Fed Announcement – Speaking in Tongues


QUESTION: Marty, you recently said that there was a shadow repo market. Nobody has ever heard of this. In the Fed’s statement, there is a curious announcement that’s talking about coordinated swap lines. They also said: ” both a collateralized and uncollateralized basis, to support the provision of liquidity to households and businesses and the general smooth functioning of payment systems.” Is this the commercial paper you are talking about?

ML

ANSWER: Yes. They call this “coordinated swap lines” between central banks. It is the shadow uncollateralized Repo Market. They are now coordinating this with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank. In other words, the Fed is providing liquidity to other central banks. I have said before. They actually had red phones connecting the central banks after the Plaza Accord. I was sitting there in the room when one of those red phones started to ring. I just call it the shadow Repo Market.

The “uncollateralized” loans mean commercial paper other than government treasuries

Never Let a Good Crisis Go to Waste


QUESTION: Do you think there is some single plot behind this Coronavirus scare?

SH

ANSWER: No. It seems that there are a lot of people using this Coronavirus for personal political agendas. Illinois Tollway is now using it to implement All-Electronic Tolling as Precaution Against Spread of Coronavirus. You have others in Europe saying they should be nationalizing companies since they cannot be bailout under EU rules. Others are using it and blaming Trump as if any government can really prevent such a pandemic.

I do not think this is a single-minded plot. However, history also demonstrates that they will always take advantage of a good crisis. In Europe, the central bank is already at negative rates. There is nothing left for them to do. This is now turning to emergency political measures. The drive to use this as the excuse to eliminate paper currency is a side-benefit on their wish list and this does provide the excuse to justify that action.

Whatever measures you see, they rarely ever reverse. They tend to be permanent.

Germany Closing its Borders


GERMANY has just closed its borders within Europe and that includes France. The free movement of goods should remain secured. Commuters can also continue to cross the borders, but they are also trying to stop panic buying which actually is the first step in reigniting inflation.

Will Coronavirus Alter the Economy Forever?


I have been doing my own investigation using REAL DIRECT sources who do suggest that the death rate caused by the flu is higher than reported and in that case, the numbers may be understated, but that does involve the elderly in particular. Hence, the death rate here with the Coronavirus may really be on par. That is just a numbers game that is not substantially different.

While the conspiracy people love to paint everything as the end of the world, the threat has nothing to do with the mortality rate of the Coronavirus. It may be slightly higher, but it is in the 1-3% range and this comes from people on the front line. The real problem is that there was not enough testing available and it was restricted to those who traveled. That is what Trump addressed to expand the ability to test based upon symptoms rather than limited to travel.

After speaking to friends in the infectious disease specialty, they explained that the real problem created by this panic is that they make people who have only the flu think they are going to die and then they rush to urgent care centers or doctors unnecessarily. That overburdens the system which only makes things worse. Only if you have a fever should you go! Otherwise, stay at home for 2 weeks.

Americans tend to go to work even when they are sick. It is a cultural thing. That you should not do. This is teaching people more about being able to work from home. Universities are switching to online classes and this may actually be an event that furthers that trend long-term.

The primary issue is that this is a parallel outbreak that is similar to the flu but different. This tends to require respirators and hospitalization at a higher rate than the flu. The real crisis is just that there can be a shortage of beds. One healthcare provider questioned if these conspiracy people are deliberately trying to reduce the population for climate change. I suppose that is yet another counter-conspiracy, conspiracy.

Anyone with young children knows when they are under the age of 10, they tend to bring home every possible version of whatever is running around. Parents will go through those years that often seem as if they have a cold that never goes away. It may make sense to keep the little ones home if you can.

Consequently, these people who are spreading such absolute panic are the very people who are endangering lives. They are sending people into doctors who should not be there worried that they are going to die. These people are the real threat to society for they are acting unprofessionally for some personal issues. They have done everything possible to claim the numbers are fake, 50% will die, it is laced with aids, a biological weapon unleashed by China or by the US on China. The spin seems to be endless. If if it was a biological weapon, it is a dud on that score and it has subsided in China and South Korea showing it is just a virus. So what’s the difference?

We have staff in China. It has subsided there as any normal virus does. We were in direct contact with our hotel in Shanghai since we had planned to have a WEC there in May. There is always a peak and then it fades away. However, it may reappear in a slightly different version 2.0 for the next flu season, unlike SARS, etc. This is because it spreads differently. We will cross that bridge when it comes. If this mutates into a flu-like disease that reappears each year in parallel, that will put a lot of strain on the entire system.

The economic impact of this panic fueled by these individuals is amazing. In Canada, a coffee shop refuses to accept paper money. We have Apple and Nike closing stores. This all seems to be overkill since they do not do that for the flu. But these types of actions will send the economic numbers down very hard for the first quarter and our model shows the low will not come until the early second quarter.

The conspiracy people who have been using this in their hatred of Trump desperate to overthrow him are unleashing a surge in authoritarianism never witnessed in modern history. Spain has issued a curfew people cannot leave their homes. Economically, the damage is profound. The German finance minister has already proposed just NATIONALIZING companies. That means investors lose everything. I can’t think of another reason for a dollar panic high better than that as all investment capital flees to the dollar.

Using this panic to justifying nationalizing companies is precisely the agenda of Greenpeace. This does not seem to be a coincidence. The conspirators behind this Coronavirus are on this same agenda, are either too stupid or they are using this for the same end goal. Some of the proposals being floated are strangely the same as Greenpeace – seize industry to save the planet. Anyone pushing this panic, I suggest you investigate their connections. They are either fools, or this is yet another clever ploy like using a 16-year-old girl as a climate expert. They seem to be cheering on millions of people who will die like they can’t wait. The 1968 flu did kill 3 million. That must be their dream-like Greenpeace – reduce the population.

 

New York City Closes all Schools, Restaurants, Bars, Nightclubs, Cafe’s, Coffee Houses, Movie Theaters, and Public Spaces…


The Big Apple is about to get very interesting…  A dense, mostly liberal population, all bound up in close proximity, now instructed by executive order and forced mandatory compliance, to essentially shut down.  [Link to NYC Press Releases]

New York Mayor de Blasio – “Our lives are all changing in ways that were unimaginable just a week ago. We are taking a series of actions that we never would have taken otherwise in an effort to save the lives of loved ones and our neighbors.

Now it is time to take yet another drastic step. The virus can spread rapidly through the close interactions New Yorkers have in restaurants, bars and places where we sit close together. We have to break that cycle.”

Effective tomorrow, March 16, New York City schools will close.

“Tomorrow, I will sign an Executive Order limiting restaurants, bars and cafes to food take-out and delivery. Nightclubs, movie theaters, small theater houses, and concert venues must all close. The order will go into effect Tuesday, March 17 at 9:00 AM.”

“This is not a decision I make lightly. These places are part of the heart and soul of our city. They are part of what it means to be a New Yorker. But our city is facing an unprecedented threat, and we must respond with a wartime mentality.” (read more)

 

 

Peter Navarro Discusses Executive Order to Move Critical Items Toward Domestic Production (Out of China)…


White House trade and manufacturing advisor Peter Navarro discusses the administration effort, a possible executive order, to shift U.S. dependency for critical health sector and pharmaceutical products back to domestic production.  [Important Discussion]

After Being Discovered Wasted and Naked in a Hotel Room With a Gay Male Escort and Bags of Crystal Meth, Andrew Gillum Says He Will Withdraw From Public Life…


It was only a matter of time before the familiar “entering rehab” and “apologize to my family” excuse was trotted out by former Florida gubernatorial candidate and CNN contributor, Andrew Gillum.

After being discovered naked in a hotel room with an overdosed gay male escort and three bags of crystal meth next to the bed, Andrew Gillum says he is withdrawing from public life to deal with “deeper struggles”. Go figure:

TALLAHASSEE — Andrew Gillum said he would withdraw from public life, closing a chapter in his career that took him from the peak of Florida power to a Miami Beach hotel room where he was found inebriated with a man suspected of overdosing on crystal meth.

“This has been a wake-up call for me,” the former Tallahassee mayor said in a written statement Sunday. “Since my race for governor ended, I fell into a depression that has led to alcohol abuse. I witnessed my father suffer from alcoholism and I know the damaging effects it can have when untreated. I also know that alcoholism is often a symptom of deeper struggles.“

“I will be stepping down from all public facing roles for the foreseeable future,” he wrote.

Gillum said he would enter a rehabilitation facility. He apologized and asked for privacy.

The one-time gubernatorial candidate will give up the reins of Forward Florida, a political committee he founded to register and motivate voters to defeat President Donald Trump in the battleground state.

He also is stepping back from CNN, where he was paid commentator, a gig that made him a familiar face in the living rooms of voters.

Gillum’s friends say he’s been withdrawn from them, too, as he grapples with the destruction of his career and the challenge to his marriage. (read more)

White House Coronavirus Task Force Briefing – 5:00pm ET Livestream…


The White House COVID-19 task force led by Vice President Mike Pence will be holding an update on coronavirus mitigation efforts at 5:00pm.  Livestream Links below:

UPDATE: Video Added

WH Livestream Link – Fox10 Livestream Link – PBS Livestream Link

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