Global Currency Reset 2020 !!

Global Currency Reset 2020 !!






In 2008, the “freezing of the repo markets was one of the most damaging aspects” of the financial crisis, according to a report by the Bank of International Settlements (BIS). This detail sets the stage for an eerie revelation contained in the same report: that four major banks sit at the root of the recent repo crisis that started back in September. First, a quick refresh on what “repo transactions” are, directly from the BIS report itself: A repo transaction is a short-term (usually overnight) collateralized loan, in which the borrower (of cash) sells a security (typically government bonds as collateral) to the lender, with a commitment to buy it back later at the same price plus interest. […] Repo markets redistribute liquidity between financial institutions […] they help other financial markets to function smoothly. Until now, the Fed “line” has been that the repo crisis started because of “corporations draining liquidity from the system to pay their quarterly tax payments alongside a large auction of U.S. Treasury securities settling and adding to the cash drain.” Of course, we already know that the Fed has flooded the repo market with hundreds of billions of dollars since September, and plans to keep doing so into 2020. So blaming the situation on “corporations paying their quarterly taxes” doesn’t seem to add up. The BIS report completely exposes the fallacy of this “line”, essentially squashing any of the Fed’s credibility on the topic, saying, “US repo markets currently rely heavily on four banks as marginal lenders.” As seen below, the four banks (Citigroup, JPMorgan Chase, Bank of America, and Wells Fargo) have taken on critical roles in the lending market – perhaps too much so.