Chaining 9/1/20

[DrStool]

1 hour ago, jp6 said:

From what I Could understand..

Lacy Hunt says Fed Money is not real money and QE money created goes into reserve with da primary dealers. with Reserve any loans that is being made comes out from Thin Air.

You can Check amount of Loans here

https://www.federalreserve.gov/releases/h8/current/default.htm

 

 

Gibberish.

QE goes into the banking system like any other money, with the exception of the $1.6 trillion that the US Treasury is holding on to. To be spent soon, with a vengeance. 

[DrStool]

1 hour ago, jp6 said:

 

 

Gibberish. 

They publish everything.  

 

[DrStool]

27 minutes ago, potatohead said:

Many are expecting a similar event (yield curve control of the 1940's) over the next few years where the Fed is forced to cap yields, in order to avoid massive defaults when rates rise. This is the inflationary theme that institutions and big money managers are focusing on.  I think it is one reason why both Powell and Lagarde were hired to run the Fed and ECB. They are both lawyers and skilled at the technical details if operations need to be adjusted or rules need to be amended.

This makes sense. 

The amounts of paper the Fed would have to buy if yields start rising boggle the mind. 

[DrStool]

But the BoJ has been doing it.  

Japanese people stopped having babies as a result. They know that there's no future. 

 

[DrStool]

2 hours ago, jp6 said:

From what I Could understand..

Lacy Hunt says Fed Money is not real money and QE money created goes into reserve with da primary dealers. with Reserve any loans that is being made comes out from Thin Air.

You can Check amount of Loans here

https://www.federalreserve.gov/releases/h8/current/default.htm

 

 

God almighty. WHat poppycock. 

The Fed buys the bonds, notes and bills from the dealers. 

It's then the fucking dealers fucking cash to do whatever the fornicate they want with it. 

It doesn't become a bank reserve until either

1) the dealer executes a trade, buying some shit from a counterparty who then deposits that cash in its bank account. 

OR 

2) the dealer transfers the funds to its parent or correspondent bank

Only after that second transaction does the Fed's newly created cash become a bank deposit, which the bank holds as a deposit at the Fed, aka reserves. 

But it's the bank customer's cash. They can spend it at will. As a bank deposit, the bank can also use it as a basis for a loan, but here's the thing.

RESERVE REQUIREMENTS ARE EFFECTIVELY ZERO. BANKS CAN CREATE LOANS WHENEVER THE fornicate THEY WANT IN WHATEVER AMOUNT THEY WANT. RESERVES ARE IRRELEVANT. 

THESE FUCKING PEOPLE ARE MORONS RUNNING AROUND JERKING THEMSELVES AND EACH OTHER OFF. 

 

[DrStool]

Meanwhile, the market just lifted off. 

[No Einstein]

37 minutes ago, DrStool said:

Meanwhile, the market just lifted off. 

🤣🤣 that dear sir is the understatement of the YEAR....    "Just"

[DrStool]

[DrStool]

2:30 turn time. 

[potatohead]

Fintwit community explaining the Federal Reserve system to other Fintwiters

 

[DrStool]

2-3 day cycle projection 3535. 

[DrStool]

Jaysus Powell! 

They're buying bonds too. 

[DrStool]

Wow

[itiswhatitis]

Doc - Have you ever done or thought about doing an educational video on how it works?

[DrStool]

I used to do a regular video podcast called Radio Free Wall Street. It was a tremendous amount of work and there was very little interest. So I finally stopped.