Skousen: Year End Financial Crisis Looming

Joel Skousen often warns about those who say the economy is crashing, but this time he’s concerned. This could be how the globalists keep Trump from being reelected.

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World Affairs Brief, December 13, 2019 Commentary and Insights on a Troubled World.

Copyright Joel Skousen. Partial quotations with attribution permitted. Cite source as Joel Skousen’s World Affairs Brief (http://www.worldaffairsbrief.com).

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Year End Financial Crisis Looming

Could this be the long anticipated downturn that helps deny president Trump bragging rights about the economy? Zoltan Pozsar (formerly of the FED and now Credit Suisse) is the most respected financial guru on repo agreements and he is sounding a warning about a coming year-end banking crisis that could spill over into a major sell off of stocks and bonds. International finance is very complex with lots of speculation in Foreign Exchange, Repo agreements (short term lending schemes), derivatives, Treasury bills and various types of bonds. There are swaps, highly leveraged futures contracts, and even a year-end banking system penalty system (G-SIB scores) that will be forcing commercial banks and investment banks to boost year end reserves by selling collateral. Repo lending rates have skyrocketed recently, just as they did prior to the 2008 mortgage crisis, indicating a dangerous shortage of cash bank reserves. This guarantees a year end selloff of all kinds of assets in order to lower a bank’s G-SIB scores (to avoid high penalties) which could trigger a financial panic. Pozsar says only a new FED inflationary QE 4 (Quantitative Easing) can avoid the crisis. All this complexity is laid out by Zerohedge.


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