Saber Rattling | QPOL Issue #72
Here we stand as laymen on the sidelines watching psychopaths drag humanity into another world war as their last ditch effort of survival. That’s really what it’s come to, y’all. The month of September and October have further highlighted this struggle between world powers at the political and financial level. In reality, there’s no separation between them. We’re going to cover both, and a brief historical recap of Jerome Powell’s fight for US financial sovereignty (and then some) to reiterate the critical changes that are being made at a fundamental level not only for America’s financial survival, but national as well.
The Rub on Rates
Here’s the rub on Central Banks and interest rates right now…
The BOE (Bank of England) and ECB (European Central Bank) are desperate for a rate cuts. Their economies are in the tank. So sharper cuts mean they can sell the treasuries they’ve been buying at a premium (rates down, bonds up).
I have to credit Alex Krainer at
for discovering this realization above.Additionally as Tom Luongo has taken notice this year via the TIC reports, these are the Treasuries they’ve (BOE and ECB) been buying rapidly in their offshore accounts since Powell really started raising rates.***
They can also use those newly appreciated at market-value treasuries as supreme collateral to leverage up for more Eurodollars. Since JPM et.al refused to accept Eurobonds as collateral in 2019 (which is also what caused that REPO crisis during that time), their options are limited…
Powell cutting 50bps isn’t a big deal. Likely, the BOJ will keep playing their wing man and even raise rates to rid bad actors of their cheap dollars. The carry trade ain’t done, and the liquidation of criminals isn’t over. This party is just getting started. 🎉
I’m disappointed to say the least. I would’ve made a 50bps raise. Oh well. Looking forward to BOJ hopefully raising 50bps to bankrupt the rest of these globalist trolls.
Powell’s Dangerous Toys
The British never surrendered their Empire, nor gave up their monetary/military hegemony. They simply outsourced it all to America. The dollar becoming the world reserve currency is irrelevant because the Brits maintained controlled over it via LIBOR from the City of London.
All of this changed in 2019 when JP Morgan refused to accept European sovereign debt as collateral for dollar reserves. Meaning offshore banks couldn’t get their levered dollars as easily. This is what caused the REPO spasm. Powell started playing with toys in the monetary arsenal.
Before moving on, the first thing to understand about the US and dollar hegemony is that the majority of dollars are created outside of the US. This is known as the Eurodollar system. Basically, offshore banks have $ reserve collateral to issue credit beyond US jurisdiction
Previously, all US debt was indexed to LIBOR (London Interbank Overnight Rate), a rate that is established by 18 panel banks at the City of London (only 1 of which represented the interests of America, the J.P. Morgan office in London).
When US banks stopped accepting EU sovereign debt as collateral, offshore banks couldn’t get dollar reserves to lever up. No reserves meant no more money printing than the US. (AKA: phase 1 of the💀of the Eurodollar market).
Then to avoid hyper inflation, after the June 2021 FOMC, and after the Green Swan conference with Lagarde and others, Powell increases the ON RRP by 5 basis points, moving trillions of base money out of the global monetary system…
Positive yield of 5bps in the world’s reserve currency is quite tempting if u hold euros. With this move, holders of excess dollars being held oversees were incentivized to remove them from the global economy and gain interest, further strengthening the dollar and its demand.
In January’22, USA ditched LIBOR for SOFR (Secured Overnight Funding Rate). SOFR is the daily rate banks/financial institutions lend to each other overnight, secured by treasuries. It’s based off actual market activity, something real, not arbitrarily dictated by foreigners.
This reindexing to SOFR removed US exposure to offshore balance sheets bc the US isn’t affected if LIBOR rates blow out. Americans will no longer socialize OVERSEES losses by higher rates on their credit cards, mortgages, etc. 🇺🇸 controls the price of their debt now. Not 🇬🇧
SOFR is what gave Powell the liberty to raise rates as high as he did without wrecking the US economy. Congress’ endless spending works against him. He fights back with QT/higher for longer. BOJ ending the Yen carry trade helps him by killing more offshore Eurodollar leverage.
Cutting rates in September ‘24 shows Powell is in control, and didn’t pivot. Markets went up. Offshore banks sold their treasuries at a premium since rates decreased. What will they do with the profits?
Probably buy more treasuries to leverage & cover their bond spreads…
The biggest con in global finance is the bond market. EU has no capital/collateral/political credibility. Why on Earth is German debt trading at a premium to US debt…
Fed cutting 50bps showed who’s really screwed.
Given the yield curve has recently re-inverted, it’s really not a surprise…
Yellen and Lagarde are desperate to retain capital from fleeing.
So what do you expect? YCC (Yoeld Curve Control). They’re Selling 2s, buying 10s & using what collateral they have to leverage what Eurodollars they can. Additionally, basic principles of the securities industry tells us a wider spread between US and German yields traditionally implies there’s no liquidity for US collateral. This couldn’t be further for from the truth for brain dead obvious reasons.
Powell’s higher rates screwed them that hard.
Nightmares In The City™️ That Never Sleeps
The British Empire would be nothing without financing from the City of London™️. This is the source of where all the drug war, human trafficking, election rigging/stealing, color revolution etc. funding comes from. Everything George Soros does is because of the CoL™️…
This is undoubtedly the same place that funded Epstein. They’re losing power and control of this money because of what Powell and friends have done. Most notably, SOFR.
Check out more details from my talk with
.SOFR is a free market based rate that stems from the overnight borrowing done by the primary dealers (which are basically a select few large banks and financial institutions that are basically the Federal Reserve’s best friends).
Before SOFR, that debt benchmark was indexed to LIBOR, which was controlled by the CoL™️. It was NOT a free-market rate. It was whatever they rigged it to be so they were able to print more dollars than the US would allow them to.
As Stormy Waters explained on 2 Bit Podcast, 90% of the World’s dollars are printed OUTSIDE of the US because America didn’t set the rules for offshore dollar creation.
Imagine you have a company and own 10% of it, while the rest of the board of directors owns the remaining 90%. Who really owns your company? You, or the board?…Surprised that even some broad on the LIBOR commission didn’t understand how this works? You shouldn’t be…
That’s where the dollar was at…until this Monday, September 30th. 2024.
Everything happening politically, culturally, economically all stems from this fundamental change in money. America exerted its sovereignty/Independence from the British Crown (City of London™️). Dragging us into WWIII is the only way they get bailed out. Team Trump/Fed said GFY!🖕
Israel wants to force America into WWIII because the United Kingdom’s bond markets are about to implode. They promised their bond holders huge payouts if they beat Putin. Since the writing is written in the war for the war in Ukraine, the Neocons’ last effort is to force US to bail them out to fight Iran, breaking the US superpower/promise of never defaulting.
Team Trump (Powell, Pentagon) are telling them to go pound sand. You can see it in their willingness to end the war in Ukraine and the non-answers both Trump and Vance are giving when asked anything about supporting Israel. Of course Trump will jaw-bone to the Zionists publicly, but we’re in an election year. He’s throwing them a bone to get them off his back. It’s called politics. Politics is nothing more than your relationship to power and who your friends and enemies are. It’s bull shitting. It’s how the game of life is played.
Don’t Forget Take Your White Pill 💊
You can’t ignore good news when you see it. Jamie Dimon, CEO of JPMorgan Chase, has praised Elon Musk’s and Trump’s plan for a government efficiency commission, describing it as a “very good idea.” This is where we’re moving. A push towards efficiency and independence. That’s why Powell is fine with the dollar not being the world’s reserve currency…
Triffin Dilemma is the creating of the Eurodollar market. That’s why Powell wants to end it and not be the world reserve currency. Exporting debt is just more reserves for offshore banks to leverage against us.
The excuse of “we need to export our inflation” is a moot point/lie because it just creates more inflation via leverage that comes back to bite us in the ass in the form of dollars printed beyond US jurisdiction.
These dollars distort our economy and causes market collapses.
Powell was appointed by Trump. Powell is Carlisle alumnus. So is the majority of the JPMC Board. Jamie Dimon holds the most financial/political leverage in the world. Powell ran private equity for Dimon. Dimon praised Trump at Davos. Trump considered Dimon as possible Sec of Treasury.
Do the math 🧮. We’re winning….
~ Mr. Pseu
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