Hidden $Trillion QE Monthly Volume
By Jim Willie August 31, 2015
The
massive Quantitative Easing (QE) abuse by the USFed and steeped lies
are centered on its volume, which in reality is an order of magnitude
higher than admitted. The recent usage of certain REPO windows has been
effective to disguise huge volume of bond purchases. The entire bond
system is irreparably corrupted. The REPO window hides QE extras with
naked bond shorting linked to a $1 trillion extravaganza that receives
almost no publicity. While the public, and even more financial market
participants, focus on the Dow Jones stock index, the Treasury Bond
yield, the crude oil price, and very little else, they overlook the
Reverse REPO window and the related Failures to Deliver data for
USTreasury Bonds. The two work like a hand and glove.
The
abuse is laced all through the USTreasury Bond market. These big banks
never pay for their crimes, as they repeat them in other forms. Since
JPM is the official USFed market agent, no consequence in criminal
charges. It is given praise and more bond redemptions. When caught, the
Wall Street and London Centre banks pay fines and penalties, sometimes
even meager restitution, but they chalk it all up to a business expense.
Criminal fraud is merely a cost of doing business in New York and
London. The public is none the wiser. The American public by and large
are in need of remedial education, lately showing no knowledge of money,
capital, banking reserves concepts, the USDollar status, or economic
meters. The greatest shortcoming is knowledge of how to grow an economy,
since tin cupping with handouts aint the answer. The answer is found in
business investment, something our Marxist leaders oppose unless they
have personal investments involved. See Chertoff and airport devices.
See Rumsfeld and Tamiflu programs. See Obama and Solyndra investments.
REVERSE REPO ABUSE
Focus
on the Reverse REPO, which is highly innovative from two angles.
Normally the USFed requires collateral to be placed at the REPO window,
from companies seeking cash infusions on a temporary basis. Sometimes
the USFed announces a ripe volume of Reverse REPO infusions into the
system. They occasionally attract bad attention, but it wanes with the
next fiction on strong markets and recovering economies, or even debate
among fools who anticipate official rate hikes. The
USFed uses the Reverse REPO to hide some of its QE volume. It is
concealed QE volume, part of the biggest lie in US financial history
since the USFed has generated multiple $trillions in hidden channel
support, massive gushers. The key is no collateral placed on
the opposite side of the window. It is neither stimulus nor minor in
volume. The central bank helm is managing a gigantic volume, hidden in
numerous ways. The John Q Public is none the wiser, reading the
controlled fiction in financial press publications, about wondrous
stimulus. In reality, QE kills capital and assures an economic collapse.
It is happening before our eyes.
The
related other side of the table features the Failures to Deliver on
USTreasury Bonds. The Wall Street Journal and New York Times report on
the phenomenon, but quickly move off the topic. To have a significant
figure of undelivered USTBonds speaks of more deep criminality. It
indicates counterfeit or naked shorting by Wall Street banks. They have
found a way to bring in liquidity to their broken insolvent big banks,
selling USTBonds they do not own, receiving the funds into the corporate
treasuries, improving handsomely their cash flow, never to deliver on
the product. The
buyer is often none other than the US Federal Reserve, which does not
force prosecution for counterfeit or bond fraud from its vassal bank
accomplices in the crime of counterfeit. Other buyers must wait, since
no penalty is meted out for violations. The result is a fancy pants
infusion of big $billions into the Wall Street banks with no costs
associated. One must wonder how they hide the funds within their balance
sheets, 10-Q filings, and quarterly statements. Probably they do so by
mixing it in with their ample busy narco funds within New York money
center banks.
The
USFed has been also concealing its QE volume by export. They have
arranged since 2012 to create a group of secondary nations for second
sourcing gigantic USTreasury Bond purchases. The source of funds is both
Dollar Swaps for the USFed to buy USTBonds at arm's length in Europe,
but also dumped Chinese USTBonds from their reserves. Some Russian held
USTBonds might also be in the mix. The nations are the BLICS nations,
namely Belgium, Luxembourg, Ireland, Cayman, and Switzerland. The latter
is not a small nation, but probably helps to manage the slush funds
from the Basel fortress. The
Belgium location is important as seat of the European Commission and
Parliament. The BLICS as a group have invested in over $800 billion in
USTBonds since mid-2012, almost equal to the USFed itself on its stated
(lies for sure) QE volume. The
official USFed understates the true QE volume by at least two-fold. Add
in the derivative contract coverage, and the Jackass believes the true
QE volume is perhaps 10x to 30x greater. It is an end game signal for
Zimbabwe style monetary policy with grand grotesque rupture. The abuses,
beginning with QE and extending to Reverse REPO, invites an Eastern
rejection of the USDollar
FAILURES TO DELIVER
Failures
to deliver in USTreasurys signals breakdown as well as naked shorting
abuse. Wall Street firms funnel in free money without criminal
consequence, to tune of $40 billion per day. It is a nice racket,
protected by the USGovt and their goon squad. The public is none the
wiser, cheering the stuck low rates. They seem unaware that QE destroys
capital. Few seem to focus on the deep decline in Money Velocity, which
in itself proves that QE is not stimulus.
The
gimmicked rigged corrupted USTreasury Bond market is currently cruising
along with about $40 billion Failures to Deliver on a daily basis in
the bonds. This is a veritable bonanza for the Wall Street firms,
probably London and Western European banks as well. It
is free money, and disguised QE volume which totals over $1 trillion
per month in magnitude. Yet the counterfeit receives very little
publicity, since it provides ample cash flow for the broken criminal
banks. Think over $1 trillion per year in free cash flow to the big
broken banks. Compare to the minor $40bn per month admitted by the
USFed, even the other $40bn per month by the BLICS nations in exported
QE. The Failures to Deliver is 12 to 25 times larger in volume, surely hidden QE by any other name.
The
USTBonds are not being bought by legitimate investors, while the
USDollar is rising. At the same time, the globe is liquidating the
USD-based derivatives. Doing so is leaving them with little USD general
exposure. The enormous $40bn in failures to deliver come from naked
shorting, principally by Wall Street banks in league with the USFed.
They have found a sweet channel for pushing up liquidity via fraud, of
course with full impunity. It is linked for sure with both QE and the
Reverse REPO angle, to complete the loop. The USFed shoves money into
the system, which finds its way to the big banks via fraudulent naked
bond shorting. There is no demand for USTBonds outside QE of substance,
except maybe for Japan. The graph below shows a staggering volume of
bond delivery failures, which is HIDDEN QE VOLUME.
DTCC's
Fixed Income Clearing Corporation serves as the clearing house for
markets that trade in USGovt securities. Assume that a firm fails on a
$50 million position on which it is owed $50.1 million. If the Target
Fed funds rate the previous day was 1%, then the fails charge will be 2%
per year, to be applied to the $50.1 million total value of the trade.
The resulting charge for the firm would be $2783 for that day. It is a
mere pittance, a 2% fee per year for the theft which retains 98% of the
funds gratis.
The
Jackass would like to embark on a business of selling cars and plasma
televisions and Air Jordan shoes, take in the cash on the sales, and
never deliver on the products. The concept is patently illegal, yet the
Wall Street banks are routinely selling USTBonds without delivering on
the bonds on the other end. The buyer does not care, since it is the
USFed, the helm of the banker crime syndicate. Witness the exceptional
nation at work in the cash register. The public is almost completely
unaware, since Zero Hedge is not favored over network news, reality
shows, and other pablum.
NEW SCHEISS DOLLAR & GOLD TRADE STANDARD
Events
of the last two or three weeks could not be more disruptive, dangerous,
or ominous. The IMF refused inclusion of the RMB in their currency
basket, clearly feeling threatened. In
response, expect China to hasten its efforts to dislocate the USDollar
from its perch in trade and banking. Expect extreme pressures to
accelerate the increasing required usage of Chinese RMB in trade
settlement. The Chinese are even more motivated after the
strategically important Tianjin business center and logistics data
center was converted into a crater. Langley finger prints might soon be
found. Almost a full decade has passed for setting up the widespread
usage of Yuan Swap Facilities for bilateral trade between nations with
China. Expect a major step toward coercing the Saudis to accept RMB
currency for payment in oil shipments, a movement sure to spread to all
Gulf Emirate nations. The oil card is the flash point.
In
time, expect an eventual refusal by Eastern manufacturing nations to
accept USTreasury Bills in payment. The IMF reversal decision assures
this USTBill blockade in time, and might accelerate the timetable. The
United States Govt cannot continue on five glaring fronts of gross
violations. These violations have prompted the BRICS & Alliance
nations to hasten their development of diverse non-USD platforms toward
the goal of displacing the USDollar while at the same time take steps
toward the return of the Gold Standard. The violations are:
- To import finished goods and crude commodities, paying with IOU coupons
- To commit multi-$trillion bond fraud in its big banks, done without legal prosecution
- To do QE bond purchases in applied hyper monetary inflation, monetizing debt
- To rig all major financial markets in favor of the primal USDollar
- To engage in numerous regional wars to support the USDollar.
The
key step upcoming is the Gulf Emirates soon to accept RMB for oil
payment from all Eastern & Asian countries, the major flash point.
Such event will sound the global alarm. Coupled
with broadbased RMB trade settlement and more purchase of Chinese Govt
debt securities, the movement will be on to finally initiate the grand
dump of USTreasurys from Eastern banking systems. Then later the entire
world (except for England and Canada and certain Western European coulee
nations) will diversify out of USTBonds in their banking systems. The
result will be then a forced reaction by USFed and USDept Treasury to
launch the New Scheiss Dollar, which will at the outset have a phony
gold foundation. A formal international audit process will break down
the fraudulent basis, and lead to a series of painful New Dollar
devaluations. Then comes the import price inflation, the supply
shortages, and the civil disorder.
The
New Scheiss Dollar will have a 30% devaluation out of the gate, then
many more devaluations of similar variety. The New Dollar will fail all
foreign and Eastern scrutiny. The USGovt will be forced to react to
USTBill rejection at the ports. The
USMilitary and Langley threats will not work much longer. The Langley
crew might attack the entire world, which could result in an American
Quarantine. The US must accommodate with the New Scheiss Dollar in order
to assure import supply, and to alleviate the many stalemates to come.
The United States finds itself on the slippery slope that leads to the
Third World, a Jackass forecast that has been presented since Lehman
fell (better described as killed by JPM and GSax).
The
Gold price will find its true value and price over $10,000 per ounce.
The Silver price will find its true value and price over $400 per ounce.
In reaching these levels, the ratio will return to the 25-1 range.
Several steps have been laid out by the Hat Trick Letter toward the
return of proper price to precious metals. The major upcoming events
will be exciting to watch unfold, one after the other, in an inevitable
sequence away from fascism and concentrated uni-polar power, with a
strong movement toward freedom and equitable systems with distributed
power. The steps will each involve a quantum jump in the Gold &
Silver prices. The process will take a few years, but might be
breath-taking in speed once the process is begun. The steps involve:
- The critical mass of rejected USTBills in trade settlement, citing its corrupt roots and illicit monetary policy as foundation
- The return to the Gold Trade Standard and introduction of Gold Trade Notes as letters of credit, in replacement for a fair tangible payment system (no more IOU coupons)
- The recapitalization of the global banking system with Gold as primary reserve asset, so as to relieve the grotesque stagnation, insolvency, and dysfunction
- The seeking of equilibrium in Supply vs Demand in the new fair uninhibited market, with exclusive control removed from London and New York, and placed elsewhere like in Shanghai, Hong Kong, Dubai, and Singapore.
- The seeding of BRICS gold & silver backed currencies from participating nations within the Alliance (likely several with slight variation in features)
- The re-opening of the gold mine industry with some blue sky, and relief from the Evergreen element at Barrick
- The remedy toward owners of over 40,000 tons of rehypothecated and stolen gold in bullion banks across the world (primarily in Switzerland.
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