An “Ominous Disconnect” – What Powell & Lagarde Should Have Told The G-7

an-“ominous-disconnect”-–-what-powell-&-lagarde-should-have-told-the-g-7

04-07-20 11:24:00,

Authored by Egon von Greyerz via GoldSwitzerland.com,

Here is a joint statement from Lagarde and Powell at a secret G7 meeting with all Leaders and Finance Chiefs of the seven nations attending as well as the IMF and BIS:

“The financial system has been on the verge of collapse since September 2019 when we started Repos and QE. And since then it has only got worse. The coronavirus hit us at a time when the banking system was almost down and out. 

We had enough problems saving the banks. But now we must save big corporations, small companies, individuals, local municipalities and states, the Federal State and this on top of rescuing a financial system which is deteriorating by the day. The whole system is leaking like a sieve and we are struggling to keep it all afloat. 

Fortunately we have printing presses and that helps to keep it all going but only just. Our big fear is that the market will realise that all the money we are printing is worthless. And it is of course but we can’t tell anyone. But if the world wakes up to this one day soon, the financial system could implode in a matter of days. And we would be totally helpless to stop it………”

EXPONENTIALLY WORSE THAN 2008 – A BLACK HOLE

And this dear readers is where the world stands today. On the verge of an implosion of the whole financial system. Just a small crack could push the whole system into a black hole. 

All that is needed is a severe second wave of CV-19 or a bank collapse, triggering an implosion of debt markets and the whole system.

Yes, we know the world was in a similar situation in 2008 but with over $100 trillion more in debt and who knows how many additional $100s of trillions of derivatives plus a world economy disintegrating – it is now exponentially worse from a risk point of view. 

We must also remember that bad debts in the financial system are going up by the minute with most borrowers under severe financial pressure. Just look at the chart below how bad debts follow unemployment. The banks haven’t reported this yet but we will see it in the next couple of quarters. 

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Extraordinary Disconnect Between Stock Prices and Economic Collapse – Global Research

extraordinary-disconnect-between-stock-prices-and-economic-collapse-–-global-research

06-06-20 07:39:00,

Wall street

US equity prices are near or at all-time highs at a time of unprecedented economic collapse, a festering main street Depression, unemployment way higher than in the 1930s, with no prospect for a V-shaped recovery, only its illusion.

The Wall Street owned and controlled Fed is responsible for the extraordinary melt-up in stock valuations, money printing madness to blame — saving the stock market at the expense of the economy and welfare of ordinary Americans.

For the first time in US history, the Fed’s balance sheet exceeds $7 trillion.

It’s up from around $250 billion in the late 1980s and $750 billion in late December 2007, the onset of the 2008-09 financial crisis — a colossal example of mismanagement, an eventual price to pay for what’s going on.

Wall Street on Parade (WSOP) noted a disconnect between the Fed’s balance sheet and economic collapse.

At yearend 2019, WSOP explained that the Fed “was already deep into a debt crisis,” reflected by its minutes.

From mid-September 2019 to late January, the Fed already “had made $6.6 trillion cumulatively in emergency revolving repo loans to Wall Street” — even though the first US COVID-19 death didn’t occur until February 28.

Flooding the market with liquidity at near-zero percent interest is a virtual open sesame to unrestrained speculation for easy profits — no matter the extraordinary divergence between equity valuations and intrinsic value.

While highly indebted US households pay double-digit interest on outstanding credit card balances, banks and investors have access to near-free money, because of unprecedented Fed policy, changing the rules on how it operates.

As the saying goes, there’s something rotten in Denmark — courtesy of the US ruling class in Washington, at the Fed, and in corporate suites.

From 2008 to now with no end of it in prospect, the White House and Congress let the Fed (aka Wall Street) artificially manipulate markets and interest rates for maximum speculative profit-making.

It’s operating like never before as “both the lender and buyer of last resort,” WSOP explained, breaching its Federal Reserve Act (1913) statutory obligations.

The greater the Fed-produced equity and bond bubble, the louder the bang when it bursts beyond repai.

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