Per a fresh report, the US Federal Reserve has pumped over $9 trillion to primary dealers in the last seven months, leveraging unfathomable amounts of emergency repo operations to create 22% of the entire US Dollar market this year alone.
The recent investigative report shows the US central bank submitting the daily loan tally, but the Fed is not keen on providing information with regards to the recipients of such funds. According to estimates, in 2020 alone, the US has created 22% of all US Dollars issued since the birth of the nation.
Federal Reserve mints trillions
The US Federal Reserve has minted record-setting amounts of cash in 2020, bailing out Wall Street special interests during the last seven months in similar fashion to the 2008 financial crash. On October 3rd, 2020, bitcoin redditors shared a video titled “Is hyperinflation Coming?” and discussed how the US has managed to print over 20% of all USD ever created in this year alone.
“The U.S. dollar has been around for over 200 years and for the bulk of that time, it was backed by gold,” one user wrote. He added:
Having a quarter of all USD printed in a single year is more than alarming, it’s mind-blowing.
In addition, on October 1, 2020, Wall Street on Parade’s (WSP) Pam Martens and Russ Martens published a detailed report on how US central bankers pumped out “more than $9 trillion in bailouts since September.” The report also found that the Fed is also getting market advice from Wall Street hedge funds like Frontpoint – a firm notorious for its shorting of the subprime mortgage market during the 2007 to 2010 financial crash.
The WSP analysis shows that the Fed has been conducting such meetings in order to get institutional input on the markets. A similar turn of events occurred in 2007-2010 when the Fed was also working with a leading group of lending firms and hedge funds. Today, the Fed is working with three emergency lending facilities: the Money Market Mutual Fund Liquidity Facility; the Primary Dealer Credit Facility; and the Commercial Paper Funding Facility.
“On top of those facilities, beginning on September 17, 2019 – months before the first case of Covid-19 was reported in the United States – the New York Fed embarked on a massive emergency repo loan operation, which had reached $6 trillion cumulatively in loans by January 6,” the findings reveal.
The Martens’ also state:
The Fed has provided data on the total amounts of the daily loans, but not the names of the recipients. All it will say is that the loans are going to its 24 primary dealers, which are the trading units of the big banks on Wall Street. The last time we tallied its data in March, it had sluiced over $9 trillion cumulatively to these trading houses.
There’s a popular belief that the unprecedented amounts of cash creation will eventually lead to hyperinflation; though notably this narrative has been touted for decades now. However, there’s reason to believe that this macro-economic super cycle is coming to an end. Since the introduction of the central bank in 1913 the cumulative rate of inflation is about 2,525.4%. This means a product purchased for $1 in 1913 would cost $26.25 in October 2020.
Beneficial for bitcoin?
Precious metals and cryptocurrency proponents believe that bitcoin and gold will be beneficiaries of unlimited cash. Pantera Capital CEO Dan Morehead explained in July that the company believes cryptocurrencies like bitcoin will act as recourse normal people.
In a letter to investors, Morehead wrote: “The United States printed more money in June than in the first two centuries after its founding. Last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979.”
On the same day, the 22-year congressional veteran, Ron Paul, told the public that Americans should be “prepared.”
Paul has exposed the US Federal Reserve for the last two decades, having written extensively about central bank fraud.
In the video, Paul detailed his astonishment at today’s bureaucratic back-scratching.
He said: “After so many years in Washington, I thought I was immune to being shocked by what our government does. But the actions that our elected officials… the Fed… even the medical community have taken in the past few weeks have gone beyond anything I could have imagined.”
“Most Americans will be blindsided by what’s going to happen. Make sure you, your family, and anyone you care about are prepared,” insisted the former US Presidential candidate.
Why does this matter?
Often enough, such reckless behaviour is presented as an everyday normal operation, when in reality the mental gymnastics it takes to rationalize this nefarious activity is more astonishing than the act itself. Terms such as ‘repo operation’, ‘quantitative easing’, and even ‘modern monetary theory’ are often talked about among bureaucratic circles, but ultimately the rules of supply and demand amidst a backdrop of multi-generational theft will prevail (once the velocity of money picks up the pace).
Meanwhile, US airlines are looking for a second bailout, and the country’s hospitality industry is also in search of more stimulus; like a crack addict looking for his next fix. This comes just as real mortality rates of the corona virus begin making the rounds, showing that lockdown measures were not only unnecessary but incredibly harmful to small and medium sized businesses.
Indeed, economies have been devastated as GDP figures across the West plummeted to levels not seen since the year 2000. All the while efforts to enforce a second lockdown are still ongoing despite data which shows original estimates to be not just wrong, but dead wrong.
At this point, not owning bitcoin is financial negligence.
Join the telegram channel for updates, charts, ideas and deals.