Humans are, I believe, fundamentally decent and honorable creatures. A tiny percentage of them are psychopaths, sociopaths, and malevolent, and Treasury Secretary Janet Yellen is one of the best-known and powerful among them. She runs contrary to everything I hold dear: natural, organic markets defined by the creation of true value and the free exchange of goods and services in an environment which rewards creation and punishes sloth and corruption. This lifelong government shrew had her greatest victory yet six months ago when she created this monstrosity:
The rather sharply-ascended chart you to see to the right of the ogre is, of course, the Bank Term Funding Program (or BTFP, appropriately referred to by some as BTFD). Commencing in mid-March, based on the “emergency” of the failure of several huge banks, BTFP provides for unlimited sums of free money to Yellen’s cherished friends in the utterly corrupt financial industry.
What’s most remarkable about this program is its simplicity. If a town of 10,000 people has a budget of a few million dollars, it might have a document 100 pages long detailing the funds, their sources, their allocations, and the rules governing them. However, Yellen was able to get access to infinite funds, now well in access of ONE HUNDRED BILLION DOLLARS, based on a document whose text would easily fit on a postcard:
The document piously declares that its purpose is to “provide liquidity” (AKA free money) to banks in the form of “advances“. One would think an appropriate interest rate these days for desperate banks should be absolutely punitive, but instead she’s looking for 10 basis points. As stated earlier, these are her friends.
What’s particularly galling about this program is the section labeled Collateral Valuation, which states that the valuation will be 100% of par value. In other words, whatever is being provided as collateral could be worth dog shit, but it doesn’t matter. What’s printed on the face, that’s what it’s worth. Even if it really isn’t.
So when can banks suck out these funds. Well, ol’ Yellen isn’t really being too tough about that, either. She writes “…until at least March 11, 2024.” Which could mean until the year 3000. I have a strong suspicion that this program will be extended until the US finally collapses into a financial bonfire.
Of course, by the time this disaster has truly run its course, Yellen will be long dead and buried, leaving behind this as just one of the many, many travesties she has hoisted onto the bank of our once-great nation. The sad part is that she successfully pulls off this sweet little granny routine, completely waylaying the general public (who, I assure you, has no clue what she does and even less what she’s up to).
There’s no real point to any of this except to shake my head and think, damn, that’s a real shame.
