*****the MOST IMPORTANT FINANCIAL EVENT IN THE HISTORY OF THE WORLD (SRS) GTFIH*****

[MikeD4386]

http://ftalphaville.ft.com/blog/2011...eposit-crisis/
http://ftalphaville.ft.com/blog/2011...qe-equivalent/

In order to provide liquidity to the market, the FED is pulled just about every trick out of its hat that it can think of. But now they came up with this brilliant gem, never before seen since the great depression: REVERSE REPOS—except now, they are on a hyper massive scale. IN the great depression they were used for money market accounts and small savings and loan institutions. Now they are bing used for megabanks.
This is what the Fed is doing right now with 0% interest rates QE, etc. But now, the Fed is engaging in mass reverse repos. Basically the Fed is needlessly borrowing money from the markets and paying interest, in order to prop up short term rates (this of course, of deposit it gave to the banks in the form of QE2)(its very complex why the fed funds rate cant do this alone so read the article if u r skeptical hippo). Basically, there is so much liquidity, and so few actual investment opportunities, that voluntarily wealth destruction is taking place. That’s right, Money is so worthless than it now has a NEGATIVE TIME VALUE. This has only been hypothesized as a joke in economic and financial circles for decades and no one thot it could ever possibly happen (kinda like people are like bro what if gravity pushed things away from Earth? woah—but the fed pulled it off.
The fed tried in a last ditch effort to save the economy to straight up print money and give it to people in the form of QE. Printing money has failed (big surprised) and now this is the absolute last resort. This measure is not designed to prevent or even soften a collapse . It is designed with the sole and exclusive purpose of delaying the collapse as long as possible. Instead of the stock market falling 1% a day for the next 3 months-the fed is gonna put it off unti the last possible moment,then pull the plug…and the market will fall 90% that day. (of course this is really with respect to money markets, not stock markets, but they will surely collapse just as much).


This is unbelievable. The fed has completely admitted defeat. Its like ur at war with a country and u pass out rifles to all the people (QE). Then the other country launches nuclear missiles at u, so u give everyone a bible cuz it’s the only chance they have. The repos are the bible. THE FED IS HANDING OUT BIBLES

To put it more simply, the money market is in such a rush for capital preservation that negative interest are taking hold. As these negative interest rates pan out over time, there will be dire consequences. This basically means money has a NEGATIVE VALUE. This will cause money markets funds to break the bucks and there will be a massive liquidity freeze.

Interesting ****ing times.

For those of u who understood none of this just know this. One day, maybe soon, probably by the end of the year, u will turn on the tv at the end of the day and hear on the news that all consumer despoits at banks are gone, and they cannot be insured. The stock market will have crashed 25 or more %. Check clearing will cease, credit card transactions wll come to a grinding a hault and just absolutely everything will freeze.

Except, of course, for the trillions in excess reserves at the Fed, earnings interest for the big CEOs.

Welcome to armaDEBTon


Super ultra simplified cliffs:

The market is trying to commit suicide, and the Fed is trying to stop it.
The fed cannot stop and instead of slowly collapsing, the entire global economy will come to a sudden a freeze, with literally less than like 15 minutes notice.

This is a huge ****in deal

[outfoxxed]

if i rep someone will i get some reverse repos?

[gordonramsay]

OP, I completely agree with u, but trying to inform the misc is a waste of time. They'd rather see Justin Bieber's latest gf than read/hear a second worth of our current financial system.

Just watch as this thread is quickly buried to page 10 by worthless/stupid threads .

[wobblydaddy]

What happens to Canada :'(

[schnappi]

should i monger in fear now or wait until the late minute?

[gordonramsay]

I think Canadian dollar is pegged to the dollar just like the rest of the currencies of the world, so U guys wiill go down with us.

should i monger in fear now or wait until the late minute?

Mongering in fear is a waste of time. But the message of this article is pretty clear, that our financial system is in shambles and that our dollar will sooner or later be devalued into oblivion. OP is just stating the facts. What you do with the information is up to you.

Personally, I am stacking up on silver, so all my dollar savings don't get wiped out. If you're just getting into this, you're in for a big and unpleasant surprise.

[Controverzial]

America is a superpower?

[OdeToArsenal47]

What happens to Canada :'(

If we're goin' down, we're taking you with us!

[LargeWill]

so they're predicting a 90% chance of fail within the next 90 days? lol k

[robwigan]

Least we aint died

[supersaiyan-dre]

inn
edit: I read the ultra simplified cliffs and this sounds pretty intradasting. I never really watch the news so I don't really know whats going on in the world (lol). I might have to read through the mini wall-o-text to see what all the fuss is about.

[scrace]

prove it.

[BENNAYBOY]

miked makes a bunch of conspiracy theory posts... hes a phucking retard

[MikeD4386]

should i monger in fear now or wait until the late minute?

u should probably get started soon. ANd don't take my word for it. The Federal Reserve is the one who said all this. I just analogized it.


This is gonna be so sudden and so serious, it will blow ur ****in mind. U will immediaetely lose ur job, or atleast start working for free cuz ur employer wont be able to clear any checks.


And the Fed will not be able to recover anything because they already own all the money markets anyway.


**** is gonna real without absolutely zero warning.

One day, a money market will break the buck and things will go ****in nuts in an instant.


It already happened in 2008 (that money markets froze) but the Fed haulted money market trades for a hour or two and promised to buy up any funds that broke the buck and insure any losses. They cant do that this time around cuz of the negative interest rates.

No ****in way out.

good night sweet modern society

[Kilrathi]

so what do u suggest we do?

[Soup66]

Withdraw all your money to cash and hide in your basements

[supersaiyan-dre]

so what do u suggest we do?

There's nothing we can do. Just sit back and chill while it all goes down.

[BigBubbasJailM8]

ive never understood how people that are already billionaires(owners of fed) could still want so much money esp. at the point they're at, even at the cost of f.ucking up an entire country

i have 500 billion dollars. i still want more, even if that means f.ucking up an entire country and ruining the lives of thousands if not millions of people. what do with all the extra money? nothing, stroke my penor

[RipedRX]

nothing new there is a reason ive been investing in silver for last 2 years. so let the dollar fail, which it will

[MikeD4386]

miked makes a bunch of conspiracy theory posts... hes a phucking retard

what? My posts are just saying the economy is gonna collapse. But now its not even me saying it. the federal reserve has entirely admitted defeat.


The only conspiracy theory here is whether S&P downgraded the US on the same day as this announcemement on purpose or not.
http://www.telegraph.co.uk/finance/f...and-Spain.html

http://www.pbs.org/newshour/business...d-announc.html

[LionBabylon6]

what if we move to australia ? sounds good?

[4EverBulk]

How about a soloution and/or planning advice?

[wowucrazybrahh]

so what do u suggest we do?

You need to put your money in an offshore bank in a country which is stable economically and politically (New-Zealand, Singapore, Swiss, etc.) I would suggest buying gold/silver and moving it offshore as well to make sure you don't get ****ed up by the Feds. Also, applying for a citizenship in another country is always a safe bet in case big **** happens in your home country.

You would have to be a complete moron if you let your money sit in your saving account/401/whatever it is in USA.

[robwigan]

I doubt that things will get as bad as your saying they have potential too of course. but i doubt we will one day.wake up sn our money all be gone jobs worthless an all services to stop.

good post op though.repped

[supersaiyan-dre]

So wait OP, when is all this gonna happen?

[MikeD4386]

so what do u suggest we do?

nothin bro. we ****ed.



u could get out of all ur financial instruments, but I wouldnt take advice from someone on the internet. thats why I posted links. Read the inks, learn about it. if u dont wanna learns, thats fine. Just keep this thread in the back of ur mind so that when this day comes u can be like **** I shoulda investigated that


edit: And don't think u can make money off this by shorting the stock market. Ur broker's funds are gonna freeze and they're never gonna pay u.

[LionBabylon6]

So american miscers where are we moving to New Zealand or Switzerland ? Which has bettter food and better gyms?

[ceo1kaweek]

did not read lol

[wowucrazybrahh]

So american miscers where are we moving to New Zealand or Switzerland ? Which has bettter food and better gyms?

Switzerland is really expensive especially since all investors are starting to invest there because they are a stable nation economically and politically. A Big Mac meal costs $17.19 US in Switzerland at the moment.

[HorseMeatChlupa]

Should I prepare my angus