{"id":57200,"date":"2019-10-12T02:15:53","date_gmt":"2019-10-12T09:15:53","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=57200"},"modified":"2019-10-15T04:57:35","modified_gmt":"2019-10-15T11:57:35","slug":"black-coffee-12-oct-2019","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id57200-black-coffee-12-oct-2019.html","title":{"rendered":"Black Coffee: A Matter of Trust"},"content":{"rendered":"

\"black<\/a>It’s time to sit back, relax and enjoy a little joe …<\/em><\/p>\n

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.<\/p>\n

I hope everyone is enjoying their weekend! In the meantime, why don’t we get this show on the road? Then I can start mine …<\/p>\n

The Founding Fathers never intended a nation where citizens would pay nearly half of everything they earn to the government.<\/em><\/p><\/blockquote>\n

— Ron Paul<\/strong><\/p>\n

When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it, and a moral code that glorifies it.<\/em><\/p><\/blockquote>\n

— Frederic Bastiat <\/strong><\/p>\n

Credits and Debits<\/strong><\/p>\n

Debit:<\/strong><\/span> Did you see this? Last week, rates spiked to 10% in the overnight loan (repo) market and, for the first time since the financial crisis, forced the Fed to step in as a lender of last resort. Since then, the Fed has intervened every business day with overnight loans, while also providing $150 billion<\/a> in 14-day term loans to unnamed banks. Carry on, folks. It’s probably nothing. No, really.<\/p>\n

Debit:<\/strong><\/span> On the other hand, in a healthy banking system these repo loans from the Fed wouldn’t be necessary<\/a>. More likely, the constant Fed intervention is a sign that at least one large systemically-significant commerical bank is in dire straits — if not more. You can also bet that behind-the-scenes financial mayhem is why the Fed announced the return of quantitative easing<\/a> — also known as naked debt monetization — next month.<\/p>\n

Credit:<\/strong><\/span> Of course, the Fed is also denying that the QE program they’re officially restarting next month isn’t really<\/strong><\/em> QE<\/a>. Uh huh. Thankfully, they aren’t fooling Michael Krieger, and everyone else who is actually paying attention:<\/p>\n

\n

The fact the Fed has to come out and insist this isnt QE tells you all you need to know. Central bankers are lying charlatans who are terrified of losing the narrative. They exist to protect and entrench oligarchy.<\/p>\n

Michael Krieger (@LibertyBlitz) October 11, 2019<\/a><\/p><\/blockquote>\n