quantitative easing Archives - LN24 https://ln24international.com/tag/quantitative-easing/ A 24 hour news channel Wed, 05 Nov 2025 07:12:21 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://ln24international.com/wp-content/uploads/2021/09/cropped-ln24sa-32x32.png quantitative easing Archives - LN24 https://ln24international.com/tag/quantitative-easing/ 32 32 The $223 Trillion Derivatives Engineered Collapse https://ln24international.com/2025/11/05/the-223-trillion-derivatives-engineered-collapse/?utm_source=rss&utm_medium=rss&utm_campaign=the-223-trillion-derivatives-engineered-collapse https://ln24international.com/2025/11/05/the-223-trillion-derivatives-engineered-collapse/#respond Wed, 05 Nov 2025 07:12:09 +0000 https://ln24international.com/?p=28624 US banks on the brink of $223 TRILLION derivatives crisis

Let’s talk derivatives. Taylor Kenney is sounding the alarm, warning that US banks are currently holding onto a staggering quarter of a quadrillion dollars in derivative exposure, which are essentially financial instruments that nearly toppled the global economy in 2008. According to Kenney’s analysis of official Federal Deposit Insurance Corporation data, the derivatives market wasn’t reined in after the Great Recession, but instead, it has grown into a more complex and massive entity, buried under layers of financialization designed to conceal its true risk. This complex web consists of interconnected bets built on debt, speculation, and extreme leverage, making it a ticking time bomb. The catalyst for the collapse of this new derivative pyramid may have already been triggered, with the recent consecutive collapse of three major sub-prime auto lenders potentially signalling the imminent arrival of a new Credit Crunch. However, this time around, the consequences would be far more severe. The FDIC insurance fund, which is supposed to protect savings, only has sufficient funds to cover a mere 1.3% of all insured deposits, which is barely enough to bail out one ‘too-big-to-fail’ bank or a few mid-sized ones. The alternative is a draconian FDIC ‘bail-in’, which would involve confiscating “your cash, your savings, and your deposits” to recapitalize the bank and save the system, effectively punishing innocent savers while letting the reckless gamblers who inflated the bubble off the hook.

The Powder Keg – Understanding the Derivatives Disaster

At its heart, this staggering $223.5 trillion crisis is a massive threat that overshadows the entire US economy, which is valued at around $28 trillion. So, what exactly are derivatives? Essentially, they’re high-stakes side bets that banks make on assets like interest rates, currencies, commodities, and stocks. While banks claim they’re a way to “hedge” against risks, the truth is that they’re incredibly risky gambles that have been fuelled by the Federal Reserve’s policies of near-zero interest rates and quantitative easing over the past decade. The notional value of these bets is the total amount that could be lost if everything goes wrong, and while the “net” exposure might seem lower, around $15-20 trillion, this is just an illusion – when panic sets in, these offsets can quickly disappear, as we saw in 2008 when credit default swaps led to a $10 trillion loss in wealth.

Today, four massive banks – JPMorgan, Citibank, Bank of America, and Goldman Sachs – hold over 90% of these derivatives, creating a too-big-to-fail cartel that’s on steroids. The risk of one of these banks defaulting is very real, and it could trigger a chain reaction of failures, much like a row of dominoes. The reforms introduced by the Dodd-Frank Act have done little to address this issue, instead centralizing the risk in clearinghouses and relying on stress tests that assume everything will always go smoothly. Meanwhile, geopolitical tensions, such as the conflicts in Ukraine and the Middle East, are driving up energy derivatives and inflation, eroding the savings of ordinary people. The Federal Reserve’s recent $29.4 billion injection of liquidity is just a temporary fix, a Band-Aid on a much deeper wound. The fact that precious metals bets have surpassed $5 trillion is a sign that investors are seeking safe havens, but this is just propping up an illusion – the value of physical gold and silver is screaming “safe haven” to those who will listen.

The trading revenue may be up, but so is the fragility of the system, with the Dallas Fed warning that “ample liquidity” is needed to prevent a meltdown – code for “we’re one mistake away from disaster.” This is eerily reminiscent of the 2008 subprime crisis, which sparked a derivatives inferno, but this time the stakes are three times higher. The pursuit of profit has punished prudence, and the threat of bail-ins, where depositors’ savings are used as collateral, is a very real one. The bottom line is that America’s banks are overextended empires, not invincible fortresses – they’re vulnerable to collapse, and it’s time we faced up to this reality.

The Dollar Crash Cascade: How Bank Bets Can Spark a Currency Cataclysm

We’re on the cusp of a derivatives explosion that could potentially incinerate the dollar, making the 2008 financial crisis look like a minor setback. The United States is sitting on a $223.5 trillion debt bomb, tied to a massive $740 trillion global derivatives pile, with interest-rate swaps totalling $579 trillion. US national debt stands at $33 trillion, with a staggering 97% debt-to-GDP ratio that’s projected to balloon to 118% by 2035. The dollar has already taken a hit, plunging 11% against major currencies in the first half of 2025, the steepest drop in 50 years. Foreigners hold 30% of US Treasuries, and if they sense trouble, they’ll hedge their bets through swaps, flooding the market with dollar sales and spiking the cross-currency basis.

The Treasury Department is facing a refinancing crisis, with $9 trillion in debt coming due next year amidst weak demand, which could lead to yields jumping by 0.2 points or more, and interest payments skyrocketing to $1 trillion annually. This could crowd out defense and entitlement spending, triggering a catastrophic chain reaction.

As the dollar’s reserve share craters by 2 points or more, investors are flocking to alternative assets, with emerging markets experiencing significant outflows. The BRICS nations are eyeing the yuan and gold as potential alternatives to the dollar.

Inflation is also on the horizon, with the Fed printing trillions of dollars, which could push net interest payments to over 5% of GDP by 2030 and debt-to-GDP ratios past 200% by 2047. This could lead to a doubling of grocery prices and a decimation of retirement savings.

Higher interest rates, slashed growth forecasts, and the tariffs are all contributing to the perfect storm. The $73 trillion in unfunded liabilities, including Social Security and Medicare, is a ticking time bomb. Experts are warning of a “coming US financial crisis” and a “financial tsunami” caused by policy mistakes. The rise of crypto derivatives, with $18 trillion in gross value, is adding fuel to the fire. A potential downgrade of US debt, with 50% odds at 120% debt-to-GDP, could shatter the “safe haven” myth, leading to a 9% plunge in the dollar.

The Puppet Masters: Unmasking the Globalist Cabal

This is not just a case of faceless greed; it’s a syndicate of central bankers, supranational institutions, and Wall Street power players hell-bent on borderless control. The Bank for International Settlements (BIS) is the apex predator, born from Nazi gold laundering and now scripting liquidity traps through “innovation hubs” that standardize cross-border derivatives. The BIS is mapping FX/OTC bets to weaponize volatility, not fix it. Jerome Powell is merely an errand boy, executing the BIS’s plans, including slinging $29 billion in swaps last month.

The IMF and World Bank are tag-teaming with the BIS, saddling 190 nations with debt and pushing for a global currency to “stabilize” the chaos. Their 2025 Global Financial Stability Report admits that derivatives amplify shocks but demands more coordination, effectively surrendering national sovereignty to the globalist throne. The Big Four banks, with $60 trillion in notional value, are the street-level enforcers, suppressing gold and silver prices to the tune of $5 trillion. The “Big Three” asset managers – BlackRock, Vanguard, and State Street – own 20-30% of banks and dictate risk models for synchronized blowups, perpetuating elite capture and ignoring net-zero swaps that inflate bubbles.

The grand design is to overload the system, crash it, and then “build back” with Basel IV, crushing small banks, and de-dollarization through tariffs and sanctions. The globalist fingerprints are all over the FDIC’s 2025 Risk Review, which nods to commercial real estate cracks caused by green deals. Soros and Rothschild are thriving on chaos, shorting from offshore while the average person foots the bill.

A Crisis by Design: Uncovering the Orchestrated Blueprint and Timeline

We’re witnessing a deliberate crisis, orchestrated by a blueprint that’s been set in motion. The International Monetary Fund (IMF) is openly confessing to this controlled demolition in their 2025 manifestos. In their October Global Financial Stability Report (GFSR), titled “Shifting Ground,” the IMF is flagging “elevated risks” stemming from overstretched valuations, sovereign bonds, and nonbank leverage – the very bubbles they’ve inflated through quantitative easing and interconnectedness.

The Bank for International Settlements (BIS) is also sounding the alarm in their June Annual Report, warning of “policy crossroads” as they work to consolidate cartel power through the harmonization of Basel IV. Meanwhile, the World Economic Forum (WEF) is proposing elite “frameworks” to govern the impending fragmentation of systems, which they claim will come at a cost of 5-10% of global GDP.

Let’s take a closer look at the timeline of events: In the aftermath of the 2008 financial crisis, the Dodd-Frank Act was introduced as a mere fig leaf to hide the rot. Fast forward to 2025, and the IMF is warning of slashed growth forecasts, while the World Bank is nodding to emerging market debt traps that will require rescues. The swaps and foreign exchange markets are on the verge of explosion, with the BIS echoing the staggering $579 trillion notional value, which is eroding the dollar. The gold market is also showing signs of cracking, with COMEX records revealing the paper facade.

The globalist playbook is clear: they’re engineering a crisis to fragment the system and then govern the pieces. The real agenda is to implement SDR bailouts and Central Bank Digital Currencies (CBDCs), consolidate power through Basel centralization, and suppress gold. The WEF’s “Fragmentation” white paper is a blueprint for this plan, which will come at a significant cost to the global economy.

Written By Tatenda Belle Panashe

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Fed Chair Powell Warns of Higher Inflation, Slower Growth, Unemployment https://ln24international.com/2025/05/12/fed-chair-powell-warns-of-higher-inflation-slower-growth-unemployment/?utm_source=rss&utm_medium=rss&utm_campaign=fed-chair-powell-warns-of-higher-inflation-slower-growth-unemployment https://ln24international.com/2025/05/12/fed-chair-powell-warns-of-higher-inflation-slower-growth-unemployment/#respond Mon, 12 May 2025 09:00:11 +0000 https://ln24international.com/?p=24239 The Federal Reserve held interest rates steady but said the risks of higher inflation and unemployment had risen, further clouding the economic outlook as the U.S. central bank grapples with the impact of Trump administration tariff policies. The economy overall has “continued to expand at a solid pace,” the Fed said in a policy statement, attributing a drop in first-quarter output to record imports as businesses and households rushed to front-run new import taxes. The labour market also remained “solid” and inflation was still “somewhat elevated,” the central bank’s policy-setting Federal Open Market Committee said, repeating the language used in its previous statement.

The Fed’s Inflation Lies

Last month, Jerome Powell and the Federal Reserve maintained interest rates within the range of 4.25% to 4.50% and promptly attributed the risk of inflation to President Trump’s tariffs. This is the same Federal Reserve that has been responsible for printing trillions of dollars, orchestrating bailouts for Wall Street, and sustaining near-zero interest rates for an entire decade. Now, they expect the public to accept that trade policy is the primary issue at hand. FBI Director Kash Patel says that the Federal Reserve isn’t a public government entity—it’s a private one, manipulating currency for its own gain. That needs to be stopped.

It is evident that Powell’s concerns extend beyond inflation; his focus lies on who wields control over the global economy. The reality is that inflation cannot be solely blamed on tariffs; rather, it is the result of $8 trillion in quantitative easing, the provision of free capital to the stock market, and irresponsible government spending facilitated by low-interest debt. For the past fifteen years, the Federal Reserve and the Treasury have been fuelling asset bubbles, benefiting firms like BlackRock and JPMorgan, all while real wages have remained stagnant. Their recent posturing about price stability appears disingenuous. The Federal Reserve continues to operate as an unelected cartel, prioritizing the interests of its banking partners while misleading the public and discreetly supporting the same Wall Street institutions that instigated the 2008 financial crisis.

How the Fed Cartel Engineered America’s Financial Enslavement

A significant portion of the American populace remains unaware of the origins of their current economic predicament. While many attribute the crisis to the actions of Democrats or Republicans, they overlook the true behemoth: the Federal Reserve. This unelected and seemingly unaccountable financial institution has accumulated a staggering $37 trillion in national debt, contributed to over $100 trillion in private liabilities, and has set in motion a precarious situation with $200 trillion in unfunded obligations. However, when inquiring about the Federal Reserve, the average citizen often responds with confusion. This lack of awareness is not coincidental; the system has been crafted in obscurity and continues to flourish in an environment of ignorance.

The Federal Reserve, contrary to its name, is neither a government entity nor a reserve in the traditional sense. It operates as a privately owned consortium of banks that holds the exclusive and monopolistic authority to create U.S. currency. Over a century ago, Congress relinquished its constitutional responsibility to issue money, transferring this power to what can be described as a financial cartel. This arrangement allows the issuance of “Federal Reserve Notes,” which are fundamentally debt instruments. Each dollar that enters circulation is essentially borrowed, yet the interest required for repayment is never generated, resulting in a perpetual imbalance where debt consistently surpasses the money supply. Consequently, this system effectively ensnares the nation in a carefully constructed cycle of ongoing economic subservience.

How the Fed Cartel Engineered America’s Financial Enslavement

The dollar that individuals carry is not merely a form of currency; it represents a claim on future labor. It functions as a debt instrument that inherently guarantees continued inflation. Since the establishment of the Federal Reserve in 1913, the dollar has lost more than 97% of its purchasing power. This persistent inflation is not an unforeseen consequence but rather a deliberate aspect of the system’s design. The beneficiaries of this arrangement are not the working-class Americans but rather a select elite who control the financial framework. A small coalition of mega-banks, hedge funds, and large corporations dominates this economic hierarchy.

The operational mechanism of the Federal Reserve is straightforward: it generates money from thin air, extends loans to the government at interest, and recoups those funds through taxpayer contributions, austerity measures, and inflation. In 2025 alone, the U.S. government is projected to allocate over $1 trillion solely for interest payments. These funds do not support essential services like education or healthcare; instead, they serve as tribute to financial institutions. As this occurs, wages stagnate, savings diminish, and purchasing power erodes. This scenario cannot be classified as capitalism; it more closely resembles a form of high-tech feudalism—a global plantation system where central bankers assume the role of a new aristocracy.

The Federal Reserve’s operations are fundamentally undemocratic, as neither Congress nor the President possesses the authority to direct its actions. This so-called “fourth branch of government” functions in secrecy, operating without adequate oversight. Attempts to audit the Federal Reserve have often been met with extreme resistance, raising questions about the motives behind such opposition. A comprehensive audit could potentially reveal 21,000 undisclosed transactions, trillions of dollars in preferential loans, and what could be characterized as the largest financial heist in history—not executed by traditional criminals, but by central bankers dressed in tailored suits. Despite this, a significant portion of the American public has been led to perceive the Federal Reserve as a wise and benevolent entity. In reality, it operates as a legalized cartel that primarily serves to enrich its stakeholders. Its policies disproportionately benefit large banks, incentivize reckless speculation, and stifle competition. The Federal Reserve has assumed a god-like role during crises, notably in 2008, again in 2020, and now amidst the inflationary turmoil of the 2020s. It claims to combat inflation by orchestrating recessions and job losses, suggesting that the hardships faced by the public are merely tools in their corrupt strategy to maintain economic “balance.”

Had the government opted to issue debt-free currency instead of borrowing from the Federal Reserve, the national debt could potentially stand at zero today. This approach would eliminate the necessity for the Internal Revenue Service, avert austerity measures, and prevent the current generation from burdening future generations with the consequences of today’s financial mismanagement. Historically, Thomas Jefferson cautioned that permitting private banks to control the issuance of currency would lead to a situation where “the banks and corporations that will grow up around them will deprive the people of all property.” We are witnessing the manifestation of that warning in contemporary society.

It is imperative to confront the reality of the Federal Reserve’s role in the decline of America. The institution has eroded the middle class, stifled innovation, and ensnared the nation in perpetual debt. The path forward lies in dismantling the Federal Reserve, reinstating constitutional currency, and constructing a financial system that prioritizes the needs of the populace over those of exploitative entities.

Written By Tatenda Belle Panashe

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