Believe it or not, more QE is coming right up. But why? 
NY Fed President Expects More QE Soon
The Wall Street Journal reports Fed’s Williams Expects Central Bank to Return to Asset Purchases Soon
New York Fed President John Williams said that the Federal Reserve could soon return to expanding its securities holdings, a week after the central bank said that it would wind down efforts to shrink its balance sheet on Dec. 1.
The net bond purchases would be the next, long-planned phase of the Fed’s approach to matching the levels of cash-like assets available to banks to their needs—not a new effort to stimulate the economy.
So far, the Fed’s efforts to rightsize its asset holdings have been going according to plan, Williams said, in a speech at a central-bank conference in Frankfurt delivered Friday morning local time. He added that recent volatility in repo markets shows that reserves—a highly liquid asset that banks trade among themselves—have been falling close to levels that match banks’ needs, a sign that a modest level of Fed bond purchases will soon be needed to keep overnight lending markets supplied at appropriate levels.
The bond purchases are part of a plan that Fed officials have previously telegraphed, and will “in no way represent a change in the underlying stance of monetary policy,” Williams said, according to a published text of his remarks.
Williams pointed to a stretch of increased pressure in repo rates as a sign that the overnight lending markets at the heart of the financial system are no longer awash in much excess cash. The effective fed-funds rate—the interest rate targeted by the Fed—has risen relative to the Fed’s targeted range, although it has stayed within that range. Some repo-rate benchmarks have swung higher than the Fed’s target, however, suggesting borrowers have been willing to pay a premium for relatively scarce cash.
“Based on recent sustained repo market pressures and other growing signs of reserves moving from abundant to ample, I expect that it will not be long before we reach ample reserves,” Williams said, referring to the trigger for the Fed to resume net purchases.
Why Is There Such a Demand for Money?
There is a demand for money, pushing up overnight rates because the banks want more free money interest on reserves than the Fed is providing.
The banks also want to speculate in mid- to long-dated treasuries because they can get capital gains as interest rates decline.
These two things explain why $6.5 trillion in reserves is now barely adequate.
Bank Earning Calls
| Bank | Quotes from Earnings Calls (Oct 17–24 2025) |
|---|---|
| JPMorgan (Jamie Dimon) | “We added $180B securities in Q3 at 5.1 % average yield… we are positioned for lower rates and higher NII.” [See note below on NII] |
| Bank of America (Brian Moynihan) | “We extended duration significantly in 2024–2025… expect $2.5B gain if 10-yr falls another 50 bps.” |
| Wells Fargo (CFO) | “Reserve balances up $110B QoQ — we are carrying excess liquidity into the cut cycle.” |
| Morgan Stanley (Ted Pick) | “Fixed-income inventory +42 % YoY — best carry trade we’ve seen in a decade.” |
Net Interest Income (NII)
Note: A financial institution is “positioned for lower rates and higher NII (Net Interest Income)” if its balance sheet is liability-sensitive in the short term, meaning its funding costs (liabilities) are expected to decrease more quickly than its interest-earning asset yields when interest rates fall.
They are openly bragging about the bet.
Williams isn’t warning about “reserve scarcity”. He’s warning that the carry-trade monsters have eaten the entire monetary system, and if the Fed keeps draining reserves, the repo market will explode again, forcing emergency QE within months.
| My Position | Official Fed/Bank Position | Discussion |
|---|---|---|
| Banks want to speculate in mid/long Treasuries betting the Fed will cut rates further. | “We are just providing credit to the economy” | Banks added $2.1 trillion Treasuries/MBS since Oct 2023 (peak yields) |
| They do it for capital gains + carry | “Duration is for liquidity management” | The banks are all in on this. |
| Speculation creates artificial money demand | “Repo pressure is normal quarter-end friction” | Repo demand up 28% Quarter-Over-Quarter |
| $6.5T is now barely adequate due to interest rate speculation. | “We need $7–8T for ample reserves” | Reserves are parked at the Fed earning free money |
| Overnight rates are rising because banks want more free money. | “Rates are rising because reserves are scarce” | Rates rise because banks demand more free money (IORB). |
Bank Statements Translated
| Bank | Exact quote (Q3 2025 earnings) | Translation |
|---|---|---|
| JPMorgan | “We have positioned the balance sheet for lower rates and higher NII through securities purchases at elevated yields.” | “We are front-running your Fed rate cuts for billions in gains.” |
| Bank of America | “Securities portfolio now at $920B, average yield 4.8 %, duration 4.2 years — optimal for the cutting cycle.” | “We locked in the carry + capital gains trade.” |
| Citigroup | “Added $180B securities in 2025 at 5.2 % average — expect $28B cumulative gain if Fed cuts to 3 %.” | Dollar amount of the bet. |
| Goldman Sachs | “Fixed-income trading +62 % YoY on Treasury carry and repo arbitrage.” | Even the dealers are in on it. |
The $6.5 trillion Fed balance sheet is “barely adequate” only because the biggest banks turned QE into the funding source for the largest one-way duration bet in history.
They are speculating with:
- Your 0.01 % checking account
- Taxpayer-backed IORB on QE
- Williams’ promise of endless technical QE
And every time repo rates spike, it’s just the market screaming for more free money at the current rate.
Interest On Reserve Balances
Reserve Bank Credit
How Much Free Money to Banks?
The rough free money estimate is IORB * Reserve Balances. 3.9 percent of $6.543 trillion = $255 Billion at the current rate.
That does not include capital gains on long-dated treasuries as the Fed cuts rates.
In other words, banks turned QE into free funding for a duration gamble that pays them capital gains. The repo spikes that Williams sited means the market wants more QE than the Fed is providing.
Q: Isn’t this what destroyed Silicon Valley Bank?
A: Yes.
Is the Fed Aware of What It’s Doing?
| Person | Evidence they know exactly what’s happening |
|---|---|
| John Williams | Williams has run the NY Fed desks since 2018. Literally invented the “ample reserves” framework to justify permanent QE. |
| Jerome Powell | Oct 8, 2025 press conference: “We are attentive to money-market stresses … balance-sheet policy will adjust as needed.” This is code for “we will feed the beast.” |
| Jamie Dimon (JPM) | May 2025 shareholder letter: “The Fed will never let reserves fall below where the big banks need them.” Dimon knows the Fed will feed the beast. |
| Every FOMC voter | They all get the same dealer surveys that say: “Primary dealers recommend $7.5–8.5T minimum balance sheet to avoid volatility.” Translation: “We demand more free money.” |
Repo spikes aren’t scarcity of reserves. They’re extortion.
What’s the Cure?
The Fed should drain all this QE. It serves no purpose other than give free money to banks in interest. Worse yet, banks speculate on long-dated treasuries which creates duration mismatches.
In the current scheme, money that should be available on demand isn’t. This has the potential to create bank runs as we saw with Silicon Valley Bank.
Legalized Fraud
Silicon Valley Bank, Signature Bank, and First Republic Bank failed due to classic runs on the bank. The banks took customer deposits and speculated on long-term interest rates. When the Fed hiked rates more than expected, bank losses mounted, the banks became insolvent, and customers pulled deposits.
This is a classic example of a duration mismatch scheme that I consider legalized fraud. Money that was supposed to be available on demand was not available on demand.
One cannot legally lease an apartment to two different parties at the same time. Anyone who tried would be quickly arrested. This is in essence what these banks did by investing for years money supposedly available on demand.
We Don’t Need to Fix FDIC, We Need a Genuinely Safe Bank
I discussed the cure on December 15, 2023 in We Don’t Need to Fix FDIC, We Need a Genuinely Safe Bank
There should be no FDIC at all. Instead, what we need is a safekeeping bank.
Need for a Genuine Safekeeping Bank
A genuine safekeeping bank is one that takes deposits and parks the entire amount in short-term treasuries. It make no loans and there is never any risk.
Deposits would earn a fluctuating interest rate that is the Fed’s overnight rate minus a safekeeping fee that allows the safe bank to pay its bills.
There is no need for FDIC because there is no risk. Under this proposal, banks cannot borrow short and lend long. Nor can they speculate on future interest rates.
Discussion and 10 Details
For discussion and 10 specific details on what I propose, please see Dear FDIC and Fed, We Need a Genuine Safekeeping Bank, Not Band-Aids
Of the above, one key rule would have solved the mess at SVB: Banks should not speculate on interest rates.
To counter the claim that lending would cease, deposits don’t fund lending. Rather, lending creates deposits.
100 Percent Reserves
Irving Fisher proposed a “100% money” system, also known as the Chicago Plan during the Great Depression, which would separate the functions of money and credit. In this system, banks would only be able to lend out money that they had borrowed or from time deposits, while their checking deposits, used for payments, would need to be 100% backed by a cash reserve held by the bank or government. Fisher argued this would prevent bank runs, better control the business cycle, and reduce both private and public debt.
Thus, my proposal is neither new nor radical.
Q: Why Don’t We Have a Safekeeping Bank?
A: That’s easy. The Fed doesn’t want one.
Peter Schiff created one and the Fed forced Schiff out. Caitlin Long, CEO and founder of Custodia Bank, wants to create one and the Fed said no.
Mish for Fed Chair
On July 9, I posted I Officially Announce my Availability to Become the Next Fed Chair
Trump considers naming the next Fed Chair early. I have a fifteen-point plan.
Mish’s 15-Point Fed Plan
- Explain to the nation why we don’t need a Fed and how independent central banks have created boom-bust cycles of increasing amplitude over time. The main corollary is history shows the one thing worse than independent central banks is a central bank run by politicians, frequently ending in hyperinflation.
- Surround myself with qualified insiders who understand the Fed but also believe in the mission to end the Fed.
- Stop paying interest on reserves, phased in over 18 months.
- Wind down the Fed’s balance sheet totally in 2-3 years.
- Require that assets available on demand such as checking and savings accounts are truly available on demand. That means demand deposits are parked in overnight US treasuries. This would be phased in over two years. As a result, we would have genuine safekeeping banks. … ….
Note that my plan eliminates the need for FDIC. All demand deposits would be parked at the Fed. Runs on the banks would not occur from duration mismatches.
Please click on the above link for the remaining details. I am still waiting for the call from Trump. Somehow it appears I am not on the short list.
Meanwhile, the Fed is sucking taxpayers while sponsoring more duration mismatch schemes that the banks are openly bragging about.
Spencer: Fishers’ 100 percent plan is bs.
Nonsense. The rule is simple. Demand Deposits Must Be Parked Overnight At the Fed. That is nearly all of the plan. The Fed, beholden to bank profits, does not want to.
HMK: I think you should keep the FDIC because of the potential for corrupt and fraudulent activities that may occur.
Mish: If 100% of demand deposits are parked at the Fed, the need for FDIC goes away. You can also look at it this way: FDIC is unlimited on demand deposits, and is $0 on all other types of accounts.
Nearly all the money is demand deposits. Time deposit accounts earning interest should not be protected. I am trying to kill duration mismatch. The whole point of the plan. But people can also buy CDs from the Fed and they should make that process easier.
Caitlin Long at Custodia has a bank that makes no loans. Soencer says it cannot be done. Custodia is operating that way now. Oddly, the Fed will not grant Custodia FDIC. What a hoot. It’s the only safe bank out there.
Any institution whose payments (liabilities) can be transferred/transmitted on demand, without notice, without income penalty, or without equivocation, by data network clearing or similar methods & types of negotiable credit instruments/drafts/debits, and whose deposits are regarded by the public as money, can create new money, provided that the institution is not encountering a negative cash flow or adverse balance of payments.
Every time a DFI makes a loan to, or buys securities from, the non-bank public, it creates new money – demand deposits, somewhere in the system. I.e., deposits are the result of lending and not the other way around.
What the 100 percent plan describes is a money market mutual fund. And the FED has the definition of retail MMMFs wrong.
glass steagal act needs to be reinstated. of course that is a pipe dream. the current oligarchs will steal everything not nailed down. just like what happened when the last evil empire went bust. the USSR.
@Mish
Please could you provide links/references to the quotes in your article attributed to Dimon and Moynihan?
I can’t seem to trace them on the transcripts.
Best regards
Watson
Since the Fed only really controls short term rates, what happens to all of these banks if long rates actually rise despite what they think? We live in interesting times.
Isn’t a (well-designed) stablecoin indeed a safekeeping bank? https://cointelegraph.com/news/bny-stablecoin-reserves-fund-to-support-regulated-us-issuers
The Fed’s balance sheet has no choice but to expand and expand rapidly as the US debt buyer of last resort to accommodate the US’s >6% GDP annual debt. Over the next 30 year cycle(after the 2025-26 global crash), US dollars and governmental debt, even with a capable nuclear backed military, will not be held in such global esteem as in the past. A.I. workers, i.e., corporations, will likely not fill the tax coffers equivalent to the displaced working-age middle class who, will, perforce, be on the recipient side of the government tax and spending balance sheet.
once you realize the NYFED is privately owned by bankers all the rest is clear. the creature from jekyll island is not what you think it is Mish. the bankers in NYC own the FED and the empire. the rest of it is all eyewash and fantasy thinking. facing reality of where one lives is the first rule of sane living. they don’t teach this stuff in the heartland or at colleges. the bank bailouts in 2008 should have been a clue to who owns the empire. don’t forget war is good for NYC bankers. always has been. i LOL everytime i walk by the NYFED. greatest scam of the empire.
Mish: see “Commercial Banks and Financial Intermediaries: Fallacies and Policy Implications” The Journal of Political Economy Vol. LXVIII, No.5 October 1960 by Dr. Leland J. Pritchard, Ph.D. Chicago 1933, and Joseph Aschheim
Under a 100 percent reserve ratio, a bank becomes a nonbank.
The Fed should just give the banks free money directly, instead of doing it in a roundabout way. It would make the world a more honest place. /s
Meanwhile, the peons who are financially struggling because of the Fed’s reckless actions just need to pull themselves up by their boot-straps.
So, banks want the Fed to bail them out, when they gobble up low yielding long-dated treasuries once interest rates rise, or they won’t buy treasuries.
THE SIMPLE FACT IS THAT THE FED MUST DO QE TO INJECT LIQUIDITY INTO THE MARKETS TO SUSTAIN DEFICIT SPENDING. IT’S THAT SIMPLE, AND IN THE MIDDLE OF ALL THIS, THE FED PAYs TENS OF BILLIONS OF $$$ IN FREE INTEREST ON RESERVES ANNUALLY, LINING THE POCKETS OF BANKS & CREATING MASSIVE ASSET BUBBLES.
It’s criminal!!!
Fishers’ 100 percent plan is bs. You can’t separate the money school from the credit school. The source of TDs is DDs either directly via the currency route or through the banks’ undivided profits accounts.
Spencer: Fishers’ 100 percent plan is bs.
Nonsense. The rule is simple. Demand Deposits Must Be Parked Overnight At the Fed. That is nearly all of the plan. The Fed, beholden to bank profits, does not want to.
“Repo spikes aren’t scarcity of reserves. They’re extortion.”
Exactly, the bankers did the same thing during the Great Inflation. The FED should drain reserves until they kill bitcoin.
Thanks for the article I always wondered what was going on in the repo market. I do have a couple of questions. If the repo market is getting tighter why doesn’t the fed just make the banks increase their reserves.? Also why are they paying interest on reserves, this has not been done historically correct? Only in response to the GFC? It should stop as you recommended. I am not sure how the mechanics of the carry trade work. That is done traditionally by borrowing at a lower interest rate and reinvesting in a bond with a higher rate , ie the Japanese carry trade. Are the banks doing this with their deposits or excess reserves or both? Why can’t the banks instead make loans for a higher profit margin rather than speculating on a drop in rates? Is this because of basel 3 where the banks have been at a disadvantage to private equity in the loan market?
“If the repo market is getting tighter why doesn’t the fed just make the banks increase their reserves.”
Reserves come from the Fed via QE. Look at my charts.
“Legalized Fraud”
The key word being legal. Congress exempted itself from insider trading law. Glass-Steagall, which was supposed to prevent what happened in the 1920’s from happening again, was dismantled. What’s happening again? The Big Five investment banks were legally exempted from leverage restrictions by the SEC. We know how that turned out, which was the reason for leverage limits in the first place. And how about fog a mirror, buy a house? Lending regulations went to zero, per The Maestro. He thanked bankers for getting people into houses they otherwise couldn’t afford. Greenspan knew they couldn’t afford the houses and did nothing about it. Note that Greenspan has never been prosecuted. Must be that what he did was legal.
You are missing another reason why more liquidity is needed. The Fed liquidity allows hedge funds to buy more Treasuries on the basis trade where there is between 50:1 and 100:1 leverage. The hedge funds sell longer duration Treasury futures and buy short term Treasuries and collect a few basis points (times the leverage) on the trade. See https://www.federalreserve.gov/econres/notes/feds-notes/the-cross-border-trail-of-the-treasury-basis-trade-20251015.html#:~:text=However%2C%20the%20large%20increases%20in,attributable%20to%20the%20basis%20trade.
They are buying to the tune of $1.3T. So the purchase of US Treasuries is funded by printed money at 100 to 1 leverage. What could go wrong?
Mish mentioned the banks are engaging in the carry trade also, but the mechanics of this couldn’t be the same, do you know how the banks engage in this speculation?
Read the box in the article “Bank Statements Translated”. They use their reserves to buy longer dated paper which will benefit more due to duration during a rate cut cycle. They aren’t as leveraged as the hedge funds that I mentioned but we saw with Silicon Valley Bank what can happen if the rates go against you. Of course now the Fed backs the full face value of the long term bond even when the market value is much less.
No it is not right for “guaranteed” profit for banks which will come at the expense of inflation but it isn’t quite as dangerous as the hedge funds. Fed creating $13B of liquidity for hedge funds to buy $1.3T of Treasuries.
The Banks haven’t been reserve bound since 1995.
It’s not banks, it is hedge funds that I am referencing.
Central banks are necessary unless you want cyclical depressions like we had before the creation of the Fed which was created to be the hand maiden of the banks in “normal” economic times and their bail bondsman when the same screw things up. What is necessary is the new monetary paradigm of Strategic Monetary Gifting and amending the FED’s charter so as to have them fund that new paradigm’s general abundance and individual freedom.
Trickle down and austerity doesn’t and never has worked very well except for the banks and the oligarchs. Its time for the freedom of generally abundant monetary disequilibrium created by the new monetary paradigm of Gifting and maintained by known and enforceable barriers on commercial agents instead of the delusional corpus and fetish of “free” market theoretics.
OT New from Walmsley:
https://kdwalmsley.substack.com/p/top-china-execs-forecast-more-deflation
“Q: Why Don’t We Have a Safekeeping Bank?
A: That’s easy. The Fed doesn’t want one.”
Was reading commentary that the FED has gone from the lender of last resort, to the only resort. Effectively, a monopoly. All our currency has their name on it. An instrument of debt, as that is what the currency is created out of.
A central bank, central control. Central government, central control.
Correct. Thats why we need the new monetary paradigm of Strategic Gifting…funded by the FED which breaks up their and the private banks’ monopoly paradigm of Debt Only.
Interest rates bs. It’s about money flow, When the banks fear recession they park
in the Fed for safety even when interest on reserves are low. The Fed legally can short people’s money to control the long duration. Gravity with Germany pulls the 3Y down, but the 10Y and the 30Y have more freedom to rise. The Fed can push the long duration down during recessions. The Fed can drag the 10Y/30Y down, to ease gov debt payments, even without recession.
I think you should keep the FDIC because of the potential for corrupt and fraudulent activities that may occur.
Depends upon the deposit account type, business payrolls should be exempted. Deposit insurance should be reduced to 100,000. Bank-held savings shrinks GDP.
There’s not a single economist today that understands money and central banking.
HMK: I think you should keep the FDIC because of the potential for corrupt and fraudulent activities that may occur.
Mish: If 100% of demand deposits are parked at the Fed, the need for FDIC goes away. You can also look at it this way: FDIC is unlimited on demand deposits, and is $0 on all other types of accounts.
I think now is a good time for people to review the history of the great financial crisis.
https://www.history.com/articles/great-recession-timeline
It started in April 2007 when New Century Financial (first cockroach) filed for bankruptcy. In October 2007, the Dow hit all time highs. Look familiar?
January 2008 – Fed starts lowering rates. Look familiar?
Feb 2008 – Bush Jr (incompetent clown) signs Economic Stimulus Act. Look familiar (Big Beautiful Bill?).
March 2008 – Bear Stearns Collapses…..and it goes downhill from there.
Right now we have a few cockroaches already go bankrupt in subprime auto area, commercial real estate is likely next. I’d say we’re in the New Century Financial period of “April 2007” right now so perhaps by November 2026 it will all start falling apart.
The best thing to do now is pay down all debt, not take on any new debt, save as much money, stock up on non-perishable food, and pray to the deity of your choice for salvation because it’s going to get ugly.
Note that Michael Burry is already shorting the market.
Got PUTS? Got hedges? Got exit strategy? Got anything planned?
Now is the time to Got.
Commercial real estate bankruptcies have already started and are far ahead of subprime autos so we might be a bit further along than your ‘April 2007’ timelime guess.
Otherwise everything else you posted looks good, especially the advice about paying down debt and not taking on any more (though I don’t think stocking up on food will be needed unless you think it’s for inflation reasons).
I just read an article that Michael Burry shorted PLTR buy buying puts for 2027 so maybe we’re two years away from the calamity…
He is long the $50 put sometime in 2027. He also supposedly sent his investors a letter last week Oct 2025 saying he is shuttering his funds by EOY
Yeah, the FED kept lowering policy rates in the latter half of 2007 which propelled stocks higher. Other than that, I’m looking for a selloff in the 1st qtr. of 2026.
I.e., contrary to some pundits, the distributed lag effects of money flows are mathematical constants. The proxy for inflation ends this November. The proxy for real gdp is also decelerating after the 3rd qtr. 2025.
Money” is the measure of liquidity; the yardstick by which the liquidity of all other assets is measured. See
G.6 Debit and Deposit Turnover release:
https://fraser.stlouisfed.org/files/docs/releases/g6comm/g6_19960916.pdf
That is principally all demand drafts cleared through total checkable deposits
Analysis of bank debits as a business cycle indicator
Monetary policy objectives should not be in terms of any particular rate or range of growth of any monetary aggregate. Rather, policy should be formulated in terms of desired roc’s in monetary flows, money times the transaction’s rate of flow, relative to roc’s in real-gDp;
“Believe it or not, more QE is coming right up. But why?”
Math. A parabolic curve has to rise at a continually faster rate. However, a parabolic curve is one of those things that that can’t continue, so it won’t. The question is when does math force the end?
Just heard this morning on CBS Radio News that the last penny has been minted. A dollar is now worth maybe a little more than a penny was in 1913, when the FED was created. Gold has been remonetized and central banks are loading up on it. A reset is coming. Was reading on ZH last nite about the mega amounts of notional derivatives exposure in 4 banks, to the tune of 37 to 54 trillion dollars each. Was also reading that Mamdani said “capitalism is theft, taxation is not.” What happens when the reset moment arrives?
Banking has become such a complicated mess that I do not understand all the workings available to scam the public of its money. I was not for repealing Glass-Steagall, a depression era act that separated conventional banking from investment banking and prohibited investment banks from access to Federal Reserve Bank funds. At this point I am not sure its re-instatement would help much as it seem all the shenanigans identified in this post are within traditional banking with the exception of Goldman Sacks being at the trough.
Maybe we need legislation requiring safe keeping banks or all banks taking demand deposits be safe keeping. The problem would be in the sausage like process of drafting the final bill, bank lobbyists would assure they maintained their gravy train. The other problem is there is no legal penalty for fed failure to comply with any law. They would just ignore the directives as they do now and serve their owner masters, the member banks.
Mish for CB president!
They need to keep their game in the shadows until they have thieved all of our money. Simple as that. Like the three card monte dealer whose scam you knew at 14 yrs old, except this shell game has fooled enough people that we’re already in the fourth quarter, down 35 pts with 4 minutes left.
then i saw the easter bunny and santa and jesus at the local bodega.
Excellent post, Mish! I especially liked the “safe bank” idea, which made me wonder, aren’t the neo-banks doing that — taking deposits and paying a little interest while parking the surplus in Treasury instruments?
It seems like the whole banking sector is disintermediating into depositary and lending institutions; traditional banks are going the way of the Yellow Pages and mimeographs.
The only bank I am aware that is operating that way is Caitlin Long’s Custodia bank.
It makes no loans. Charges a fee on deposits. But deposits are 100% in overnight treasuries. No need for FDIC except for fraud. But that would put them all in jail.
Peter Schiff also had such a bank but the Fed shut it down. Custodia is a genuine safe-keeping bank.
Actually, since I live in Europe, we have a number of choices. I have been banking with Wise long since when it was Transfer Wise. There is also Revolut as well as several other newcomers. Both I mentioned pay some (nominal) interest on deposits and make no loans. They charge no fees and exchange currencies at the middle (interbank) rates.
Dear Mish,
Thank you for your interest in the FED Chair position. We were genuinely impressed by your honesty, integrity, and overall moral compass — qualities that, frankly, may make you a little too qualified in the ethics department for this particular role.
While we admire your decency, we fear your commitment to doing the right thing could create dangerous levels of transparency and accountability around here. For the sake of our internal peace (and plausible deniability), we’ve decided to move forward with someone slightly more… flexible in their principles.
Please don’t take this the wrong way — the world needs more people like you. Just maybe not in this office or in any office in the greatest administration ever, anywhere.
Wishing you great success in a position that truly deserves you.
DJT
POTUS
No
“Meanwhile, the Fed is sucking taxpayers while sponsoring more duration mismatch schemes that the banks are openly bragging about.”
You left out a key term: “OFF.”
I do not want the Fed to Suck Me OFF, Mish.
Sometimes being sucked dry is the best, sometimes it is the worst. Context can be everything
This was always designed to recapitalize/enrich the banks. The best part of the blog post is calling it what it is now–extortion. And happening in broad daylight as they bang their junk on the table, no longer even needing to back the trucks up at night. Right in the front door, no masks.
Correct! Ben Bernanke asked Congress to pay interest on all reserves during the Great Financial Crisis. This is the result.
i explained it to my kids. imagine borrowing money and getting paid interest to borrow the money. the NYFED is the greatest scam in the entire empire of pax dumbfuckistan.
However much you hate the fed, and the reptiles running DC it isn’t enough.
by the way, this email from Jeffery Epstein telling a buddy on how he instructed the Russians to handle Trump (it’s easy…) by now all the world knows
https://cdn.bsky.app/img/feed_fullsize/plain/did:plc:4lx6nur5wstwoc4wtgj56kyu/bafkreiakcoyo3ia6kqfkg7rwt2y773qqruoqc7kpqdfuaiqolkeh376i2e@jpeg
“he must be seen to get something”. So true. Trump’s insecurity is the source of his (and our) problem.
This is merely pedophile and Mossad spy Epstein “selling his book”. There’s nothing more implied by it.
If average people understood this, I think most banks would not be safe from them.
There is too much quivering in the financial world based on the AI fellas getting nervous about their payout
too much money commitment, too much training costs
will it last through next year
there is abig push on for federal “back-up” from Trump’s big money tech freinds
Yes, the system is an insurance scheme. The fight is always, for whom? And who eats the dinner check (takes the first losses)? Over 60 years, we peasants have been repositioned in the capital structure.
Let the peasants eat meme coins and in-game gambling trifectas.