JIM WILLIE: TAPER PROPAGANDA DELIVERED FINAL BLOW TO BIG US BANKS, LIQUIDITY CRISIS LOOMS!
NOVEMBER 17, 2013
Janet Yellen will take over at the US Federal Reserve after the damage is done, after the ZIRP is stuck in place forever, after the QE is stuck in place to infinity. No policy options exist anymore for Yellen to use, except to continue 0% and to continue bond monetization. They will cover the majority of USTreasury Bonds both in new issuance and in rollover, with well hidden monetization (sweet deal redemption) of wrecked toxic mortgage bonds held by Wall Street firms. Furthermore, they will continue the deeply hidden coverage of Interest Rate Swap contract derivative losses, which are already stacking up into the $trillions. The Taper Talk delivered the final blow to the big US banks, insolvent at the time. Now they are struggling with liquidity problems as a result of massive derivative losses that sap and drain their precious capital. The rise in bond yields caused tremendous damage. The Financial Regulatory Bill (aka Dodd-Frank Bill) will be suspended, just like the suspended FASB Rules on accounting practices in April 2009. The big US banks are to become bigger uglier darker zombies, more desperate too. The resistance to liquidate remains firm and steadfast with the utmost urgency and resistance.
The ongoing endless perpetual ZIRP & QE is their legacy, which has placed a noose around the neck of the nation. Systemic failure, dead ahead!! The Gold Trade Standard will rise from the ashes of the wrecked USTreasury Bond bubble, the greatest grandest beast in asset bubble history.