Bix Weir,TNT and more Tuesday Afternoon 9-24-19
Overnight Bank Bailouts Grow as Crypto/Silver Rigging Intensifies!!
Published on Sep 24, 2019
The short term bailouts are getting bigger and longer....and it will get worse as we get into October. Crypto and silver rigging are still at 100% control with no sign of letting up...we will see.
So much going on it’s just ridiculous…but you have a front row seat.
So let’s talk about the repos…..we need to get our heads around what they are and are they working?
As I recall the reasons they were short is “Corporate Taxes” which were due on the 15th .But now there is a “Quarter-end” shortage which is just ridiculous. They are failing.
Fitzgerald: BEEN A LONG WEEKEND AND A TRYING MONDAY……WE ARE GONNA BE OK BECAUSE WE KNOW MORE THAN WE THINK WE KNOW….I ALSO BELIEVE THOSE PAYMASTERS ARE READY TO PAY THEIR PEOPLE TOO….AND SOME OR MANY OF THEM WILL SEE THEIR MONEY STARTING THIS WEEK
LounDebnc: Why the Repo Market Is Such a Big Deal—and Why Its $400 Billion Bailout Is So Unnerving
One of the most vital pieces of plumbing that powers the global financial system usually runs so smoothly that it gets overlooked by market watchers. It’s the “repo market,” comprising the short-term funding that banks and financial counter-parties regularly tap to lend each other trillions.
It’s suddenly in the news again, and for all the wrong reasons. The repo market is looking a lot like it did on the precipice of the 2007 housing market crash.
But what is the repo market, anyway, and why has the Federal Reserve Bank this week injected hundreds of billions of dollars into the financial system to stabilize it?
Repos (short for repurchase agreements) are short-term borrowing transactions, often made overnight. Think of them as trades of cash for some kind of collateral.
In a repo transaction, the borrower will sell certain securities in their possession with the agreement to buy them back the next day. If the transaction is not rolled over, then the trade has to be settled the following day, with the borrower repurchasing the collateral from the lender for slightly more than it had previously sold it for, compensating the lender with interest for taking on the risk.
A $1 trillion market springs a leak
Large corporations and banks typically hold vast quantities of highly liquid financial assets, and so they like using these markets as a means of quick and easy financing. In fact, there are more than $1 trillion worth of overnight repo transactions collateralized with US government debt occurring every day. Banks frequently go to these markets to fund the loans they issue, and to finance the trades they execute.
That’s when it’s working smoothly.
The repo market seized up last week, with median repurchase rates skyrocketing from their usual band of 2.00-2.25% to 2.46% on Monday, and 5.25% on Tuesday. Keep in mind, that’s the median rate. Some repo rates were as high as 9%, more than quadruple the Federal Reserve’s own target rate, which usually puts a cap on how high Treasury repo rates could climb.
An unlucky confluence of events, including an exceptionally large demand for cash from U.S. companies that needed to pay their corporate tax bills, sucked a lot of the available cash out of the financial markets. What happened last week was any counter-party in need of cash, and only holding collateral like Treasuries, agreed to pay the much higher going repo rates. That’s supply and demand, plain and simple, and it mirrors what happened in certain repo markets in 2007 before the housing crash and the Great Recession that followed.
So, what happened to the usual abundance of cash and liquid securities that powers the trillion-dollar repo market?
It’s been slowly evaporating, actually, for some time, since the Fed ended five years ago the policy of quantitative easing (QE), its maneuver to buy highly liquid bank securities to boost overall bank reserves. The thinking (and hope) of that controversial policy was that the increased liquidity would encourage banks to lend more and spur economic growth at the depths of the downturn.
Those kind of accommodative actions have been over for some time now, and total bank reserves have steadily been decreasing. They peaked in August, 2014, and are now close to where reserves were in 2011. One principle reason for that: an elevated level of government debt issuances in the past four years have sucked reserves out of the financial system.
When a squeeze like the one last week occurs it’s a clear indicator that there aren’t enough reserves in the financial system for repo markets to clear at the Fed’s preferred level—in central bank parlance, the “target rate,” or the Fed Funds rate. That explains why the central bank has been engaged in open market operations to inject reserves back into the banking system through overnight purchases of Treasuries.
“The Fed plans to use open market operations to address funding pressures through the quarter-end, and learn more about the adequate level of reserves. We expect it to find the U.S. funding markets in a state of reserve scarcity,” wrote Bank of America economists in a September 20 note.
The repo plan: more interventions to come
Even though the Fed has routinely used open market operations in the past to stabilize these funding markets, it doesn’t look like a few routine interventions will be sufficient. Moreover, it’s becoming clear banks need more reserves on hand. On Friday, the Fed pledged to allow roughly two more weeks of overnight repo transactions, each injecting around $75 billion daily into the economy, the Federal Reserve Bank of New York said in a news release on Friday.
Put otherwise, the Fed is back where it was roughly a decade ago, effectively buying U.S. Treasuries from banks on an indefinite basis. But the difference this time? There’s no financial crisis in sight, just the uncomfortable fact that private capital markets once again need public support.
“For all intents and purposes, this will be equivalent to QE, with scheduled purchases of securities. We estimate that over the first year, the Fed would need to buy roughly $400bn of Treasury securities to achieve an appropriate level of reserves, plus a buffer,” the Bank of America wrote in a research note.
As plumbing problems go, this will be an expensive one to sort out.
Courtesy of Dinar Guru
Sandyf: ...There is a lot of confusion over co-existence. Initially dual pricing will come into effect where both currencies are accepted in retail outlets.
This will only happen for so long, possibly about a year. thereafter the old currency can only be exchanged at designated banks, that is where the 10 years would come in.
Internationally it is a different ball game all together. A country can only have one national currency and international banks will only exchange the national currency.
The day a redenomination takes place the IQD will no longer be the national currency.
As I have said before as far as redenomination goes, Iraq faces an extremely complex problem with regards to the amount of currency outside the country, something that no other country that has redenominated has had to deal with.
Frank26: ...IMO In this phase, since the education phase 2 is over, this phase is now to send to these banks the new small category notes.
To teach them about these new small category notes. Ain't no body seen them...I think this is in process right now or it's been complete or it's about to start and I believe once that's done (it's only a one day class) that information is going to trickle down from the CBI to the bank echelon, to bank management, to tellers, and to the citizens...
Thank you KejRaj
Era of Light Report For 9/24/2019: The Reset, Creator's Room, Crescendo of Energy
Greetings! As always from heart to heart in this moment we speak, I am KejRaj(KayRy). The information expressed here is that of my perspective, my point of view. For all truth awaits you in your heart. Tune in to the light within you.
Can we built on top of the old, or must we tear down and burn the old, and start with a clean slate? If we built on top of the old, the foundation could crack?!
If we built with a new foundation, how long will it be between the deconstruction of the old and the building of the new? Can there be chaos? Can it be done within a matter of days? At a push of a button perhaps?!
What do you think?
All this and more, we will find out in the coming days and weeks. The old is being shattered as if it never existed. On every level, in every field. The new will take its place in the smoothest transition possible.
The clones are trembling and keep collapsing, as they cannot withstand the powerful light. And those at the top of the scheme have been turning on each other for some time now. Many are seeking refuge off world, to only be denied. The ones making attempts to leave in their primitive vehicles, are being stopped in their tracks prior to take off.
For the awake, they will know, as the Reset is on the edge of completion. They will feel the change, that something has just occurred. Excitement will kick in waves.
The ones asleep, they might not notice anything, as their consciousness operates at slightly above minimum. But even they will know, if no other way, than when they go to the bank. And than they may have some questions. Only a quick and very short explanation will be delivered to them.
The truth is we are moving forward full throttle. We stand on the threshold of a new, bright reality. And we are just getting started.
From heart to heart, KejRaj!
The Pleiadian High Council: The Creator's Room; We've Been Waiting For You
Many of you are involved in making tremendously important decisions for the future of our planet, and your own mission. That is what the channeling you are about to read talks about, but I want to clarify, that when you go into that “room” you are actually meeting the souls that you will then meet in your physical reality. » Source
Benjamin Fulford: Many Signs Point To Imminent Financial Tsunami
Veteran financial market observers will tell you that anomalies in the financial markets last week point to some sort of black swan event on the horizon. This could be—cross your fingers and knock on wood—the signs of the long-awaited implosion of the U.S. Corporate government. » Full Article
A Crescendo of Energy is Building
A crescendo of energy is building, everything holds such great importance and I am sure you have noticed the intricacy of the patterning that is now being dismantled from within, those unaware of the mechanics and “how it all works” are soon to realise there is more to this... » Source
Sanat Kumara: Spiritual Concepts and Blockades
The free will of man is the instrument that makes this possible. In this respect, no man, no matter how destructive and shameful on earth, will have been condemned by God or handed over to a divine judgment, as many Scriptures say. » Source
The Secret History of Fort Detrick, the CIA’s Base for Mind Control Experiments
In 1954, a prison doctor in Kentucky isolated seven black inmates and fed them “double, triple and quadruple” doses of LSD for 77 days straight. No one knows what became of the victims. » Source
Water Found For First Time On 'Potentially Habitable' Planet
Astronomers have for the first time discovered water in the atmosphere of a planet orbiting within the habitable zone of a distant star. The finding makes the world - which is called K2-18b - a plausible candidate in the search for alien life. » Source
These Are the Banks Where the Fed's $1.4 Trillion in Reserves Are Parked
Yet while the book has yet to be written on the causes for last week's shocking move higher in repo rates, which sent general collateral as high as 10%, a record print in a time of $1.4 trillion in excess reserves, we can shed some clarity on the definition of "reserves." » Source