tyw
Fed Chair Powell Got a Lesson in Economics from Senator Lummis: U.S. Households Are Sitting on the Highest Level of Bank Deposits in the Past 68 Years
Senator Cynthia Lummis (R-WY) is the first woman from Wyoming to ever serve as a United States Senator and she has a coveted spot on the Senate Banking Committee. Lummis holds three degrees from the University of Wyoming — in Animal Science, Biology and Law. Today, during a Senate Banking Committee hearing with Fed Chair Jerome Powell, Lummis proved she knows a thing or two about economics and the money supply.
Lummis came armed with the above oversized chart for her colleagues and Powell to ponder. Lummis told Powell the following:
“M2 data shows that deposits and close substitutes held by households have generally averaged 51 percent of GDP from 1952 to 2021. But then data from the end of Quarter 1 of 2021 shows that households are sitting on deposits and close substitutes of approximately 79 percent of GDP today. So that’s roughly 28 percent [increase] or trillions of dollars above the historic average. “So going back to 1952 there’s never been a higher percentage of household deposits to GDP. Monetary policy has also been highly accommodative over the last 16 months to the tune of 32 percent increase in the M2 money supply. “So I haven’t heard anybody talking about this hidden stimulus. And when households start to spend this cash, combined with the enormous liquidity already out there, it seems there’s real potential for inflation to continue to overshoot. We’ve already seen it this week as the core consumer price number was nearly double what economists had predicted.”
Powell said the Fed is keeping a close watch on the inflation numbers to see when it might be appropriate to begin tapering its asset purchases. Currently, the Fed is buying $80 billion a month in U.S. Treasury securities and $40 billion a month in agency Mortgage Backed Securities (MBS). Powell said the other thing he would point out is that there are still a lot of unemployed people out there and he thinks it’s still appropriate for the Fed to remain accommodative and supportive of economic activity. He paused briefly and then added: “for now.” We decided to check out the Lummis chart to see how it translated into actual deposits. According to the Federal Deposit Insurance Corporation, as of March 31, 2021 federally-insured banks and savings associations in the U.S. held $16.9 trillion in domestic deposits. That compared to $14.3 trillion at the end of March 31, 2020 and $12.68 trillion at the end of March 31, 2019. In a two-year span, domestic deposits have soared by 33 percent.
So, Senator Lummis is correct. There are “trillions of dollars” – $4.22 trillion to be exact – sitting in bank deposits that wasn’t there two years ago.The biggest danger related to these trillions of dollars in excess deposits is what the mega Wall Street banks that are holding the bulk of that money do with it in the meantime.
https://wallstreetonparade.com/2021/07/fed-chair-powell-got-a-lesson-in-economics-from-senator-lummis-u-s-households-are-sitting-on-the-highest-level-of-bank-deposits-in-the-past-68-years/
She a Bitcoin HODL'er
Bitcoiner Elected to US Senate: Cynthia Lummis Sees ‘Great Promise’ in Bitcoin
https://thebitcoinnews.com/bitcoiner-elected-to-us-senate-cynthia-lummis-sees-great-promise-in-bitcoin/
Treasury Secretary Janet Yellen to discuss stablecoins with regulators next week
U.S. Treasury Secretary Janet Yellen will meet with the President’s Working Group on Financial Markets-see below for background on it's creation after the Black Monday Crash of October, 1987- next week to discuss the role stablecoins could play in the financial system.
The meeting will take place Monday and include representatives from the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, the Treasury announced Friday.
Stablecoins are digital currencies designed to be less volatile than other cryptocurrencies by pegging their market value to an outside asset like the U.S. dollar. “Bringing together regulators will enable us to assess the potential benefits of stablecoins while mitigating risks they could pose to users, markets, or the financial system,” Secretary Yellen said in a statement Friday. “In light of the rapid growth in digital assets, it is important for the agencies to collaborate on the regulation of this sector and the development of any recommendations for new authorities.” Regulators have become increasingly concerned about transparency in the trading of stablecoins, the reserves backing them and how much market participants rely on them to enable trading in decentralized finance, also known as DeFi. They’re growing in popularity and interest. Earlier this year, Visa said it would begin supporting payments on its network in the dollar-backed stablecoin USD Coin.
As more companies with cryptocurrency businesses go public or prepare to do so, like Coinbase and Circle, the industry needs further regulatory clarity on stablecoins. On Thursday, Federal Reserve Chairman Jerome Powell acknowledged before the Senate Banking Committee that stablecoins would need “an appropriate framework.”
https://www.cnbc.com/2021/07/16/treasury-secy-janet-yellen-to-discuss-stablecoins-with-regulators-next-week-.html
Secrets Of The Plunge Protection Team
There are just four people who control all of the U.S. markets through their use of dangerous and explosive DERIVATIVES. They are risking the assets and retirement funds of all Americans. Because of their manipulations, especially since 2001, U.S. financial markets are now based on the gambling whims of a special fraternity of Federal Government DERIVATIVE dealers. This group is known among Wall Street as the Plunge Protection Team (PPT). Their "official" role was to prevent another 1987 "Black Monday". They have the entire U.S. Treasury at their disposal to manipulate the markets through DERIVATIVES (futures options). In other words, they are using the assets behind the U.S. Treasury to rig the prices of commodites (gold, currencies, etc.) and stocks. This fraternity comprises of Fed Chairman Alan Greenspan, the Secretary of the Treasury, and the heads of the SEC and the Commodity Futures Trading Association. It works closely with all the U.S. exchanges and Wall Street banks, including the largest DERIVATIVE risk holders Citibank and JP Morgan Chase. Few people are aware of Executive Order 12631 signed by Ronald Reagan on March 18, 1988. In a nut shell, this is the "authority" behind the four dictators and the [sic] "laws" and "regulations" that have backed their casino-style DERIVATIVE gambling spree since 2001.
https://rense.com/general52/secretsoftheplunge.htm
o7
good wif dat.
Federal Reserve Bank of New York Reverse Repo. Operations-week of July 11th,2021: $4.028T
Monday July 12 $776.47B with 70 counterparties
Tuesday July 13 $798.26B with 73 counterparties
Wednesday July 14 $859.97B with 75 counterparties
Thursday July 15 $776.26B with 69 counterparties
Friday July 16 $817.56B with 72 counterparties
This weeks total= $4.028T added to last weeks rolling total since April 8th of $25.603T gets ya$29.631Tof 'cash' parked at the FRBNY sinec April 8th 2021
https://apps.newyorkfed.org/markets/autorates/tomo-results-display?SHOWMORE=TRUE&startDate=01/01/2000&enddate=01/01/2000
https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm
Creeping back up towards a trillion but backed off after weds.
Remains the highest amount so far at just under a trillion
Wednesday, June 30 $991.93B with 90 counterparties-record high amount and counterparty participation see here: >>68563 pb
>>47697 pb Federal Reserve Bank of New York Reverse Repo(s) April 8-23: $625.35B
>>49822 pb Federal Reserve Bank of New York Reverse Repo Operations April 26-30: $766.523B
>>51731 pb Federal Reserve Bank of New York Reverse Repo Operations week of May 2nd, 2021-$757.09b
>>53526 pb Federal Reserve Bank of New York Reverse Repo Operations Week of May 9th-$1.042T
>>55522 pb Federal Reserve Bank of New York Reverse Repo Operations Week of May 16th-$1.46T
>>57726 pb Federal Reserve Bank of NY Reverse Repo Operations-week of May 23rd, 2020
>>59773 pb Federal Reserve Bank of New York Reverse Repo Operations-Week of May 30th,2021-$1.84T
>>62285 pb Federal Reserve Bank of New York Reverse Repo. Operations-week of June 6-$2.569T
>>66154 pb Federal Reserve Bank of New York Reverse Repo. Ops-Week of June 20th: $3.954T
>>68563 pb Federal Reserve Bank of New York Reverse Repo Operations-week of June 27: $4.110T
>>70753 pb Federal Reserve Bank of New York Reverse Repo. Ops-Week of July 4th: $3.132T
SAM814 USAF C-40B on ground at Travis AFB, CA from JBA depart
Last Saturday a C-32A went around at Travis AFB prior to landing at San Jose Int'l-cap #2
Had a ground stop at Great Falls, MT prior to Travis go arounds and San Jose Int'l arrival
>nano timebomb?
this
can't explain it as good as others but have always felt this is wut it really is
Binance Pulls Plug on Digital Stocks Amid Regulatory Scrutiny
Binance Holdings Ltd., the world’s largest cryptocurrency exchange operator, said it would stop offering digital tokens tied to stocks like Apple Inc. and Tesla Inc. TSLA -0.68% after regulators in multiple countries raised concerns about the products.
Stock tokens will be unavailable for purchase on Binance effective immediately, the crypto exchange said on its website Friday. Customers who own the tokens may sell them over the next 90 days, and Binance will cease to support the products on Oct. 14, the exchange said. “We believe that shifting our commercial focus to other product offerings will better serve our users for the long term,” a Binance spokesperson said. Binance’s move came as regulators around the world have stepped up pressure on the crypto exchange. Some of the agencies have singled out Binance’s stock tokens for appearing to violate local securities regulations. Hong Kong’s markets regulator on Friday became the latest regulatory body to warn investors about Binance’s stock tokens. “Investors are urged to be extremely careful if they plan to invest in Stock Tokens offered on unregulated platforms,” Hong Kong’s Securities and Futures Commission said in a statement.
Stock tokens are likely to be defined as securities under the territory’s laws, which means only licensed firms may market or distribute them, the commission said. Binance isn’t licensed to conduct regulated financial activities in Hong Kong, it said. Italian stock-market regulator Consob issued a similar warning on Thursday. Consob said in a statement that Binance wasn’t authorized to provide investment services in Italy, citing the crypto exchange’s offerings of stock tokens and derivatives. Earlier this week, Binance founder Changpeng Zhao said in an open letter that the exchange operator was expanding its compliance team. “We are committed to being compliant with appropriate local rules wherever we operate,” he said. Regulators in Poland and Lithuania also issued warnings about Binance in recent days, following similar warnings from U.K. and Japanese authorities in June. Germany’s market watchdog, BaFin, said in April that an affiliate of Binance may have violated securities laws by issuing stock tokens while failing to publish prospectuses on the securities offerings that BaFin could review.
Binance introduced stock tokens in April, starting with one linked to Tesla. Binance said the tokens were backed by a portfolio of underlying securities held by CM-Equity AG, a German financial firm. The exchange made the tokens off limits to U.S. investors, who are generally blocked from trading on Binance’s main overseas marketplace. Founded in 2017, Binance is the world’s largest crypto exchange by trading volume, handling tens of billions of dollars of transactions a day. Much of that volume is in cryptocurrency derivatives—risky instruments that allow traders to bet on whether different coins will rise or fall in value. Some regulators, such as the U.K.’s Financial Conduct Authority, cited derivatives in their recent warnings about Binance.
Binance was founded in China but now says it has no official headquarters.
https://www.wsj.com/articles/binance-pulls-plug-on-digital-stocks-amid-regulatory-scrutiny-11626457577
>>73045
chek't
Cash Unwanted by Banks Piles Up at the Fed Reverse Repo Facility
While money-market funds are flocking to the Federal Reserve’s overnight reverse repurchase agreement facility for the yield, large U.S. banks are using the program to shed unwanted deposits.
Banks are emerging as a key driver in demand for the Fed’s so-called RRP facility, where usage could approach $1.5 trillion by the end of October**, according to Bank of America Corp. strategist Mark Cabana. Volumes surged over the past month, reaching an all-time high of $992 billion on June 30, as the facility serves as an investment option of last resort to mop up excess cash, especially with short-term funding rates hovering around zero. The Fed’s balance sheet has continued to swell due to its ongoing asset purchases while the drawdown of the Treasury General Account returns funds to the system. That in turn forced banks to take on more cash, boosting deposits after the pandemic-era regulatory exemptions for reserves and Treasury securities expired at the end of March. “One very notable feature of the Fed balance sheet growth is the reluctance of private banks to absorb ongoing reserve and deposit growth,” Cabana wrote in a note to clients. “From the large U.S. commercial bank perspective, the O/N RRP functions as a tool to absorb excess cash in the system that banks don’t want.”
On its call for second-quarter earnings, JPMorgan Chase & Co.’s Chief Financial Officer Jeremy Barnum said that leverage is now the bank’s “binding constraint” and acknowledged that “RRP is helping a little bit on the deposit growth side, which helps a little bit” with managing the firm’s supplementary leverage ratio. Unwanted bank deposits have partially shifted to the money market funds, who then invest the cash with the Fed at the RRP, which yields 0.05%. Yet total money-market fund assets, which have grown by about $125 billion since the middle of March around the time that usage at the Fed’s facility started to climb doesn’t account for the entire growth in the facility, according to Cabana. Much of the RRP’s increase is due to a shift in money-market holdings, where funds have liquidated Treasuries and allocated the proceeds to the Fed’s operation.
Bank of America anticipates RRP demand pushing higher in the next few months as the Fed’s asset purchases continue and the Treasury’s cash balance continues to dwindle “in a prolonged debt limit standoff.” A sharp increase in balances at the facility could also signal large money market funds are maxing out their usage, requiring policy makers to increase the $80 billion per counterparty limit.
https://www.bnnbloomberg.ca/cash-unwanted-by-banks-piles-up-at-the-fed-reverse-repo-facility-1.1629985
**each day not a cumulative total
Royal Canadian AF CFC1 Challenger 650 on final at Dulles Int'l from Ottawa depart
This is Trudope's AC used for short trips-was in Gaspe, eastern Quebec on Weds.
Some clandestine meeting with Not AF1 Joe gonna habben nao?
Trudeau says border could reopen by mid-August
The Canadian border could start reopening to fully vaccinated Americans starting in mid-August. Prime Minister Justin Trudeau spoke with leaders of Canada’s provinces Thursday before making the announcement. And the country may welcome fully vaccinated travelers from all countries by early September. The border has been closed to nonessential travel since March 2020.
https://www.wcax.com/2021/07/16/trudeau-says-border-could-reopen-by-mid-august/
SWATH99 USAF KC-135 tanker over Not AF1 Joe at Camp David position
2:30pm EST Not AF1 Joe departs the White House en route Camp David
https://factba.se/biden/calendar
wut is 'unwanted' cash??
The descriptions in these are laughable but at least the overall usage is getting some exposure.
back later