World financial crisis Part 5

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NDPP wrote:

MUST WATCH: US Dollar is the Strongest Currency?....No More

"US lawmakers have passed a two-year budget deal which will allow the government to raise spending by [printing] hundreds of billions of dollars to cover its [$22 TRILLION] debts..."

Yeah, Peter Schiff.


Allowing National Debt To Grow is 'Fundamental Mistake' - Richard Wolff

"President Trump and leader of Congress reached a deal on Monday to raise the debt ceiling yet again..."


Global Stock Markets Crash As US Trade War With China Escalates



Hey Chicken Little, the sky is fallin'

What bunkum, just like all your other other conspiracy theories.


Michael Moriarity Michael Moriarity's picture

It seems that some very troubling events happened early this week in the U.S. financial community. Richard Wolff explains what it might mean on the Thom Hartmann show.


What bunkum, just like all your other other conspiracy theories.....I would be useful for your credibility, if you would come up with counter explanations, rather than rhetoric....myself and a number of people here are looking for the tipping point...if you and others wish to keep your head in the sand..... fine...I and others, especially activists are trying, politically, to prepare, politically!

Liquidity Shortage Getting Worse: Fed's Repo Oversubcribed Even More As Funding Demand Jumps


For those hoping that the dollar shortage and overnight funding crunch would ease on the third day after the G/C repo rate exploded as high as 10%, we have bad news: it has not.

As we warned earlier today, when we previewed the result of today's repo outcome, the only question would be whether the amount of bids submitted into today's operation would be higher or lower than yesterday's $80.05BN to get a sense of whether the funding pressure is easing. The answer: with $83.875BN in total bids submitted, not only was the $75BN operation oversubscribed again, but the total liquidity shortfall rose by almost $4 billion compared to Wednesday morning.

Furthermore, the fact that the operation was again oversubscribed means that once again there was one or more participants who did not get up to €9 billion in the critical liquidity they needed


Another 'troubling event'...

JP Morgan Traders Accused of Manipulating Price of Gold, Silver For A DECADE as DOJ Tries to Look Tough on Wall Street

"Precious metals traders at JP Morgan made millions through fraudulent trades, operating a sprawling criminal conspiracy to manipulate prices, according to the US Justice Department..."

'Apres moi, le deluge...' Louis xv (, Morgan Stanley & predatory bankster occupation). 


BAR: Trump Sanctions Will Doom Dollar Supremacy (podcast)

"President Trump's massive use of sanctions as a weapon of US policy 'has put the world's financial, monetary and trading system into crisis,' said Dubosian scholar Dr Anthony Monteiro."

Also, 'Green New Deal' as reboot of global transnational control. 'Save the Planet NOT capitalism!'


How much had the stock market risen since the inception of this ridiculous fake news thread?

After all even a broken watch tells the correct time twice a day



The .00000001% are doing fine and will not allow the system to collapse to the extent that it threatens their wealth. China will never call the debt on the US because they are mutually dependent. It's all nothing but numbers on paper. There isn't even any gold standard anymore. Country's economies with be destroyed, Greece, Venezuela, etc. The world economy will keep on ticking just as it has since the Great Depression and the Great Recession. 

Around the world people are using local currency, resources and bartering systems. Tons of solutions abound. Capitalism isn't going anywhere because the grand majority of people in developed countries are 100% dedicated to it including myself.

an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.

It would be the ultimate dictatorship that would forbid me from making something and selling it for profit. The defence of kool-aid stands is rooted in the sense that we have a right to make something and sell it which is a valuable lesson for children to learn. 

In refugee camps people try to sell homemade foods or repair things, anything to make a profit. 

I see no signs of the collapse of capitalism. 



But to say these things means you have not passsed the left's purity tests.


Fed Pouring Billions Nightly Into US Banks For Months

"The US Federal Reserve is pumping 75 billion dollars per day into our banks for something called 'repo operations'. Why is the Fed continuing to intervene in the business of banks if our economy is doing so great...?"


NDPP wrote:

Fed Pouring Billions Nightly Into US Banks For Months

"The US Federal Reserve is pumping 75 billion dollars per day into our banks for something called 'repo operations'. Why is the Fed continuing to intervene in the business of banks if our economy is doing so great...?"


To keep the economy doing great.


To keep the economy doing great.....

so why isn't the US Fed printing money to keep people from homelessness and starvation?

Because the repo rate is the foundation of the credibiltity of US M2.....US Fed's job is to maintain the credibility and stability of the elite managers of the system....and this repo rate shock is just the latest hit to the the bailouts now will continue and expand as the system continues to the need for distractions re the puppet politicians of the system....


Keiser Report: 'Time No Longer Has A Price' (Ep 1442)

"Max and Stacy discuss the demise of the European banks as 'time no longer has a price' according to German newspaper Die Welt..."

iyraste1313 the bailouts now will continue and expand as the system continues to teeter......

the accelerating expansion of M2, i.e. high valued credit, due to increasing balance sheets of the Fed and global Central bankers for these past 2 months is putting increasing pressure on global bond markets, sovereign and corporate debts....likewise inflation of the CPI globally (eatch China!)....causing the global bond yields to increase....a serious threat to the 1200 trillion derivatives market, the US 23 plus trillion deficit ad nauseum....

I suspect this would be the catalyst to crash the system! Another bad week next week for bond prices globally will be a sign!


Quant Funds Exit Japanese Bonds in Worst Sell-off Since 2013


Stephen Spratt

11 de noviembre de 2019 15:59 GMT-6 Updated on 11 de noviembre de 2019 19:27 GMT-6

  • Ten-year JGB futures have been leading the sovereign sell-off
  • Yields, volume, flow analysis suggest CTA funds behind move

Quantitative hedge funds are being blamed for the worst sell-off in Japanese government bonds since 2013 and the evidence is stacking up against them.

Data comprising of open interest positions, fund flow and yields suggest that so-called Commodity Trading Advisors -- funds synonymous with trend-following quant strategies -- could have been cutting their large long positions in Japanese 10-year bond futures.


Debt Market Bubble's Bursting - The 'CLO Sausage Factory' Is Stalling

Profile picture for user Tyler Durden

by Tyler Durden

Tue, 11/12/2019 - 09:45




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Excerpted from Bill Blain's Morning Porridge commentary,

I’m intrigued by recent moves in CLOs – Collateralised Loan Obligations. They have been one of the strongest performing sectors of the bond markets for many years. Smart investors realised pooled corporate credit investments spread the risk across a wide range of borrowers, and following the 2008 Global Financial Crisis there were surprisingly few corporate defaults. In fact, as rates tumbled lower investment grade and junk debt performed strongly – making CLOs even more attractive. CLOs are now a $750 bln global market. 

But the CLO sausage factory needs constantly fed with new debt to keep churning out new product... Therein lies danger......

....the evidence is growing junk status, sub prime debt default is on the horizon, ready to burst the 1200 trillion derivative bubble, overwhelming the system!

Michael Moriarity Michael Moriarity's picture

Richard Wolff gives his analysis of the recent warnings by the IMF regarding "corporate debt overhang". He thinks it is a big problem.


I look at it in very simple terms. As productivity rose workers were offered ever increasing credit instead of raises and told to buy property as investments. At the same time the economy depends on consumerism for profits so produce ever more disposible products for people to buy on credit and be forced to replace regularly. We have not recovered from the crash of 2008. Money has to circulate to generate wealth and productivity. 

Personal wealth is not built on disposible products. Quality of life is not delivered through rapid wardrobe turnover. What value do you put on city air being as good as ocean air? Is it more or less valuable than using a personal car within the city? Being able to swim in the local river? How important is the dollar store? We have to re-evaluate the wisdom of producing cheap products in Asia and shipping them here. 

One think I know is you can have the best solution ever but without widespread support it won't work.  For that reason you have to think about what motivates other people.


We have to re-evaluate the wisdom of producing cheap products in Asia and shipping them here. ....

What with another bank in China just being bailed and nationalized....the GDP in China dropping fast as the real estate market mechanism to finance the system continues to sputter, the container shipping industry dropping fast.......?

Perhaps this problem will take care of itself.....certainly the capitalist global system won`t be preparing to begin investing into a Canadian production economy...the lifeblood of any society and economy




National Security Council's Alexander Vindman and Pence Aide Jennifer Williams TestifyChinese Electronics FBBrm Misses Repayment of Local BondBloomberg News

18 de noviembre de 2019 19:33 GMT-6 Updated on 19 de noviembre de 2019 3:47 GMT-

Tunghsu Group seeks payment deadline extension from creditors​

  • Company’s dollar bond due 2020 has cross-default clause

A Chinese maker of electronic display panels has missed payment on two of its yuan bonds, a sign that the nation’s private firms continue to face a funding crunch amid an economic slowdown.

Bloomberg news

The collapse is well unfolding before our eyes, with China now the key catalyst, what with production, real estate and corporate bond markets in decline leading to more bankruptcies


Keiser Report: OK Boomer Economics (Ep 1471)

"In this episode of Keiser Report, Max and Stacy discuss ther never-ending debt growth that have kept the Boomers in a delusional state since they entered the workforce at the same time the US went off the gold standard. They were first in on a massively successful pyramid scheme..."


The catalyst?

Fed's Emergency Repo Operation Oversubscribed As Repo Rates Spike To December High

Ahead of today's massive liquidity drain, which according to some calculations will be as much as $100 billion between $54BN in coupon settlements from last week's Treasury auctions and an additional $50 billion or so in corporate income tax payments to the Treasury...


... which combined would be as large, if not bigger than the Sept 16 cash transfer to the Treasury which sparked the mid-September repo crisis, last Thursday the Fed announced a "kitchen sink" liquidity tsunami, throwing as much as $500 billion in liquidity backstops in the form of expanded and extended repo and term repo operations, while keeping the Fed's "Not QE" T-Bill monetization chugging along.

The first of these emergency repo operations was scheduled for this morning, ahead of the liquidity drain, in the form of a $50 billion, 32-day repo, which took place shortly after 8am, and was once again oversubscribed as there was more demand for liquidity, or $54.25 billion, than there was total supply.

This offering, which matures on January17, 2020, was the fourth "turn" repo providing funding past the year-end period.

The fact that the operation was oversubscribed was the first indication that banks are once again reserve-constrained and scrambling to procure as much year-end liquidity as they can get their hands on. Whether repo operations in the coming days are oversubscribed will indicate if the Fed's roughly $500 billion in repo ops scheduled for the next 4 weeks will be enough to keep the Fed from losing control over overnight rates, as Credit Suisse repo expert Zoltan Pozsar predicted last week in his now infamous "Countdown to QE4" report.

One ominous sign: the overnight G/C repo rate spiked from 1.58% on Friday to 1.69% this morning, the highest print since the end of the November, and the clearest indication yet that despite throwing a kitchen sink of liquidity in the market, some dealers and banks are still having problems getting access to much needed liquidity.

Keep an eye on the repo rate over the next few hours for an indication if today's $100 billion liquidity drain will overpower the Fed's preemptive liquidity tsunami, in effect triggering Zoltan Pozsar's worst-case scenario.