20190924-Benjamin Fulford- More on Repo and SOFR

Benjamin Fulford (9/23/19  Many signs pont to imminent, bigger than Lehman financial tsunami):

-Veteran financial market observers will tell you that anomalies in the financial markets last week point to some sort of black swan event on the horizon.  This could be the signs of the long-awaited implosion of the U.S. Corporate government.  It could also be the signal for a new Bretton Woods-style reboot of the world’s financial system.

-The two signs are:

     1.  Repo market jumped from 2% to 10%.

The Repo market is basically a market where banks etc. use long-term high-quality financial instruments like U.S. government bonds as collateral to borrow here/now cash.  The jump from 2% to 10% in the Repo market in a single day either means insiders think U.S. bonds are about to become worthless, or else some huge bank is about to go bust and so nobody wants to hand any cash over to them.

- The privately owned Fed has been trying to calm things down by offering to dish out $75 billion per day between now and October 10th.  That’s interesting timing, because the U.S. Corporate government has a payment deadline on September 30th and would be given until around October 10th (or the 17th at the latest) to come up with the money if it failed to pay up on September 30th.

    2. SOFR (Secured Overnight Financing Rate) moved 282 basis points.

The second is the rate at which banks lend to each other.   The second, SOFR, moved 282 basis points, in a market where people typically freak out over a move of even 20 basis points.  The SOFR move, at the very least, indicates that a mega-bank or several mega-banks could not get money from other banks.  This sort of move was last seen at the time of the Lehman shock.

-A British Royal family member explained, “The financial industry has been bankrupted by a decision by the U.S. judiciary to allow class action suits against the mega banks such as JP Morgan, Deutsche Bank, Barclays, Bank of New York Mellon, Societe Generale, Commerzbank and others.    They are now being treated as organized crime gangs and being hit with RICO and other anti-gang laws.   The volatility is just an aftershock of that,” he explains.

-RICO - The Racketeer (敲詐勒索) Influenced and Corrupt Organizations Act, commonly referred to as the RICO Act or simply RICO, is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization.

-Private Sector Debt:  These legal moves are not the only sign the financial system is collapsing.  A look at U.S. loan markets reveals that a complete disaster has already begun.  There are now $3,128 trillion worth of high-risk loans or bonds to either sub-prime real estate or iffy corporations。  That’s almost double the amount seen just before the Lehman shock. 

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-Government Sector Debt:  Remember, this does not include the over $200 trillion dollars (10 times GDP) in unfunded liabilities the U.S. government has.

-Housing Market Debt:  One more shocker:  The U.S. government-owned housing finance companies Fannie Mae and Freddie Mac have a total of $6 billion ($3 billion each) as a capital buffer, but own or guarantee almost $5 trillion in mortgage securities.  That means they are leveraged over 1,000 to one.  In other words, if housing prices fall even 0.01%, they are bust.