The Fed begins taking the necessary steps to develop its CDBC

In our post-QE world, the Fed is assuming a greater role

Bourne out of necessity

Let me indulge the reader with some speculation.

The Fed is establishing its Bank Term Funding Program (BTFP), which will essentially guarantee ALL member bank deposits. The FDIC could have never offered this backing; its balance sheet is way too small.

If the concept of the Central Bank digital currency (CBDC), operated by the Federal Reserve with government approval, is ever going to come to fruition, the FED has to back it all anyway.

For the conspiracy scientists out there, I submit for contemplation that the BTFP is the first step in the CBDC creation process.

Instead of the FDIC backing the deposits with approval from the federal government for funding its balance sheet, the FED relegates the FDIC as the defacto administrator of any insolvency. To me, it seems that the FDIC has been pushed aside and the FED has assumed the FDIC’s powers.

The FED takes over traditional government powers while the scared people wonder about collapse.

The more I ponder it today, the more I am realizing that all this was formulated long ago out of necessity and was sitting in the can waiting for the opportune moment to roll out.

As the federal government continues to spend more and more, the Federal Reserve out of necessity will need to assume more of these fiscal powers in order to keep the system going post QE.

To wit, recent catalysts over the past week with SIVB and SBNY necessitated the Fed to assume an ever larger presence in the banking system and take over the FDICs role. By doing so, banks like WAL and FRC can remain in business despite flash mob shorting and bank runs.  This is because the government is too flaccid, emasculated, partisan, and ineffectual to embark on such ambitious projects where a central authority is needed to act forcefully and decisively.

So, if we are to see a central bank digital currency, the Fed will have to slowly assume the government’s role and will have to assume more unilateral power in establishing its presence over the bank depositor and consumer with regards to all transactions and deposit guarantees.

While the Fed only obliquely refers to CBDCs, it is establishing and building the necessary framework from behind the scenes. Meanwhile, the conspiracy scientists are worrying about collapse and are redirected from what is taking place right under their noses.

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25 thoughts on “The Fed begins taking the necessary steps to develop its CDBC

  1. “New Fed Bank Backstop Has Scope to Inject as Much as $2 Trillion”

    Very bad news. The Fed is giving banks a cushion for more rate hikes. The Fed will continue the hikes with renewed vigor.

    Average people will not get this cushion. Their asset holdings (less real estate) will continue to plummet.

  2. I’m not hearing anywhere in the media that the Biden regime, with its compliant and spendthrift Senate and flaccid Congress, is spending the nation into into the current Financial mess that it’s in. All the focus is on the Federal Reserve and its policy and yet the federal government is announcing budget increases that are absolutely mind-blowing in scope. And yet the people I talk to on the street are completely oblivious. It really is amazing.

    Be the landlord to the Democratic voters!

  3. Ha ha ha to all those pro-Russian alt-media shills claiming Russia was going to exploit their position in the energy markets for gain.

    The only factor keeping oil above 70 was Biden’s promise to begin buying below 70. There was no other reason for keeping oil above 70 on a fundamental basis. Not only did 70 not hold, but it crashed through it like a car falling into a sink hole on a Chinese road.

    1. Seems like it but probably an over reaction to all the end of the world bad news coming out. I think the oil demand is going to increase especially with summer coming up. Chart action does look like $65. Metals doing really well, any low priced copper stocks to look at? BTC had a nice pop then fizzle, may continue if another bank fail hits the headlines, wondering if credit suess is next. Be nice if a few Saudi tankers filled to the brim parked at the East Coast stories, would show up in the headlines again like they did in 2020 and oil tanked again. Doubt it goes that low, but they still have the Nuke explosion in cornfield hoax option they can go with to coincide with the billion dollar wargame hoax still going on.

      1. TGB was a good small pic, but any of these firms that rely on debt to finance capital projects are going to be hurting for a while. WTI @ 65 looked like a magnet. Notice we got down to 65.65 on the intraday print yesterday. Of course we’ll revisit that sometime down the road. 65 seems the new support level and 70-75 seems to be resistance.

        The nukes won’t be pulled out for a while and the powers will just rattle our cages for the next few years until they actually do drop. They’ll blame it on Trump while the quisling Democrats continue doing what the synagogue orders them to do.

        What blows me away is how people still support Democrats. But it was very clever with the synagogues media that the opposition to the Democrats are Trump supporters. This is why it was so key to get a scumbag charlatan like Trump to be positioned as the opposition to the democrats. If Trump was not in the picture the Democrats would not be able to do what they are doing. This is especially true when it comes to spending.

  4. PPI data across the board look very good for helping Fed funds. Poor Retail sales also help to keep the Fed on the sidelines.

    Though the fears and expectations for higher commodity prices were driving market bulls, the charts were saying something else. WTI currently printing below 70 and DJCI continues to drift persistently lower, now below the 1000 level.

  5. 2nd and 3rd World status coming to the US. But don’t say anything, you’re racist and xenophobic. Be the landlord! Vote Democrat. 🤣🤣🤣

    Argentina inflation shoots past 100% for first time since 1991

    BUENOS AIRES, March 14 (Reuters) – Argentina’s annual inflation rate shot past 100% in February, the country’s statistics agency said on Tuesday, the first time it has reached triple digits since 1991 when the country was coming out of hyperinflation.

    The monthly rise on the Consumer Price Index (CPI) clocked in at 6.6% in the second month of the year, above analyst forecasts ahead of the release. Annual inflation registered at 102.5%, with year-to-date inflation at 13.1%.

    1. Enjoy living during the time of Daniel’s iron and clay society. Today’s Christian loves Daniel’s iron and clay. I recall all the posts I used to get excoriating me about my narrow view. That’s because the Paul-quoting Christians embrace Daniels iron and clay. They are duped. They have everything they need and are in need of nothing. They must not Rock the boat.

      Most laodicean Christians are now younger than I and are the product of their public schooling. They’re the ones preaching not to hate. That comes from Satan.

      1. A Christian should hate certain things. A Christian should hate sinful behavior but not the person committing the sin. A Christian should hate Satan who is the father of all lies and sin. A Christian should hate and isolate sinful behavior and sinful items that glorify Satan.
        The problem with today’s so called Christian is that they consider it a sin to dislike anything and consider it a sin to dislike paganism when it should be disliked. There is nothing wrong with hating things and activities that do not promote God.

        1. The problem with today’s Christian is that they are one-worlders. They are increasingly despising nationalism and replacing their allegiance toward the iron and clay. Most of these will be saved but they are sadly being deceived just as the Bible predicted. The Christians who are not being deceived are the ones perceived as being racist, hateful, xenophobic, jingoistic, anti-Semitic, etc.

          Today’s Christian is perfectly at ease with iron and clay even though the eschatologists that populate the laodicean church are warning these church members of some sort of upcoming iron and Clay Kingdom. We are already in it and today’s Christian loves it.

          1. Multi-Cultural — the way the adversary is doing it — simply does not work in the broader scheme of things. Not to say all people coming in aren’t lovers of the LORD. But something is broken when this stuff usually results in higher rates of theft, murder, assault, rape, graffiti, drugs, lower property values, etc. But that’s all carefully orchestrated. Then you have the feminism movement – which brought forth all kinds of wickedness like increased homosexuality, one parent households, transgender (anything goes when you don’t have a father figure that’s a servant of Christ). Instead Husbands are taught to be equal or submissive to their wives. There is reason God wrote at least four times in the NT alone that wives are to be submissive and give authority to their husbands. And the head of every man is Christ. God said to Adam — because you listened to your wife — and not me — cursed are you. Cursed is the land. But happy wife — happy life. Doctrine of Satan.

            1. Many thanks to you all for your blessed efforts to try to get to the truth. Blessed they are the economical insights, the spiritual guidance and the biblical teachings.

              Satan an all their minions got a huge advantage over the blind, deaf and mad masses and it is that they know their lies are just this, lies, just noise that masques the truth.

              The problem nowadays is that the masses, even well meaning or Christian people, are taking them at true face and acting according to them.

              Women are just part of the problem, they are the way they are and many let themselves go with any dominant agenda. Women are different to men, they usually try really hard not to offend socially whatever it happens, it is just the way they are.

        2. christians stole “their” religion from the pagans, then so no one would
          know tried to kill all the pagans, f….k the christians they deserve whats
          coming their way

      2. Rejecting Paul is Rejecting Christ

        “I follow Jesus, not Paul”
        This is a common response from those who fear that making too much of Paul will diminish the Lord Jesus Christ.
        After all, Christ is our Head, not Paul; Christ is our Saviour, not Paul; Christ is our Lord, not Paul; Christ died for our sins, not Paul!
        Paul is not the Christ, but Christ sent Paul.
        The Lord describes Paul as his “chosen vessel.., to bear my name before the Gentiles, and kings, and the children of Israel” (Acts 9:15).
        Paul was a minister of the Lord in preaching the dispensation of the grace of God and to reveal the mystery of Christ and his church (Eph 3:1-2; Col 1:25-27).
        Christ sent Paul to speak for him. When they heard Paul, they were hearing God’s words.
        “… when ye received the word of God which ye heard of us, ye received it not as the word of men, but as it is in truth, the word of God, …” — 1 Thess 2:13
        Those who were spiritual and prophetically knew God’s purpose understood that Paul spoke the commandments of the Lord.
        “If any man think himself to be a prophet, or spiritual, let him acknowledge that the things that I write unto you are the commandments of the Lord.” — 1 Cor 14:37
        These commandments were given to him directly from the Lord Jesus.
        “For I neither received it of man, neither was I taught it, but by the revelation of Jesus Christ.” — Gal 1:12
        “For ye know what commandments we gave you by the Lord Jesus.” — 1 Thess 4:2
        It was the Lord that sent Paul, and so the words he gave Paul to preach and to write were the words of the Lord.
        To receive the Lord, men were required to receive Paul. As the Lord commands:
        “Verily, verily, I say unto you, He that receiveth whomsoever I send receiveth me; and he that receiveth me receiveth him that sent me.” — John 13:2Q

        Even still there were those who despised Paul and rejected his special apostleship from the Lord. When their doctrine was contradicted, they would shout “we follow Moses”, “we follow Peter”, “we follow Jesus”, while at the same time rejecting the message Jesus gave to Paul. Paul responded to these rejections in almost every epistle he wrote.
        I “Be ye followers of me, even as I also am of Christ.” — 1 Cor 11:1
        I”For I suppose I was not a whit behind the very chiefest apostles.” — 2 Cor 11:5
        “He therefore that despiseth, despiseth not man, but God, who bath also given unto us his holy Spirit.” — 1 Thess 4:8 The Father, Son, and Spirit confirmed Paul’s message. He was not behind any of the
        apostles in authority, having been sent by the Lord himself.
        To glorify Christ we must magnify Paul’s office.
        If anyone rejects Paul, they reject Christ.

  6. Oil WTI @ 65 looking likely eventually. How long can oil remain in this tight range between 70-80?

  7. This SVB and SBNY bank failures and bank runs are all starting to make sense to me. It is one more step to the full implementation of the beast economic system. I just read an article that depositors are moving their money from small banks into big banks like JPM, Chase, and Bank of America. These bank runs and panics are all planned out well in advance to consolidate economic power to the big boys for greater centralized control. So people are moving their money to “too big to fail” banks where they get charged higher fees, underserved in customer service, and which are politically woke so they can keep their money “safe”.

    Just check out this article that explains my point:

    Later on these big bank depositors will have to obey commands from the beast in order to keep their money safe such as showing proof of vaccination, showing the politically correct “woke” attitude, and worshipping the beast. Depositors who don’t do those things will find their money frozen or confiscated.

    Eventually cash will be made obsolete and these bank runs are one more step to that plan as CJ Evans previously mentioned.

    Your best bet is to get in line with Jesus Christ. As Jesus said ,store your treasures in heaven by using your money for the good of others instead of keeping it here on earth. It is fine to keep some for your daily needs but any excess is much better used to help others who help themselves as Jesus suggested. Storing treasures in heaven is much safer than storing it here on earth as it could be made obsolete or confiscated.

    1. I wouldn’t make it into something more than it really is. The obvious conspiracy is right in front of us. The FED is taking over. It’s been slowly taking over since 2008. Make the most of it, because we’re in it for the long haul. QE started almost 15 years ago.

      I recall working at Prudential securities back in the early to mid-90s and I recall working with portfolio management on a closed-end fund Prudential Mutual Funds administered. It was the First Financial Fund. Its primary objective was capital appreciation with dividend income and it concentrated solely on small to mid-sized banks as well as savings and loan firms. The portfolio manager continually hit home that their true primary goal was to buy banks that were being bought up and consolidated into the larger banks. The fund was so popular that it often traded with a 10 to 15% premium to net asset value.

      What I’m trying to say is simple; the consolidation in the banking system has been taking place for a long time now and under the regime of massive deficit spending going back to the beginning of Reaganomics, or should I say Bushanomics, only the largest banks were able to survive. We are now going on 40 years of solid bank consolidation.

      Indeed, I personally only bank at the largest banks. I bank at Chase, Truist, and M&T. That’s because that’s where my tenants Bank and I’ve been banking at Chase for about 30 years now since I lived in New York.

      The banking consolidation will be taking place all the way to the rapture and I will not be making any fuss about it. The Federal Reserve will be running the entire show and the owners of the FED will be telling the government what to do.

  8. CPI numbers out and the core MoM runs hotter while real wages sharply negative at -.4%. Pressures Fed to raise rates, but with the federal government spending like it is, while banks getting beat up, perhaps it takes a pause?

    Core CPI (YoY) (Feb)
    Act: 5.5% Cons: 5.5% Prev: 5.6%

    Core CPI (MoM) (Feb)
    Act: 0.5% Cons: 0.4% Prev: 0.4%

    CPI (YoY) (Feb)
    Act: 6.0% Cons: 6.0% Prev: 6.4%

    CPI (MoM) (Feb)
    Act: 0.4% Cons: 0.4% Prev: 0.5%

    CPI Index, n.s.a. (Feb)
    Act: 300.84 Cons: 300.86 Prev: 299.17

    CPI Index, s.a (Feb)
    Act: 301.65 Cons: Prev: 300.54

    CPI, n.s.a (MoM) (Feb)
    Act: 0.56% Cons: Prev: 0.80%

    Real Earnings (MoM) (Feb)
    Act: -0.4% Cons: Prev: 0.3%

    1. Here is the release of this mornings CPI numbers from the BLS. The one disconcerting number on the individual breakdown is the 0.8% rise in cost of shelter.

      For this coming spring season, Zillow raised the rental rates on two of my houses by about $400 each. It’s hard for me to even keep up with the increases and I realize how little my tenants pay versus market.

    1. Not so bad either. You present something here in a very simple chart what it took others many minutes of video and much written explanation to get across (with accompanying Paypal/Patreon/P.O. Box gifting for said wisdom).

      We can sort of see that an event is coming which will likely mean pain for a lot of people. My wife and I are anticipating that certain people will arrive on our doorstep looking for help, but even that is looking less likely because they would probably accept the mark. Maybe we will be able to tell them what happened if they ask, they certainly were not willing to listen before.

  9. The Fed is creating conditions that will allow for further rate hikes without causing more banks to fail, at least in the short term.

    The Fed could have used this moment to justify a pivot of its insane policy of aggressive rate hikes in an economy that had settled on low rates forever.

    The worst possible outcome has been achieved.

    Obviously, this is all by design, but it confirms to me that the SoS wants to see further declines in stock and bond prices. Housing will continue to do well, as rising rents are needed to justify further rate hikes.

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