The global financial system is likely insolvent

[haidut]

Vigilant user @Drareg recently posted a few threads of interest to those who want to know just how deep the rabbit hole goes when it comes to the elite's financial shenanigans. One of the threads was an interesting analysis by a Reddit user, which shows that most publicly traded company around the world are owned by a mysterious entity that the Reddit user called "MegaCorp, Inc". In that post, the user demonstrated that Fidelity, BlackRock, Vanguard, and StateStreet are major components of MegaCorp.

View: https://www.reddit.com/r/Superstonk/comments/ows1a2/will_the_real_gme_bbemg_please_stand_up_cont_part/


Drareg also posted another thread on a recent post by WallStreetOnParade, alerting us to the impending release of data by the Fed showing which financial institutions were insolvent back in Q4 of 2019, whose insolvency triggered another global financial crisis and massive bailouts dwarfing the ones in 2008, and that financial catastrophe became known to the sheeple around us as the "COVID-19 pandemic".

2019 Bank Bailout

A good article highlighting the fed bailing out wall street in 2019 before covid started, once the WHO declared a pandemic they ramped up the bailout and framed it as covid stimulus. This is the reason for covid lockdowns and hysteria in general, on top of this they amplified George Floyd to...

raypeatforum.com

I commented in that thread that based on bank public investing behavior and general state of the "developed" economies, my guess is that most Western financial institutions are insolvent.

2019 Bank Bailout

A good article highlighting the fed bailing out wall street in 2019 before covid started, once the WHO declared a pandemic they ramped up the bailout and framed it as covid stimulus. This is the reason for covid lockdowns and hysteria in general, on top of this they amplified George Floyd to...

raypeatforum.com

It looks like the Fed data release from last night corroborates that fear of mine. I have extracted below the list of all institutions who took multiple emergency repo loans from the Fed back in Q4 2019, and have underlined the more important/troubling ones. I am also attaching the actual spreadsheet in case the Fed gets second thoughts and pulls it from their website due to media outcry.
Aside from the usual suspects (Wall Street megabanks), please note the presence there of multiple non-US banks of so-called "systemic importance" - HSBC, RBS, RBC, Barclays, BNP Paribas, Credit Suisse, Deutsche Bank, etc. In addition, please note the presence of Fidelity, Vanguard, BlackRock, StateStreet, etc as well as numerous other retail investing companies considered to be fully legit and not in financial trouble, while the first four are also the main components of MegaCorp. If MegaCorp is insolvent, then it is little surprise the bailouts took place. Furthermore, note the presence of Fannie and Freddie as well. Yes, we are in a massive housing fraud again, with the same players and the same illegal deeds going on again.
Perhaps worst of all, it looks like some of the largest depositor banks and money-market funds were also repeated recipients of such emergency funds, which paints a truly scary picture of the state of the financial system in the "developed" world. If depositor banks and money market funds are in trouble, it suggests either massive fraud on their part by investing in dangerous "assets" (which they are prohibited from doing by law) or them simply cooking the books and lying about depositor assets (which is also highly illegal).
One way or another, all this likely means one or more of the following: (1) nothing has been fixed in global economy/finance since 2008, and this time it is much more global in scale; (2) this time the bubble/fraud spans even the "safest" banks and their "instruments"; (3) if the Fed were to raise the interest rates by even a quarter point, the whole thing will crumble rapidly, and on a global level too; (4) anybody with a 401K and counting on that money is likely in for a very rude awakening; (5) anybody with deposits in the money market funds and/or the depositor banks listed below is probably in a similar position to the 401K holder; (6) regardless of what "pandemic" comes next, this mess below is unfixable and collapse of some sort is imminent, possibly including a run on the depositor banks too (this would explain the frantic cyber attack "simulations" IMF is performing as we speak: Israel and the coming cyber attack on banks).

@Regina @tankasnowgod @AlaskaJono

By Pancaking Term Loans, JPMorgan Had $30 Billion Outstanding from the Fed’s Emergency Repo Loans in the Last Quarter of 2019

By Pam Martens and Russ Martens: December 31, 2021 ~ Jamie Dimon, Chairman and CEO of JPMorgan Chase, likes to perpetually brag about his bank’s “fortress

wallstreetonparade.com

Historical Transaction Data - FEDERAL RESERVE BANK of NEW YORK

www.newyorkfed.org

https://www.newyorkfed.org/medialibrary/media/markets/DFA/rp_rrp_data_2019_q4.xls

AB Fixed-Income Shares, Inc. - AB Government Money Market Portfolio
Ally Bank
American Funds U.S. Government Money Market Fund
Amherst Pierpont Securities LLC
Bank of America, N.A.
Bank of Montreal (Chicago Branch)
Bank of Nova Scotia, New York Agency
Barclays Bank PLC - New York Branch
Barclays Capital Inc.
BlackRock Liquidity Funds: FedFund
BlackRock Liquidity Funds: TempCash
BlackRock Liquidity Funds: TempFund
BlackRock Liquidity Funds: T-Fund
BMO Capital Markets Corp.
BNP Paribas Securities Corp.
BofA Securities, Inc.
Cantor Fitzgerald & Co.
Citibank, N.A.
Citigroup Global Markets Inc.
Columbia Short-Term Cash Fund, a series of Columbia Funds Series Trust II
Credit Agricole Corporate and Investment Bank
Credit Suisse AG, New York Branch
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Dreyfus Cash Management
Dreyfus Government Cash Management
Dreyfus Institutional Preferred Government Money Market Fund
Edward Jones Money Market Fund
Federal Agricultural Mortgage Corporation (Farmer Mac)
Federal Home Loan Bank of Atlanta
Federal Home Loan Bank of Boston
Federal Home Loan Bank of Chicago
Federal Home Loan Bank of Cincinnati
Federal Home Loan Bank of Dallas
Federal Home Loan Bank of Des Moines
Federal Home Loan Bank of New York
Federal Home Loan Bank of Pittsburgh
Federal Home Loan Bank of San Francisco
Federal Home Loan Bank of Topeka
Federal Home Loan Mortgage Corporation (Freddie Mac)
Federal National Mortgage Association (Fannie Mae)
Federated Capital Reserves Fund
Federated Government Obligations Fund
Federated Government Obligations Tax-Managed Fund
Federated Government Reserves Fund
Federated Institutional Money Market Management
Federated Prime Cash Obligations Fund
Federated Prime Obligations Fund
Federated Prime Value Obligations Fund
Federated Tax-Free Obligations Fund
Federated Treasury Obligations Fund
Federated U.S. Treasury Cash Reserves
Fidelity Colchester Street Trust: Government Portfolio
Fidelity Colchester Street Trust: Money Market Portfolio
Fidelity Colchester Street Trust: Prime Money Market Portfolio
Fidelity Colchester Street Trust: Prime Reserves Portfolio
Fidelity Colchester Street Trust: Treasury Portfolio
Fidelity Hereford Street Trust: Fidelity Government Money Market Fund
Fidelity Hereford Street Trust: Fidelity Money Market Fund
Fidelity Newbury Street Trust: Fidelity Treasury Money Market Fund
Fidelity Phillips Street Trust: Fidelity Government Cash Reserves
Fidelity Revere Street Trust: Fidelity Cash Central Fund
Fidelity Revere Street Trust: Fidelity Securities Lending Cash Central Fund
Fidelity Salem Street Trust: Fidelity Series Government Money Market Fund
First American Government Obligations Fund
First American Treasury Obligations Fund
General Money Market Fund
Goldman Sachs & Co. LLC
Goldman Sachs Financial Square Government Fund
Goldman Sachs Financial Square Money Market Fund
Goldman Sachs Financial Square Prime Obligations Fund
Goldman Sachs Financial Square Treasury Solutions Fund
Government Cash Management Portfolio
HSBC Securities (USA) Inc.
Institutional Liquid Reserve Portfolio
Institutional US Gov. Money Market Fund, a series of the State Street Master Funds
Jefferies LLC
JPMorgan Chase Bank, N.A.
JPMorgan Liquid Assets Money Market Fund
JPMorgan Prime Money Market Fund
J.P. Morgan Securities LLC
JPMorgan Tax Free Money Market Fund
JPMorgan U.S. Government Money Market Fund
JPMorgan U.S. Treasury Plus Money Market Fund
Master Premier Government Institutional Portfolio
Master Treasury Strategies Institutional Portfolio
Mizuho Bank, Ltd.
Mizuho Securities USA LLC
Money Market Master Portfolio
Morgan Stanley Bank, N.A.
Morgan Stanley & Co. LLC
Morgan Stanley Institutional Liquidity Funds Government Portfolio
Morgan Stanley Institutional Liquidity Funds Government Securities Portfolio
Morgan Stanley Institutional Liquidity Funds Prime Portfolio
Morgan Stanley Institutional Liquidity Funds Treasury Portfolio
Natixis New York Branch
NatWest Markets Securities Inc.
Nomura Securities International, Inc.
Northern Funds - U.S. Government Money Market Fund
Northern Institutional Funds - Government Portfolio
Northern Institutional Funds - Government Select Portfolio
Northern Institutional Funds - Treasury Portfolio
NTAM Treasury Assets Fund
PFM Funds Government Select Series
Premier Portfolio, a series of the AIM Treasurer's Series Trust (Invesco Treasurer's Series Trust)
Prime Master Fund
RBC Capital Markets, LLC
RBC Funds Trust, U.S. Government Money Market Fund
Royal Bank of Canada
Schwab Government Money Fund
Schwab Treasury Obligations Money Fund
Schwab Value Advantage Money Fund
Societe Generale, New York Branch
State Street Navigator Securities Lending Government Money Market Portfolio
STIT Government and Agency Portfolio
STIT Liquid Assets Portfolio
Sumitomo Mitsui Banking Corporation, NY branch
TD Securities (USA) LLC
The DFA Short Term Investment Fund of The DFA Investment Trust Company
The Money Market Portfolio
The Northern Trust Company
Treasury Money Market Master Portfolio
T. Rowe Price Cash Reserves Fund
T. Rowe Price Government Money Fund, Inc.
T. Rowe Price Government Reserve Fund
T. Rowe Price U.S. Treasury Money Fund
UBS Securities LLC.
Vanguard Federal Money Market Fund
Vanguard Market Liquidity Fund
Vanguard Prime Money Market Fund
Wells Fargo Bank, NA
Wells Fargo Cash Investment Money Market Fund
Wells Fargo Government Money Market Fund
Wells Fargo Heritage Money Market Fund
Wells Fargo Money Market Fund
Wells Fargo Securities, LLC
Wells Fargo Treasury Plus Money Market Fund
Western Asset/Government Portfolio
Wilmington U.S. Government Money Market Fund

 

[haidut]

Vigilant user @Drareg recently posted a few threads of interest to those who want to know just how deep the rabbit hole goes when it comes to the elite's financial shenanigans. One of the threads was an interesting analysis by a Reddit user, which shows that most publicly traded company around the world are owned by a mysterious entity that the Reddit user called "MegaCorp, Inc". In that post, the user demonstrated that Fidelity, BlackRock, Vanguard, and StateStreet are major components of MegaCorp.

View: https://www.reddit.com/r/Superstonk/comments/ows1a2/will_the_real_gme_bbemg_please_stand_up_cont_part/


Drareg also posted another thread on a recent post by WallStreetOnParade, alerting us to the impending release of data by the Fed showing which financial institutions were insolvent back in Q4 of 2019, whose insolvency triggered another global financial crisis and massive bailouts dwarfing the ones in 2008, and that financial catastrophe became known to the sheeple around us as the "COVID-19 pandemic".

2019 Bank Bailout

A good article highlighting the fed bailing out wall street in 2019 before covid started, once the WHO declared a pandemic they ramped up the bailout and framed it as covid stimulus. This is the reason for covid lockdowns and hysteria in general, on top of this they amplified George Floyd to...

raypeatforum.com

I commented in that thread that based on bank public investing behavior and general state of the "developed" economies, my guess is that most Western financial institutions are insolvent.

2019 Bank Bailout

A good article highlighting the fed bailing out wall street in 2019 before covid started, once the WHO declared a pandemic they ramped up the bailout and framed it as covid stimulus. This is the reason for covid lockdowns and hysteria in general, on top of this they amplified George Floyd to...

raypeatforum.com

It looks like the Fed data release from last night corroborates that fear of mine. I have extracted below the list of all institutions who took multiple emergency repo loans from the Fed back in Q4 2019, and have underlined the more important/troubling ones. I am also attaching the actual spreadsheet in case the Fed gets second thoughts and pulls it from their website due to media outcry.
Aside from the usual suspects (Wall Street megabanks), please note the presence there of multiple non-US banks of so-called "systemic importance" - HSBC, RBS, RBC, Barclays, BNP Paribas, Credit Suisse, Deutsche Bank, etc. In addition, please note the presence of Fidelity, Vanguard, BlackRock, StateStreet, etc as well as numerous other retail investing companies considered to be fully legit and not in financial trouble, while the first four are also the main components of MegaCorp. If MegaCorp is insolvent, then it is little surprise the bailouts took place. Furthermore, note the presence of Fannie and Freddie as well. Yes, we are in a massive housing fraud again, with the same players and the same illegal deeds going on again.
Perhaps worst of all, it looks like some of the largest depositor banks and money-market funds were also repeated recipients of such emergency funds, which paints a truly scary picture of the state of the financial system in the "developed" world. If depositor banks and money market funds are in trouble, it suggests either massive fraud on their part by investing in dangerous "assets" (which they are prohibited from doing by law) or them simply cooking the books and lying about depositor assets (which is also highly illegal).
One way or another, all this likely means one or more of the following: (1) nothing has been fixed in global economy/finance since 2008, and this time it is much more global in scale; (2) this time the bubble/fraud spans even the "safest" banks and their "instruments"; (3) if the Fed were to raise the interest rates by even a quarter point, the whole thing will crumble rapidly, and on a global level too; (4) anybody with a 401K and counting on that money is likely in for a very rude awakening; (5) anybody with deposits in the money market funds and/or the depositor banks listed below is probably in a similar position to the 401K holder; (6) regardless of what "pandemic" comes next, this mess below is unfixable and collapse of some sort is imminent, possibly including a run on the depositor banks too (this would explain the frantic cyber attack "simulations" IMF is performing as we speak: Israel and the coming cyber attack on banks).

@Regina @tankasnowgod @AlaskaJono

By Pancaking Term Loans, JPMorgan Had $30 Billion Outstanding from the Fed’s Emergency Repo Loans in the Last Quarter of 2019

By Pam Martens and Russ Martens: December 31, 2021 ~ Jamie Dimon, Chairman and CEO of JPMorgan Chase, likes to perpetually brag about his bank’s “fortress

wallstreetonparade.com

Historical Transaction Data - FEDERAL RESERVE BANK of NEW YORK

www.newyorkfed.org

https://www.newyorkfed.org/medialibrary/media/markets/DFA/rp_rrp_data_2019_q4.xls

AB Fixed-Income Shares, Inc. - AB Government Money Market Portfolio
Ally Bank
American Funds U.S. Government Money Market Fund
Amherst Pierpont Securities LLC
Bank of America, N.A.
Bank of Montreal (Chicago Branch)
Bank of Nova Scotia, New York Agency
Barclays Bank PLC - New York Branch
Barclays Capital Inc.
BlackRock Liquidity Funds: FedFund
BlackRock Liquidity Funds: TempCash
BlackRock Liquidity Funds: TempFund
BlackRock Liquidity Funds: T-Fund
BMO Capital Markets Corp.
BNP Paribas Securities Corp.
BofA Securities, Inc.
Cantor Fitzgerald & Co.
Citibank, N.A.
Citigroup Global Markets Inc.
Columbia Short-Term Cash Fund, a series of Columbia Funds Series Trust II
Credit Agricole Corporate and Investment Bank
Credit Suisse AG, New York Branch
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Dreyfus Cash Management
Dreyfus Government Cash Management
Dreyfus Institutional Preferred Government Money Market Fund
Edward Jones Money Market Fund
Federal Agricultural Mortgage Corporation (Farmer Mac)
Federal Home Loan Bank of Atlanta
Federal Home Loan Bank of Boston
Federal Home Loan Bank of Chicago
Federal Home Loan Bank of Cincinnati
Federal Home Loan Bank of Dallas
Federal Home Loan Bank of Des Moines
Federal Home Loan Bank of New York
Federal Home Loan Bank of Pittsburgh
Federal Home Loan Bank of San Francisco
Federal Home Loan Bank of Topeka
Federal Home Loan Mortgage Corporation (Freddie Mac)
Federal National Mortgage Association (Fannie Mae)
Federated Capital Reserves Fund
Federated Government Obligations Fund
Federated Government Obligations Tax-Managed Fund
Federated Government Reserves Fund
Federated Institutional Money Market Management
Federated Prime Cash Obligations Fund
Federated Prime Obligations Fund
Federated Prime Value Obligations Fund
Federated Tax-Free Obligations Fund
Federated Treasury Obligations Fund
Federated U.S. Treasury Cash Reserves
Fidelity Colchester Street Trust: Government Portfolio
Fidelity Colchester Street Trust: Money Market Portfolio
Fidelity Colchester Street Trust: Prime Money Market Portfolio
Fidelity Colchester Street Trust: Prime Reserves Portfolio
Fidelity Colchester Street Trust: Treasury Portfolio
Fidelity Hereford Street Trust: Fidelity Government Money Market Fund
Fidelity Hereford Street Trust: Fidelity Money Market Fund
Fidelity Newbury Street Trust: Fidelity Treasury Money Market Fund
Fidelity Phillips Street Trust: Fidelity Government Cash Reserves
Fidelity Revere Street Trust: Fidelity Cash Central Fund
Fidelity Revere Street Trust: Fidelity Securities Lending Cash Central Fund
Fidelity Salem Street Trust: Fidelity Series Government Money Market Fund
First American Government Obligations Fund
First American Treasury Obligations Fund
General Money Market Fund
Goldman Sachs & Co. LLC
Goldman Sachs Financial Square Government Fund
Goldman Sachs Financial Square Money Market Fund
Goldman Sachs Financial Square Prime Obligations Fund
Goldman Sachs Financial Square Treasury Solutions Fund
Government Cash Management Portfolio
HSBC Securities (USA) Inc.
Institutional Liquid Reserve Portfolio
Institutional US Gov. Money Market Fund, a series of the State Street Master Funds
Jefferies LLC
JPMorgan Chase Bank, N.A.
JPMorgan Liquid Assets Money Market Fund
JPMorgan Prime Money Market Fund
J.P. Morgan Securities LLC
JPMorgan Tax Free Money Market Fund
JPMorgan U.S. Government Money Market Fund
JPMorgan U.S. Treasury Plus Money Market Fund
Master Premier Government Institutional Portfolio
Master Treasury Strategies Institutional Portfolio
Mizuho Bank, Ltd.
Mizuho Securities USA LLC
Money Market Master Portfolio
Morgan Stanley Bank, N.A.
Morgan Stanley & Co. LLC
Morgan Stanley Institutional Liquidity Funds Government Portfolio
Morgan Stanley Institutional Liquidity Funds Government Securities Portfolio
Morgan Stanley Institutional Liquidity Funds Prime Portfolio
Morgan Stanley Institutional Liquidity Funds Treasury Portfolio
Natixis New York Branch
NatWest Markets Securities Inc.
Nomura Securities International, Inc.
Northern Funds - U.S. Government Money Market Fund
Northern Institutional Funds - Government Portfolio
Northern Institutional Funds - Government Select Portfolio
Northern Institutional Funds - Treasury Portfolio
NTAM Treasury Assets Fund
PFM Funds Government Select Series
Premier Portfolio, a series of the AIM Treasurer's Series Trust (Invesco Treasurer's Series Trust)
Prime Master Fund
RBC Capital Markets, LLC
RBC Funds Trust, U.S. Government Money Market Fund
Royal Bank of Canada
Schwab Government Money Fund
Schwab Treasury Obligations Money Fund
Schwab Value Advantage Money Fund
Societe Generale, New York Branch
State Street Navigator Securities Lending Government Money Market Portfolio
STIT Government and Agency Portfolio
STIT Liquid Assets Portfolio
Sumitomo Mitsui Banking Corporation, NY branch
TD Securities (USA) LLC
The DFA Short Term Investment Fund of The DFA Investment Trust Company
The Money Market Portfolio
The Northern Trust Company
Treasury Money Market Master Portfolio
T. Rowe Price Cash Reserves Fund
T. Rowe Price Government Money Fund, Inc.
T. Rowe Price Government Reserve Fund
T. Rowe Price U.S. Treasury Money Fund
UBS Securities LLC.
Vanguard Federal Money Market Fund
Vanguard Market Liquidity Fund
Vanguard Prime Money Market Fund
Wells Fargo Bank, NA
Wells Fargo Cash Investment Money Market Fund
Wells Fargo Government Money Market Fund
Wells Fargo Heritage Money Market Fund
Wells Fargo Money Market Fund
Wells Fargo Securities, LLC
Wells Fargo Treasury Plus Money Market Fund
Western Asset/Government Portfolio
Wilmington U.S. Government Money Market Fund

For some reason the Fed spreadsheet did not get attached.

 

[Mauritio]

- Powell talking about a cyber crash
- WEF warning about cyber covid
- Plans for digital euro,shekel, yuan,...
- and now mexico with its own digital currency (digital pesos)

Anybody connecting the dots?

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[haidut]

- Powell talking about a cyber crash
- WEF warning about cyber covid
- Plans for digital euro,shekel, yuan,...
- and now mexico with its own digital currency (digital pesos)

Anybody connecting the dots?

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Yep, the financial collapse is being finalized.
Btw, the data in my post above is only from Q4 2019. The bulk of the ~$30 trillion bailout was distributed in Q1 and Q2 of 2020. So, when/if the Fed releases the data for that period in March 2022 we will have a clearer picture of just how bad the situation was/is. My gut feeling is that since the IMF/WEF are running the financial collapse simulations right now, it may not even matter what the Fed releases in March 2022 as...the current financial system may not even exist by then.
Also, this development suggests that Mexico is fully on board with the Great Reset and moving there as a sort of an escape plan from the global financial hegemony may be futile. It may be worth sending to Peat and asking him about it, as he still seems to think Mexico is an escape option.

 

[UphillEndeavors]

It's almost like there is a reset of sorts occurring...

 

[Mauritio]

It's almost like there is a reset of sorts occurring...

Yes and it's not a small reset . You could even call it great !

 

[Mauritio]

Yep, the financial collapse is being finalized.
Btw, the data in my post above is only from Q4 2019. The bulk of the ~$30 trillion bailout was distributed in Q1 and Q2 of 2020. So, when/if the Fed releases the data for that period in March 2022 we will have a clearer picture of just how bad the situation was/is. My gut feeling is that since the IMF/WEF are running the financial collapse simulations right now, it may not even matter what the Fed releases in March 2022 as...the current financial system may not even exist by then.
Also, this development suggests that Mexico is fully on board with the Great Reset and moving there as a sort of an escape plan from the global financial hegemony may be futile. It may be worth sending to Peat and asking him about it, as he still seems to think Mexico is an escape option.

Good idea, I might ask him about that.

 

[ecstatichamster]

There is no financial collapse that is going to happen. I’ve been around this block many many times. It always pay to have off grid assets including gold, silver, food, guns ‘n’ ammo, etc. But there is no collapse. Money will be printed, things will be dealt with.

The one thing you can count on is the banks coming out on top. They will not allow a Financal collapse.

 

[haidut]

There is no financial collapse that is going to happen. I’ve been around this block many many times. It always pay to have off grid assets including gold, silver, food, guns ‘n’ ammo, etc. But there is no collapse. Money will be printed, things will be dealt with.

The one thing you can count on is the banks coming out on top. They will not allow a Financal collapse.

Are you saying this massive pile of debt can be ignored/refinanced indefinitely? It seems to me that all this debt has reached a point where it stifles any productive activity at the industrial scale. Hence, WallStreet being forced to do IPOs with open scams like WeWork because there is nothing much better willing to go public.

 

[ecstatichamster]

Are you saying this massive pile of debt can be ignored/refinanced indefinitely? It seems to me that all this debt has reached a point where it stifles any productive activity at the industrial scale. Hence, WallStreet being forced to do IPOs with open scams like WeWork because there is nothing much better willing to go public.

It can’t forever. But it can go on for a very long time. I used to think this too. That it has to end. But that was 30 years ago. I still think so but I no longer believe The End Is Nigh. I think that it cost me a huge amount of lost opportunities thinking that way.

I’ve been following this very closely since about 1975. And it always seems the end is near that it MUST collapse and it does not.

I read a biography once of a famous banker who worked at what became Citibank, and he became more and more bullish throughout his life. I can now understand that. I regret having believed The End Is Near so often and having acted on it and losing so many great opportunities.

When the End Is Nigh you’ll know it. Credit spreads will be increasing dramatically and the yield curve will invert. There is no sign of that type of distress as yet.

 

[ecstatichamster]

And as I think about it, it is extremely bad to be in an echo chamber of doomers. DoomPorn is what it is. I spent decades in that echo chamber especially the “precious metals” enthusiasts. If I had put my money into index funds it would have done better. Gold hasn’t done bad but silver has done badly. There are brief times when gold and silver do very, very well, and we may be entearring one of those times in 2022.

I do worry about the banks getting hacked. Their security is really not very good. Most banks use 2FA relying upon insecure text messages for instance. We all depend upon the Internet now and there are many insecure parts to that, especially the core libraries that are maintained by a few people (including the US NSA).

OTOH, many people need and rely upon good security and don’t want back doors. It is a constant battle between those even in the USG who want to crack encryption, and those who don’t want their encryption cracked. The sum of it is that there are more people relying upon strong encryption and good security and that encourages me.

We can’t do much about it. We all have to bank on the Internet today. There is no choice. We can of course bank with someone with local branches. If there was a huge problem the government could get currency to the branches.

Speaking of currency, the USD still rsigns supreme and there are trillons of dollars outside of the US that the US wants to remain valuable. That’s why we haven’t seen a “fedcoin” yet. There are still the hugest moneyed interests who want the USD to continue And don’t want the system to collapse. Fiat can remain as long as they want it to because there is nothing holding it back. There is no Way to protect purchasing power ultimately, and that will continue to fall.

 

[DrivesOldTruck]

I read a biography once of a famous banker who worked at what became Citibank, and he became more and more bullish throughout his life. I can now understand that. I regret having believed The End Is Near so often and having acted on it and losing so many great opportunities.

Do you remember which book/banker this was? What caused him to become more bullish throughout his life? Most of the perma-bear/Zerohedge types I've known for years only become more and more bearish as time goes on. I'm curious as to how he changed (or what caused him to change) his way of thinking.

 

[davvid_1]

yup, bear markets come around about every 7 years. the crash will come, bailouts will happen, and bankers get paid. the debt can be monetised indefinitely while they slowly inflate the debt away over time. its the least painful outcome in a way

 

[haidut]

And as I think about it, it is extremely bad to be in an echo chamber of doomers. DoomPorn is what it is. I spent decades in that echo chamber especially the “precious metals” enthusiasts. If I had put my money into index funds it would have done better. Gold hasn’t done bad but silver has done badly. There are brief times when gold and silver do very, very well, and we may be entearring one of those times in 2022.

I do worry about the banks getting hacked. Their security is really not very good. Most banks use 2FA relying upon insecure text messages for instance. We all depend upon the Internet now and there are many insecure parts to that, especially the core libraries that are maintained by a few people (including the US NSA).

OTOH, many people need and rely upon good security and don’t want back doors. It is a constant battle between those even in the USG who want to crack encryption, and those who don’t want their encryption cracked. The sum of it is that there are more people relying upon strong encryption and good security and that encourages me.

We can’t do much about it. We all have to bank on the Internet today. There is no choice. We can of course bank with someone with local branches. If there was a huge problem the government could get currency to the branches.

Speaking of currency, the USD still rsigns supreme and there are trillons of dollars outside of the US that the US wants to remain valuable. That’s why we haven’t seen a “fedcoin” yet. There are still the hugest moneyed interests who want the USD to continue And don’t want the system to collapse. Fiat can remain as long as they want it to because there is nothing holding it back. There is no Way to protect purchasing power ultimately, and that will continue to fall.

So, what do you think happens to all that toxic/unpayable debt? Zero/negative interest rates indefinitely? Why would anybody want to work (let alone hard) if they can get "free" money (loan) that can then be "repayed" with another cost-free loan, and so on, and so on for years (decades?) to come? How do you value assets in a meaningless currency and financial system like that?
The only reason I am posting about this "doom" is that it fits quite well with the events we have been witnessing over the last couple of years. Have you ever seen anything like it before, when you thought again the end is nigh? Quarantine camps, banning people from going into stores, banning them from travel, lockdowns, vaccine mandates or unemployment/poverty, etc.
As far as the Citigroup banker - I can understand him being bullish, as a banker knows the game is rigged in his/her favor, and any losses will be socialized. Not so much for the rest of us, holding the bag.

 

[haidut]

yup, bear markets come around about every 7 years. the crash will come, bailouts will happen, and bankers get paid. the debt can be monetised indefinitely while they slowly inflate the debt away over time. its the least painful outcome in a way

This completely destroys any incentive in the Western population to work, and thus any incentive for the "Global South" to finance the lifestyle of "developed" countries. See my comment above about the former. If I can get a X million USD loan for close to zero interest, and then refinance it indefinitely, why would I ever need/want to do actual, valuable work? This is the situation I am seeing in the Millenials, and most of Gen Z, and I don't think one can refinance debt indefinitely in the absence of productive activity. If the situation was as simple as just kicking the can down the road TPTB would not have started the "pandemic" and introduced such draconian measures in most "developed" countries. It does not look like they are anticipating "business as usual" - aka another 2008-style bailout.

 

[Pointless]

With inflation and debt rising, policy makers are up against a wall. Asset values like stocks and real estate will crash, crypto as well. The US govt will probably use stablecoins to swap out USD for a CBDC, or have some similar plan. Things will be very hard, but it's not gonna be the end of the world.

 

[Mauritio]

yup, bear markets come around about every 7 years. the crash will come, bailouts will happen, and bankers get paid. the debt can be monetised indefinitely while they slowly inflate the debt away over time. its the least painful outcome in a way

It's the least painful way but it ends in disaster as well.
If we keep interest rates at zero and keep printing money, inflation will be so big over a 10 year window ,the middle class will basically stop existing.
And I think that's when the average joe starts waking up and as we know there's a lot of gun owners in the US...

 

[davvid_1]

This completely destroys any incentive in the Western population to work, and thus any incentive for the "Global South" to finance the lifestyle of "developed" countries. See my comment above about the former. If I can get a X million USD loan for close to zero interest, and then refinance it indefinitely, why would I ever need/want to do actual, valuable work? This is the situation I am seeing in the Millenials, and most of Gen Z, and I don't think one can refinance debt indefinitely in the absence of productive activity. If the situation was as simple as just kicking the can down the road TPTB would not have started the "pandemic" and introduced such draconian measures in most "developed" countries. It does not look like they are anticipating "business as usual" - aka another 2008-style bailout.

No i wouldnt say it will be similar in 2008 at all. 2008 was the popping of a private debt bubble, over time that private debt has essentially been transferred onto the governments books. they dont have many options to deleverage this debt. a debt jubilee which is what the great reset used to encompass, is massively deflationary and would be devastating. inflating it away over time by keeping inflation running a little hot is probably the best outcome.

what they did last time we were here was they pegged the yield curve to not allow rates to rise and bankrupt themselves, while they monetised the debt over time. your point about getting a loan is valid, and should be taken advantage of if this is the economic outcome over the next decade or so. even if we do have a disinflationary crash and borrowers are worse off, it will likely be temporary

and your're right, if loans are taken out but productivity is not there to match it, we will eventually lead to another private debt bubble where peoples incomes are not enough to service their debts, leading to another crash, or the newly created money is chasing the same amount of goods, causing inflation to spiral.

 

[davvid_1]

It's the least painful way but it ends in disaster as well.
If we keep interest rates at zero and keep printing money, inflation will be so big over a 10 year window ,the middle class will basically stop existing.
And I think that's when the average joe starts waking up and as we know there's a lot of gun owners in the US...

agreed, but it depends. look at Japan. they've printed money like crazy and kept rates low for decades, but have struggled to get inflation going because banks weren't lending anywhere near to the 1989 levels

 

[Peatful]

1- why was the US giving unemployment so “generously”?
2- why absolve student loan debt?
3- why have I received a child tax check in the mail the last four months?
4- why is cryptocurrency advertised on my kids game apps? Rewarding us that learn about it?
5- Insiders say it’s time. Even as someone as ignorant in such matters as me- I see. It’s time.

They want our trust and our dependence before the “kill” right?