US Debt Default – The Nightmare Scenario: A Repo Implosion!

• An US debt default implies that the western Illuminati has decided to pull the plug on the current world order ie: global economic, financial and currency collapse! Although, Pastor Lindsey Williams has feedback from his Illuminist insider friend that there will not be a global collapse this year, you need to take things with a pinch of salt. He may be misled or his insider friend may have been misled. Or the western Illuminati have since then changed their plan. I am not saying that a US default will definitely happen. I am saying: be prepared just in case!
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• All Illuminist actions work via deception. Deception is at the heart of all their false flag terrorism and sorcery. It is well-known that Illuminists lie constantly and habitually to their own people. Illuminists at one level will lie to the lower level to hide certain things. And this is the practice throughout the Illuminati organization. The top echelons are encouraged to ‘shear the sheep’ – the lower levels, under their control. ie. take advantage of them via whatever means through lying and deception.
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• The organization principle is based on social Darwinism, the survival of the fittest, those with the most guile, sociopathic behaviour … who will pathologically trample on anyone to rise to the top! Any followers a leader has, must be ‘Blackmailable’ or ‘Bribeable’ or both! An effective Illuminist leader is viewed as one who has the most ‘guns’ on his subordinates’ heads!
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• The Nightmare Scenario: A Repo Implosion! 
  by MIKE WHITNEY, http://www.counterpunch.org/ 
  President Barack Obama is determined to prevail in his battle with GOP congressional leaders on the debt ceiling issue, but not for the reasons stated in the media.  Obama is less concerned with the prospect of higher interest rates and frustrated bondholders than he is with the big Wall Street banks who would be thrust back into crisis if there is no resolution before October 17.  Absent a debt ceiling deal, the repurchase market–known as repo–would undergo another deep-freeze as it did in 2008 when Lehman Brothers defaulted triggering a run on the Reserve Primary Fund which had been exposed to Lehman’s short-term debt. The frenzied selloff sparked a widespread panic across global financial markets pushing the system to the brink of collapse and forcing the Federal Reserve to backstop regulated and unregulated financial institutions with more than $11 trillion in loans and other obligations. The same tragedy will play out again, if congress fails lift the ceiling and reinforce the present value of US debt.
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  Repo is at the heart of the shadow banking system, that opaque off-balance sheet underworld where maturity transformation and other risky banking activities take place beyond the watchful eye of government regulators.  It is where banks exchange collateralized securities for short-term loans from investors, mainly large financial institutions. The banks use these loans to fund their other investments boosting their leverage many times over to maximize their profits. The so called congressional reforms, like Dodd Frank, which were ratified after the crisis, have done nothing to change the  basic structure of the market or to reign in excessive risk-taking by undercapitalized speculators. The system is as wobbly and crisis-prone ever, as the debt ceiling fiasco suggests. The situation speaks to the impressive power of the bank cartel and their army of lawyers and lobbyists. They own Capital Hill, the White House, and most of the judges in the country.  The system remains the same, because that’s the way the like it.
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  US Treasuries provide the bulk of collateral the banks use in acquiring their short-term funding. If the US defaults on its debt, the value that collateral would fall precipitously leaving much of the banking system either underwater or dangerously undercapitalized. The wholesale funding market would grind to a halt, and interbank lending would slow to a crawl. The financial system would suffer its second major heart attack in less than a decade. This is from American Banker:
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  As banking policy analyst Karen Shaw Petrou describes it, Treasury obligations are the “water” in the financial system’s plumbing.
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  “They’re the global reserve currency and they are perceived to be the most secure thing you can own,” said Petrou, managing partner of Federal Financial Analytics. “That is why it is pledged as collateral. … The very biggest banks fear that a debt ceiling breach breaks the pipes.”….
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  read more!

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