Comment by tonytran2015: This day has to come as Turkey or any other sovereign country will not be willing to share its monopoly of fiat currency with any other currency issuer.
…With crypto prices trading at record highs, torrid retail interest in the sector caused Robinhood’s crypto-trading platform to crash (though, as Zero Hedge readers probably understand, that’s par for the course for Robinhood), the rally came to a screeching halt early Friday as dictatorial banana republic Turkey –…
The Middle Class Has Finally Been Suckered Into The Casino. By Charles Hugh Smith.
Record inflows into equities adds more evidence that the middle class has been suckered into the Fed’s rigged casino. Why lose money every day in savings and money market accounts when newbie punters are raking in $250,000 a month playing options on Gamestop?
Alas, the majority of this “wealth” is phantom, as revealed by the chart of tangible (real) / intangible (financial) assets. The Fed’s casino prints trillions of dollars and gives them to the biggest gamblers for free, and so the artificial semblance of free money for everyone who gambles is compelling.
Unfortunately, the Fed’s casino is only rigged to benefit the Fed’s cronies. Everyone else is suckered in to lose whatever they have. The Fed’s cronies have been impatiently waiting for the suckers to surrender their rational risk aversion and flood into the rigged casino to share in the Fed’s limitless wealth machine: the more you risk, the more you win!
But the wealth is illusory. The Fed can create currency out of thin air and give it to its predatory, parasitic cronies, but this isn’t real wealth. Real wealth has to be generated by work and investing in productive assets.
The Fed’s casino isn’t just rigged; it’s criminally unstable. Once the phantom wealth evaporates and returns from whence it came (i.e. thin air), the unfairness of the Fed’s financial system will trigger a Cultural Revolution that the Fed will be helpless to control, for everything the Fed can do will only accelerate the unraveling.
Decades in the making (arguably centuries), it’s within sight now.
By Ling Huawei, managing editor of Caixin Media and Caixin Weekly. Originally published in Caixin, After China Huarong Asset Management Co. Ltd. on March 31 decided to suspend its share trading the next day, the market became awash in rumors that the company, one of the country’s four largest bad-asset managers, […]
One day after Credit Suisse traders realized that they may be the biggest losers from the Archegos debacle following reports that banker bonuses at the Swiss bank will be slashed by “hundreds of millions of dollars“, another bank is about to feel…
As always, Warren Buffet had already warned us: “Having a large amount of leverage is like driving a car with a dagger on the steering wheel pointed at your heart. If you do that, you will be a better driver. There will be fewer accidents but when they happen, they will be fatal.”
I do not know what the worst part of that story is. Whether it is the fact that Bill Hwang had criminal record. Or that Archegos used the same collateral to enter contracts with up to seven banks boosting leverage as high as 500%. Or if it is Nomura’s reaction, saying basically that whatever happens central banks will rescue banks if needed. Nothing seems to matter anymore for a system accustomed to perpetual bailouts since the LTCM failure.
But beyond those ethical considerations, the Archegos collapse has taught a few interesting things about US capital markets.
The first lesson for investors is the fact that years of lose monetary policy have laid the ground for moral hazard and very risky bets, as evidenced by the record of margin debt. And the higher the leverage ratio, the bigger the vulnerability to unexpected moves…
Earlier this week, when looking at the latest BofA card spending data, we observed that “whereas previously the bulk of the upside spending game from debt card outlays, in recent weeks we have seen a solid increase in credit…
Posted by Lawyer Sue Grey LLB(Hons), BSC(Biochemistry & Microbiology) at Facebook:
“Here is a very interesting point people do not know … just passed to me from a highly reliable source:
‘I have just made contact with Southern Cross Life and Health Insurance and they have confirmed with me that they will not pay out on Life Insurance policies or medical if one has had the Covid vaccine. The reason for this is because it is a experimental medical procedure of high risk that has not been proven to be safe or effective. They also said that they do not take directives from Government. 0800 000 200.’”
Image by Gerd Altmann from Pixabay
- The cash rate for banks to borrow sits at 0.1 per cent, but credit cards have interest rates of up to 20 per cent
- Mr Pallas wants the Commonwealth to investigate ways to prevent the “unreasonable” difference
- The push echoes comments made by the Reserve Bank Governor about high rates on credit cards
Mr Pallas has written to federal Treasurer Josh Frydenberg and the heads of Australia’s major banks, asking them to review credit card interest rates.
Fallout From Greensill Collapse Splatters British Government, Leaves Taxpayers With Big Losses Authored by Nick Corbishley via NakedCapitalism.com, Downing Street’s dodgy dealings with Citigroup and Greensill show just how far the British government is willing to go to line the pockets of banks and other financial firms while bleeding taxpayers dry. The collapse of UK-based […]
…The national debt (the amount the federal government has borrowed over the years and must pay back) is $28 trillion and growing. That translates to roughly $224,000 per taxpayer…