The Big Reveal

Central banks are cause of inverted yield curve recessions

My last Patron Post pulls together a couple of major revelations by piecing together a report from the Bank for International Settlements, a couple of fascinating exposès by Zero Hedge, and a recent document from the Federal Reserve Bank of New York to reveal the actual close call with catastrophic failure that lay deep at the hidden center of the Repo Crisis. It tells what the Fed didn’t want to tell. (No mere conspiracy theory, but direct documentation.)

Many guessed there had to be something big and horribly rotten at the center of this crisis for it to have required nearly half a trillion dollars over the course of four months (and running) to resolve it, but they have not been able to pinpoint or verify the culprit (which is not simply JPMorgan Chase’s movements, as were already well know, but something much deeper and darker).

It turns out natural suspicions were right. The core issue of the “Repocalyse” involved the nearly catastrophic failure of a major financial institution — the kind that operates behind the scenes and is not generally known by the general public to even exist. Its collapse would have been as broadly destructive to the overall financial industry as the bankruptcy of AIG that would have happened during the Great Financial Crisis, had the Fed not intervened back then just as it did now.

Yes, we teetered on the cusp of Great Recession 2.0 (and probably still do).

My own exposè also brings into light the Fed’s latest preparations to move in the next couple of months from covert QE to overt QE. Such a move will put to rest for good the Fed’s fake claim that we are not now in QE4ever, but the risk from the Repocalypse is pushing the Fed to continue efforts well into the future to prevent it from happening again, and the distortions that such sweeping efforts are causing are forcing the Fed into overt QE.

Here are a couple of testimonials from regular readers about that Patron Post for those who cannot access comments written on that post or have not seen them elsewhere on this site: (And thank you to those who offered these comments, as it is better for readers to hear this from others and not just me.)

Wanted to comment on your protected post. It was awesome, thought provoking and kept me on the edge of my seat. I’m sure people who read this that didn’t read the article are saying yea right. That was a wonderful piece of research and writing. You better be careful or the men in the black coats may come and visit you and take you away for letting their game out of the bag.

It is hard to fathom even the banks want to distance themselves from the coming Armageddon because nobody will be able to hide from that. That was worth $5 for sure.

Thanks Chris

Another regular reader and fellow writer commented,

Excellent diatribe (in writing) David, thank you very much. It must have taken a great deal of effort to suss all this out and put it so succinctly – well done. I have been following ZH and others to try and understand what actually went wrong last September 16th. You have confirmed my own assessment. It’s great to access to your deepest thoughts….

Austrian Peter

I don’t want readers who really want this material to miss it IF it is important to them, so that is why I am describing the content of the article here. (You should, at least, be able to know what kind of content you are missing out on.) Therefore, I am going to TRUST anyone who signs up as a Patron at the $5 level or higher before March 1, 2020, by giving you immediate access to that article, even though your first pledge won’t be charged until the start of March. (That means you can cancel your support before the charge is posted if you truly felt the article was not worthwhile. I’m going by the honor system to trust you will stay the course awhile if you find value in the article.)

My pledge to you: If you want to understand the wild ride we were on for the past four months and where we are headed in the next few, this article will do it for you.

I also want to thank, at this time, readers who have gone above and beyond the $5 mark in true dedication to keep this site going. I don’t consider these intermittent, occasional, unscheduled Patron Posts so much a subscription as just a thank-you to any readers who do what they can to stand behind this website. (The $1 is a tip in the jar to say thanks and is appreciated as such. $5 and above is serious support.)

I feel those who support this effort (and, thereby, keep my writing on this site and everywhere else that it is carried freely available to everyone) deserve first access to the most crucial information I am able to pull together. Whenever I have information that describes the biggest events that have happened or the primary trends that are forming, I make that writing available first (and usually exclusively) to those who have put some skin in the game by taking a strong, supportive stand to keep my work at all of this going.

Thank you,