About a year ago in a Private Blog post on Ask-Socrates.com Martin Armstrong let it slip that the real plan of The Davos Crowd with the Great Reset was to replace the traditional banking system with the central banks.
I’ve talked about this obliquely in previous posts noting that Modern Monetary Theory (MMT) doesn’t require the money center banks to be the buyers-of-last-resort of whatever debt the U.S. Treasury Dept. auctions up. That’s the most important role they serve in keeping the system afloat.
They provide the fiction that there’s never a failed U.S. Treasury auction even if they immediately turn around and flip those securities right back to the Fed and get dollars. Since the 2008 Great Recession these same banks have sterilized most of that money, further building the Ponzi pyramid, by holding these dollars as ‘excess reserves’ with the Fed who then pays the IOER rate – Interest On Excess Reserves.
Now that this has become a chronic problem, the Fed no longer reports this directly.
For all of the Bernanke and Yellen years that rate was 0.25%. Today it’s just another tool Jerome Powell uses to confuse money markets about the health of the banking system.