Death of the Central Bank debt-based money system

[Laura]

Bottom post of the previous page:

News to me. The sneaky slime bags. (the NatWest stance is well known)
Seems that the FSCS only applies to non interest bearing accounts
https://www.zerohedge.com/geopolitical/ ... aa9eca0b16

worth repeating, though few seem to notice, the UK has bail ins on the statute books since 2017, but *only for interest bearing accounts*. Even if you get 0.0001% on your money, you'll lose it all. The FSCS compensation scheme will only cover £85k of current account assets.

The customers who refuse to switch into interest bearing accounts, and keep it all in current accounts, are having their accounts frozen and closed. It happened to us at Natwest.

[Laura]

CS doing a DB. TBTF

[Pixel8r]

CS doing a DB. TBTF

TBTF is soon to become TCTS

[Laura]

^Decode attempt no1

Total Collapse. Totally Stuffed.?

[Pixel8r]

^Decode attempt no1

Total Collapse. Totally Stuffed.?

Too Corrupt (or maybe Criminal) To Save

[Laura]

Thoughts, unfinished:-
1)Building Societies are (mostly) conservative and with huge reserves.

2)I wish the Halifax hadn't done the fashionable conversion from building society to bank. Their Clarity Card is the best thing going for us out here. No fee fx at wholesale. Fine until the org goes base over apex.

Edit to No1
The laudable Building Society model works well with cautious lending, but fails if the currency goes to zero, unless the society has reserves in PMs.
So next Q is, are those running a society:-
1) Aware and caring.
2) Ignorant and caring
3) Wreckers levered in by the tribe.

[Pixel8r]

^Decode attempt no1

Total Collapse. Totally Stuffed.?

Too Corrupt (or maybe Criminal) To Save

[Laura]

Bank of Roth goes even further than the previous further but only til Friday...We said Friday. We mean it!
Cliff edges are beyond boring.
https://www.financialreporter.co.uk/ban ... tml?SRC=MC

The Bank of England has announced an expansion of its emergency bond-buying scheme for a second day running, widening its gilt purchase operations to include index-linked gilts.

"Dysfunction in this market, and the prospect of self-reinforcing ‘fire sale’ dynamics pose a material risk to UK financial stability."

[Laura]

Wolf Richter sums up the last fourteen years.
A good one for asset rich, about to bleat, 'home owners'
https://wolfstreet.com/2022/10/11/somet ... stability/

Something Big Has Already Broken: Price Stability

The years of QE and near-0% interest since 2008 have created the Everything Bubble, and now the Everything Bubble is deflating.

And these hedge fund gurus and bond kings and stock-fund apostles and other crybabies on Wall Street are saying that things are already breaking, that markets are stressed, and that in x months, like in November, something big will break that will cause the Fed to pivot into cutting rates and restarting another money-printing binge.

That’s what they want: They want the Fed to cut rates and restart QE as to re-inflate the Everything Bubble so that these folks can get even richer. They have big investments, and those investments have now soured, and they want the Fed to U-turn in order to bail out their investments.

And they don’t give a hoot about this raging inflation because they’re rich and don’t even notice if they have to pay extra for consumer goods and services.

And if something breaks, meaning if some portion of the market crashes somewhere, or rates blow out somewhere, say in the repo market like it did in late 2019, that no one outside the repo market even noticed, or if something even bigger breaks, they hope that the Fed would then cut rates and restart QE to re-inflate their asset prices.

And in fact, they want something to break, they’re praying for something to break, they’re trying to scare markets so that something will break, in order to force the Fed into this pivot.

The simple fact is this: stocks, bonds, the housing market, cryptos, etc., etc., they were all hyper-inflated by years of the Fed’s money printing and interest rate repression, that started in late 2008. And after a brief pause in 2017 through 2019, the Fed went hog-wild starting in March 2020 when it printed $5 trillion in two years and threw it at the markets.

[Laura]

Clear the decks. Alasdair at his best.
(I've quoted the last part of his conclusion)
Derivatives as clear as day.
What blew up last week.
The end game collapse....
I'm off to find dear Blythe.

https://www.goldmoney.com/research/bank ... eat-unwind

Banking crisis — the Great Unwind

From being completely in control of interest rates and fixed interest markets, central banks are now struggling in a losing battle to retain that control from the consequences of their earlier credit expansion. That enemy of every state, the market, has central banks on the run, uncertain as to whether their currencies should be protected (this is the Fed’s current decision and probably a dithering BOE) or a precarious financial system must be the priority (this is the ECB and BOJ’s current position).

But one thing is clear: with CPI measures rising at a 10% clip, interest rates and bond yields will continue to rise until something breaks. So far, commercial banks are dumping financial assets to deleverage their balance sheets. The effects on listed securities are in plain sight. What is less appreciated, at least before LDI schemes threatened to collapse the UK’s gilt market, is that the $600 trillion OTC derivative market which grew on the back of a long-term trend of declining interest rates is now set to shrink as contracts go sour and banks refuse to novate them. That means that up to $600 trillion of notional credit is set to vanish, in what we might call the Great Unwind.

This downturn in the cycle of bank credit boom and bust will prove difficult enough for the central banks to manage. But they themselves have balance sheet issues, which can only be resolved, one way or another, by the rapid expansion of base money. And that risks undermining all public credibility in fiat currencies.

[Laura]

Originally Torygraph. Apart from the howler "Govt owns BoE" worth the read.
All theatre to make the BoE look good, as suspected.

https://www.thebernician.net/bank-of-en ... acbb18070c

Bank of England Governor Implicated In Shorting Bonds & Sterling

Damning evidence has emerged which strongly suggests that former and fleeting UK Chancellor of the Exchequer, Kwasi Kwarteng, an ex employee of hedge fund, Odey Asset Management, was appointed to panic the bond markets and devalue the pound, which has coincidentally generated huge material gains for Odey in 2022, the vast majority of which comprises of profits made from betting against [otherwise known as shorting] future UK Government bond yields and the pound