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Thread: TRUMP is the new Fed Chairman

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  1. #1
    “The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, using the Exchange Stabilization Fund, will make an equity investment in each SPV and be in a “first loss” position. What does this mean? In essence, the Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing. The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury.

    In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades.

    This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.”

    Can you elaborate a little. I am thinking this is a good thing, but I cannot see the bigger picture just yet with how they are going to use the SPVs. Anyone have any experience with SPV's or know how he is going to use them?

    Here is a link explaining the term from investopedia https://www.investopedia.com/terms/s/spv.asp

    "One of the primary features of the Exchange Stabilization Fund (ESF) is that it includes SDRs, which is an international monetary reserve pseudo-currency created by the International Monetary Fund (IMF) in 1969 from a basket of leading national currencies and backed by the full faith and credit of the member nation's governments. This gives the U.S. Treasury a way to coordinate with the IMF if the need to stabilize exchange rates should arise.

    The Treasury can convert SDR funds into dollars by exchanging them with the Federal Reserve (FED), the central bank of the U.S. SDR may be exchanged for USD, gold, or other international reserves held by the FED. Most central banks will maintain a supply of international reserves, which are funds that the banks can pass among themselves to satisfy global requirements." https://www.investopedia.com/terms/e...zationfund.asp

    This seems like a big move...

  2. #2
    Quote Originally Posted by Jroc View Post
    “The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, using the Exchange Stabilization Fund, will make an equity investment in each SPV and be in a “first loss” position. What does this mean? In essence, the Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing. The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury.

    In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades.

    This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.”

    Can you elaborate a little. I am thinking this is a good thing, but I cannot see the bigger picture just yet with how they are going to use the SPVs. Anyone have any experience with SPV's or know how he is going to use them?

    Here is a link explaining the term from investopedia https://www.investopedia.com/terms/s/spv.asp

    "One of the primary features of the Exchange Stabilization Fund (ESF) is that it includes SDRs, which is an international monetary reserve pseudo-currency created by the International Monetary Fund (IMF) in 1969 from a basket of leading national currencies and backed by the full faith and credit of the member nation's governments. This gives the U.S. Treasury a way to coordinate with the IMF if the need to stabilize exchange rates should arise.

    The Treasury can convert SDR funds into dollars by exchanging them with the Federal Reserve (FED), the central bank of the U.S. SDR may be exchanged for USD, gold, or other international reserves held by the FED. Most central banks will maintain a supply of international reserves, which are funds that the banks can pass among themselves to satisfy global requirements." https://www.investopedia.com/terms/e...zationfund.asp

    This seems like a big move...
    Harvesting the first-hit definition: A Special Purpose Vehicle (SPV) is a legal entity created for a specific purpose. In the context of raising capital, a SPV (usually structured as LLC) can be used as a funding structure, by which all investors (or investors under a given investment threshold) are pooled together into a single entity.
    So picture mixing vitamin C and baking soda in a glass, powder first. The bubbles start very tiny but quickly merge into larger bubbles as they rise to the surface and quickly burst. A virus-prevention fizzy. Come daylight I will prepare a video demonstration. This involves an explosion that will waken people around me who are in slumber - an essential part of the parable.

    Name:  Treasury Bubble - Boston Security Token Exchange LLC blockchain.jpg
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    Harvesting the first-hit definition for NMS Stock: The National Market System (NMS) is the national system for trading equities in the United States. The System includes all the facilities and entities which are used by broker-dealers to fulfill trade orders for securities. This includes: Major stock exchanges, such as NYSE and Nasdaq.
    And now by Rule, this includes the Treasury and Fed. That is a Treasury Market, quoting the article we find those exact words:

    At this rate, the Fed will own two-thirds of the Treasury market in a year.
    BlackRock, Inc. is an American global investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with $7.4 trillion in assets under management as of end-Q4 2019. Wikipedia
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    Last edited by David Merrill; 06-09-20 at 10:51 AM.

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