RAPIDLY WORSENING LIQUIDITY CRISIS FULL-ON BANKING CRISIS FED. PUMPING THE SYSTEM | Gregory Mannarino
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Transcript
Okay, everybody. Here we go. It’s me,Gregory Mannarino, Wednesday, June 26, 2024. Pre-market report. People, I want to talk about something that’s been kind of bothering me a little bit here. And it just kind of made sense to me, believe it or not, this morning. This headline here really kind of like got me thinking about something. What did we find out just a few days ago? The Federal Reserve is going to be lessening the requirements for capital buffers for the big banks that are being mentioned in this headline here. Okay. What is this really about? What do we know is going on here? Okay.
You and I have covered for, I don’t know how long, that we are marching towards a full-blown liquidity crisis. What do I mean by that? Even though the world today is awash in debt and central banks around the world doing all they can to keep the system afloat by flooding the world with even more debt. Get ready for the kicker here. There’s not enough of it. That’s the truth. The system is 100% debt dependent. It’s the debt-based model that we have, that we’re forced to live under, be slaves to. You understand? Okay. So let’s just back up a moment here.
What do we know again is going on? We’re in a full-blown crisis, a debt crisis, on a scale that is just very difficult to get your head around. We also understand that the smaller and regional banks, they’re of course, because of the nature of their size, going to be the first cracks in the system. And we’re already seeing that again. You and me, we’re the first to call this out before anybody else, whether it’s on YouTube, the mainstream media, anywhere else. You and I called this out, how no loans, no deposits, no deals make sense to you.
This was going to bleed out into the system here, but it gets deeper than that. There’s something else going on here that we’ve spoken about that I think is having an effect. People, regular guys and regular girls are pulling their cash out of these institutions, realizing that there’s a problem. People are not as stupid as they believe we are, especially those of you that follow this blog. So again, Federal Reserve now lessening the requirements for the major banks to hold capital buffers, in other words, capital reserves. But the situation is, there are no reserves. You have to understand.
We operate today on a zero-reserve system. We used to have a fractional reserve system, meaning you make a deposit into one of these institutions, they were allowed to lend 90% of it out. They had to keep 10% in reserve. Today, that’s gone. Zero, whatever cash, this is the kicker and they think we’re too stupid to know this too, is when you make a deposit into an institution, one of these banks, it’s all gone. It’s all lent out. So the numbers that you see on your screen, they’re not real. They don’t exist. There’s no cash there.
Zero-reserve system. Now, going back to this. This has a lot to do, so US banks face growing spillover risk from non-banks. What this basically comes down to is people are pulling their cash out of these institutions and they’re putting it wherever they are. They’re becoming their own bank in, I guess, to put this simpler. They’re stashing this cash. They’re hiding it away, like our grandparents did. Well, people kind of do that now. They’re only keeping very minimal amounts in these institutions. Now, because of that, because of this system, what people are now waking up to, liquidity is drying up faster than I think that anyone predicted here.
Even me. I had to ponder this for a while. What’s happening? Why is it that we’re starting to see the mainstream media talk about the issues with the smaller and the regional banks here? They can’t let anyone in on these secrets until everybody knows, and when everybody knows, that’s a problem. So this problem is manifesting itself. So people are pulling their cash out of these institutions. Again, the economic situation is dictating, and by their own numbers, that the economy is cratering faster than it was ever seen before. Meanwhile, there’s a couple of phenomenons I want to bring up to you.
This is the Fed money supply just since February. They’re ballooning the money supply. This is right off of the Federal Reserve’s own website. I actually wrote this top in here, and I added this red arrow. But look what they’re doing here to the money supply. It’s being ballooned. They’re pumping liquidity into a dead system. You understand? Now, what else is happening? Not only is the Fed pumping liquidity in the form of debt, of course, the debt-based system, by ballooning the money supply, which is inflationary. You’re not allowed to know that. No one’s going to tell you that, but it should be obvious.
You have all these extra bills chasing the scene, or in this case, a lesser amount of goods. There’s no inflation fight by the Federal Reserve. We’re hearing a lot of this, too, by the propaganda ministry as the Fed is inflating. I wonder when one of our loving, caring representatives or someone running for president is going to bring this up. Maybe it’ll come up during the debate. No, it won’t, because you’re not allowed to know about it. Again, they’ve already been given orders of talking about Biden-Stein and Trump-Stein about what they can’t say. They must deflect. They must distract.
They must deceive. They must blame each other. They can’t allow you to know what’s actually happening here. So not only is the Federal Reserve ballooning the money supply, the Fed’s buying all the debt. And we can see that being reflected here again in the MMRI. The link in the description of this video is free to everybody. Fed-minded debt is lessening risk, opening that doorway for cash to make its way into the stock market. It’s coming out of commodities, just as you and I said it would. It’s coming out of cryptocurrencies, just as you and I said it would.
It’s too easy. All this stuff is too easy. It’s cause and effect, cause and effect, cause and effect. So the issue that we’ve got going on here is at multiple levels. And here’s another thing. So this is what we’re hearing out of the mouths of Federal Reserve presidents. Let me just read these two. So Fed Bowman urges caution. Inflation risks persist. Rate cuts premature. The Fed is cutting rates now. The Fed is buying all the debt. You need proof. It’s being reflected here in the MMRI. You’re watching bond yields drop. This is the Fed buying debt.
Again, just because they haven’t made an official announcement that they’re cutting rates. Just look at the action in the debt market. It’s telling us what’s going on here. How does the central bank cut rates? They can’t just say it. They’re not magical. They possess no godlike power. No, they do not. They have to get into the market and make it happen by creating cash out of nothing. Therefore issuing debt, buying it back through another door, keeping rates suppressed. Bond yields low. That’s what’s going on here. It’s so frankly in our face. So what’s going on here is an increasing and worsening liquidity crisis again.
Even though the world is awash with debt, there’s not enough of it. So central banks, in this case the Fed, is pumping the system. Inflating the money supply, massively inflationary, buying more debt, keeping rates suppressed, also massively inflationary here. Again, there’s no inflation fight. Everybody knows it. They think you’re too stupid to know that’s not going on here. The Fed and other central banks coordinating their efforts to continue to inflate because we are in a full-blown liquidity crisis, which is getting worse. And people are smarter than they think they are. People are pulling their cash out of these institutions, okay? The banking system, in case you’re brand new here, again, we’re in a full-blown crisis here.
It’s a liquidity crisis. The mechanism is just so in our face here. And the fact of the matter is, the system, as you all well know, is being deconstructed. They’re destroying the current system with the whole world economies being brought to its knees. They want to bring the people down to their knees as well, so they beg for a solution. And all this talk, all these deceptions about how, oh, we’ve got to be cautious. Rate cuts may not be coming. They are. They’re here right now. The Fed is cutting rates. And again, being reflected right here in the MMRI.
You can see this is also reflective, obviously, of mass, mass asset purchases. So the Fed is pumping the system with more liquidity, and it’s in your face. Again, go to the Fed’s website. You don’t believe me. Just to keep the system afloat now as we move towards the presidential selection. Okay, you got it? People are being duped at every level here. You know, I was just writing a few things down like I always do here. Mass debt purchases, ballooning money supply, currency devaluation, suppressed rates. What does this all equal? Again, a healthy economy or an economy that is being propped up as this liquidity crisis worsens.
Does that make sense to you here? You understand liquidity? It’s all about that here. Bank liquidity drying up, and I’m just, again, writing this stuff down. Things just pop into my head, so I write this stuff down here. Anyway, look, what does this mean for you and me? What do we need to do if we understand what’s happening? Is it going to change what we’re doing? Again, betting against the debt. Becoming your own central bank. Gaining exposure to commodities. Silver, my favorite asset of all time. I love this stuff. Gold, my second favorite.
Crude oil, energy. It’s too easy. And staying along the stock market. Buy the dips across the board, not just with regard to the stock market, but of course with regard to commodities. Gold, silver. I hate calling them commodities because they’re real money here. Crude oil. Commodities, again, across the board here, obviously. It makes perfect sense, and cryptocurrency. All this stuff. Again, once the debt market implodes because we are marching right into a liquidity crisis, look, what’s going to end up happening? It’s very simple. The same thing that we’ve seen before. In 2008, the market crashed.
It wasn’t really about a market crash. It was liquidity is drying up. The system was locking. All transactions stopped with a liquidity freeze-up, which is going to happen again. Henceforth, why? The Fed introduced massive capital injections into the system at that time to free up the credit markets or the debt markets. See how they play these on words? Credit markets. Credit markets are debt markets, understand? When the debt market locks up, all transactions stop. Debit cards don’t work. ATM cards don’t work. You can’t purchase things anymore. The currency doesn’t work. And that’s what they’re doing now.
Henceforth, why the ballooning of the money supply? Why the Fed’s buying all the debt? When the Fed buys debt, it pushes rates down. Again, massive inflationary revolving door. Does all this make sense to you? I hope it does. Because this shows us how bad things are actually getting here. None of this. Not one syllable, one word, not one utterance is going to come up with regard to these problems during these so-called presidential debate, which is nothing but a clown show. Both of them are clowns. And they’re going to blame each other. They’re not going to tell you the truth ever.
Just so you know. In case you’re hoping to hear that. Anyway, alright people, that’s where we stand today. I think we’re on the same page. Let me know what you think about all this. Is it obvious? Is it obvious what’s happening here? The banking crisis is worsening right before our eyes. Let me tell you something. We are, you and I, I believe are making more of a positive difference in this world than we even know. What have we been talking about? Get your cash out of these institutions. Only keep in these institutions what you need to, to participate in their system.
Unfortunately, we’re forced to participate in their debt-based twisted freak show of a system here. But again, it doesn’t change anything for us. We’re going to continue to do what we’ve been doing for 10 years. Over 10 years. Betting against the debt. Becoming your own central bank. Realizing where this is going. People have no idea. It’s going to be so much worse off than I think most people can possibly imagine. But you and I, we have the high ground because we’re ready for anything. We are lions. You understand? All right, people, look, this guy here loves you a lot from the heart.
Let me know if you got something out of this video or not. I’m willing to work on, work on it. So I can maybe put this into a perspective that’s easier to understand. So let me know what you think. Greg, you’re making sense. Greg, you’re not making sense. Explain this. And if you are one of those out here that maybe aren’t getting it, that’s cool. That’s fine. It’s all good. Join me later for my live stream, 4.05pm Eastern. We will cover any questions you have in real time. So I really hope to see you there.
People, I will see you for the live stream later. Until we meet again, please take care of yourselves and of course take care of each other, okay? That’s it. [tr:trw].
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