Stability for now until other Countries finally realize that They are participating in a Massive Ponzi scheme. It is then that everyone realizes that the Emperor wears no clothes...
Brilliant stuff... Thank you... Could you please write a Part 2 on how financial assets and commodities are likely to behave in this phase of the Federal Reserve's domination (the durable and ever-resilient)?
"Because the Fed started handing out a risk-free investment that paid superior interest (IOER), no entity would want to lend to others at rates lower than the Fed. This set a *ceiling* on how high rates could go"
Isn't this supposed to say 'floor'? Apologies in advance if I'm being dense and missing something.
Sorry, still not following. Here's my line of thinking and hopefully you can point out where I'm thinking about this incorrectly.
- IOER = risk free rate
- (Lending) Banks are always searching for higher-yields on their lending. Let's call one such bank "Bank L".
- A (borrowing) bank, "Bank B", comes to Bank L and wants to borrow
- For this transaction, Bank L sets a rate that is higher than the IOER, because they can just let those reserves sit at the Fed and collect the IOER. Thus, to be compensated for this non-risk-free lending, and to get the most "bang for their buck", the rate is higher than IOER.
- Hence, market rates are higher than IOER, and thus the IOER is the floor.
IORB is the opportunity cost of lending funds out in the first place. Ceiling here refers to the opportunity cost of earning a risk-free interest payment compared to lending them out at lower rates. The real upper ceiling is the discount rate, currently 3.25. Sorry if that wasn’t clear.
hmm , this sounds so US centric and well its not reality , Muricans have always lived in an alternate reality. Central banking is based in Switzerland (the FEDS boss, BIS) and they do want the system to collapse and it will happen, has happened in the past with any country who has their currency as the standard.
I am a nobody , an armchair intellectual at best and I actually predicted the pandemic , the ensuing World War and the shh, Collapse. I have it time stamped for posterity and was with a bullhorn on my FB group page since 2015 telling people what was to come.
Dude , history repeats and I am not a blind lady in some village in the Ukraine who sees the future albeit I am highly intuitive but I gathered all past /present events and the machinations of all governements/ past/present and predicted what will happen and is happening.
So I will wager with you now in that you are not accurate with your predictions, dare you be brave enough to do so with me. Oh you have the ponzi scheme down of the FED but the US central banking system does not control BIS , other way around dude. and they are going to usher in a new standard of currency and I hate to break it to you but it will not be the US dollar or US crypto dollar. Email me if you want to bet on this, hurry because we are going to war soon and well that is when they will say OOPSY not our fault , its Putins and XI's fault. dude after every trade war there is a physical war. be prepared...
Interesting counter-points I’m not smart enough to know but curious then who’s side does BIS fall on or promote then in the end -- not US, not Russia, maybe China?
Banking is so complex if you think back on China, 30 yrs ago the people were starving right? well hmm we as a country wanted slave labor again and other countries also, we built up their country and destroy our middle class in the process and we as Americans allowed it to happen with the banks and corps investing in china, same as India. Mind you this all went down in the 70s when that was the turning point in that we went off the gold standard with this jacked up fiat system.
China now has the largest central bank and I laughed when I saw the top investors one being Mellon Bank of NYC.. hmm. So BIS you can clearly see set its sight on China. the writing was on the wall when they were accepted in the SDR back in 2016. I knew then it probably will be the standard currency in the future. Just as the US was after the Sterling .. Russia is just riding on the coat tails of China and well they have Europe by the balls now with the energy issues. Not that they are happy to play second fiddle but you know how bad they hate the US and all its monopoly over the years. If you look through time this happens every 80 yrs or so.
As I said they want the dollar to collapse , the petro dollar is dead LOL. has been this is why these fake wars ensued because no country wanted to trade with the US dollar anymore. Add in the pipeline that was going from IRan through to Syria and up through to russia/asia/europe. the US lied about that stunt with Syria/Assad once again to stop the pipeline from going through.
Its pretty much lies in the ignornance of Americans because of this divide and rule bullshit. They keep you focused on everything but the banks /corps robbing this country and they have no allegiance to anyone as you see. They rule , the MIC is made up of 12 corporations we see the military as ooh our saviors and hmm lol. Look at who they put in every time to head the dept of Defense. All of them come from defense corps. Esper was from Raytheon, same as this clown now. Check it out. its like all the Head of the Treasury come from a bank. Janet Yellen from the FED and past was Steve Mnuchin from Goldman Sachs.
Anyway its moot now , we will go to war , we as humans are in trouble because the world is interdependent . BIS has no loyalties as why they are based in switzerland.
When Trump was in office I tried to point out to people if you cant fire someone they are your boss. He wanted to fire Jerome Powell and couldn't and he is a peon really. No one gets it. I am sure it stunned the clown to find out he had no power . Presidents are just PR clowns. and the congress and senate our just prostitutes selling our country out. Bowing to the banks and corps... the whole system is corrupt. Take care , be safe. Shit is going to get real it has to , they are going to reset and that is code for many people will die.....
I just subscribed to Concoda, as he seemed to be one of the saner voices in Fintwit. So I’ve been going thru his old stuff, and stumbled on your comments. Wow! Impressed.
I had the same cringe feeling when the article got into the whole “USA! USA!” chanting that we are supposed to believe the Fed is doing. Please. I see the same stuff from Tom Luongo and similar types.
Anyways, there are a decent amount of people who recognize the petrodollar scheme (and the military’s role in safeguarding it) and a good number who are awake to the Fed, BIS, etc…but very few who see the interrelationships between all those like you do.
Especially the Syria - pipeline connection. That’s a pretty obscure one! BTW, I believe there was another one in the works connecting Qatar’s natural gas fields to Europe via the Gulf, Syria, etc…
None of us have all the answers. That’s impossible. The most important tool is having discernment and guarding against hubris and naivety. All we can do.
Next time you make a comment, please share it as your Substack post. I’d love to read it, so I subscribed as your only member so far. Hah. Cheers.
Wrong the BIS currently controls the global financial system, although they plan to through the introduction of their own CBDC. The Fed supervises and regulates US Banks, who issue the US dollar in a decentralized fashion. I agree, the biggest threat to our decentralized global monetary system is a centralized BIS Digital Currency, and through stealth they are focused on doing just that. The battle in the future will not be with China, who cannot develop capital markets until their recognize property rights of investors and asset holders, but the real battle will be between the Fed and BIS. For anybody who cares about ‘we the people’ in any democratic country, you better hope the imperfect Fed wins…
Great article, really helped me position myself especially coming from the African region....you have definitely given me an edge....Please don't stop with the great work you do through this platform :)
Thanks for the dive under the hood to see the engine valves and pistons of the global central bank, the Fed is. How does the recent partial abandoning of the dollar as the main oil/gas trading currency fit in? Does it change/alter your argument about the dollar dominance over any shadow global central banking actors?
Could you elaborate on why other inflation effects such as nominally higher revenue/sales will have for an effect on share prices? In many inflationary stock markets (eg. Venezuela) the nominal returns are extraordinary.... if measured in the local currency.
Gold,
silver,
firearms,
ammo and
Food.
This is amazing, well researched and helpful article.
Cheers!
interesting how you write that the end game is total control, is it even doable for the Fed to rein in the Euro Dollar at this junction?
It already does indirectly. It’s a matter of increased transparency through regulation.
Same question -- whose side would the BIS be on if the US and BIS were at loggerheads?
US
Stability for now until other Countries finally realize that They are participating in a Massive Ponzi scheme. It is then that everyone realizes that the Emperor wears no clothes...
Brilliant stuff... Thank you... Could you please write a Part 2 on how financial assets and commodities are likely to behave in this phase of the Federal Reserve's domination (the durable and ever-resilient)?
"Because the Fed started handing out a risk-free investment that paid superior interest (IOER), no entity would want to lend to others at rates lower than the Fed. This set a *ceiling* on how high rates could go"
Isn't this supposed to say 'floor'? Apologies in advance if I'm being dense and missing something.
lowest rate is also a ceiling because you want to get the most bang for your buck
Sorry, still not following. Here's my line of thinking and hopefully you can point out where I'm thinking about this incorrectly.
- IOER = risk free rate
- (Lending) Banks are always searching for higher-yields on their lending. Let's call one such bank "Bank L".
- A (borrowing) bank, "Bank B", comes to Bank L and wants to borrow
- For this transaction, Bank L sets a rate that is higher than the IOER, because they can just let those reserves sit at the Fed and collect the IOER. Thus, to be compensated for this non-risk-free lending, and to get the most "bang for their buck", the rate is higher than IOER.
- Hence, market rates are higher than IOER, and thus the IOER is the floor.
I was so confused about this that I googled around and saw that this came closer to describing what I thought was happening, and they refer to it as a "double floor": https://alhambrapartners.com/2019/07/22/does-a-second-floor-make-an-effective-ceiling/
IORB is the opportunity cost of lending funds out in the first place. Ceiling here refers to the opportunity cost of earning a risk-free interest payment compared to lending them out at lower rates. The real upper ceiling is the discount rate, currently 3.25. Sorry if that wasn’t clear.
Sometimes this doesn’t work correctly, so they tend to just drop IOER/IORB by 5 or maybe 10 bps or so.
Need to post an article on the method(s) China will consider to break out of US $ loop. I do not see any that are not suicidal.
hmm , this sounds so US centric and well its not reality , Muricans have always lived in an alternate reality. Central banking is based in Switzerland (the FEDS boss, BIS) and they do want the system to collapse and it will happen, has happened in the past with any country who has their currency as the standard.
I am a nobody , an armchair intellectual at best and I actually predicted the pandemic , the ensuing World War and the shh, Collapse. I have it time stamped for posterity and was with a bullhorn on my FB group page since 2015 telling people what was to come.
Dude , history repeats and I am not a blind lady in some village in the Ukraine who sees the future albeit I am highly intuitive but I gathered all past /present events and the machinations of all governements/ past/present and predicted what will happen and is happening.
So I will wager with you now in that you are not accurate with your predictions, dare you be brave enough to do so with me. Oh you have the ponzi scheme down of the FED but the US central banking system does not control BIS , other way around dude. and they are going to usher in a new standard of currency and I hate to break it to you but it will not be the US dollar or US crypto dollar. Email me if you want to bet on this, hurry because we are going to war soon and well that is when they will say OOPSY not our fault , its Putins and XI's fault. dude after every trade war there is a physical war. be prepared...
Interesting counter-points I’m not smart enough to know but curious then who’s side does BIS fall on or promote then in the end -- not US, not Russia, maybe China?
Banking is so complex if you think back on China, 30 yrs ago the people were starving right? well hmm we as a country wanted slave labor again and other countries also, we built up their country and destroy our middle class in the process and we as Americans allowed it to happen with the banks and corps investing in china, same as India. Mind you this all went down in the 70s when that was the turning point in that we went off the gold standard with this jacked up fiat system.
China now has the largest central bank and I laughed when I saw the top investors one being Mellon Bank of NYC.. hmm. So BIS you can clearly see set its sight on China. the writing was on the wall when they were accepted in the SDR back in 2016. I knew then it probably will be the standard currency in the future. Just as the US was after the Sterling .. Russia is just riding on the coat tails of China and well they have Europe by the balls now with the energy issues. Not that they are happy to play second fiddle but you know how bad they hate the US and all its monopoly over the years. If you look through time this happens every 80 yrs or so.
As I said they want the dollar to collapse , the petro dollar is dead LOL. has been this is why these fake wars ensued because no country wanted to trade with the US dollar anymore. Add in the pipeline that was going from IRan through to Syria and up through to russia/asia/europe. the US lied about that stunt with Syria/Assad once again to stop the pipeline from going through.
Its pretty much lies in the ignornance of Americans because of this divide and rule bullshit. They keep you focused on everything but the banks /corps robbing this country and they have no allegiance to anyone as you see. They rule , the MIC is made up of 12 corporations we see the military as ooh our saviors and hmm lol. Look at who they put in every time to head the dept of Defense. All of them come from defense corps. Esper was from Raytheon, same as this clown now. Check it out. its like all the Head of the Treasury come from a bank. Janet Yellen from the FED and past was Steve Mnuchin from Goldman Sachs.
Anyway its moot now , we will go to war , we as humans are in trouble because the world is interdependent . BIS has no loyalties as why they are based in switzerland.
When Trump was in office I tried to point out to people if you cant fire someone they are your boss. He wanted to fire Jerome Powell and couldn't and he is a peon really. No one gets it. I am sure it stunned the clown to find out he had no power . Presidents are just PR clowns. and the congress and senate our just prostitutes selling our country out. Bowing to the banks and corps... the whole system is corrupt. Take care , be safe. Shit is going to get real it has to , they are going to reset and that is code for many people will die.....
I just subscribed to Concoda, as he seemed to be one of the saner voices in Fintwit. So I’ve been going thru his old stuff, and stumbled on your comments. Wow! Impressed.
I had the same cringe feeling when the article got into the whole “USA! USA!” chanting that we are supposed to believe the Fed is doing. Please. I see the same stuff from Tom Luongo and similar types.
Anyways, there are a decent amount of people who recognize the petrodollar scheme (and the military’s role in safeguarding it) and a good number who are awake to the Fed, BIS, etc…but very few who see the interrelationships between all those like you do.
Especially the Syria - pipeline connection. That’s a pretty obscure one! BTW, I believe there was another one in the works connecting Qatar’s natural gas fields to Europe via the Gulf, Syria, etc…
None of us have all the answers. That’s impossible. The most important tool is having discernment and guarding against hubris and naivety. All we can do.
Next time you make a comment, please share it as your Substack post. I’d love to read it, so I subscribed as your only member so far. Hah. Cheers.
Wrong the BIS currently controls the global financial system, although they plan to through the introduction of their own CBDC. The Fed supervises and regulates US Banks, who issue the US dollar in a decentralized fashion. I agree, the biggest threat to our decentralized global monetary system is a centralized BIS Digital Currency, and through stealth they are focused on doing just that. The battle in the future will not be with China, who cannot develop capital markets until their recognize property rights of investors and asset holders, but the real battle will be between the Fed and BIS. For anybody who cares about ‘we the people’ in any democratic country, you better hope the imperfect Fed wins…
Great article, really helped me position myself especially coming from the African region....you have definitely given me an edge....Please don't stop with the great work you do through this platform :)
Thanks for the dive under the hood to see the engine valves and pistons of the global central bank, the Fed is. How does the recent partial abandoning of the dollar as the main oil/gas trading currency fit in? Does it change/alter your argument about the dollar dominance over any shadow global central banking actors?
Thank you for this insightful article, Concoda.
Could you elaborate on why other inflation effects such as nominally higher revenue/sales will have for an effect on share prices? In many inflationary stock markets (eg. Venezuela) the nominal returns are extraordinary.... if measured in the local currency.