Unveiling the Secretive Emergency Lending Programs of the Fed to Wall Street's Mega Banks in 2008.
Unveiling the Secretive Emergency Lending Programs of the Fed to Wall Street's Mega Banks in 2008.
The Growing Coalition Against the US Dollar.
Here is what we will be getting into today:
The Fed's Secretive Emergency Lending Programs to Wall Street's Mega Banks in 2008.
The Rise of BRICS: A Counter to G7, IMF, and the World Bank.
Surprising Trends in US Job Market: Historically High Job Openings and Voluntary Quits Persist.
U.S. Dollar is Still King.
Let's Dive In!
Website: Wall Street On Parade
Title: A Growing Lack of Confidence in the Fed Is Spilling Over into a Lack of Confidence in U.S. Banks.
Link: https://wallstreetonparade.com/2023/04/a-growing-lack-of-confidence-in-the-fed-is-spilling-over-into-a-lack-of-confidence-in-u-s-banks/
Here are the key highlights:
The Federal Reserve has been accused of being a compromised regulator that does the bidding of Wall Street's mega banks to the detriment of average Americans and the US taxpayer. The Fed introduced emergency lending programs to Wall Street's biggest banks in response to the 2008 financial crisis, but did not release the names of the firms doing the bulk of the borrowing or the sums borrowed by each institution.
Bloomberg News filed a Freedom of Information Act (FOIA) request for this information, leading to a lawsuit against the Fed. The Fed lost the case and was forced to release the transaction details of its seven emergency lending facilities. The Dodd-Frank Act required the Government Accountability Office to conduct an audit of the Fed's emergency lending programs, revealing that the Fed had issued more than $16 trillion in cumulative loans at below-market interest rates to teetering banks.
When the Levy Institute of Economics tallied up all of the Fed's lending programs, including single-tranche repurchase agreements and added in the Fed's dollar swap lines, it came up with a cumulative tally of $29 trillion in emergency Fed loans. The Fed has also been accused of customizing loans for specific borrowers, something that the Dodd-Frank financial reform legislation of 2010 expressly prohibits. Excluding the banking crisis related to the COVID-19 pandemic in 2020, Americans now find themselves in Banking Crisis 3.0 with a new Fed bailout program called the Bank Term Funding Program.
YouTube Channel: Mark Moss
Title: The Fed and US are Under Attack | This Is Bad
Link: https://www.youtube.com/watch?v=vXGk7bWNy6c
Here are the key highlights:
The US Power Led Order, which has been in place since 1944, is under attack along with the US dollar's reserve currency status. The US has been weaponizing the dollar against other countries through sanctions and exporting inflation. The US has enjoyed massive benefits from having the reserve currency status, but the world is ganging up on the US, inflicting financial warfare against the Federal Reserve and the United States. The decline of the dollar as a reserve currency status is happening now, and the Fed is in a serious predicament.
For context: The petro dollar was born in 1974 when Saudi Arabia agreed to sell oil priced in dollars, and the US promised to protect them. Oil and energy are the main drivers of inflation, and when energy prices go up, everything goes up. The US has been draining its strategic petroleum reserves and begging Saudi Arabia for more oil, but Saudi Arabia did not want to cooperate due to Biden's criticism of them.
China and Russia started de-dollarizing in 2013, buying fewer dollars and treasuries, and setting up their own trade co-op known as BRICS. The BRICS nations, Brazil, Russia, India, China, and South Africa, are countering the G7 and the IMF by engaging in trade outside of the dollar and trading in their own local currencies. BRICS was created to counter the G7 and set up a counter to the IMF and the World Bank. More countries want to join BRICS as they do not want to be threatened or sanctioned by the US. China and Russia are becoming partners to redraw the world and reimagine global trade.
Website: Wolf Street
Title: This is Still the Most Astonishing Labor Market: Job Openings, Hiring, Voluntary Quits, Layoffs & Discharges
Link: https://wolfstreet.com/2023/04/04/this-is-still-the-most-astonishing-labor-market-job-openings-hiring-voluntary-quits-layoffs-discharges/
Here are the key highlights:
According to the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS), job openings fell in February but remained historically high, with 9.93 million job openings reported by companies. Actual hiring dipped but remained well above pre-pandemic records, with companies reporting 6.16 million new hires in February.
Actual layoffs and discharges fell again to 1.50 million, a near-record low and well below the pre-pandemic record low. Voluntary quits rose again and were still in the astronomical zone, indicating that workers are still confidently arbitraging the tight labor market to improve their income, benefits, or working conditions by jumping to new jobs.
The leisure and hospitality sector has 16 million employees and has normalized, while the construction sector has about 8 million employees and saw job openings jump to near-record highs. In contrast, the healthcare and social assistance sector, with about 21 million employees, saw job openings fall for the fifth month in a row but remain in the astronomical zone. The information sector saw job openings tick up for the second month in a row, but are still down from the peak last year. Overall, job openings have tightened up from ridiculous levels but remain very high.
Website: ZeroHedge
Title: Some Commodity Producers Are Now Being Offered CNY, Not Dollars
Link: https://www.zerohedge.com/commodities/some-commodity-producers-are-now-being-offered-cny-not-dollars
Here are the key highlights:
Global markets are currently witnessing a potentially explosive situation as various factors come into play. OPEC+ is pushing up oil prices by destroying supply, while Russia has released a national security doctrine for long-lasting hybrid war.
The Financial Times predicts a multipolar currency world, with the renminbi playing a more important role in the future. India and Malaysia have agreed to settle trade in INR, and some commodity producers are now being offered CNY instead of dollars.
The US dollar remains king in the global financial architecture. Local FX settlement is deepening bilateral trade relations for emerging economies, but it is also unraveling more of the larger global system. The US financial hegemon is encircling and containing China, and running a hybrid war against it. The US dollar is a symbol of America's strength, and the US will not let others disregard this symbol. These actions are not building a new global architecture as much as a bomb underneath the current one.
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