M-2 , yet another money supply “misreading” device of choice for Central Banksters, has been whipped around in the MSM headlines over the last few months with the sudden, and surprise good news story of an increase in the supply of M2 cash reserves (deposits) held “available to lend” through national banking institutions. This new money supply is being mentioned in a low, hushed voice, possibly out of both sides of the announcers’ mouths, for as it is being portrayed on one hand as a potential new lending source that could pump the economy, and markets, higher now and forevermore. It could also be a weapon, used on the other hand to snuff out the economic engine of recovery – with surprise liquidity repayment demands for the return of all Bankster held and fully Government “insured” deposits.
Apparently, this money supply is technically coming from “Tier I” or “Basil-Tree-Like” banking reserves, money that is just now, simply growing over into the banking cash management system, from past brilliant flame-stoking commodity inflation strokes of endless QE liquidity genius. A liquidity rope that might now be used to tie a noose. A move that could cause massive unintended consequences of epic proportions, as many have previously warned.
In a move that could one day, as we shall discuss, likely snuff out the Banksters’ access to capital markets (over the mid-term 5-10yrs) with their very own vicarious and non-systematic Balance Sheet demand liability – as yet another hidden weapon of this expanding mass leverage, which thus far, has avoiding any real financial destruction of the Banksters. But since time is the only investment constant for Banksters, this kicking the can, this delayed prosecution, is in all hopes for a Statue of Limitations Get Out Of Jail Card to avoid all responsibility (and criminality). This so-called “double dip” great recession we are told, will continue…., on its path into the ever-expanding, De-leveraging Depression.
So if you can’t beat em, join em. Rather we would argue, this M2 money supply jump maybe a direct result of the newest fund concept in ETF: switch contracts. The Insured Bankster Savings Account, which although has yet to even be trademarked, or even created, it has all rights as fully reserved – either under FDIC in the US, or CDIC in Canada – as a federally guaranteed income-based financial services retail/institutional product. You don’t have to even be a US resident, citizen, or even a taxpayer to be covered by the near unlimited FDIC coverage:
Not since the implied gold pledge of owning “units” in the GLD-N, has the kill-joy ETF market had something new to solicit to the lemmings, so this new “no worries mamma”, FDIC/CDIC insured deposit contract 100% federally insured, which will hereby be known as the “Insured Bankster Savings Account“, will sell to retail and pension like hotcakes for its yield reach, 100% safety and high liquidity.
But, as a result of its success, it also could take out the WiserStreet crowd of suit racks – byways of a retroactive liquidation firestorm from the hellish underworld of demand deposit holders. Why? And, how so?Deep within the Insured Bankster Savings Account (IBSA) soon to be filed red herring prospectus, lies the potential for our target-date specific “Insured Bankster Savings Account” contract to become, near instantly, the largest managed-contract financial product portfolio introduction (in sales vol.) offered in modern financial history. Why? Because it’s near risk-free, Government-guaranteed, liquid and higher yielding. All that, along with a fee-free 20% annual unplanned capital redemption allowance and that has instant WiserStreet cred and measurable sales traction. This theoretical financial product could exploit (with scale), the extrapolated difference in the crux between two dominant modern monetary issues of the day.
One is the Taxpayer’s guarantee, of the Government’s guarantee.., for now long-established, low bankster borrowing rates (BZIRP), and guarantees for insuring and protecting “only insured” bankster deposits; and on the other side, the Saver’s side, the long-established (2 yrs+) B.Z.I.R.P. (Bankster’s Zero Interest Rate Policy) and QE 98.5 Lite pulling down the 2yr US Government Note (at time of writing) to a yield of just 0.20% for two years, or extending out duration to the 5 yr, and reach for 0.95% over half a decade!
The contract would allow the “Manufacturer” to act as “intermediary with fiduciary responsibility”, with limited trading authority, to assist opening for you, the client, as many tranches (bank accounts from your choice of 7,500+ insured banking entities) of legally distinct ownership rights holding of up to $250,000 per bank savings accounts in the US, ($100,000 per unique bank account in Canada) that would be necessary to protect your entire lifetime of savings. Why bother with stocks and bonds anymore? Not worth the “unwarranted” risk of not having a government’s soundness guarantee.
The “Manufacturer” would provide this account opening service to you, that is, they would specialize in doing all the necessary paperwork, reporting, and management of unlimited notary and commissioners of oaths approvals, etc.. for you to have opened separate, documented, and uniquely identified savings accounts (and up to 5 years of insured and rolling CDs or certificates) at various geographically diversified insured institutions and distinct FDIC/CDIC listed entities nationwide.
What this means to the client is they can immediately insure, and cover 100% of all their financial assets, by federal guarantee (FDIC/CDIC), at a very reasonable cost. By investing in a laddered, rolling certificate of deposit portfolio with a short-term run rate of 1 year to 5 years, the investor would achieve a higher than market rate return (with below average market risk) considering some 5 yr GIC’s are paying 3.5% in Canada (CDIC insured).
Adding a customized amount of instantly liquid personal Bank Savings Accounts, which along with the guaranteed laddered certificate income, could very well be the best investment idea for the next five years or even the uncertain decade that lies ahead.
One day soon, it would be possible for a HNW client to now have, as an individual type example.., (54) different and unique online access to insured bank accounts paying 1%, which would be held in nominee form (your street name), which would be held at (54) different, geographically distinct but 100% Government approved banking institutions. For the yield reach, and 250 bps in riskless pick-up, the Note (ETN/PPN) would invest into two hundred and ten (210) CD’s/GIC’s for this level of net worth, all in the HNW person’s name for example, in different 1 thru 5 year terms – laddered with each CD’s/GIC’s worth $100,000 in Canada (or $250,000 US) held through these other (210) different Banksters nationwide. This ETN would safely stash a multi-billion dollar depression portfolio – near instantly.
Now That’s Some Old School High Frequency Trading!
Let’s review the Product Features:
In summary, every single dollar is protected, fully segregated, allocated, and secured only in your name (in trust) via online secure web access portal. All amounts are held at Federally Insured, Government approved & regulatory-mandated, Bankster Institutions. This would allow the “Manufacturer” to offer its clients enabled, target-dated, asset rollovers (ie: retirement date specified), and other specified redemption requests (ie: Holiday/Major Purchase) for unlimited amounts. All 100% guaranteed principal, plus interest, from a self-directed ETN pool of rolling 1-5 year laddered GICs/CD’s issued at above the market rate of Government Bond Rates (BZIRP) for a similar time period. This, when offered in conjunction with a simple high-yielding bank savings accounts – held at any of 7,500+ various and eligible investing institutions – would offer immediate liquidity for the demand return of deposits/certificates held, and protected, by Bankster Balance sheets on deposit with the Feds, which are as mentioned before, are 100% CDIC/FDIC insured to an unlimited maximum (if you want to do all the unlimited paperwork opening all the different accounts required which is what the “Note” would achieve seamlessly).
Today’s Best GIC Rates Aug 23, 2011
Annual GIC Rates
Today’s customers demand record safety – and need higher yields, for that is the basis for this new financial arbitrage invention (GS eat your hearts out…). The concept of the “Insured Bankster Savings Account” Exchange Traded Note would be that these products (ETN’s in US, and Principal Protected Notes PPN’s in Canada) would be used to organize the structure of the underlying multi-bank accounts, and CD’s.., to control each clients’ access to cash management products. Inside the fine print, the Note would have solved various legal claims, also allowing the Manufacturer to explicitly open various, and unlimited bank accounts (and certificates of deposit) on behalf of its HNW Private Clients.
FDIC deposit insurance covers the balance of each depositor’s account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank’s closing. The standard insurance amount is $250,000 per depositor, per insured bank, for each ownership category. This includes principal and accrued interest and applies to all depositors of an insured bank. Deposits in separate branches of an insured bank are not separately insured. Deposits in one insured bank are insured separately from deposits in another insured bank. Deposits maintained in different categories of legal ownership at the same bank can be separately insured.
Imagine being able to open practically unlimited amounts of insured $bank account$. Yes, you could have your very own 100% insured, and Federally protected savings fund, which would take advantage of Banksters’ Zero Interest Rate Policy (BZIRP) and protect your savings. Looking forward five years though, imagine if all these new M2 deposits just disappeared one fine day, like gone in 60 seconds.., from the Banksters balance sheets, all at once, for everyone could electronically start redeeming paper, to buy physical…, once again.
No matter how things change, they somehow.., just stay the same.
Taking a gauge of investor interest,