FED is going to realign FED policy with the needs of the United States. No longer going to be the Central Bank of the World the way we were under Bernanke and Yellen.

because there's no appetite for that $6.5 trillion dollars.   Tom Luongo

I just did @ThomasMullen's show. look for it soon.
Tomorrow I'm doing Mel K's show, i'll post these when they happen.@AroundTheEmpire dropped our latest chat as well   https://t.co/RxAas0okko

— Tom Luongo (#2ndAmendmentAir) (@TFL1728) July 13, 2022

33:00  They had to flood some money into the Repos.  This is 6 months before COVID, so September 2019?   JP Morgan started the Repo Crisis, I think, on purpose because it put a countdown timer on a sovereign debt crisis in Europe because Europe was deteriorating because they couldn't go get dollars because none of the New York banks wouldn't do business with them anymore.  It was the beginning of the split between Europe and American banks.  And that persisted.  None of the American banks would repo--to take as collateral--any American debt.  That meant that the ECB was forced to amplify all of its QE programs and shuffle deck chairs around the Titanic.  

This is Episode 263 from Around The Empire, dated 7/12/2022, hosted by Joanne Leon. 

For legit reasons, right . . . ?  

Yeah, who would want that stuff?  Remember, the ECB has been at negative interest rates.  For legitimate reasons, right, why would I want to buy a 5-year German bond at negative .05%?   Why would I want to buy some massively overpriced German bund?  Or some massively over-valued Italian bond or Greek debt?  Really?  This stuff is all trading at a premium to U.S. debt.  It's all garbage.  It's all toxic.  It's all worthless.  If it actually all hit the market at once it would go bidless.  The ECB is functionally bankrupt.  What we're living through right now is, that the TLDR on this is the ECB is functionally bankrupt.  The European banking system is functionally bankrupt.  And now the FED is going "Yeah, we're going to prove it to everybody that the ECB is functionally bankrupt.  And we're not going to allow them to take us down at the same time.  We're going to realign FED policy with the needs of the United States.  

35:11  We are no longer the Central Bank of the World the way we were under Bernanke and Yellen, bailing everybody out.  We are the Central Bank of the United States, which is exactly what Powell said a month before he raised . . . he started stealthy tightening a year ago today at a major central bankers' conference.  Where Christine Lagarde stood up there and announced to the world that "we were going to coordinate central bank policy to fight climate change," and Jerome Powell stood up and said, "I won't."  I have a dual mandate: stable prices and full employment.  I work for the United States people, and Lagarde lost her mind and yelled at him.  And he doesn't say that if he doesn't have the backing of his banking sector. 

36:09  If he doesn't have the shareholders and the New York Fed having his back, he doesn't say that.  That was a month before June 2021.  Now, in the interim, we have this COVID thing and all the governments got together and mandated through congress their various legislatures to print trillions of dollars, but notice, something that Peter Boockvar [Episode #96, February 11, 2022] brought up to me, well, yeah, the Fed printed up $6.5 trillion.  The ECB only printed $650 billion.  Again feeding this argument that the Euro is a better currency than the dollar because there's no appetite for that $6.5 trillion dollars that the FED was forced to monetize under COVID.  It's also the recipe for you're going to wind up with inflation a year after you open an economy back up.  So what Powell did very astutely, and I'm going to say, very skillfully, on the day that Biden and Putin are delaying WWIII for another year, I'm going to raise the rate on the payout rate on the standing reverse repo contracts to 5 basis points above the FED's fund rate.  So I'm creating a positive yield spread.  It's only .05%, but it's a positive yield spread, and markets are so frickin' starved for yield that they'll take that .05 basis points.  They were so starved for yield that the standing reverse repo facility balance went from $450 billion to $1.7 trillion by Jackson Hole in September, removing $1.3 trillion dollars of base money from the off-shore dollar system.  

38:50  What is the Reverse Repo?  

"you'd get millions of people storming the palaces with pitchforks."

Laura Lynn Tyler Thompson interviews Martin Armstrong where they talk about supply chain disruption on the west coast brought on Gov. Newsome's policies and about how normal life is in Florida where the job market is off the charts.  Thanks to Martin Armstrong for the interview post.

"You'll own nothing and you'll be happy about it," making it sound as if they're doing this for you. 

12:00  Pelosi went shopping for a home in Florida because she doesn’t want to live in California where stores are closing because gangs are robbing them. 

All the blue states want to lock down their societies.  Spain, just the other day, downgraded their COVID policies to nothing more than the flu.  

14:00 Even the WHO admitted that probably 50% of all of Europe has Omicron.  COVID nonsense has been exaggerated for political gain.   

People are arguing over whether it’s a virus, where did it come from, etc.  We picked up disruptions in the capital flows in August 2019.  

14:30 Bill Gates bought the bio-net stocks in September 2019.  By December 2019, we already heard that a virus was coming.  By January 2020, Klaus Schwab was telling personal friends that a virus was coming and to sell their stocks and bonds.  The World Economic Forum, I believe, sold all its investments at that time just ahead of the COVID crash.  This has been orchestrated and as soon as this happened, they were immediately out there saying, “Oh, this is a great opportunity for the Great Reset.”  I can tell you absolutely that this Build Back Better nonsense was first floated at DAVOS in January 2019, and yet this is the first time that you see all of these world leaders all saying the same thing, “Build Back Better.”  this is a slogan that’s been made up by the World Economic Forum. 

15:35  What’s its problem here, what’s really at stake, what’s the objective?  What it is is that they (the ECB) lowered interest rates to negative in 2014.  I warned them, don’t do this.  It’s really nuts.  It’s going to completely destroy your bond market.  And here we are in 2022, interest rates are still negative.  They can’t get out of it; they've trapped themselves.  It's like we have Dumb and Dumber running countries.  You tell the pension funds, "Oh, you have to be safe and secure, so you must buy government bonds." So then you take the interest rates to negative?  Virtually all the pension funds in Europe are bankrupt.  So that's what this whole thing is about.  They know they've bankrupted everything.  It's totally screwed up in Europe.  

16:45  And you have this idea that the only thing that they can possibly do is if the government defaulted on its debt, wipe out all the pension funds, and then what you would get is millions of people storming the palaces with pitchforks.  So they come up with a very clever thing, "You'll own nothing and you'll be happy about it," making it sound as if they're doing this for you.  As if they're going to wipe out all your debt, your mortgage, your car loans, students, you know, you won't owe or own anything but neither will they, and they're the majority here.  

17:12  And then the guaranteed basic income will replace the pension fund that you lost.  So this is really about government and how they're getting out of this complete mess.  Since World War II, they've been borrowing year after year without absolutely no intention of ever paying anything back.  So they've kicked the can down the road as far as they can possibly go.  So that is what this is really about. 

17:45  So this COVID stuff, I think, is a crime against humanity honestly.  And it seems to be the younger ones who are getting more severely injured from the vaccines, over 300 professional athletes.  But right next door to me, the wife had COVID, I think she's 25 to 27, but they had to go on this cruise for a family reunion, and for that, they had to get a vaccine.  So they got the vaccine, and the very next day she was taken out on an ambulance and almost died.  Now they say that if you'd had COVID, the chances that you'll have a side effect that serious is 400x than if you've never had COVID before.  [So, wait, the milder symptoms related to the vaccines come only to those who've never had COVID before? Isn't that an admission that the poisons in the vaccines are, well, poison?]  If you go even to the CDC's website, and you look at the Measles vaccine, it clearly states, "Do not take the vaccine if you have this, this, this, . . ."  You go to the COVID vaccine page at the CDC and it says, "Oh, we're still working on that."