Market Liquidity Crisis Means Much More War, AND Higher Stock Prices.

From Greg M

Market Liquidity Crisis Means Much More War, AND Higher Stock Prices.

By Gregory Mannarino TradersChoice.net

Do you believe in coincidences?

Have a look at the chart below…

This chart was taken right from the Federal Reserves own website, and demonstrates how the Federal Reserve REPO, or repurchase program, is winding down.

Understanding the Fed’s REPO program.

The Federal Reserve REPO program involves the moving of VAST amounts of cash back and forth between itself and major financial institutions OVERNIGHT. (The numbers on the left side of the chart are in the billions of dollars).

This overnight movement of cash between institutions tricks the system into thinking that it is much more liquid than it really is.

So, what’s the problem?

The current central bank run debt based/fiat monetary system cannot survive without the unrelenting creation of cash/debt in greater and greater amounts. The debt-based system demands that more debt be pulled into the system exponentially. The creation of more debt cannot remain static; it MUST expand faster just for the system to function at its current level.

At the same time that the Federal Reserve is winding down its REPO program, which is nothing more than a mechanism to fool the system into believing that it is more liquid than it is, WAR is expanding… Do you really think that is just a coincidence?

No other endeavor on Earth generates a greater need to more borrowed dollars than war.

ALL WARS ARE BANKER WARS. IT IS CENTRAL BANKS WHO ARE PROVIDING THE FUNDING FOR WAR/EXPANDING WAR. CENTRAL BANK FUNDING FOR WAR VASTLY INFLATES THE DEBT, (WHICH IS THEIR GOAL/END GAME). INFLATING THE DEBT IS ALSO MASSIVELY INFLATIONARY.

Liquidity is now being pulled/borrowed into the system via the mechanism of war, and it is not going to stop any time soon. War, and more war, is going to be sold/forced, and propagandized upon the people of the world as liquidity is drying up.

War must expand in order keep the debt-based system going as the Fed winds down its REPO program.

The next phase in this scheme will be central bank rate cuts. (Possibly beginning in May/June of this year.

Rate cuts are yet another mechanism which will allow central banks to inflate/create more debt moving forward, which will also inflate stock prices. This mechanism, along with the waves of current corporate layoffs, which Wall Street is rewarding these corporations by bidding them higher.  Stock buybacks will also push the stock market even higher.