QE to Infinity = Repurchasing Agreements of Infinite Print

Posted at 10:20 AM (CST) by & filed under General Editorial.



What is it that we’re seeing here in plain sight yet obstructed by separating storylines with misdirection’s popping up everywhere? Is it possible that “Quantitative Easing” has been hidden behind the term “Repo Market” yet, ultimately benefitting the same players with this newly printed cash being used to bury the bodies, like those of Deutsche Bank and HSBC? Both of these entities are reducing employment and exiting markets after taking hard hits in their ROI’s and yet, the markets keep rising.

Deutsche Bank is quoted as saying they are shedding “… $100 billion in assets, and taking a massive $7.3 billion hit … part of a major overhaul” with the other central banker’s problem child, HSBC admitting “…Around 30% of our capital is currently allocated to businesses that are delivering returns below their cost of equity, largely in global banking and markets in Europe and the U.S.,”

     These two banks are not getting healthier at all, in fact, they seem to be dying a slow death and their declines should be hurting other major institution’s as well. The point maybe that western central bankers and friends, control (almost all) derivatives and in size. These deciders of print have the right to bail out whoever they want and when they want. They literally have a wide selection of problems to choose from when more cash is needed and yet, no one can find any report of these newly created debt instruments ever being paid off. These same Repurchasing Agreements just keep getting bigger and bigger and bigger (Just like QE … until?).  

     We in essence, have a self-assigned organization called the “International Swaps and Derivatives Association” made up of central bankers, with others, associated by trades, and agreements, created to protect and support these over-leveraged sovereign debt assets “by any means possible”. The ISDA committees are the same ones that decide when it can bail itself out, and who else survives by throwing this hot money wherever its needed. They are the “tool” that must declare a default or there is no default – no matter what occurs!

     The idea of hiding this new QE title by calling it a Repo is doing what it was intended to do, hide the events in plain sight. The expectations of QE to Infinity will proceed, as a Repurchasing Agreements of Infinite Print! That is, until something not calculated by the algos surfaces, and with consequences …

Got Silver and Gold?

Stay Strong!

J. Johnson