Is This What Has Got the Fed So Spooked?

Featured Story

Amos: 11 “Behold, the days are coming,” says the Lord God, “That I will send a famine on the land, Not a famine of bread, Nor a thirst for water, But of hearing the words of the Lord. 12 They shall wander from sea to sea, And from north to east; They shall run to and fro, seeking the word of the Lord, But shall not find it. 13 “In that day the fair virgins And strong young men Shall faint from thirst. 

Just what exactly is terrifying the Fed?

Over the last week, multiple Fed officials have surfaced to suggest the Fed needs to start cutting interest rates right now.

Indeed, on Thursday, John Williams, who runs the NY Fed (the branch in charge of market operations) suggested the Fed needs to cut rates to ZERO again.

This is happening at a time when economic data is rebounding, unemployment is below 4% and GDP growth is north of 3%.

So what exactly is going on? What does the Fed know that has it so terrified because it’s obviously not the US economy.

1)   Deutsche Bank (DB) is imploding.

Sitting atop over $49 trillion in OCT derivatives, DB is like Lehman Brothers 2.0. And despite the best efforts of management and the authorities, the bank is imploding. DB shares were rejected by resistance last week, ending the “hope bounce” from recent moves to curtail the blow-up.

Is This What Has Got the Fed So Spooked?

2)   China’s banking system is freezing.

China experienced its first financial institution failure in 21 years in June.  Depositors and creditors lost 30% of their deposits in the process.

Put another way, nearly 30% of their money is GONE.

The Chinese banking authorities are attempting to piece the system back together, but it’s not working. The duress has yet to spill over into the Chinese stock market, but on Friday interbank lending in the mainland temporarily spiked to 1,000%, meaning a large bank was willing to pay ANYTHING in order to get access to capital.

This is EXTREMELY similar to what happened to the US credit markets n 2008.

And finally…

3)   The Everything Bubble has burst.

Treasuries are the bedrock of the current financial system and their yields represent the risk-free rate of return against which all risk assets are priced. So when the Fed created a bubble in these bonds, it created a bond in EVERYTHING.

The single most important bond in the world is the 10-Year US Treasury Bond. And thanks to the Fed’s tightening policy in 2018, it burst, with the yield on the 10-Year US Treasury breaking its 20-year downtrend.

The Fed is trying to get yields back into this downtrend. But it’s not going well. The yield temporarily broke back below the downtrend last month but is beginning to bounce again.

If the Fed cannot get this situation under control, there’s $555 trillion in derivatives at stake. Yes, TRILLION with a T.

Something BIG is coming and the Fed knows it.

StevieRay Hansen
Editor, Bankster Crime

MY MISSION IS NOT TO CONVINCE YOU, ONLY TO INFORM…

#Fraud #Banks #Money #Corruption #Bankers #The Fed #Amos

“Have I therefore become your enemy by telling you the truth?”

Source
BanksterCrime

Don't Miss

Traders On Edge As Futures Fail To Rebound After Wednesday Rout

By StevieRay Hansen

US equity futures were subdued and European stocks rebounded from an early selloff as markets tried to stem the Wednesday rout sparked after a range…

Read More

WIrecard’s Business ‘Almost Entirely Fraudulent’, Auditors Uncover $1BN Loss, Report Finds

By StevieRay Hansen

Carmine Di Sibio, the international chairman of EY, said in a letter to clients published earlier thsi month that  while he “regrets” the firm’s staggering lapse…

Read More

How Big Banks Have for Years Engaged With Dirty Money, While the Working Class Struggle

By StevieRay Hansen

It Is the Elitist Way of Doing Things and the New World Order Will Even Be More Corrupt… The agency, which operates under the Treasury…

Read More

Deutsche Bank Trader Prosecuted By DOJ Was A London Gold And Silver Fixer

By StevieRay Hansen

This is just the beginning of corruption that will be exposed in the months ahead, more bankers will be headed to prison soon… ‘Beginning in at…

Read More

Stocks Suffer Longest-Losing Streak In Over A Year As Dollar Dump Continues

By StevieRay Hansen

Stocks are down for the 3rd week in a row – yeah we know!!! – leaving levered-call-buying RH’ers facing something they likely haven’t seen in their…

Read More

Ex-JPMorgan Trader Sentenced To 8 Months In Prison For FX Bid-Rigging

By StevieRay Hansen

Two years after former HSBC head of currency trading, Mark Johnson, became the first person to be convicted in a global crackdown of currency rigging…

Read More

Markets Will Crash within Days, Pull Out!

By StevieRay Hansen

But, but, but… The ‘very successful’ IPO of Snowflake now has everyone who bought after its release yesterday now underwater… The Nasdaq is leading the…

Read More

Peter Schiff: The Fed Set The Fiercest Wildfire

By StevieRay Hansen

Wildfires are raging out of control in western states doing millions of dollars in damage and disrupting countless lives. In a recent podcast, Peter Schiff…

Read More

A Staggering 84% Of All S&P500 Assets Are Now Intangible

By StevieRay Hansen

Last week, we brought you some of the latest musing from Bank of America’s Jared Woodard, who in the latest Research Investment Committee report discussed the reason…

Read More

The Worst Economic Crisis Anyone Has Ever Seen

By StevieRay Hansen

We have been watching, with disbelief and bemusement, how the “recovery-narrative” has been touted in the financial media and among some economists and analysts. Categorically,…

Read More