"The killers of Patrice Lumumba, those who toppled Kwame Nkrumah, those who killed Nasser, those who killed Muammar Gaddafi, today are coming to teach us about democracy."
An excerpt from Zambian opposition leader Fred Mnembe's speech during the visit of US Vice President Kamala Harris.
When school kids have $19 million in lunch debt, we’re told we can’t afford to cancel it.
When Silicon Valley needs money because a bank with over $200 billion in assets failed, we find the cash in 48 hours.
I think the Fed just gave the banks a way to launder all depositor money into the Treasury. Follow me for a sec:
-Fed opens up credit facility that lends at OIS rate plus 10bps
-This facility values all bonds at par, mark to market losses are irrelevant
-Banks can now dump excess cash into Treasuries, regardless of how poorly they do, and then use them as collateral to get low-interest loans
-They can use these funds to buy even more Treasuries, all with high yields= $$$
-rinse and repeat
How is this not pushing the $19.3T of bank deposits into the Treasury? Seems like a roundabout way to get the working class to bail out the government...and the banks keep the profits.
it's not aliens
i wish it were aliens
but it's not aliens
it's just the ol' engineered panic, an attractive nuisance ensuring natsec reporters get assigned to investigate balloon bullshit rather than budgets or bombings (à la nordstream)
until next time
Fears of another liquidity crisis have entered the mainstream, with many people guessing what will cause the next financial upheaval. Right now, all triggers have been suppressed, but not for long. The Great Liquidity Squeeze™ is upon us... 1/
In the future, the idea of central policymakers purposely creating more unemployment as the primary way to contain inflation might be seen as the economics equivalent of bloodletting in medicine.
For those of us who follow economics/monetary policy, this exact scenario played out in 2018- the Fed stopped QE, and started tightening/tapering, aka reducing it's balance sheet. (look up Fed Balance sheet on FRED). The markets, a month later, started nosediving.