Poverty Repledged, Reused and Rehypothecated
Repledged, Reused and Rehypothecated is a subject ZeroHedge first put in the media back in May of 2009. At the time deflation and breaches of trust chopped $6 trillion, or almost one-fifth, off of the money supply. This prompted the Federal Reserve Bank (Fed) to re-inflate by the same amount in on-again, off-again cycles.
Revisiting the subject is important to WealthCycles readers because it determines, to a large degree:
The U.S. Treasury commented recently on the scarcity of collateral in the financial system, both as a result of the Fed’s purchases and degradation from “high quality” for some assets (Eurozone or EZ bonds; mortgage-backed securities, or MBS).Continue Reading →
As employment shrivels (it is), real wages fall (they are), and redistributionists struggle to keep disposable incomes up, people are falling behind on payments—assets aren’t all performing, and many will die.