RT friend Loc: Kangaroo valley NSW Australia

Could some experts please offer OPP supporters an explanation about this 10% jump on Monday of overnight lending rates to banks, (on some t***sactions), which was followed today Thursday, by a •25 % cut in the Fed's benchmark key target rate for overnight lending.

Also this week the Fed announced a QE injection, some say, (Richard Wolff) of $ 123 billion, although $50 to $70 billion has been admitted too by the Fed in order to correct an anomaly that happened prior to the •25% cut which everyone knew was coming, obviously cheap money caused unprecedented demand.

Is this shortage of liquidity signalling too much lending because interest rates in the open market are too low ?, in which case why go even lower, hummm ! political manipulation, money printing for political profiteering? I'm confused.

This overnight rate was never lowered for Australian banks when there was genuine shortages of liquidity, (Australian banks cover their daily business t***sactions with offshore borrowing), also if the Queen can intervene in Australian politics and sack the PM, namely Gough Whitlam, why couldn't she sack Boris Johnson, I'm not expecting a reply but I suspect the US is acting like something of a giver of the Royal Order.

Radiance3

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I think the rise of interest rate is due to supply and demand. There are factors currently that affected this.

At present there is scarcity of bank reserves. That is the asset that provides bank liquidity. The reason why the US Treasury injected $75 billion. Bank reserves have been declining, and is expected to decline further. The Treasury’s cash balance increases as and currency in circulation grows.

In other words, the cash reserves in the banking system is out of balance with the volume of securities in the dealers’ balance sheet. Other reasons. Corporate tax payment is due, and the bond market sell off. Investors sold securities back to dealers. That will decline cash reserves further in the banking system.

Interest rates affect the law of supply and demand. An increase for the demand of money or credit will raise the interest rates. Conversely a decrease in demand of money will reduce the interest rates.

The .25% cut of interest rate could be attributed to current economy inflation that is low and economic stability is in place.

RT friend Loc: Kangaroo valley NSW Australia

Cutting interest rates to cause inflation and reduce debt on paper probably won't work without a devalued $, sending prices up and hot money flows elsewhere, the policy seems to be outdated, not working in Europe, maybe the US should do that and give Europe a break, doubtful if Trump would ever agree.

However I thought that local private banks were forced to create the reserve held by the Central bank themselves, this reserve i through was demanded daily as a security proportionally based on the loans made by the local bank through the business day.

The credit provided to the customer at varying interest rates never requires physical currency, coins and notes enter the economy via ongoing operations not new ventures, credit provided by local banks comes from fairy dust and the Fairies can't fly because of they got a bit too heavy so the banking fraternity gives the sisters a piece of the sky pie till they recover, which I'm beginning to think that migh be never.

Trump screwed the World economy with sanctions and Trade Wars and so created a US safe haven with the USD successfully controlling all other currencies in order to create increased consumption with a stronger $, and the Fed bowing to political dictates to create a weaker $ while hot money flows are sustained by tributary international strategies.

This is my point at some stage either before or after December 2020 this brinkmanship will get called out, because it's becoming so distant from mercantilism that it makes Modern Monetary Theory look like a Balanced Budget or a Trade Surplus coming from edits on computer screens.

Radiance3

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For heaven sake there you go again in a different fishing expedition so that there is something to blame on president Trump. What ever happening in Europe has not much to do with the US. China is the most affected business partner but lesser with the European nations. Germany triggers mostly the Europe's economy.

Local private banks are required to have reserves, but that does not mean that continued activities in bank are controlled. Changes on this are due to following factors. Increase in the demands of credit affects the rates higher.
Reserves in the bank could lower when more bonds are sold, the balance sheet assets liquid assets are reduced.

The .25% rate cut did not trigger inflation. What recently affects world inflation is the rising cost of fuel affecting the t***sport of all commodities of commerce, and the manufacturing products. Iran's bombing of oil in Saudi Arabia is part of that world shortage. although US is not much affected due to our own oil reserves.

Inflation is also affected by high demands of commodities when people have money to buy. Despite of our good economic demands, inflation did not much affect our economy. US inflation is stable.

The dollar at present is rated very high compared to the other countries currencies. China has devalued theirs to offset the tariffs impost on their exports to the US. Not a good idea, a violation of trade agreement.

Europe's economy has been affected by Germany's recession. Germany is the biggest economic power that affects mostly of Europe. Here are the reasons for that.

One of the main reasons why German industry is struggling so much is the country’s famous export dependency. Germany’s balance of trade, the difference between exports and imports, has seen some seasonally adjusted decline since the beginning of 2018 and only recently experienced what seems to be some kind of small recovery.
This, along with the continued weak performance of European export markets, makes it difficult for the German industry to export.
Moreover, domestic consumer spending in Germany has seen rather slow growth in the second half 2018 and just recently picked up a bit again.
1.German GDP growth has been slowing.
2.Industrial output 2009-19 has been negative
3. Manufacturing production 2018-19 has been slowing.
One of the main reasons why German industry is struggling so much is the country’s famous export dependency. Germany’s balance of trade, the difference between exports and imports, has seen some seasonally adjusted decline since the beginning of 2018 and only recently.

Overall president Trump has corrected the prior abuses of China and other countries thus prior years trade deficits with the US have been minimized. Prior years, US have lost average of $500 billions per year without even noticed by the prior presidents either due to ignorance of the economy or did not know how to balance the imports versus exports. Thus China got so rich within the 20 year period.

Now, US is able to control much of China's biggest trade imbalance that had been eroding our economy and balance of trade over the years. Despite of the world's slowing down, US has the best economy. Very low unemployment rate, no inflation, and balance of our trade with China with tariffs is working effectively. Mexico, and Canada with US is undergoing new trade agreement, removing NAFTA, and replaced with the United States–Mexico–Canada Agreement (USMCA.
Thanks to president Trump.

RT friend Loc: Kangaroo valley NSW Australia

The injection of such an enormous amount preceded the •25% interest rate cut by days that shows either there was a pent-up demand or speculators were waiting to take advantage of inside information, that Trump telegraphed out.

There was no pent-up demand The economy was rolling along just fine and dandy.

Kim Iversen says there was $53 billion on Monday $ 75 billion on Tuesday and $75 billion new money issued on Thursday by the Fed to be made immediately available to all local banks.

There was no bonds sold to cover that $203 billion, and there won't be any, that money is not being used to purchase collateral to be held on the Central Banks balance sheet, as far as I know it's just being borrowed by local blank customers at interest rates well below the market value.

I think this is happening because the banks are lending a******lly and can't balance their books any other way except by $203 billion being issued to keep interest rates low.

If the USD was any other currency this decision would be inflationary, but because the USD represents 62% of international foreign exchange reserves it will go unnoticed, although the other 38% of reserve currencies held by all Nations become less secure because of the the $203 billion injection by the Fed.

The US isn't exporting anything to maintain this extra-specia international position the USD is just one part of a system in which the USA, Europe, Britain and Japan take turns in being the strong safe haven currency to absorb hot money flows that have to go somewhere other than into gold, precious metals, Russia or China.

At the moment Europe has started Quantitative Easing so their currencies will get an artificial stimulus while the fiat currency system remains credible because investors who are desperate for a secure yield go to the US.

But because the US doesn't ever have a surplus of Trade, not ever, there is no tangible reason fot the strength of the USD outside of international political arrangements.

The European currencies will have to regain value without artificial stimulus to maintain those political arrangements, the war in Yemen that Trump is maintaining in spite of Congress is one problem I agree.

So the USD will have to decline in value for the €,£ and ¥ to recover and they then can take a turn accommodating the hot money flows while the USD recovers with artificial stimulus, this is the present fiat system.

But if the yield in US bonds dries up concurrently with European, British and Japanese bond yields the fiat system could collapse.

The World can't have only one single strong currency, because even if the US did achieve a surplus in the Balance of Trade Account there would be no way for Nations to get $'s and put them into their foreign reserve holdings.

That financial situation that Trump is trying to achieve is known as a Tributary Demand System, if other Nations accepted this from Trump they would become vassal states and be broken up immediately.

Radiance3

[quote=RT friend]The injection of such an enormous amount preceded the •25% interest rate cut by days that shows either there was a pent-up demand or speculators were waiting to take advantage of inside information, that Trump telegraphed out.

Ans. The cut in interest rate of .25%, due to the rough week in the overnight funding market, where interest rates temporarily spiked to as high as 10% for some t***sactions Monday and Tuesday.

There was no pent-up demand The economy was rolling along just fine and dandy.

Kim Iversen says there was $53 billion on Monday $ 75 billion on Tuesday and $75 billion new money issued on Thursday by the Fed to be made immediately available to all local banks.

There was no bonds sold to cover that $203 billion, and there won't be any, that money is not being used to purchase collateral to be held on the Central Banks balance sheet, as far as I know it's just being borrowed by local blank customers at interest rates well below the market value.

I think this is happening because the banks are lending a******lly and can't balance their books any other way except by $203 billion being issued to keep interest rates low.

If the USD was any other currency this decision would be inflationary, but because the USD represents 62% of international foreign exchange reserves it will go unnoticed, although the other 38% of reserve currencies held by all Nations become less secure because of the the $203 billion injection by the Fed.

Ans. Kim Iversen is nobody but a progressive You Tube commentator, who lied about the release $53 billion, $75 billion, and another $ 75 billion which total to $203 billion. The correct amount was $53 billion and $75 billion total of $128 billion, and not $203 billion. The purpose of that was to add liquidity to the banks due to high demands of credit. In addition, bonds matured that the banks had to repurchase thus reducing bank's liquid assets.

The US isn't exporting anything to maintain this extra-specia international position the USD is just one part of a system in which the USA, Europe, Britain and Japan take turns in being the strong safe haven currency to absorb hot money flows that have to go somewhere other than into gold, precious metals, Russia or China.

At the moment Europe has started Quantitative Easing so their currencies will get an artificial stimulus while the fiat currency system remains credible because investors who are desperate for a secure yield go to the US.

But because the US doesn't ever have a surplus of Trade, not ever, there is no tangible reason fot the strength of the USD outside of international political arrangements.

The European currencies will have to regain value without artificial stimulus to maintain those political arrangements, the war in Yemen that Trump is maintaining in spite of Congress is one problem I agree.

So the USD will have to decline in value for the €,£ and ¥ to recover and they then can take a turn accommodating the hot money flows while the USD recovers with artificial stimulus, this is the present fiat system.

But if the yield in US bonds dries up concurrently with European, British and Japanese bond yields the fiat system could collapse.

The World can't have only one single strong currency, because even if the US did achieve a surplus in the Balance of Trade Account there would be no way for Nations to get $'s and put them into their foreign reserve holdings.

Ans. US dollar dominance did not start at president Trump.
The United States became the lender of choice for many countries that were willing to buy dollar-denominated U.S. bonds. In 1919, Britain was finally forced to abandon the gold standard, which decimated the bank accounts of international merchants who traded in pounds. By then, the dollar had replaced the pound as the world’s leading reserve.

That financial situation that Trump is trying to achieve is known as a Tributary Demand System, if other Nations accepted this from Trump they would become vassal states and be broken up immediately.

Ans. To summarize you have concluded that president Trump has achieved a Tributary System that will make other nations subordinate to the United States.
You are wrong. The success of president Trump's economic development in the US has no bearing with the ambition of Tributary System. This Tributary System has existed since 1898, and even begun from the time of the US independence from Great Britain. Here is the history how this begun.

https://academic.oup.com/cjip/article/6/1/1/457227

RT friend Loc: Kangaroo valley NSW Australia

[quote=Radiance3]

Gavin Menzies tells us it was the Chinese Tributary system that fuelled the Renaissance and t***sferred power from the East to the West, but that is not antiquity as your link states, personally I believe Menzie's claims because if that "didn't happen", - (China gave the West the printing press etc. at the Renaissance of the 15 th. Century making Gutenburd's innovation anachronistic ), - the outcome of (p) Abrahams Religion and Western Religion in general would not be relevant to Universal Destiny.

Also what makes this analogy even more credible is the fact that the Chinese State who perfected the Tributory System and sent all their knowledge to the Renaissance meeting in Venice, so as to put the West in an indebted position, became defunct within decades of doing the deed.

Debt is the basis of the Tributory System couldn't agree more, $ bills are iou's.

It was after the second World War that the USD became the Global Reserve Currency before that the British Pound Sterling was top dog.

I mentioned Kim Iversen because in her episode when she made known to me the $203 billion currency injection the episode is titled "Are We Headed For A Big Economic Crash" she is supporting Trump, she claims Trump didn't bully anyone and the Fed is afraid of Sanders and Warren wanting to regulate, I just laughed.

Actually the Central Bank doesn't have to make known cash injections that are mandatory with on going economic expansion QE 3 ended in the US on October 2014 with the US Quantitative Easing being tapered down to $10 billion a month from $85 billion a month, so even your appraisal of $128 billion is massively significant in terms of Easing.

The other thing is that after 2009 when Obama began QE 1. when Britain and Japan were doing it too EU was a bit slow to start March 2015, the question is, why didn't the fiat system collapse then ?.

It was because China and Australia were not that badly affected by 2008 so we are best able to advise about the future.

Chinese and Australian "financial credibility" saved the day, Australian banks were forced to quit all criminal practices by the Labour Government earlier on, and China wasn't involved in selling garbage as securities.

But next time a big crash comes China, India, Pakistan,Turkey and Russia will pull the plug probably Germany too and just say let's kiss our bad debts good by and start again, dump the IMF and World Bank.

We don't know what Britain would do but Japan is now becoming isolated from the Asian markets and looking for help from Russia so if the economic crash does come Trump could be alone, the USD is isolated at the moment as the only currency performing well but alone all the same.

Probably the Eurasian economies will tie up with China and Russia who are ruthlessly mercantile, profit means very little to them everything is long term and chiseled in stone, probably, we are now back in the barbaric age, and the worst place to be is on the losing side.

I personally think the Tributory System is not the answer, its no longer a part of economic development because if you accept payment in iou's in exchange for goods and services the only reason that contract will be on-going is if the indebted person, namely the US, will be fulfilling some absolute need in the near future for a substantial group of other people, and thereby maintaining the value of the iou. ($), that is an impossible commitment to keep in the long-term.

I think everything will be recalibrated on the basis of barter.

Trump openly admits - Saudi Arabia - "King, !! I said, !! you wouldn't be king for 2 weeks without the US, better purchase some of these weapons or else" , end quote, that's like giving a 10 year old a chess set with instructions written in Tibeten, its not really the Tributory System its the Mafia system.

Radiance3

[quote=RT friend]Gavin Menzies tells us it was the Chinese Tributary system that fuelled the Renaissance and t***sferred power from the East to the West, but that is not antiquity as your link states, personally I believe Menzie's claims because if that "didn't happen", - (China gave the West the printing press etc. at the Renaissance of the 15 th. Century making Gutenburd's innovation anachronistic ), - the outcome of (p) Abrahams Religion and Western Religion in general would not be relevant to Universal Destiny.

Also what makes this analogy even more credible is the fact that the Chinese State who perfected the Tributory System and sent all their knowledge to the Renaissance meeting in Venice, so as to put the West in an indebted position, became defunct within decades of doing the deed.

Debt is the basis of the Tributory System couldn't agree more, $ bills are iou's.

It was after the second World War that the USD became the Global Reserve Currency before that the British Pound Sterling was top dog.

Ans. Gavin Menzies, a former British Royal Navy officer, argues in the bestseller 1421: The Year China Discovered America, that squadrons from Zheng He's fleets, between 1421 and 1423, did indeed get to the Americas first--as well as to Greenland, Antarctica, Australia and New Zealand. Unfortunately for supporters of this theory, he offers no proof, only a great deal of circumstantial evidence marred by questionable scholarship.

Menzies has no "smoking gun" that proves his theory-- because the xenophobic Confucian officials who advised the later Ming emperors destroyed all records of these sea voyages. So he relies upon three types of evidence. First, Menzies claims that Chinese maps from as early as 1428, allegedly showing parts of North and South America and some Atlantic islands, were used by European explorers (including Columbus) when they started their own voyages decades later. Second, he adduces allegedly tangible evidence of pre-Columbian contact between Asia and the Americas, such as: flora and fauna (maize, sweet potatoes, Asiatic chickens, coconuts) that must have been t***sported by humans; "DNA evidence" that links American Indians to the Chinese; wrecks of Chinese ships and medieval Chinese anchors found in California. Third, Menzies relies upon, and constantly reminds the reader of, his own naval expertise which gives him a mystical understanding that landlubbers lack; for example, "if I was able to state with confidence the course a Chinese fleet had taken, it was because...my own knowledge of the winds, currents, and sea conditions they faced told me the route as surely as if there had been a written record of it" (p. 83).

Authors that aim to rewrite 500 years of accepted history should rely less on subjective claims and more on hard evidence. And this is where Menzies ultimately fails to persuade. First, he does not read Chinese and thus cites no primary sources--a problem even if one accepts that the records were all destroyed.

I mentioned Kim Iversen because in her episode when she made known to me the $203 billion currency injection the episode is titled "Are We Headed For A Big Economic Crash" she is supporting Trump, she claims Trump didn't bully anyone and the Fed is afraid of Sanders and Warren wanting to regulate, I just laughed.

Actually the Central Bank doesn't have to make known cash injections that are mandatory with on going economic expansion QE 3 ended in the US on October 2014 with the US Quantitative Easing being tapered down to $10 billion a month from $85 billion a month, so even your appraisal of $128 billion is massively significant in terms of Easing.

You have no idea about the Federal system but just your opinion, not facts. Your credibility along with Siverson is lost since you deviated from yours and her original claim of the recent t***sfer of $208 billion which was false, and now you trying to turn around your theory of QE in 2014, which has no relevance to the activities and recent t***sfer of $128 billion. Your lies are enough me to lose my interest talking with you, cause I feel I am talking to lunatics trying to wonder around theories that you think could justify your claims. Siverson knows nothing about economy except she is a progressive blogger. Why should I even waste my time with this non-sense.

The other thing is that after 2009 when Obama began QE 1. when Britain and Japan were doing it too EU was a bit slow to start March 2015, the question is, why didn't the fiat system collapse then ?.

Ans. The 2009 QE by Obama had nothing to do with world economic activities. The 2008 recession was due to the huge Subprime lending crisis created by the democrats, to enforcing banks to lend mortgage to non-qualified and could not qualify for the normal lender's requirement. A subprime loan is a type of loan offered at a rate above prime to individuals who do not qualify for prime-rate loans.

Japan's fiat system at present is the most stable currency. Japan as the 3rd largest world economy is doing fine with the US. Basically most activities done by president Trump is the imposition of tariffs against China in order to reduce China's dominance in trade against the US. This dominance existed for more than 20 years, that has never been corrected. Now president Trump is the only president who has suppressed China's advantage over the US with the tariffs impost.

This has nothing to do with Japans currency. Japan and the US have very close relations in commerce. Japanese automakers have cumulatively invested about $51 billion in manufacturing in the United States over the span of decades, JAMA data shows.
From 2011 to 2018, direct employment in the U.S. at Japanese automakers grew by nearly 29%.
In 2018, JAMA manufacturers built 3.7 million vehicles and 4.4 million engines.[/b]

It was because China and Australia were not that badly affected by 2008 so we are best able to advise about the future.
Chinese and Australian "financial credibility" saved the day, Australian banks were forced to quit all criminal practices by the Labour Government earlier on, and China wasn't involved in selling garbage as securities.

Ans. The 2008 financial crisis had nothing to do with foreign economic activities. The crisis was due to liberals forced imposition of SUB-PRIME loans to the minorities particularly b****s and Hispanics who failed to pay millions of mortgages because they were not qualified to own mortgages to begin with. Thus in 2007 millions foreclosed due to non-payment. The $865 billion stimulus provided to Obama in 2009 paid some of the black mortgage balances so they could keep their homes. But millions more were foreclosed thus the financial crisis. Thousands of banks closed. The biggest bank victim was the Lehman Brothers.
https://www.thestreet.com/personal-finance/mortgages/subprime-mortgage-crisis-14704400


But next time a big crash comes China, India, Pakistan,Turkey and Russia will pull the plug probably Germany too and just say let's kiss our bad debts good by and start again, dump the IMF and World Bank.

We don't know what Britain would do but Japan is now becoming isolated from the Asian markets and looking for help from Russia so if the economic crash does come Trump could be alone, the USD is isolated at the moment as the only currency performing well but alone all the same.

Probably the Eurasian economies will tie up with China and Russia who are ruthlessly mercantile, profit means very little to them everything is long term and chiseled in stone, probably, we are now back in the barbaric age, and the worst place to be is on the losing side.

Ans. All your statements are speculative assumptions, theories and not facts. The US economy at present is doing well compared to the rest of the world economy. That because of the ingenuity of president Trump in recapturing the trade deficits with China which we've lost trillions of dollars over the 20 year period.

I personally think the Tributory System is not the answer, its no longer a part of economic development because if you accept payment in iou's in exchange for goods and services the only reason that contract will be on-going is if the indebted person, namely the US, will be fulfilling some absolute need in the near future for a substantial group of other people, and thereby maintaining the value of the iou. ($), that is an impossible commitment to keep in the long-term.

I think everything will be recalibrated on the basis of barter.

Ans. You were the previous one accusing the US of the Tributary System, now you are retracting it. Barter system? Are going back to antiquity? Your imagination is far beyond reality.

Trump openly admits - Saudi Arabia - "King, !! I said, !! you wouldn't be king for 2 weeks without the US, better purchase some of these weapons or else" , end quote, that's like giving a 10 year old a chess set with instructions written in Tibeten, its not really the Tributory System its the Mafia system.

Ans. You could not justify and prove your statements what president Trump and and Saudi had agreed upon. But coming out from your own imagination.

Be informed that the US is in a Free Market economy and has the right to sell products to allied countries who wanted to buy. I think you are not worth of my time. Thank you, and Bye!!

RT friend Loc: Kangaroo valley NSW Australia

[quote=Radiance3]

"Boom Bust" - Daniel Brito - Gloomy Growth Outlook & AI in Business.

Confirms 3 consecutive days monetary injections this week completed on Thursday when the Fed intervened in the repo auction to inject a further $75 billion.

So that's Monday $53 billion; Tuesday $75 billion; and Thursday $75 billion. All up $203 billion. I think this injection of liquidity was caused by banks paying their reserve requirements with dodgy bonds and worthless collateral.
Kim Iversen appears to be t***hful.

I'm browsing through "The History of the Decline and Fall of the Roman Empire" by Edward Gibbon before replying further to your comment I have a hunch you've put me on to a pathway of enlightenment concerning Donald Trumps wayward foreign policy directions.

As you know I stated in my last paragraph located 2 comments ago with which I will now quote -"The financial situation Trump is trying to achieve is known as a Tributary Demand System..." end quote.

I'm not retracting what I clearly stated, yes the US is pursuing that Tributary Demand System that your Oxford academic article brings to our attention from "The Chinese Journal of International Politics" l disagreed with the article because it inferred the Chinese system was all about hegemony, which in the medieval period of ( 900 - 1500 AD ) the Chinese Tributary Demand System was not, which is why I introduced Gavin Menzies.

Although I agreed the Military Tributary System your link described is correlated to US Foreign Policy and Trade Relations, the pair also shared a commonality with the Tributary Demand System in a pure sense.

Whereby the Tributory Nation under vassalage accepts the promise of the Hegemonic Power to reward the Tributary Nation with a guarantee, of some sort, occurring in the future.

In this case the US gives $ bills that may not be valuable in the future or might be more valuable or maybe maintain the same value determined by "World" economic circumstances.

In the cause of "World" economic collapse I suggested a barter system would work best particularly because so much information is available on the web.

Regarding the Tributory Demand System of the the Chinese Ming Dynasty of the 14 th. and 15 th. Century AD, they gave their treasure away for free thinking the recipient would feel indebted and honour would create amicable trading relations based on barter not with the State but rather with their business men operating independently.

Militarism was a component but was not polite to ever be mentioned by gentlemen, this is Chinese Soft Power, and also if you look beneath the covers this was Mao Zedongs answer to Khruschev, - The Cultural Revolution that led to the death of Defence Minister Lin Biao who wanted to realign with the Soviet Union. Deadly Soft Power.

Anyhow my inquiry connecting Trump to Gibson's history of the Roman Empire is more along psychological lines that I feel inspiration flowing from and figuratively portraying a massive contradiction that your post has shon a spot light on, if all goes well and a small fortune is the result of my inquiry I'll think of you while I'm enjoying my spoils.

Radiance3

======================
"Boom Bust" - Daniel Brito - Gloomy Growth Outlook & AI in Business.

Confirms 3 consecutive days monetary injections this week completed on Thursday when the Fed intervened in the repo auction to inject a further $75 billion.

So that's Monday $53 billion; Tuesday $75 billion; and Thursday $75 billion. All up $203 billion. I think this injection of liquidity was caused by banks paying their reserve requirements with dodgy bonds and worthless collateral.
Kim Iversen appears to be t***hful.

I'm browsing through "The History of the Decline and Fall of the Roman Empire" by Edward Gibbon before replying further to your comment I have a hunch you've put me on to a pathway of enlightenment concerning Donald Trumps wayward foreign policy directions.

ANS** It appears that the Federal Reserve bank of NY feed another $75 billion due to overnight repurchase agreement known as repos. People have to understand how the banking system works. The Fed had done this due to interest rate that hiked to 10%.

How this works:
The repo market is at the center of the U.S. financial system but it is little understood even by most people working in finance.
Big Wall Street banks borrow cash to finance their securities portfolios by selling securities and promising to buy them back the following day. The cash comes from investors with lots of dollars looking to make a little extra interest, such as money-market funds and government-sponsored housing agencies such as Fannie Mae, Freddie Mac, and the Federal Home Loan bank. Typically, the interest rate on repos falls within the Fed’s target range for the fed funds rate, the rate banks pay to borrow reserves from each other.

Here’s how it works. Traders at the big Wall Street firms put in bids to borrow cash overnight and cash investors accept bids, typically striking deals by 10 a.m. The bids are promises to pay an interest rate and a pledge to post securities as collateral. After the market closes at the end of the day, the securities get allocated to the cash investors. The following day, at 8:30 in the morning, the repos get unwound. The cash investors get their cash back and the Wall Street banks get their securities back. Then it starts all over again.

Why do the big Wall Street banks fund themselves this way? It’s really just a more intense version of the basic model of banking: borrow short-term, lend long-term, and make your profit on the difference between the rates. In this case, however, the big banks are borrowing the cash overnight and using it to buy longer-term bonds paying higher rates of interest. If collateralizing a loan with securities that were purchased with the loan sounds strange just remember that this is not really that much different than how a car loan or a mortgage is collateralized.

This has been going on for years and every year when the FMOC makes decisions how to pump up the economy and make more money via interest earned.

As you know I stated in my last paragraph located 2 comments ago with which I will now quote -"The financial situation Trump is trying to achieve is known as a Tributary Demand System..." end quote.

I'm not retracting what I clearly stated, yes the US is pursuing that Tributary Demand System that your Oxford academic article brings to our attention from "The Chinese Journal of International Politics" l disagreed with the article because it inferred the Chinese system was all about hegemony, which in the medieval period of ( 900 - 1500 AD ) the Chinese Tributary Demand System was not, which is why I introduced Gavin Menzies.

Although I agreed the Military Tributary System your link described is correlated to US Foreign Policy and Trade Relations, the pair also shared a commonality with the Tributary Demand System in a pure sense.

Whereby the Tributary Nation under vassalage accepts the promise of the Hegemonic Power to reward the Tributary Nation with a guarantee, of some sort, occurring in the future.

ANS. **Note: All these things happening have nothing to do with president Trump who has been exploding on his economic policies that put US on top among the world countries. Most importantly he solved China’s abuses over the years on trade imbalance that was dishonest and against economic policies established among nations. It is only now that the US has the edge on correcting the problems that had metastasized over the years.

Your misconception of these US banking system, made you conclude and hope that history repeats itself similar to the Fall of the Roman Empire. Well, that is not going to happen, considering the US command the highest financial security among all nations.

You expect that the Us currency may not have any value in the future. You contend that is possible. Perhaps. But the US Banking system FOMC, has other plans which could return the US back to the gold standard or silver standard as it was anticipated during the Articles of Confederation.

Likewise, the world of nations follow the country that commands the leader which is the US. US has all the resources of technology, the intellectual properties which China had stolen and copied for many years. Any other world nations follow the brilliant US innovations which is actually the gold mind of the US economy that placed US above all and every nation.

Because of that, US is always at the top, but it does not mean its objective is the “Tributary Demand System”. It is because the US commands all the modern technology which the world uses. Amazon, Google, Facebook, Microsoft, Apple, and all others technologies on place, are all the US brilliant and visionaries the makes this world how it is now.

And because it is, the Tributary desires was not purposely created to make other countries vassals. Fortunately, US have all the resources both wisdom of technology and innovations of these gifted individuals who happen to be American citizens. That has nothing to do, or perhaps aided with president Trump’s successes on his economic policies.

Prior US presidents have failed, and others succeeded. It’s about how their policies worked effectively.

It is true that different standards of exchanges are created. The bit coins, are trying to enter the global economy, but how long could that cover the whole banking system of exchange? The gold standard or silver standard is more stable and reliable I believe since its value are intact within.

No, we are not returning to the barter system. One hundred years from now, I am not sure what the future holds. It is funny that C*****e C****e Theorists expected that the world may end 10 years from now. I don’t believe that since those have been predicted over and over years ahead, and none of their predictions happened.

Likewise, I believe that your “Barter System” will not happen either.
You have a very fertile imagination looking back that the fall of the Roman Empire, and “Rough Stone Age” could repeat it self like what history does. How long do you anticipate that to happen? I am sure you and I are not here anymore to assess it,but out of space into the world where God created me.

So, I could not foresee what the future holds. Nice talking to you, where ever you are.