- The final endgame moves are: Global Currency/Financial Reset via a Revaluation of the price of Gold, Debt Jubilee and Return to the Gold Standard ie. gold backed currencies. Gold is the perfect debt extinguisher. The price of gold needs to be at least $50,000/ounce to remove substantial global debt. Hint: Watch video at bottom of post about China releasing an asset backed digital Crypto Chinese Currency soon.
- “QE-For-The-People Is The Endgame…And Gold Will See It Coming First”
by Daniel Oliver Myrmikan Capital, https://www.zerohedge.com/
QE For The People
Myrmikan’s May letter discussed how the Fed had already begun to ease financial conditions, though the method was so subtle that few understood what the central bank was doing.
Banks are required to keep required reserves at the Fed. Banks that find themselves with a deficient reserve level have to borrow reserves from those with excess reserves, and the interest rate they pay is called the fed funds rate. The fed funds rate thereby sets the minimum level of funding for the banking system. The Federal Reserve used to set this rate through open market operations: buying Treasuries would add reserves to the banking system and lower the fed funds rate (and vice-versa).
Historically, reserves earned no interest, and so, before 2008, banks maintained as few reserves as possible—they could always buy a Treasury bill with any excess cash. After the Fed flooded the banking system with reserves during the 2008 panic, banks found themselves with excess reserves, which peaked at $2.7 trillion. The Fed sets the general reserve requirement at 10%, which means the banking system could have added $27 trillion of credit to the economy. In fact, certain classes of assets (such as Treasuries, mortgage-backed securities, etc.) have risk weightings that allow banks to hold as little as 2% reserves against them, which enables 50 times leverage on such assets (which is how, for example, Citicorp was able to be levered up 48:1 in 2007).
In order to keep trillions of levered up credit from crashing into the economy, the Fed began paying interest on excess reserves (IOER). Given the level of excess reserves, the Fed could no longer use open market operations to manipulate the fed funds rate. The Fed thought it could control the fed funds rate by manipulating IOER instead: Since Fed deposits are by definition risk-free in nominal terms, the fed funds rate should never go below IOER because if it did, banks would withdraw their loans to other banks and deposit the funds at the Fed instead. Similarly, the fed funds rate should never go above IOER because banks could withdraw reserves and lend them to other banks.
- CGTN 18 Sept 2019
The People’s Bank of China could become the world’s first central bank to introduce its own digital currency. It has applied for 74 patents involving digital currencies to the National Intellectual Property Administration. The soon to-be-unveiled digital currency will be backed by the reserves of valuable assets that commercial institutions deposit in the central bank. Many say the proposed currency could encourage global use of China’s yuan. How will this revolutionize the monetary landscape in China and abroad?