Willem Middelkoop on The Big Reset

Excellent talk! Thanks much for posting with English captions! 

I'll note that the Fed-Treasury workout suggested towards the end of the lecture won't work, as the cut in Fed assets (Treasury liabilities) would not be matched by a cut in Fed liabilities (bank reserves). 

As for the Fed's tapering, it's pretty clear that they simply moved some of that QE out of public view, by transferring it to the Treasury's Exchange Stabilization Fund (ESF), whose books aren't public. The "Belgian bulge" in TIC report Treasury holdings strongly suggests that the ESF was behind it. On closer inspection, the bulge wasn't just Belgian but involved other "international banking centres" as well, albeit to a lesser degree. 

Why harp on that? Well, for one, they're not really tapering, certainly not all the way down. That's just window-dressing. Behind the scenes, they're still happily printing, only that the printing press has been moved to the Treasury. 

An interesting theory hiding underneath all this is that the Fed could be gradually winding down. Note that moving the QE from the Fed to the Treasury is tantamount to printing greenbacks, only that these greenbacks are digital so the public can't see "Treasury note" printed on them like in the good old days of Lincoln's original greenbacks. In other words, Fed and Treasury dollars are indistinguishable to the public, and that's precisely why they could pull off this kind of stunt. 

There is also the suspicion that the Fed will sooner or later fall prey to that audit, which they have staved off for decades on end. Soberly considered, why wouldn't the Fed allow itself to be audited? There can only be one reason: "violation of law", which must automatically lead to "forfeiture of franchise" according to section 4 of the Federal Reserve Act. In other words, if an audit would uncover any significant violation of law, the Fed's banking license (called franchise in the FRA) must be withdrawn.  

http://www.federalreserve.gov/aboutthefed/section4.htm

Just a few thoughts evoked by this stimulating talk. Again thanks for passing it along. I'm admittedly no gold bug, but I root for you guys anyway! 

Great video Thanks for posting with translation 🙂

Was Diesel Boom at this talk?