Wednesday, 16 October 2013

"Repo implosion" - bankster panic?

Big banks under threat from chaos on the derivatives market? Have big banks over leveraged again? The question revolves around banks exposure to the derivative markets and this is linked to short-term treasury bills which have remained well priced due to QE activity.

This and more is discussed in an article on LarouchePac.  

The article on the "repo implosion" can be found here.

 Danger of a 'Repo Implosion' Grows for Wall Street [Outside link]

One of the better lines refers to a "bankster panic".  A fine turn of phrase.  The danger of course is that if the repo market does freeze it will take the banking system down with it.  Nobody wants to touch 1-month bills related to the US shutdown.

The prediction - an increase in money printing through QE.  The result - debasement and an increase in the price of gold........(perhaps).
We should now have a look at the authors of this article.  It is useful and somewhat illuminating to have a look at what LarouchePac is and does and who it is funded by.   There is no doubt that LarouchePac is a mine of top quality "conspiracy economics" material that will need future dissection.

Larouche Pac is run by Lydon LaRouche who describes himself as:

Mr. LaRouche is an American patriot. As a veteran of WWII he personally experienced the British Empire's brutality and ideology up close while serving in India and as a result is committed to the extinction of that empire policy. He continues as one of the few remaining staunch patriots who lives in the tradition of FDR and the American System of Political Economy. In this context, and in his capacity as a consultant after the war, he pioneered a revolution in economics based on a discovery he made called the LaRouche-Riemann method, with which he has since made several successful economic forecasts. The most recent of these, announced at a July 25, 2007 international webcast, warned, "there is no possibility of a non collapse of the present financial system," and that "only a fundamental and sudden change in the world monetary financial system will prevent a general immediate chain reaction type of collapse, at what speed we don't know, but it will go on and it will be unstoppable," a warning playing out right now. As a result of this foresight, Mr. LaRouche is unique in his ability to both craft policy solutions, and to organize national and international efforts to get those policies through. Below are a few resources which give you just a glimmer of this role.

I particularly like the quote "there is no possibility of a non collapse of the present financial system".  It has a ring to it that "there will be a certain collapse of the present financial system" does not have.

The science behind LarouchePac sounds pretty radical and not something I have come across as an academic economist.  My bold.

 Early in 2006 Lyndon LaRouche initiated the creation of a research team nicknamed the "Basement" which was challenged to come to know and then enrich the LaRouche-Riemann method of economic forecasting. The team focuses on continuing a tradition of science typified by Plato, Gottfried Leibniz, Johannes Kepler, Karl Gauss, Bernhard Riemann, Max Planck, and Vladimir Vernadsky. Namely, building on a Promethean outlook of mankind, with the emphasis of mind as the subject of both science and art. The project began with the study of Kepler's New Astronomy, which laid the scientific foundations for an expanded study of the LaRouche-Riemann Science of Physical Economics, and progressed along a strict curriculum LaRouche called the Narrow Path. Now, that team has expanded both in number, and in areas of research, probing various elements and aspects of the Science of Physical Economy, and delivering in-depth reports, videos, and writings for the shaping of economic policy.
There is a lot more to read and absorb but appears to be a vertible gold mine of conspiracy economics material.

Added to the blogroll.

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