
Financial commentator Gregory Mannerino said that US Secretary of the Treasury Janet Yellen is about to tell Congress that the banking system is sound, yet the Federal Reserve is propping it up with $2 trillion. As a result of bailouts, inflation will surge.
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Mannerino said that liquidity is drying up and is the excuse for new bailouts. People have lost confidence and are pulling their money out of regional banks and depositing it with the large “too big to fail” Wall Street banks. He predicted that small regional banks that got “loans” from the Federal Reserve are failing in order to go up for sale and to be absorbed into the bigger banks at fire sale prices.He said that the Wall Street banks will stocks will rise.
He says that this has been planned in order to consolidate power. He blamed the Federal Reserve for raising rates to crush the economy and kill the consumer. The old system must be destroyed in order to introduce the new system. He said that the Federal Reserve has a stranglehold on the world and is the enemy.
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Jordan Schachtel: https://currentthing.substack.com/p/where-is-the-2-trillion-dollars-in
The central bankers realistically have no other option other than just printing more money to paper over their malfeasance. They can still keep the system afloat for a while, but this will come at the expense of having our fiat currencies further devalued. If this $2 trillion created out of thin air doesn’t do the trick, not to worry: they’ll just create another $2 trillion or $10 trillion for that matter. Get ready for QE (quantitative easing) INFINITY!
The top 5 banks in the USA hold $180 trillion in derivatives.
The theory is that it’s a zero sum game, but there is no guarantee that the counterparts can or will pay up.
What a mess greed has caused.
The “liquidity crunch” is due to the fact that there are ZERO reserve requirements for banks as to lending. They can lend truly fictional money with no anchor. Of course there will be liquidity issues – it is inevitable.
Stocks will go up with all that new liquidity pumped in, just like in the past.
However, bonds will need ever higher interest rates to be purchased, while older lower interest bearing bond owners will have an SVB level of difficulty selling off those assets. It appears a vicious downward spiral circle has been commenced by Fed and Biden Administration.