Hey yo, what is going on viewers of the tubbbeeee.
My name is Tyler and I’m the host of the crypto channel, that feels like the KYC at
some of these crypto exchanges, goes a little something like this…..you just have to wonder...
how many 12 year olds are trading on Binance??
You know our moral compass, it’s time for Chico Crypto!
Well, friends, enemies, army members and those neutral folks who all watch my channel, the
moral compass of greed has never been greater in our world.
Global economies, including the economy of the worlds’ reserve currency have been put
into inflation overdrive & the bailouts, are coming...but like I mentioned last week, 6
days ago with this video titled “Big Bailout Nears!
For Who?
Citizen or Corporate USA…. the money isn’t coming to the people first, it will come to
the corporations, and we will get the scraps….if there is any…..
And all that news about checks and stimulus directly to americans, let them sneakily do
exactly that yesterday before the markets opened….the FED announced unlimited Quantitative
Easing, in one of the most unprecedented moves in its history.
So before getting into, what the FED just did, let’s understand what they have already
done.
Well, the REPO or repurchase market has been in the FEDs arsenal beginning in late 2019,
and getting more frequent and larger throughout 2020, and then hitting peak levels by early
March….well last week, the FED announced they would be increasing it even further,
1 trillion dollars a day in overnight REPO loans, throughout the month of March and possibly
even into April.
Even before this, though, the government and FED announced they would be slashing the feds
fund rate to the 0% to .25% range, dangerously close to negative territory...and they would
be doing their first batch of Quantitative Easing, where they would purchase 500 billion
in Treasury securities and 200 billion in mortgage backed securities…
So last week, these bailouts and QE announcements are for BANKS, hedge funds, pensions, and
more...they are not for us, at all.
We have no access to any of these benefits or the cheap money they are throwing around.
It directly benefits the elite, the 1 percenters….and like Trickle down, is supposed to work, we
get the scraps that trickle down from these greddy mothers.
Well obviously, the markets, didn’t like that, as the DOW had a horrible friday…..well
over the weekend, there was so much chat about a direct stimulus package coming for the American
people...but the Senate couldn't come to an agreement, and the talks broke down….
But, the government needed to do something, so yesterday they dropped the news of QE forever,
which includes buying Treasuries and agency mortgage-backed securities and according to
their statement “in the amounts needed to support smooth market functioning and effective
transmission of monetary policy”
Which basically means, they can buy as much as needed, which means printing as much, as
needed.
But here is the sneaky thing they did, a corporate bailout….according the their statement,
there will be the “Establishment of two facilities to support credit to large employers
– the Primary Market Corporate Credit Facility (PMCCF) for new bond and loan issuance and
the Secondary Market Corporate Credit Facility (SMCCF) to provide liquidity for outstanding
corporate bonds”
What the freak?
This is not how capitalism and free markets work.
These corporations, who failed, who made a bad decision, a large majority, fracking companies…….should
be allowed to fail, as we are not going to win this oil war!
Fracking is a dead in the water, can’t be profitable now, wasn’t profitable before
in the USA...and this is just delaying the inevitable, and creating another bubble, which
will pop…
And who is going to be left with those assets on their balance sheet?
The Fed, they now own all that corporate debt….as we can see from this Swift explainer on the
Primary Corporate Credit Facility, PMCCF, The Department of the Treasury, using the
Exchange Stabilization Fund, will make an initial $10 billion equity investment in the
SPV or special purchasing vehicle in connection with the Facility….then from eligible assets,
they need to be rated as BBB- or above…
And guess who is a large majoirty BBB-, barely holding onto non junk bond status rating….the
fracking companies in the USA…this corporate bailout move, is to save a leveraged debt
ridden house of cards from collapsing, as if these fracking bonds moved from BBB- to
the junk bond category, regulated banks would be forced to sell them, creating a death spiral,
which wouldn’t stop until only the most efficient, profitable, and robust fracking
companies in the US survived...that would be how the normal course of things would go,
but we are giving them an obvious bailout...and this washington post article sums it up nicely,
“Fracking Needs a Shakeout, Not a Bailout”........
I’m telling you friends, this all comes down to one thing, and one thing only…..OIL.
Last week, when Oil prices dropped to the 31 dollar level, the American fracking companies
were in trouble1.
Well as of yesterday, it was down another 10 dollars to 21.
The american frackers, on on their last drip of oil….and it’s exactly why Trump is
looking to pull out his ultimate weapon….the “NOPEC Bill Bomb”
This specifically refers to the ‘No Oil Producing and Exporting Cartels Act’ (NOPEC)
which was last threatened in October 2018.
Why was this threatened?
Well the Saudis had enabled the oil price to remain above the key US$70 per barrel level
since january of 2018 when it first hit the key mark.
Any sustained price above US$70 per barrel was – and is – regarded by the current
Presidential Administration as being in an area where the benefits to U.S. shale producers
of higher prices are outweighed by the relative damage done to the U.S. economy.
Well back then, we won, as we can see after we threatened the NOPEC bomb, prices came
back down to levels, the US was most profitable at...but then they kept going down, to levels
we didn’t like….and then you know the story, all the oil countries made “pacts”
OPEC led by the Saudis, America and Russia, and they came back to those 60 to 70 dollar,
favorited US levels.
\ But obviously today, we have another one oil
price war….but this time, it isn’t about high prices, it’s about low prices.
So will this NOPEC bomb even work?
Well, it is our ultimate power play, and this is what it does.
NOPEC would make it illegal to artificially cap oil (and gas) production or to set prices,
as OPEC and Saudi Arabia currently do.
So it is a direct blow to the Saudi’s, of which all or our recent past presidents have
been oh so friendly with…..bipartisan, and it began with NIXON.
It would also do something against the other big player.
Russia and Vlad.
NOPEC would prevent them from using OPEC+ in their oil chess game.
Traditionally, OPEC doesn’t include russia...Well OPEC+ expands the alliance to 24 member countries...including
Russia and was formed in 2017.
Since the formation,.Russia has been using this alliance to manipulate, dropping in & out,
talks breaking down….
Well NOPEC would prevent them from ever reviving the alliance, if they did, they would face
consequences and deep sanctions from the USA.
But back to the Saudis, as the Bill, would be a breakup with them.
It would most importantly remove the sovereign immunity that presently exists in U.S. courts
for OPEC as a group and for each and every one of its individual member states.
This would leave Saudi Arabia open to being sued under existing U.S. anti-trust legislation,
with its total liability being its estimated US$1 trillion of investments in the U.S. alone.
Yes if you didn’t know the Saudis, own a ton of stuff in the US….shoot they are one
of the largest shareholders, in UBER….
So the U.S. would then be legally entitled to freeze all Saudi bank accounts in the U.S.,
seize its assets in the country, like the UBER shares, and then halt all use of U.S.
dollars by the Saudis anywhere in the world (oil, of course, to begin with, which is denominated
in U.S. dollars aka the petro dollar…
If it came down to it….the US would then go after Aramco and its assets and funds,
as it is still a majority state-owned production and trading vehicle.
Saudi Aramco, is the world's most profitable company, in 2018 it made more profit than
Apple, Google and Exxonmobil, combined….
How has a small nation, like the Saudi’s, whose population is only about 33 million
people, have one of the biggest, and most valuable companies in the world?
It’s because, the US has handed them it on a golden platter since the 70s, and the
NOPEC bomb might be what’s really needed to shake things up….and here is the thing,
the bill was almost passed early last year, it made it’s way all the way through congress...to
trump….but his support for it was in question.
Well guess what Trump vetoed, the bill, and then in March of 2018, just after the bill
was in Congress….
The Trump administration OK’d nuclear energy transfers to Saudi Arabia, which got congress
all ruffled up…..
Sooo, this is a sticky situation for Mr. Presidente….there is a tool, which could actually save US fracking
companies, without having to perform a full on bailout….but that would mean, the eventual
collapse of the PETROdollar…..
A collapse of the Petrodollar system...means the collapse of USD, in its current global
form.
The current financial system in my opinion has overshot & it will collapse, leaving a
path of destruction and fire in it’s wake….
Is crypto and bitcoin immune?
Well, let me try to explain, it’s not.
Finance 1.0 has it’s greedy, grubby tentacles deep into the markets.
We all know what happened with Bitmex during that flash crash…...and guess who is CEO
and founder, who has access to everyone’s positions on the exchange, kind of like a
casino, who has access and eyes on everyone’s cards, even if they are covered.
Arthur Hayes…..where is he from?
Where did he work before?
Well this 2018 bloomberg article, tells it like it is….Bored With Banking, This Former
Citi Trader Went Full Crypto”
Ya, Arthur was a former equities and derivatives trader for Citibank, and before that Deutsche
Bank.
Now do you think, he left that finance 1.0 world behind?
NO, he did not, I guarantee he was using his BITMEX profits,and funneling them into large
positions, in the stock market.
If we have another tumble, like a big one, in finance 1.0...another death spiral will
come from bitmex, as they need to cover their positions, in finance 1.0.
It’s obvious, that happened last time, its obvious it could happen again.
But what you need to realize is Arthur Hayes, they will go down with the Finance 1.0 ship
too, selling their accumulated BTC for cash to cover their finance 1.0 positions, to holders
who won’t sel and Bitmex it could go under, without any BTC….which in the short term,
will hurt, but in the long term, is exactly what needs to happen.
Cheers I’ll see you next time!