¿ESTÁ LA FED (QUIZÁS DELIBERADAMENTE) INICIANDO HOY UNA CRISIS BANCARIA? - JustDario

IS THE #FED (PERHAPS WILLINGLY) STARTING A BANKING CRISIS TODAY? - JustDario: In about 24 hours, the “Bank Term Funding Programme”, the infamous #BTFP, will be history. There should not have been any surprise about this if it wasn’t for the fact the banking situation today is much worse than it was one year ago when the #BTFP was launched. How dire...

How dire the banking situation was became obvious months ago, but the #FED at that time warned they would not have extended the #BTFP and banks should hurry to strengthen their balance sheets and put aside enough reserves to deal with their losses. Of course, banks didn’t do anything of this either in Q3-23 or in Q4-23 because they knew mama #FED would never have the guts to risk a banking crisis starting, and potentially spreading like wildfire, across the world 2008 #GFC style. Personally speaking, I agreed with this stance which is why it was shocking to see the #FED (out of the blue) putting out a press release on the 24th of January to make it clear to everyone, including myself, that the #BTFP will end on the day it was always supposed to do so.

Press Release: “Federal Reserve Board announces the Bank Term Funding Program (BTFP) will cease making new loans as scheduled on March 11”

(January 24, 2024

Federal Reserve Board announces the Bank Term Funding Program (BTFP) will cease making new loans as scheduled on March 11

For release at 7:00 p.m. EST

The Federal Reserve Board on Wednesday announced that the Bank Term Funding Program (BTFP) will cease making new loans as scheduled on March 11. The program will continue to make loans until that time and is available as an additional source of liquidity for eligible institutions.

During a period of stress last spring, the Bank Term Funding Program helped assure the stability of the banking system and provide support for the economy. After March 11, banks and other depository institutions will continue to have ready access to the discount window to meet liquidity needs.

As the program ends, the interest rate applicable to new BTFP loans has been adjusted such that the rate on new loans extended from now through program expiration will be no lower than the interest rate on reserve balances in effect on the day the loan is made. This rate adjustment ensures that the BTFP continues to support the goals of the program in the current interest rate environment. This change is effective immediately. All other terms of the program are unchanged.

The BTFP was established under Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary.)

So in 24 hours:

• Banks will not be able to use the #BTFP anymore
• The Discount Window isn’t a viable alternative to replace the #BTFP
• Since the banking crisis last year, not a single bank raised capital, but their balance sheet losses even increased.
• Banks that borrowed from the #BTFP will need to come up with $79bn to repay the #FED loans by the 4th of April.

As you can see from this table I prepared, the biggest amount of #BTFP loans are expected to be repaid in the next 4 weeks:

• $11.9bn this week
• $41.7bn next week
• $10.7bn in 3 weeks
• $14.6bn in 4 weeks

 

If it was hard to find $1bn for $NYCB to the point there wasn’t a better alternative than (locust) hedge funds, it doesn’t take a financial wizard to figure out the chances $79bn can be found in 4 weeks are realistically low. Why can’t banks just walk away from the #BTFP? Doesn’t the #FED have collateral against the money they borrowed if they do so?

Banks cannot simply walk away and not repay money borrowed from the #BTFP because that was made in the form of a “loan” and defaulting against it will trigger all cross-default clauses in every other borrowing facility available to them.

 Yes, it’s an incredible mess without any visible escape route. This is why I am arguing the #FED is potentially starting a banking crisis today and, honestly speaking, I don’t think people at the #FED aren’t intelligent enough to see it coming which makes me wonder if perhaps they are willingly starting a banking crisis this time.

 

 

#FDIC #Data Contradicts Fed Chair Powell: Shows #RealEstate Problems Have Skyrocketed at Largest U.S. #Banks, Not the Smaller Regionals https://t.co/yukaVXvy64 pic.twitter.com/5OzNsSY9MI

— Guillermo Ruiz Zapatero (@ruiz_zapatero) March 11, 2024

CAN POWELL HOLD ON? (TOM LUONGO; "PEOPLE ARE THE SONG")

 

Earlier in the week ECB President Christine Lagarde dropped all of our IQs by a few points by stating in public no less that Climate Change was the primary cause of inflation in the world. There are very few things I’ve heard in my life this unutterably moronic and this is one of them.

The is George Lucas level dialogue here folks.

Because of this and the existential threat to Davos’ power of Climate Change we have to move quickly to provide infinite liquidity through a digital Euro which is now on Lagarde’s To-Do List by October.

She said this complete with the “Believe me” look that she wouldn’t use this digital euro to control all aspects of your spending, further building the infrastructure for a digital identity. Oh, only on this point does she disagree, apparently, with her boss Klaus “You Vil Eet Ze Bugz!” Schwab.

I discussed some of this and FOMC Chair Jerome Powell’s crusade to disempower people like Chrissy with Michelle Makori at Kitco News the other day. I promise I was on my best behavior.

 

 

 

I also spoke with my friend Mel K at the Mel K Show about the fundamental differences between what chrissy is proposing (a retail digital euro deposited directly into your account with the ECB) and FedNow, a back-end interbank payment layer developed by the Fed to modernize the US banking system to support the changes occurring in the US debt markets… among other things.

Lastly, as a follow up to my article on Prigozhin’s Rebellion, I note that NATO Chief Jens Stoltenberg reiterated the requirements for Ukraine’s admission into NATO which preclude that happening anytime soon. The UK, through Defense Secretary Ben Wallace, has been lobbying hard to lower that standard to allow Ukraine in. The goal would be to change the requirements which would immediately trigger an Article 5 intervention based on Ukraine being a member of NATO. Too many people balked at this. And it has been the Biden Administration which ultimately put the kibosh on Wallace’s candidacy to replace Stoltenberg as NATO General Secretary and change these rules. This is as big a tell as you can get in today’s political landscape that the US military has told Biden that they will categorically NOT get officially involved in Ukraine at this moment in time. That may change by the end of the year. But for right now, this is not happening, despite the intense pressure the UK put on NATO members to slip this through. For once, the British attempts to force the US to fight their wars for them has failed completely. But, honestly, it’s been touch and go for a while now. Wallace replacing Stoltenberg would have been the worst possible outcome. While Biden personally needs Ukraine to stay hot for as long as possible to try and protect his own hide, it clearly isn’t enough to get the Pentagon to go along with committing ritualistic suicide for him and the grand dreams of Victoria Nuland and the rest of the Ukrainian diaspora that infect the State Department — Fiona Hill, Alex Vindman, etc.

BANKING CRASH (SILLICON VALLEY BANK) w TOM LUONGO ep33

 

 

 

IT ONLY HAS 95 VIEWS BY NOW. BUT IT SEEMS TO ME THE MOST ACCURATE APPROACH TO THE FLOWING REALITY OF WORLD'S ECONOMIC, POLITICAL AND MILITARY POWER. POWER IS ALWAYS PLURAL AND YOU CAN NOT GRASP ITS TRUE REALITY IGNORING PLURAL AND UNEXPECTED OUTCOMES. LUONGO SAYS THE FED, AS DE FACTO SOVEREIGN, IS MOVING (VIA SILLICON VALLEY BANK ACTION) TO DEFEND US DOLLAR IN THE INTERNATIONAL ARENA AND MEET THE PLURAL REALITY OF WORLD'S POWER AWAY FROM "DAVOS INCUMBENT ELITE".

LUONGO ANALYSIS HERE FOLLOWS TO SOME EXTENT CARL SCHMITT'S INSIGHT ON ELITE:

"YOU MUST THEN KEEP YOUR PACE CLOSE TO THE ELITE'S ONE IN EACH MOMENT.BUT YOU SHOULD HAVE INTO ACCOUNT THE FOLLOWING:

1) TODAY'S ELITE IS NOT YESTERDAY'S ELITE AND MUCH LESS TOMORROW'S AND THE DAY AFTER TOMORROW ELITE

2) ELITE ARE THOSE WHO PAY LESS TAXES WITH MORE INCOME

3) ELITE ARE THOSE WHO CAN OBLIGE OTHERS TO FULFILL FORMS AND PETITIONS.ELITE ARE THOSE WHO CAN DEMAND INDEMNITIES FROM THEIR VICTIMS

4) ELITE ARE THOSE WHO DO NOT SEEK JUSTICE IN COURTS AND WHO ARE NOT AFRAID OF BEING BROUGHT TO COURT DUE TO THEIR WRONGDOINGS

5) ELITE ARE THOSE WHO DO NOT NEED TO SEEK PASSPORTS FROM THE POLICE

6) ELITE ARE THOSE WHOSE SOCIOLOGY NO ONE DARES TO WRITE. ELITE ARE THOSE WHO CHARGE OTHERS WITHOUT WORRYING ABOUT BEING CHARGED BY OTHERS

7) ELITE ARE THOSE WHO CAN RESIST "TU QUOQUE""

CS

(JULY 22, 1948)

LUONGO SPEAKS HERE, MASTERFULLY, THE ECONOMY, POLITICS AND SOCIOLOGY OF "DAVOS INCUMBENT ELITE" AND ITS RIVALS AND ENEMIES

FOR EUROPE, HIS VIEW IS SPECIALLY IMPORTANT. IF LUONGO IS RIGHT, AS IT SEEMS, EUROPE IS GOING TO FACE A STRONG ECONOMIC, POLITICAL AND MILITARY SUFFERING. EUROPE WAS AND STILL IS IN THE HANDS OF "DAVOS ELITE".ONLY HUNGARY HAS RESISTED IT REGARDING THE WAR IN UKRAINE.

WOLFGANG STREECK, FOR EXAMPLE, HAS EXAMINED THE SUBORDINATION OF GERMANY'S POLITICAL ELITE TO US GEOPOLITICAL STRATEGY.

LUONGO INTERESTINGLY SAYS THE FED IS MOVING USA AWAY FROM THE "INTERNATIONAL DOLLAR", THE EURO BEING ONE OF ITS MOST IMPORTANT CASUALTIES.

 

 

US/German spreads tightening. Today begins Europe's reckoning now that Powell has shored up the US banking system. pic.twitter.com/ck24QKMYBZ

— Tom Luongo (Head Sneetch) (@TFL1728) March 14, 2023

 

 

 

TIME IS AN ELITE'S ASSET ALSO. AND IT CAN BE USED, WITH OTHER MEANS,  TO CHANGE PRESENT INCUMBENTS AND RESISTS THEIR FUTURES. INCUMBENTS KNOW VERY WELL THEY ONLY HAVE THEIR OWN EXCLUSIONARY FUTURE

NEW SOVEREIGN AND ACCELERATION OF HISTORY (19-02-2019+22-02-2022)

@GRDecter pic.twitter.com/LrZBp0w1xt

— Guillermo Ruiz Zapatero (@ruiz_zapatero) December 22, 2022

 

"SOVEREIGN IS HE WHO DECIDES ON THE EXCEPTION"

 

 

CARL SCHMITT (POLITICAL THEOLOGY)

SOBERANO ES EL QUE DECIDE SOBRE LA EXCEPCIÓN. LA EXCEPCIÓN ES UNA ACELERACIÓN.  SOBERANO ES EL QUE DECIDE SOBRE LA ACELERACIÓN MEDIANTE LA EXCEPCIÓN

WE DO NOT EVEN REALIZE WHAT SLAVERY IS