NO SUCH THING AS "DOLLAR SHORTAGE"

 TWITTER THREAD HERE




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DOLLAR SHORTAGE

thread

1/


Watch the video enclosed in the first tweet explaining shadow banking by Lynn Stout.

It was Chris Whalen which promoted that video trying to explain to twitter followers what shadow banking was.

2/


So, to keep it simple, mega financial players in shadow banking creates BETS in trillion of dollars.

Let me repeat this again: INSOLVENT MEGA PLAYERS ENGAGE IN BETTING IN SHADOW BANKING.

3/


Lynn Stout explains how laws were changed to make that possible, with London being in the epicenter of it.

Insolvent mega financial players create bets in shadow banking in trillions of dollars NOMINAL at extreme leverage.

4/


All corporations BET in shadow banking with mega financial players as well, as we need two sides to bet, normal.

Bets are usually called Interest Rate Swaps or other derivations of interest rate derivatives, but they are all ALL dependent on interest rates.

5/


As we know in bets, one side wins, one side loses.

If the losing side is NOT a mega bank, they just lose.

If the losing side is a mega bank, they call this DOLLAR SHORTAGE.

6/


So, what is deemed Too Big To Fail, mega banks, when they win a bet, they make money.

But, when they lose a bet, they say, there is dollar shortage, hence they want the Fed to supply them with dollars, so they don't lose.

7/


In street lingo that is called Quantitative Easing, the Fed supplies the system with Central Bank Reserves (dollars used only by financial institutions with access to the Fed via repos).

And the Fed is supposed to never let them fail, because......just because.

8/


So, now you know, my friends, what Shortage of Dollars is about.

It's fake.

There is absolutely no shortage of dollars.

It's insolvent mega banks and mega financial institutions LOSING MONEY betting with Interest Rate Swaps.

9/


And that is why Supply Chains are breaking down.

The Fed/Congress has to supply dollars to anybody now, so nobody has to work, everybody wants to be bailed out, people, banks, corporations, all.

Who is going to produce goods and services for us to consume?

#krisonomics

10/end

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