Posted on 11/27/2022 9:39:37 AM PST by Kaiser8408a
The US has an inflation problem. Both headline and core inflation YoY remain high compared to the previous 40 years. And The Federal Reserve is resolute in trying to curb inflation to 2%.
But as The Fed counterattacks inflation by raising their target rate, we are seeing a problem forming at the nation’s commercial banks. The growth in deposits YoY is now -0.6%. Commercial bank holdings of Treasuries and Agency MBS are declining as well. Agency MBS holdings are down -4.6% YoY and Treasuries and Agency holdings are down 0.0%.
How about M2 Money growth and M2 velocity? M2 Money growth has fallen to 1.3% YoY while M2 velocity has not been the same since the Covid sugar splash by The Fed and Federal government.
While inflation is creating havor for commercial bank deposit growth, it is interesting to follow the adventures of a spoiled child from MIT and his multi-billion dollar lemonade stand with all the controls of a child.
Once again, how did regulators get this SOOOOO wrong? And why didn’t investment advisors look at the balance sheet of FTX and Alameda Research. Yes, the media loves to report on FTX orgies, but the FTX fiasco points to something far more sinister. Were Sam Bankman-Fried and his paramore Caroline Ellison fronting this operation on behalf of some other parties?
Here is the FTX bankruptcy declaration in the State of Delaware. It appears like a massive case of fraud to me. And perhaps worse. Here is a nice summary from Zerohedge.com.
I recall one of Woody Allen’s best lines. When asked what an investment manager does, the response was “they manage your money until nothing is left.” Sounds like SBF has a great future on Wall Street!
(Excerpt) Read more at confoundedinterest.net ...
FTX bankruptcy is just the beginning....soon others are either near bankruptcy or soon will be to make way for Fed Coin.
Questions are being asked
<><> how FTX got federal approval to buy its stake in the Farmington mini bank.
<><>it’s hard to believe regulators would have knowingly allowed the crypto firm to do so.
Is the wigged mad Maxine, FTX campaign funds taker, House banking committee chair.....in on it?
***********************************************
Here’s where it gets interesting. The bank, which had posted net income routinely with small quarterly losses over the years, started cranking out quarterly losses of $22k, $44k, then losses shot up to $558k, $576k, $1,085k, and finally a whopping $2.6MM loss in the most recent quarter. Meanwhile, there are equity injections commingled with the losses.
Pretty hefty losses.
<><>who was borrowing money that created the losses?
<><>were the losses in the bank’s securities trading account??
We demand a full accounting.
Contact Congress
U.S. House of Representatives:
* Telephone: 202-225-3121
* Website: http://www.house.gov/
U.S. Senate:
* Telephone: 202-224-3121
* Website: http://www.senate.gov
Keep a careful eye out for how the endgame plays out. Will SBF and his closest associates be pawn-sacrificed in a larger game of global financial chess, or will real investigations take place into the many dark corners into which we’ve tried to hold a lantern?
The public will be pushed to take the pawn and gloat. After all, it’s easy to ratchet up the scorn for the image rapidly involving from “Robin Hood Mastergeek” to “doughy nerd narcissist who leveraged mommy’s and daddy’s network to spend your money partying with in the Bahamas”.
Resist that urge. This is a unique moment in time when the larger machinery of corruption is exposed. Toto smells a wizard behind the curtain. Take the opportunity to learn more, and discuss the facts carefully and faithfully. Avoid the temptation of each offered pawn.
The king has never been this exposed.
https://www.zerohedge.com/geopolitical/grand-unified-theory-ftx-disaster
Kings have been brought down. The story is not over yet.
I would be careful with some of the numbers stated in the opening part of this article.
Savings are being impacted by inflation—no doubt about that. But during the lockdowns the savings rate soared. There was nothing else to do. So, of course as the world opens up that rate is going g to drop YOY.
M2 was on a pretty fierce trajectory. It too will decline compared to the rate of growth during the stimulus period. In fact, the infrastructure bill hadn’t really hit the economy yet. M2 is important to watch, but understanding what’s been going on overall is important as well.
The Fed will need to raise rates above the PPI to stop inflation. The rise in rates and the decline in PPI will cross in the 5% range, probably in Q1 23. The Fed’s rate increases are going to suck money out of the system like a wet-vac.
The economy isn’t crashing. The world isn’t ending. The Biden Administration isn’t doing a whole lot to fix things, but the system as a whole is functioning. Unemployment is still very low (historically) and it will remain low due to the demographic changes happening now.
We’ve been through worse. And we will go through worse if we live long enough.
I don’t trust the deep state FED cabal to solve any of we the people’s problems.
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