Curt Doolittle

Form: Quote Commentary

  • UNDERSTANDING THE NEW FED-TREASURY by Daniel Roland Anderson (CD: Note: this is

    UNDERSTANDING THE NEW FED-TREASURY

    by Daniel Roland Anderson

    (CD: Note: this is why I bait these things. because external confirmation is more persuasive than my prognostication.)

    SUMMARY: “Trump has just built a system to collateralize the Fed with underlying real hard assets from the private sector.”

    From Daniel:

    I ran this by a contact with a solid background in banking and finance. He’s not as hard right as I am, but here’s his analysis:

    Oh, this is interesting. I glad you shared it! We knew the Fed was buying assets to provide liquidity to investment funds but not like this. Even the Communist infiltrators that formed the Fed in 1913 never intended for the Fed to do this. The Fed was formed to:1) Serve as the government’s own central bank, and 2) Monitor and regulate the banking system by implementing mandated monetary polices. In other words, the treasury decides what needs to be done for treasury operations and the Fed executes the directives while accounting and reporting back to the treasury.

    BlackRock is a huge, and historically excellent, fund creator/manager. What it appears Trump has done is appended a new huge division to Fed operations. Let’s call it “Private Market Asset Repurchase Operations”. Apparently up to $1T of private fund assets may be “purchased” by the Fed each month. That’s a huge number. So, if a mutual fund, ETF, etc. experiences a run on its fund by investors who want out, they just sell the underlying assets to the new Fed operation.

    Trump has hired BlackRock to run the operation and use the Fed’s balance sheet to account for the transactions. BlackRock will surely be paid a customary fee, like 375% annualized, to manage the new operation.

    The Fed has just been privatized in a sense because the direct private asset repurchase operations will ultimately dwarf traditional Fed operations. Somebody (or is it more accurate to say, “some buddy”) at BlackRock is really happy right now they stayed in Trump’s good graces.

    BTW, if the term “Repo” is being used in a traditional sense, the buyer (the Fed) gives the seller (the fund needing liquidity) a contract allowing the fund the repurchase those assets at some point in future according to agreed upon conditions. Hence the term “repo”.

    This is pure genius (and scary) at every level. There is also NO WAY Trump and Co. just dreamed this up. It has to have been in the works for a while.

    Genius? Yes. Here are a couple of thoughts.

    The Fed( now Trump), can decide what funds to let fail. Pissed Trump off in the past but now need liquidity? “Sorry Joe, the underlying assets in your fund don’t meet out investment standards. And when your fund fails? We are going to put you in prison for bilking your clients out of their money.”

    “Hey Chi-na! Need cash to rebuild and want to sell the Treasuries back you bought and thought would cause us to default when you demanded your capital back? Well, here you go, paid in full! We’ll just add them to our new BlackRock Treasury Fund.”

    Trump has just built a system to collateralize the Fed with underlying real hard assets from the private sector.

    How’s that for a primer?

    Source date (UTC): 2020-03-30 17:26:00 UTC

  • BUT CRISIS ISN’T A MATTER OF CONSUMPTION —“Alabama’s disaster preparedness pla

    BUT CRISIS ISN’T A MATTER OF CONSUMPTION

    —“Alabama’s disaster preparedness plan says that “persons with severe mental retardation, advanced dementia or severe traumatic brain injury may be poor candidates for ventilator support.” … https://propub.li/2JihhRY?fbclid=IwAR3z0jvNr2q0HNYHH9HcD0isBJuznmTOhPMq1hBuuUWymyFzeEr1yFo5mfA

    Source date (UTC): 2020-03-29 23:32:15 UTC

    Original post: https://twitter.com/i/web/status/1244407052258197506

  • “The medical system is full of people who should be working in Walmart”— (Some

    —“The medical system is full of people who should be working in Walmart”— (Someone in the medical biz)

    Ouch. Not What We Need To Hear Right Now

    Source date (UTC): 2020-03-29 17:46:00 UTC

  • “SO BASICALLY, THAT’S WHY WE LIVE IN A WORLD OF COOPERATION, TRADE, AND WAR” by

    “SO BASICALLY, THAT’S WHY WE LIVE IN A WORLD OF COOPERATION, TRADE, AND WAR”

    by Scott Strong

    So basically all of these schools of thought and socioeconomic systems fail because they fail to take into account the sober reality of humankind’s innate animal selfishness and super-predatory nature, AND that individual and group differences in worldview, intelligence, culture create vastly different preferences.

    So there is no universal moral imperative that will satisfy all people. Which is why we live in a world of cooperation, trade, and war.

    Things would have probably been sorted out by now but certain parasites gain way too much wealth, power, and influence by promoting and profiteering off of lies and divisions, while they reap the benefits of the innovations produced and not the people.

    Source date (UTC): 2020-03-29 17:32:00 UTC

  • I love Land. “There are no SJW’s in Foxholes.” lol

    I love Land. “There are no SJW’s in Foxholes.” lol https://twitter.com/Outsideness/status/1244264165419683843

  • RT @Outsideness: “And now it all makes sense why Americans are rushing to gun st

    RT @Outsideness: “And now it all makes sense why Americans are rushing to gun stores …” https://www.zerohedge.com/markets/west-faces-social-bomb-pandemic-sparks-unrest-among-poorest

    Source date (UTC): 2020-03-29 14:27:40 UTC

    Original post: https://twitter.com/i/web/status/1244270002741612546

  • “Boomers hate crypto for some reason even though crypto still seems more real th

    —“Boomers hate crypto for some reason even though crypto still seems more real than printing infinity money.”—Avin Welleci

    Fiat Currency or “Infinity” money (share-in-economy money) is a competitive necessity. We can’t survive in a world economy without it. And we certainly can’t insure one another against disasters without it.

    Special Fiat Currency such as Food Stamp Money is extremely useful. There is no reason we don’t add ‘utility money, housing money’ as well.

    Conversely, Crypto money (token money) is a means of saving.

    And commodity money an even more fault tolerant means of saving – albeit a costly one.

    They all have their roles.

    I suspect it’s not occurring to you that the central issue is having one currency rather than multiple.

    Fiat Housing < Fiat Utility < Fiat Food < Fiat General < Digital Savings < Gold(commodity money). There is too little gold to serve as commodity money. Oil is too variable for commodity money. It’s possible to crate a basket of commodity money, from all the precious metals.

    My argument was that (a) crypto cannot serve as money substitute given current tech and costs of computing, (b) that self hosted crypto means the network is institutionally fragile (c) that a monolithic transaction system is faster, less fragile, and unassailable by the state. (d) the state will not tolerate the us of it for the reasons it was invented: drug money.

    Don’t assume boomer means bias (I’m a jones generation by the way – between boomers and x’s – like bill gates, steve jobs) It might mean (as it does in this case) i know more than you do. ’cause I do. 😉

    Source date (UTC): 2020-03-29 12:34:00 UTC

  • SO WHAT’S NEXT? —“So what’s next? Will secession and decentralization take roo

    SO WHAT’S NEXT?

    —“So what’s next? Will secession and decentralization take root as the wave of the political future? Or are we facing even further entrenchment of the centralized state authoritarian paradigm?”— Josh Deel

    It depends if you me and 1M other men make the choice.

    I’m going to make the choice.

    *Will you make the choice???*

    —“How then to mobilize and move it forward? We need approx. 3-4% of the greater population to pull it off. No? Or could that number be revised downward in our given “opportunity” of circumstance(s)?”— Josh Deel

    We’d need 10-100k to start it, 2M+ to force it. 3-4% to support it, and a quarter of the people to at least not resist it, and provide intel and cover. In simple terms if all the happy christians went to DC with a set of demands, and 1M of us are mobile elsewhere creating pressure then it’s over. But we have to offer a solution that at least 1/4 of the people will want. My view is more than half will want it. That’s enough.

    In other words, as I understand it, you cannot resist the P-constitution unless you want to impose irreciprocity on others. If you do then we have moral license to impose irreciprocity too.

    Question is. Can I tolerate producing a podcast to take this to market. Can john and the others take it down market. And can we make it popular enough a conversation (“help us build a new constitution”) that we can get the numbers above.

    Source date (UTC): 2020-03-29 12:06:00 UTC

  • THE GOVERNMENT CAN”T MANAGE IT CAN ONLY INSURE – AND IT FAILED. IT ALWAYS FAILS.

    THE GOVERNMENT CAN”T MANAGE IT CAN ONLY INSURE – AND IT FAILED. IT ALWAYS FAILS.

    —“NYT: The U.S. Tried to Build a New Fleet of Ventilators. The Mission Failed…. As the coronavirus spreads, the collapse of the project helps explain America’s acute shortage.”—@sarahkliff

    —“NEW: Read about the cheaper, more durable ventilator that never was. It’s a tale about just what happens when critical public-health projects are left to private companies.

    SPOILER: it doesn’t end well. “—Jessica Silver-Greenberg @jbsgreenberg

    CORRECTION: When left to practical monopolies, not the private sector. The government’s role is to prevent practical monopolies and maintain fault tolerant supply chains in strategic industries (no one cares about ferraris).

    The government has failed to maintain the MARKET.

    I should take it further: We see how Education, FDA, and CDC have all failed in their missions. But we also see how Doctors have NOT failed in their mission. If military, industry, and health practitioners continuously updated strategic requirements by govt mandate it’d be fine.

    Source date (UTC): 2020-03-29 11:53:00 UTC

  • NO, MORALITY ISN’T SUBJECTIVE PER SE – JUST MINOR VARIATION IN IT IS. —“…JFG

    NO, MORALITY ISN’T SUBJECTIVE PER SE – JUST MINOR VARIATION IN IT IS.

    —“…JFG claimed that morality is subjective entirely…”—

    Well, I corrected him. Personal moral bias is subjective. We compete with others in a market of moral biases. We converge to reciprocity within our local geographic, demographic, familial, social, economic, and political organizations, and we absolutely converge on reciprocity in international affairs where there is no means of enforcement other than boycott, trade war, or war.

    Personal Moral Bias > Local Market Moral Bias > World Market Moral bias.

    We rarely if ever find people who do not engage in reciprocity within the limits of proportionality who are not outcast or imprisoned or worse.

    SO it’s false that we do not practice reciprocity. We just limit the scope of reciprocity that we take to market to avoid others, cooperate with others, or prey upon others.

    But the differences in our scopes of reciprocity narrow as we approach the global BECAUSE THE UTILITY OF OF OUR CHOICE DECLINES WITH SCALE.

    Sociopaths often practice reciprocity just fine. Because it’s useful. Empathics practice reciprocity just fine, because they intuit it. The difference is that the first is by experience and reason, the second is by biological intuition.

    A cooperative species – meaning one that can select whether to cooperate or not – cannot survive without moral intuition.

    Source date (UTC): 2020-03-29 11:44:00 UTC