Archive for the Repurchase Agreement Category

Silver As The Canary In The Economic Mine (December 8, 2025)

Posted in Repurchase Agreement, Silver, Treasury, World's Reserve Currency on December 8, 2025 by e-commentary.org

. . .

K          “Something is up.”

J          “The price.”

. . .

K          “Its use as both an industrial metal and a precious metal positions it as a valuable and insightful barometer of economic events.”

J          “The Chinese and the British have always liked the stuff as money.  Industry also likes the metal.  Semiconductors, EVs and other clean energy production require the real thing and cannot be papered over with paper deliveries.”

K          “Someone with some insight believes that the supply of industrial silver metal may not meet the demand in the next year.”

. . .

K          “De-dollarization is quietly moving forward.  The dollar is slowly but measurably slipping as the world’s reserve currency while the U.S. Treasury Instruments are slipping as the world’s reserve asset.”

J          “Everyone has reservations about the U.S.  In a subtle way, the dollar as the ‘medium of exchange’ and the ‘unit of account’ and the UST as the ‘store of value’ are all threatened.”

K          “The sale of gold and silver at Costco is a palpable reveal.  Some fortunate little people are following the lead of the big banks and the central banks.  The people realize they need something real as a store of value.”  

. . .

K          “The decision by the Biden Administration to steal Russian assets in contravention of every legal convention and every economic conviction was an economic and political nuclear bomb dropped on the world.  The world realized what the world always suspected.  The United States is the suspect. The United States cannot be trusted.”

J          “Trust today is almost no longer even a theoretical construct.”

. . .

K          “This thing known as the Japanese carry trade seems to be blowing up, but I do not understand all the implications.”

J          “The thing known as the Repurchase trade seems to be blowing up, but I do not understand all the implications.”

. . .

K          “Do you believe there was a power outage at the CME that interrupted trading?”

J          “Not a chance.  Things were getting out of control.  So they pulled the plug.  They pulled the power when they realized they were losing power.”

K          “The plug may be pulled again.”

J          “They are losing power.”

. . .

K          “There sure are fractures and fissures in the economy.”

J          “Stay tuned.”

. . .

[See“Model Collapse: The Entire Bubble Economy Is a Hallucination” By Charles Hugh Smith dated December 3, 2025 in “www.oftwominds.com.”] 

[See the e-commentary at Too Much Dirt; Too Few Rugs. Repurchase Agreements (September 23, 2019) noting the trouble in the market for Repurchase Agreements in real time in September of 2019, Holographic Treasury Rates?  The 500 Trillion Asset Steal?  And Then The Great Taking?  Oh, And Happy IRS Day! (April 14, 2025) venturing that the government could simply pretend and report that it found buyers for the Treasuries, “De-Dollarization” Is The Word Of The Week.  And The Development Of the Year. (April 24, 2023) on a slow but growing transition, Not World War Tres.  Again.  The U.S. Declares War On Russia.  Again.  Oh, And Happy Thanksgiving!  Again. (November 25, 2024), Portentous Developments In 2022? (January 23, 2023), Sanctions, Supply Chains And World War E (March 7, 2022) and World’s Reserve Currency War I = Cold War 2.0 = WW III (?) (September 8, 2014).]

Bumper stickers of the week:

Dragon < Eagle > Bruin; Dragon + Bruin > Eagle; Eagle + Bruin > Dragon

“To be an enemy of America can be dangerous, but to be a friend is fatal.”  Henry Kissinger

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Seeing 2020:  Federal Reserve Logic:  QE =/= QE.  Print, Lie, Print, Lie, Print, Lie.  The Great Financial Coup D’état Rages On. (January 6, 2020)

Posted in Banks and Banking System, Federal Reserve, Interest Rates, Kleptocracy, Repurchase Agreement on January 6, 2020 by e-commentary.org

. . .

K          “A year ago, Federal Reserve Chairman Powell repudiated a noble but doomed experiment.  After he raised interest rates in an effort to reach a normal, rational and traditional level, he and many others realized that interest rates can never ever ever ever ever be raised again and must be reduced to zero or less than zero to avoid financial collapse.”

J          “On January 30, as I recall, Powell relented because the Federal Reserve realized that the economic and financial system was again on the edge of collapse.  On September 17, as I recall, when the Federal Reserve again recognized that collapse was immanent, it opened up the coffers via the overnight repurchase market and shoveled free money to the banks and hedge funds.  And the free money is still flowing freely.”

. . .

K          “The entire financial and the political system is built on a deep and abiding faith in and reliance upon distrust.  Everyone in the banking and hedge fund world possesses enough self-awareness to know that she and he are corrupt and dishonest to the core.  And everyone in the banking and hedge fund world knows that the others in the banking and hedge fund world are corrupt and dishonest to the core.  Perfect knowledge in a world of otherwise imperfect knowledge.  Profound and well-founded distrust undergirds all decisions.”

J          “Actions and behavior are predictable, if one seeks to predict actions and behavior.  No banker or hedge funder wants to lend to another banker or hedge funder because each if given half an opportunity will not pay the money back.  Thus, they simply steal the money that is given freely by the Federal Reserve.  And the free money is still flowing freely.”       

. . .

K          “Now going on a dozen years, the Great Financial Coup D’état rages on and on and on.”

J          “And on and on and on and on and on without public input or congressional approval or MSM comment.  And the free money is still flowing freely.”

. . .

J          “Print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print. print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, print, and then rinse and repeat.”

K          “And then lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie, lie and then rinse and repeat.”

. . .

[See the incisive and insightful commentary in “Wall Street On Parade” researched and written by Pam Martens and Russ Martens; David B. Collum, the other Dave who provides a review of the events of the departing year, delivers his written “2019 Year in Review” in two parts and a podcast titled “Pandemonium” in his own inimitable way available at Peak Prosperity.]

[See the e-commentary at “Quantitative Easing = Money Printing (January 19, 2015)” published five years ago discussing the ongoing Quantitative Easing currently in overdrive and part of the Second Great Bank Bailout taking place without public input, congressional approval or MSM comment; “Coups d’état, Bail Outs And Bail Ins:  Clio’s Diary/Chronology.  Oh, And Happy Constitution Day! (September 17, 2018)” published on the ten year anniversary of the Great Financial Coup D’état; and “Twenty Sixteen (January 4, 2016)” published four years ago at the dawn of the year on the prospects for economic collapse in the near future.]

Bumper stickers of the week:

Print, baby, print

Lie, baby, lie

Not all debt is repaid, but all debt is paid

And the free money is still flowing freely

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Too Much Dirt; Too Few Rugs. Repurchase Agreements (September 23, 2019)

Posted in Collapse, Repurchase Agreement, Wall Street on September 23, 2019 by e-commentary.org

. . .

K          “Too much dirt.”

J          “Too few rugs.”

. . .

K          “Sweeping the dirt under the rug may not do it any longer.”

J          “Loom another rug?”

. . .

J          “Manufacture another can?”

K          “In China?  Subject to a tariff?  The road still needs to be repaired before we can kick something down it.”

. . .

J          “Raise another canary?”

K          “The market, not the government, is shuttering the coal mines.”

. . .

K          “The failure of the ‘Repo Market’ may be the Big Jolt.”

J          “Make another Market in its place?  . . .  Maybe not.”

. . .

[See the contributions of Pam Martens and Russ Martens in “Wall Street on Parade”, the real journal explicating Wall Street.]

[See the e-commentary at “Strait of Hormuz or Deutsche Bank?  Deriving Derivatives (July 8, 2019)”.]

Bumper stickers of the week:

Loom another rug; manufacture another can; raise another canary; make another Market.

Debt may not be repaid, but it is always paid.

“In the End, only three things matter:  How much you love, How gently you live, and How gracefully you let go of things not meant for you.”  Buddha 

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