
Dont be an idiot, FIRST and FOREMOST........American needs to get rid of the Federal Reserve and unprivatise it. THAT is the main problem is the free printing of money.
wrong the Fed has nothing to do with printing money. the US treasury prints money
@@dugdogg Under the instructions from the Fed who in turn gets it from its PRIVATE beneficiaries and owners. i.e Rockafellas, Rothchilds, Masons etc....
There’s only one reason why banks won’t lend to each other. It’s because they don’t think they’ll get their money back or it’s because they think they may need that money at very short notice themselves. That tells you something about the insider view on what is really going on in the banking system.
Federal Reserve: Not federal and has no reserves.
It is federal and has unlimited reserves
@@fallenangel2123 gonna need to see a citation for that ...
This guy makes a lot of sense and has a ton of knowledge, more of him please.
Just a talking head saying "something happened".
There's a lot to be said for an expert who is willing to admit when he doesn't understand something. That is an important data point right there. It means something in the system is broken because it is not functioning in a rational manner.
@@hongyang3620 I would rather that then the "everyday" person (i.e. poor person) who dreams up some ridiculous narrative about how they are the victim of the system as an explanation
It is amazing to hear from career experts who are not just fear mongering and/or trying to sell something. Thanks for posting!!
The top bullet point on the final screen nails it: "THE REAL PROBLEM IS TIED TO A SHORTAGE OF PRISTINE COLLATERAL." This is exactly what led to the 2008 crises in mortgage backed securities. Banks not taking advantage of the spread between repos and the EFR indicates raised risk perception of the collateral underlying repos. The Fed needs a way to monitor and regulate the value of collateral in the repo market - not an easy thing to do in the diffuse and opaque Eurodollar markets beyond the reach of U.S. regulations.
The FED cannot "monitor and regulate" this market because it is GLOBAL. No central bank has the capability or the authority the handle this problem. Truth is, a small number of of very wealthy entities have the ability to affect the overall system and there is absolutely nothing anyone can (legally) do about it.
As an analogue, J.P. Morgan was de facto "head of the Federal Reserve" before there was a Federal Reserve. He managed the 1905 banking crisis, without federal mandate, and without statutory power. Now the Fed is in a similar position over the world economy. The US dollar is the reserve currency, but much of what happens to it is beyond Fed statutory control.
Great interview, great interviewee, great insights.
🔊 Global business has slowed, therefore lending too. As he says, the system needs to spin faster on high credit expansion. The underlying issue is the global monetary system the world has known for 300 years is based on growth, on credit expansion and IS INHERENTLY UNSTABLE! It is also unethical, manipulated and kills nature and the true nature of man.
You asking Boomers and Gen-Xers to stop pumping stocksmarkets is like grannies telling Millennials to buy houses and breed 3 children each.
They can't and they won't! :)
@@nachannachle2706 I read that as culture differences between generations. However these differences are gross stereotypes that can't be applied without enquiry to any one individual. Secondly, these differences have roots in blatant lies and deception.
May I ask your racial and country of origin?
@@kevinslattery5748 too few humans grow beyond their initial level of "maturity", therefore, they are forever stuck in the same reality that's their comfort zone.
The reason why banks are refusing to get involved in the repo market is because some of those banks are so insolvent that when economic conditions begin to get tight (recession) those insolvent banks won't be able to pay back borrowed cash. So the fact that the repo market is a mess indicates that the recession has begun.
0:18 "I take a particular focus on something ... Eurodollar sistem ..."
explained
1. Never written, created by the British in the 60s
2. If British banks are to intermediate between two non-resident in a foreign currency (in this case $) this particular intermediation (this bill) will NOT be considered by the Bank of England UNDER it's own jurisdiction
NO REGULATION
3. banks began to create a market for $ in London called Eurodollar market = it's about providing a legal space in which you pretend activity is taking place somewhere else
4. when American banks realized that London offered the ability to AVOID us regulation - they moved their international operations to the City of London
5. to differentiate their Euromarket activities from the the domestic ones - Banks kept two sets of accounts ... and BE (Bank of England) declared that the "London Euro $ market accounts were NOT in London"
In other words
These are dealings in $ that are outside of the view of US & British REGULATORS
It's broken but how will it actually break? My hypothesis: physical gold price soars and separates from paper gold, and real interest rates separate from central bank interest rates, inflation runs away and separates from published stats, eroding all trust in governments, central banks and fiat currency. Unemployment and poverty and severe unrest will also escalate, until there are runs on banks and they all go bust (or they outlaw cash), at which point banksters and casino capitalism will explode, and inequality will be revolutionised. My vision is 2020 (pun intended).
So here we are 2020, physical gold didnt soar as much but separated from paper gold and many times you couldnt even get physical gold. Interest rates remain stable low tho. Inflation in recent years was higher than CPI due to extremely low energy prices and CPI not measing asset price inflation (stocks, real estate) so yes, separated from published stats. Covid also caused spike in distrust in government, but people still have faith in central banks, banks and our currency system. Unemployment skyrocketed, social unrest due to BLM and elections increasing, too. But fiat currency stays strong.
Hey they found a smart guy this time. They've had some total duds in the past week just talking buzzwords
Jaleo Tech yeah, a lot of blockchain techeconomists lately. If you're unfamiliar with the dialog its easy to write off.
Your channel is full of BS. I dont see you putting out worthwhile content. Dont be disrespectful. You couldn't hold a candle to any of these guys.
Macro Voices did like a 6 hour interview they split across multiple videos called eurodollar University.
@@TerryJulianLive wow idiots respond on behalf of the channel itself... that's funny
@@tenpoundsterlingtn7756 you need to know jargon in order to spot double talk bs as has become standard amongst fools trying to legitimize their lack of real skill
Overview:The Western World has reached the pinnacle in infrastructure- housing and business- expensive and modern. And we cannot really keep expanding- all we need now is repair and replacement.
Yes. Back to basics.
Developed nations really have no reason to be terrified of "no growth" economies. 3rd world nations have had flat economies for 1/2 a century...and their people are still alive and breeding. :)
@Dr Wolfgang Chausser no but the oldies die and the youngies simply replace them with existing infrastructure.
I think the issue is Corp. Bonds via money market operations...For example, if I get a home improvement loan from Home Depot, what takes place in the system is that my account is debited a loan from HD, and HD is credited a note from me. HD CFO will combine hundreds of notes created from sovereign debt (like credit cards, & Net30 accts.) Into securities backed by secured parties, and combine those assets with other “assets” backed by equip. and buildings, along w/ their paper investments (like stocks n bonds) from other companies that HD now holds...all of these Corp. “assets” in HD possession will be used to underwrite and transform the assets into Corp. issued HD bonds. Banks around the world will have access to buy HD Corp. Bonds. As a result, HD takes hard cash from the banks and gives the banks their Corp. Bonds.
The magic here is that the banks can go to an insurance bank and swap a HD Corp. bond for a REPO, which maintains a suppressed repo rate and keeps the system afloat...So, one would have to wonder, is the rise in junk rated corp. related to the rise in REPO rates? Have banks completely aborted the Corp. Bond market? Are we living in a world full of Zombie Corporations waiting to die?
This system has always been broken. Learn to capitalize on this historic fact. Paper, scissors, rock.
That sounds awfully posthegelian. D'ya not know how unstable hystereses always end? "If r consistently continues to exceed g, system explodes." Repeat through levels until _everything_ is broken.
I like to put it like this; "What use is shorting an index or a sector, if it's the whole market that has or _is_ the problem?" What's your getaway plan? You can have a helluvalot of contracts, but the counterparty has to be able to buy, friend. Learn the tale of the Golden Goose.
PhilosophicalZombie or you can buy Bitcoin which has no counterparty risk and is the most sound money the world has ever had
@Dr Wolfgang Chausser The demonic rule of this world is soon to end (Crowley)
They do know what is going on. The financial system is insolvent.
Try filling a sink with the plug out. That's exactly what is happening here. Money is going down the drain. They need more debt to service the already debt.
When they run out of collateral - game over!
Even the collateral 's value is nothing but pure speculation (30-year bond? As if anybody will be there to see the end of it, lol!).
People underestimate how unreal the whole mastodon of US economy is, compared to other countries. The USA have nothing for themselves apart from the rotten record of "American dream" that everybody inside and outside the USA now know is bogus. No mount of Trumpeting is going to save this dying narrative.
Jesus. I worked this out when I was 19 and studying the Roaring 20s, Great Depression and then World War 2. K economics did not bail the world out, though some of the macro reforms (Glass-Stegal Act) were great. (Another discussion)
In fact we were heading into a recession in the late 1930s. We were "bailed out" by WW2. Huge capital controls were put in place.. basically a highly socialistic economy, wealthy people were taxed heavily, (70% or more from memory). This forced them to invest in business and government bonds. People were put to work for the war effort.
Unemployment dropped, men went to war or to factories to such an extent that women entered the workforce en masse too. Thus the Great Depression ended.
The annoying part is that K economics then became validated as the be all end all of economics.. yes it has some function, but the paradigm has shifted.
The reality is, if you have more children or people you have more growth. Can easily provide for the smaller generation that is above you (post-war boomers however...).
Right now in Japan and Southern EU. That is not the case... too many old people to few young. Resulting in long, protracted period of anemic growth that will not end till their population stops its decline.
There are, from what I can see two solutions to this;
1- accept poor growth or even recession and maintain standards of living as best as can be managed, whilst the economy shrinks. Till the population of that nation maintains a sort of equilibrium and or growth.
2- Mass migration programs that selectively choose young people from around the world that replace the lack of children those countries are having.
Both of these will have "problems".
3 - (unlikely scenario) nations with negative demographic growth, start having above replacement level childbirth, beyond 2.1, 2.5 to 3?
There is your answer.
Yes, what's (blindingly) old is new.
You omitted Climate Changes, conveniently.
You were right! I just joined your paid channel...and the first video I watched is well worth the subscription for the whole year!
Insanely interesting! But I haven't understood anything :)
Global dollar shortage...he says; 😕.
Me too, feels like he is giving a warning of some kind.
Lol
Unfortunately Jeff Snyder appears to be the only one who understands this stuff; he is doing his best to bring the rest of us current. Thank you Jeff!
The fact that debt has to grow exponentially just to keep this financial Ponzi system going does Not work long term. Central banking has never worked or last forever thus the reason why financial system is broken. Solution is to change it back to national banking system and back it by gold at much higher gold prices. Then tell these politicians to balance the budget and live within their means.
If politicians have to live within their means, they will have no lies to sell us. That's why they love FIAT money.
If we had Jeffs all over the monetary market place we’d be in a much better place...👍🌟
Think I need a flow chart, just not able to follow this.
That’s because he’s rambling and not saying very much in this infomercial. “First the dot com bust and then bad things happened in 2008..and I said ‘what’s going on’”. yakity yak 🙄
@@conduit242 guy was pretty clear from what he understood, which he admitted is not everything. He pointed to another red flag similar to 2008, meaning it's probably time to get defensive and out of the stock market, so he literally called the top of the market. He also said it is based on dollar shortage, meaning add long positions on the USD and he's again proven right here. I'm convinced he's from he future.
The state of the global financial system is so frightening. I find it even more frightening that even experts cannot fully explain what is going on in the system; only that something is going on.
This is by design, so only the foxes who generated the complexity know how to guard the henhouse.
@@EMichaelBall - It's worst than that, the foxes guarding the henhouses have no real clue on how the system is working. they only know and care about taking a share out of it for themselves. When they can't do that, they hold off and the economic house of inflationary cards begins to crumble. The only real point of Jeff's commentary is that the global economic system is based on expansion. Like all empires before it, their power and growth are based on constant expansion. Once the expansion stops, the empire collapses.
What the heck is a collateral multiplier? How to quantify it's multiplication -- the velocity of asset backed securities? What is the role of insurance companies here, where there should be an epic amount of collateral & liquidity?
FED is a huge mafia.
Jeff snider is the best! Making sense and explaining this nonsense monetary system!
The simplest and strongest explanation of the Repo problem (the underlining issue with the entire financial system) - ta da: lack of assets to back up the short term loans between banks or any number of other loan and credit based transactions. We have identified a new asset segment to back up today's entire system - small biz. We - Raghu-nomis - suggest using today's over inflated stocks as the funding source for small biz expansion. All the Quantitative Easing programs served as a back door to funnel money to the stock market wherein the feds bought bonds from banks who then took that money and bought stocks. The stock market therefore has a 20% to 40% bubble from this indirect fed financing. By taking 20% to 30% of today's stocks and 'loaning' those over to small biz for say 5 years - and for small biz to use the income from those stocks for biz expansion, would be a way to translate the artificially inflated gains of the stock market to now create real wealth via small biz expansion. This will 'reserve' of stocks now partitioned over to small biz will serve as a back stop from market meltdowns for now, investors now that there will always be at least 30% of any given company's stock that won't be sold. It creates a floor to a market downside. The 2nd advantage is that it will create real value 'behind' all this stockmarket boom. Third, the redistribution of these stocks to 30 million small biz owners will in fact super charge the value of the stock market with a 20% to as much as 80% value jump on those stocks because you have now added another 100 million additional players into the sotck market. Jef Snider provided me the missing piece to complete our new program. Thank you thank you.
And what are the downsides of this ?
@@Baamthe25th The more important question maybe: 'What's the downside of not doing this?' An implosion of both the US stock market, the dollar as well as real estate. I've added to the concept since I posted the first note to u. I think a stronger move would be to use about 20% of our stock market value - about $10 trillion of today's nearly $35 trillion in stocks - to pay down about $7 to $10 trillion of (the $35 trillion in) USA real estate mortgages that are less then $750k homes for a total reduction to homeowner of as much as 40%. These stocks would be given to the banks to hold for 2 to 4 years thereby providing a market bottom wherein 30% of all stocks won't be sold during the coming crash. The banks write-off about 40% of their most vulnerable real estate holdings thereby creating instant new value out of their mortgage assets and knocking out $10 trillion in US debt - over night. This gives upto 200 million Americans trillions in added spending money as their rents and mortgages are slashed by half. The billionaire class are the same party holders to mortgages, bank investments and Wall Street bonds so they are in fact simply using thier one asset class (stocks) to boost their other asset class (mortgages). This will serve to remove the risk to both market assets and provide an instant new value to bank holdings, knockout one of the most vulnerable areas of our economic system - the real estate bubble, reduce trillions in debt and liability to the dollar and all the while offering this great new stimulus to the average American consumer whose new found spending will in turn fuel Wall Street values further. Please let me know if u think u can find any downside to this and I'm fairly confident I can show u there are none. Maybe we can make a challenge of it. I pay u if u find a notable downside against the solution to the problem if I can not reconcile the issues u raise. I then pay u $2k to $4k. However, if I can satisfy your challenge with a viable solution; you will make a video of it. Maybe better yet, let's make a video of u challenging the concept. If I prove viable, u post it. If the concept proves useless, I pay u. Part 2 of the proposal is financing small biz with gov't loans.
The first downside is that you're just another guy on UA-cam, so to get anyone high up enough to even try to implement this would be difficult. But assuming this wasn't a problem, wouldn't people at large not oppose this for whatever reason ? Out of principles ? Or just because they don't want to ? You're basically ignoring the human factor entirely.
Also, tons of problems could be solved by doing some similar shuffles with debts, yet, as far as I know, they never have been done/tried ? Why ? Well, the answer as always is power.
So you don't think they're all holding another ton of overinflated toxic assets, buyback inflated stocks etc. You'll learn. All the global QE just overinflated all major asset classes. 🙄
I'm trying to understand what would happen if/when the United States dollar can no longer be relied upon to be the global reserve currency. How will banks respond?
I am guessing Jeff Snider believes banks didn't want to lend after 2008 because of a crisis in collateral when only pristine collateral was acceptable. My admiration to Jeff Snider for causing me to ask questions. Sadly, I don't understand enough, and can only ask questions. If I follow Jeff Snider's line of reasoning, banks stopped lending because of fear banks could go out of business, right?
If I am not mistaken President Trump launched tariffs on steel and aluminum around May 29-31, 2018. Did banks become afraid to lend globally, as a result? Did foreigners become afraid to use the United States dollar as the global reserve currency for fear of being the target of sanctions and tariffs? I heard foreigners still use the United States dollar as the global reserve currency in much of their trading, but they are trying to move away from it.
If Bear Sterns and Lehman Brothers and A.I.G. could pose such dire consequences to the global economy, what consequences would the collapse of the Chinese economy pose? Will this danger make banks afraid to lend? I fear President Trump may well succeed in destroying the Chinese economy, destroying the global economy in the process, and destroying the United States economy along with the global economy.
If the United States economy goes into recession, and individuals and corporations can no longer service their debt, will this make banks afraid to lend?
Do we have to go into a deep depression to flush all the debt out of the global and national economy? Can the debt ever be repaid? Does this give banks a reason to fear?
Will this fear of the large banks to lend continue until the large debt load is resolved and a new, globally trusted, resistant to being used as a weapon, global reserve currency replaces the United States dollar as the global reserve currency? Will we go back to a gold standard or something like a gold standard?
Bank reserves are a number on a paper, they dont actually exist on a broken system like the US finantial system. That is the simple truth that explains this video and the fact that the dollar is losing importance to the euro
An expert in his field.
Lewis from Revenge of the nerds!!
Burrrrrrrrrrrrrp!!!!
gaudet Gaudet The people I listen to and trust the most are nerds
Everyone needs to watch this
What a great video. Need to watch it again to fully absorb it. Hope everyone else watching this is helping spread awareness of these things with their family and friends!
Get ready for a major financial event in early 2020. These repo issues are the mere foreshocks to the mainshock.
Welp....
Thank you, this was a very informative interview. Teza from Sydney Australia
O, What a mess they've made with their usury system.
The rising inequity of the gap between rich and poor 🤷♂️🤦♂️
Yeah, I think that has a lot to do with it. Either as a symptom or cause, but either way it brings about instability in the system.
Is the something going on Deutsche Bank ?
Dunno - but if a bomb is going to get dropped, it’s be over xmas when everyone is too busy to notice or on holiday.
Eh, the whole Eurozone really
Have you all heard the Federal Reserve's new theory on QE?
They call it the Big Bang Theory: Perpetual Accelerating Expansion.
They were going to call it the Buck Rogers Monetary Theory, "To Infinity and Beyond!", but didn't feel it was appropriate to make Americans pay the naming rights to his heirs...nor Toy Story creators.
Old interview old news. Real Vision got an update on Jeff Snider content?
printing press+unlimited greed = total economic disaster!
Everybody, somethings going on out there. So give me money and a 30 minute segment.
Jeff snider is awesome!!
160 bill a day broken. a day! we work they print! seems fair. lol
Excellent Interview. Watched it twice. Thank you Real Vision Finance!!
We all know it's broken and there is nothing we can do about it.
STOCK UP. BUY US SILVER EAGLES/GOLD
We can do something about this broken system. We can stop using it. We can choose to use an honest monetary system. You can choose what you consider to be honest money. For example you can choose silver, or gold, or BCH, or DGB, or whatever you consider honest money. Your choice. You can make this a free market in choice of money. May the best money win and dominate. If we do this, dishonest money will become irrelevant.
@@timothyjohnson1511 The cops will arrest you for not paying taxes in USD.
@@jessem8928 There is a simple solution to that. Don't do anything taxable. Keep your income below $24K per year. Relocate to a low cost environment.
Why are they doing this or that? JUST ASK THEM!!!!!!!
The free market determines level of interest rates not a private central banking organization. This is the reason why Public national banking system work.
Not really. The Fed controls the Fed Funds rate, which in turn controls (roughly) interest rates.
Christian Libertarian correct!
@ The hierarchy of power is supposed to be American citizen (top), State (middle), and the Federal Government (bottom level). But when central banking was established, our government changed Federal Government (top level now), State (remains in middle), and the American citizens (placed on the bottom level now). It is all about power and control. They use debt as a way to control the people. It is ashamed 😔.
LOSS OF TRUST.
That is what's going on.
When trust is lost, the "reserve Currency" is dead.
Currency reset. Checkmate.
May 29 2018 was the big worry of an Italian debt crisis. They were worried of the election outcome. Nobody wanted their bonds.
Banks are loaning money to corporations which is using money to buy back stock shares. Retail customers are tapped out and not borrowing money. Only Corp are borrowing.
No problem... the taxpayers will save the Banks. Yup, just like last time.
@alexander44444 If both the taxpayers and the banks are broke, then where is all the money? Where did it go?
Research terms: alcuinbramerton the-white-spiritual-boy-off-ledger
The Banks/banksters don’t need saving.
@Pat TheHombre @alexander44444
Bail-In laws were passed in all countries about two years back. Look it up.
@@LL-sk3do : Yes I know. And for the record it was done on the qt. Ask anyone what it is and you'll get a blank stare. If you want the real story on the Fed Reserve and the IMF, check out G Edward Griffin 'The Creature From Jeykle Island'. As damning as it gets. You'll find it I'm sure in local library. The topic of how the FED came into being is something not discussed in High School.
The world is addicted to credit, and credit is stopping.
The problem is that the capital requirements for banks have gone up
In some places even bank capital has been taxed.
There's a large overhang of bad debts, not recognize, but banks know they have them
End result less available to lend, even via Repos.
Whats wrong?? Maybe some of the big financial institutions are in trouble and they do want people to panic. Gata World Gold l Council wrote NY Fed about what is going on Repro market but met a brick wall see this.
The financial system is not so much broken as it is overly abused !
We live in strange times
I have no idea if this guy knows what he is talking about. Did anyone notice that he did not use ONE example?! I could talk like this and so could Barnum.
They must solve for Triffin’s Dilema ... PRINT MO!!!
So if I understand Jeff, the Fed repo is supplying 90B in loans daily that banks won't touch for fear of default.
That's not a comforting thought. Especially since the number rises every week and is expanding in duration.
So if banks aren't willing to provide liquidity due to lack or quality of collateral, is it possible the repo market is flooded with toxic assets (over valued collateral) that banks fear could depreciate in the incoming reset?
Best one so far
Top shelf material
Those in the know...know that the factors that caused the 2008 crash have not been addressed and another worse crash is coming.
How can anyone who even thinks they may be educated - PRETEND COUNTERFEITING IS BROKE?
Excellent analysis
Excellent talk!!!
Something is going on ! Impressive.
All things are touched by the financiers will be broken very badly. Industry collapsed; corporations are sold; farmers lost; people lost their houses; people lost their high-paying jobs; people and government are in debt; the economy lost because of bail-outs and tax cuts for financiers; the infrastrucutre is callopasing; military forces have won no wars; prisons are fully occupied with innocent people; enviorment is dying; and now Trump is asking the Fed for negative interest rates to loot people's deposits.
Is some of this happening when China ducks in and takes money out of our system? And then pumps up their "investments" in the world's market. How many currencies are involved in the world markets? All I have is more questions....
Why do these dollar shortages keep recurring? Is it because many borrowers have borrowed more USD denominated debt than they can realistically expect (in the aggregate) to repay? If so, is not the logical solution to let the defaults happen until the excess USD denominated debt is purged from the system? Yes, I know that will probably mean a global recession/depression, but I think that is probably the least bad outcome. Digging our hole deeper is not a long term solution, and hyperinflation would still wreak the economy and also wipe out people's life's savings.
I know what that something is. It is China. China is suffering from a slowdown in growth. They are our biggest creditor. Also, their stock market isn’t restricted like the American stock market is. And that is whats missing. We dont get true numbers out of China.
May 29th:
- Sell in May and Go Away
- Oversea countries are starting to reduce their reliance on US dollars and will no longer want to put up their quality collateral assets to get those US Dollars. Only left is Bitcoin and subprime mortgages left to put up as Collateral.
- Shift in recognition of reserve currency from West to East.
Could the Exchange Stabilization Fund be gumming up the works? Or in combination with the European Financial Stability Facility (EFSF), could the dynamics be dualistic in nature - a savior and a foe?
What a legend.
We want out pilots to be unflappable experts on every weather pattern under the sun. I come away from this thinking Jeff knows a lot less than he should know, though it's hardly his fault. The monetary system has reached an apogee of unknowableness.
Most butchers and bakers would be hard-pressed to define the yield curve. And frankly why should they? Oh yes, we're in the Age of Financialization where every bartender is obliged to tout a pet stock. Here's a bright guy who's spent two decades studying the plumbing of the Global Monetary System and what overriding sense does he impart? Knowledge steeped ultimately in perplexity. The Repo collateral world is shrouded in mystery and non-systematic capriciousness. Here today, gone tomorrow. Our entire monetary regime rests on growing institutional risk-aversion, counter-remediating new Basel restrictions and deteriorating collateral quality. Why should the Repo dealers continue to behave like rational free-market actors when the system is half-pregnant with socialism and suspended price discovery? That's asking a lot. The rational response to a half-in, half-out 'free market' might be paranoia.
Will the Repo dealers release a group-memo informing the world it's a week way from curtailing a 150-year credit expansion? Do weird algorithms even bother to listen? The eurodollar is essentially the world's reserve currency. However it's not answerable to any identifiable human agency. We're not talking about Goethe's Sorcerer or his Apprentice. We're talking about the spirit behind their incantations which pretends to lend both of them permanent agency. The Sorcerer may in fact be more infected by hubris than the Apprentice.
Credit expansion was a nifty euphemism for the yoking of every crevice of worldly value in inescapable indebtedness. In hindsight, it was a gigantic century-and-a-half mousetrap designed to foster the illusion of Everyman prosperity (all assets are contingent liabilities, except maybe gold) until the yoke became ubiquitous and the trap could be sprung. No one believes that a planet with an annual income of $80T will ever address an ever-growing debt load that amounts to $255T now. Especially when we're not headed to Weimar hyperinflation, but Japanized deflation. The bankers welcome inflation since they're interested only in perpetual interest. Absent inflation (the wearing away of debt by 'natural attrition'), mass social unrest is assured. Look around the world. The monetary system collapses if it can't careen continually into an ethos of diminishing dollars.
So, the eurodollar system is completely unbeholden to national or regulatory provenance i.e. existing everywhere and nowhere like a dark subterranean brain in the middle of the visible monetary system, dwarfing the visible too. To the extent it possesses sentience, it's probably highly distributive. You'd be hard-pressed to track it down for a hurried interview in order to address its grievances. Remember, Hank Paulson was told over the phone by Wall Street in 2008 that he had THREE HOURS to engineer a fix before the whole system collapsed. Modern civilization will end before we get a word in edgewise.
We know nothing has been fixed over the intervening decade. On the contrary, we've added $50T to the debt load. At least back then the Fed could augments its hand-waving with balance sheet expansion. But how are its powers of sentiment-telegraphing impeded among smart market participants when they know its already hobbled by a $4 trillion balance sheet? Central bank activism will be curtailed in the next event. So will we 'fail up' to the IMF's 'relatively clean' balance sheet (aka Jim Rickards) and sort of slip into One Worldism during the ensuing social chaos? Maybe they'll advantage the interregnum by starting WW3 as one final grand trauma-infliction before total population-lockdown. The weapons exist. The cost is sunk. Why not?
Only the height of naivete would suggest an endgame hasn't been fully contemplated. Green totalitarianism seems like one of the pincers. Apologies for length. I've been mulling this all weekend and am now off to watch the Eurodollar, the Witch and the Wardrobe series. Maybe that will render some of this initial thinking moot. But I'm thinking not.
Fantastic!!
Lock em up!
It’s a debt based system. For the system to grow, debt must be created. As long as bankers are allowed to print debt, the system (debt) will grow. Not that hard to understand.
There is no mystery here. The Fed had been withdrawing liquidity for some time using QT - and this met with the Treasury ramping up cash balances at the Fed plus a corporate tax payment period. Plus the fact that the deficit is about to blow the doors off. You're welcome. But yes, there is a huge problem in the collateral market inasmuch that the value of collateral is linked to the amount of debt in the system.
Hey only a month and a half behind! Doesn't bring up MBS at all.
@@dsc2062 never mind this was filmed sept 27. Around 2 months behind. My apologies.
If no one knows what’s going on in the repo market, except the players, AND there is a potential systemic threat involved, then hey, I got a bright idea... Why doesn’t our Federal Reserve leadership set up a meeting, or series of meetings, with said key repo market players! Geez...
Here before The Big Short 2
Funny. I did repairs on the altusa clay tiles on the roof of the Alhambra building in Jupiter, Fl after Hurricane Wilma. Had I known then what I know now I'd have tried trading my labor for trading tips.
It's the people you missing
Banksters are the new GODs.
You've got the wrong end of the stick.
@@johnallen3585 Ya, its messed up. I'm just pointing out Bankster have the most protection and immunity for thier crimes. Listen to All The Plenarys Men on John Titus's site called Best Evidence. All 9 of his vids are amazing
Also, speaking of a shortage of dollars. Didn’t the pentagon supposedly lose a couple trillion a few years ago??? Are we just now starting to feel the effects?
how can no one know what is going on in the repo and why there is a dollar liquidity issue?
Buy gold, silver, Bitcoin and ammo..... tough times ahead.
I have read that a lot of lbo loan on issuers books have not been able to find buyers
There's something going on here.
May 29th for those wondering was the Italian leadership change that had the market freakout that they would no longer adhere to the EU debt framework so that they could keep getting loans to prop up their banks. Take a big guess why our banks would be concerned. EU banking system is a ticking timebomb.
"Something happened.......", great interpretation of the repo market. I couldn't say it better.
Powell is probably going home and building a bunker
Keep on putting bandaids on the festering wounds on the arms and legs of this economy, I have my bone saw sharpened and ready.
Impressive.
So banks are scared, won't participate, are holding excess reserves, which causes a liquidity issues, then the Fed has to try and inject liquidity. If the Fed doesn't backstop, which maybe should be the case, then bankers should be holding more than usual. The question becomes how long does the post crash hang over last? It's already been a decade. How much longer until confidence can be restored. Might be one to two decades longer. Government debt is too high, so they may not be able to juice the economy much. What's left, just printing money to keep the system moving along albeit at reduced capacity?