Repo Markets in Panic — The Final Wakeup Call – January 29, 2020

The Stage of self-destruction

The Credit Cycle

The function of the Repo Market

It is getting very ugly for the big banks

Scrambling for liquidity scarcity that cannot be resolved

Market melt-up and meltdown

Summary

(The Final Wakeup Call)

Published January 29, 2020

The end of existing global financial debt-money system

Reflation is a fiscal or monetary policy, designed to expand a country’s output and curb the effects of deflation. This now is going in reverse, changing in the opposite direction. In fact, debt reflation in the opposite direction is deflation of debt, making the economic situation worse, leading to contraction, propelling the economy into a collapse.

Less debt means less debt-money or credit-money in circulation, which are the same for a better understanding. Therefore, there is less money in circulation, meaning lack of available money. In other words, it is the end of the existing global financial debt-money system.

When a central bank economy is contracting it automatically creates a shortage of new debt, thus available debt-money too. That – and not a lack of any reform is triggering the Repo crisis. Any financial system based on debt-money, like the current will blow up anyway. No paper-money system has ever survived a full credit cycle, because paper money – is a form of primitive, credit/debt-backed money – without any discipline it is unlimited….

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Nederlands: Repo-markt in Paniek

Het stadium van zelfvernietiging De kredietcyclus De functie van de Repo-markt Het wordt heel schadelijk voor grote banken Gevecht voor cash door liquiditeitstekort dat niet kan worden opgelost Markt melt-up or down naar omhoog of omlaag Samenvatting   Het einde…Continue Reading →

Deutsch: Der Repo Markt ist in Panik

Das Stadium der Selbstzerstörung Der Kreditzyklus Die Funktion des Repo-Marktes Für große Banken wird es sehr schlimm Streit um Bargeld aufgrund von Liquiditätsengpässen, die nicht gelöst werden können Market Melt-Up oder Down – hoch oder runter Zusammenfassung Das Ende des…Continue Reading →

Final Wakeup Call: Threat by Exponential Debt — Era of Light – March 28, 2019

Growing Debt Burden

The flip side of credit is debt, and this is where the problem lies. There’s no limit to how much real money can be created. In a world of real money: each additional currency unit represents additional wealth. But with fiat credit or debt-money it is different. With credit, spending can be increased dramatically. But there is a limit to how much can be borrowed. Eventually, a point is reached where the cash flow dries up to service the interest on the debt. Then the system is insolvent, and broke.

Read more via Final Wakeup Call: Threat by Exponential Debt — Era of Light