The Psychic News Network

Most do realize the recent behavior of the Stock Market is contrary to the laws of physics, with the understanding that there is no safe harbor for the ever-inflated dollar to hide and perhaps the abrupt rupture of Bitcoin (after hitting new highs) was not due to profit taking, or the fact it was allowed entry into the big game, rather the grasping the awareness of the fact that the Coin itself was about to fall victim to predatory practices of sharks of the commodity market. 

Allow me to explain some facts that most normal spectators of the market may be unaware but are made clear now for all to see and understand. Since the collapse of the 2008, certain abstracts were allowed to proceed while other “old fashion” regulations were repealed. Too Big to Fail, entered into this new lexicon while older regulatory practices such as those repealed under The repeal of the Glass-Steagall Act in 1999, through the Gramm-Leach-Bliley though thru Act Dodd-Frank adjustments considered just an inconvenience in new Paridigiam. In this new perception issues were provided the massive resources of the hedge fund managers. This new frontier is the virgin claim of the Venture Capitalist which are provided the virtually unlimited resources of the major banks as well as those unique banking resources of what we know as the Federal Reserve banking system. 

When you ask most people what their thoughts on the Federal Reserve are they normally reply “Well it’s the Governmental workings of our banking system. “ Which is completely reasonable answer since the President does appoint the Chairman. However this is how things get mixed up and confused. Although it does perform many functions of what one might expect from a government, it is private and linked to the government only by Congressional imposed regulations. Formed in 1913 (some might enjoy reading “The Monster from Jekyll Island”. 

Now in the beginning the Federal Reserve was Designed primarily to…  The primary purpose of the Federal Reserve is to provide the nation with a safer, more flexible, and more stable monetary and financial system.

The Federal Reserve has several key responsibilities:

 Monetary Policy:The Fed regulates the growth of the money supply and aims to achieve its statutory objectives of maximum employment, stable prices, and moderate long-term interest rates.

Regulating Banks:It ensures the safety and soundness of the nation’s banking and financial system and protects the credit rights of consumers

Stability of the Financial System:It aims to contain systemic risks that may arise in financial markets.

 Financial Services:This includes serving as a banker for the U.S. government, providing payment services to financial institutions, and issuing the nation’s currency.

The Federal Reserve operates independently within the government. Its decisions do not require ratification by the President or anyone else in the executive or legislative branches of government. However, it is subject to Congressional oversight and must work within the framework of the government’s economic and financial policy objectives. 

The structure of the Federal Reserve

The structure of the Federal Reserve is composed of three key components:

-Board of Governors(or Federal Reserve Board), an independent government agency located in Washington, D.C., consisting of seven members appointed by the President of the United States and confirmed by the Senate to serve 14-year terms.

– The Federal Open Market Committee (FOMC), which oversees open market operations (purchases and sales of U.S. Treasury and federal agency securities) and is the principal tool for implementing U.S. monetary policy. The FOMC comprises the seven Board members, the president of the Federal Reserve Bank of New York, and presidents of four other regional Federal Reserve Banks who serve on a rotating basis.

– Twelve Regional Federal Reserve Banks,located in major cities around the country, operating under the supervision of the Board of Governors. These banks perform a variety of functions, including operating a nationwide payments system, distributing the nation’s currency and coin, supervising and regulating member banks and bank holding companies, and serving as a bank for the U.S. Treasury.

The Federal Reserve System plays a critical role in the U.S. economy and the global financial system. Its decisions on monetary policy are keenly observed and can significantly impact global markets. There has been three  major reforms to the Federal Reserve Act of 1913.

The first major reforms were the notable Glass-Steagall Act of 1933

The Gramm-Leach-Bliley Act repealed the portion of the Glass-Steagall Act that had previously prohibited a bank holding company from owning other financial companies, thereby allowing for the consolidation of commercial banks, investment banks, securities firms, and insurance companies. This repeal played a significant role in the financial industry’s evolution, fostering an environment where financial institutions could expand their range of services and products, increasing both opportunities and systemic risks. The repeal of the Glass-Steagall Act,, fundamentally altered the landscape of the United States’ financial system, including the relationship between the Federal Reserve (Fed) and investment banks. Here’s an outline of those changes: 

Before the Repeal of Glass-Steagall

– Glass-Steagall Act (1933): Initially established during the Great Depression, the Glass-Steagall Act created a legal separation between commercial banking activities (like taking deposits and giving loans) and investment banking activities (such as securities trading and underwriting).

– Federal Reserve’s Role The Federal Reserve’s oversight primarily focused on commercial banks, given their critical role in the monetary system and the economy at large. Investment banks, while regulated, were overseen with a different set of criteria and expectations since they were considered distinct entities from commercial banks.

After the Repeal of Glass-Steagall

– Gramm-Leach-Bliley Act (1999):This Act effectively repealed the key components of the Glass-Steagall Act that maintained the separation between commercial and investment banking. It allowed commercial banks, investment banks, and insurance companies to consolidate and offer a wider range of financial services.

– Changes in the Relationship:

  – Increased Oversight of Investment Banks:With the repeal, investment banks could affiliate with commercial banks, which brought them more directly under the Federal Reserve’s purview. The Fed’s role expanded to include overseeing the solvency and risk management practices of these conglomerates, which now included investment banking operations.

  – Financial Stability Concerns:** The blending of commercial and investment banking operations meant that the Fed had to consider the stability of a much broader and more interconnected financial system. The collapse or failure of a financial entity now had the potential to impact a wider array of financial services and markets, necessitating closer scrutiny.

  – Emergency Powers Usage:The financial crisis of 2007-2008 demonstrated the transformed relationship vividly. Investment banks, such as Goldman Sachs and Morgan Stanley, were allowed to convert into bank holding companies, which placed them under the Federal Reserve’s direct supervision. This conversion also gave them access to the Fed’s discount window and other emergency funding mechanisms, which were crucial during the crisis.

In conclusion the repeal of Glass-Steagall massively increased the power of the Fed

The subsequent regulatory changes have blurred the lines between different types of banking activities. This transformation has significantly broadened the scope of the Federal Reserve’s responsibilities, making its role in maintaining financial stability more complex and integrated across the financial system. The Fed now has a more direct and active role in overseeing not just traditional commercial banking operations but also the broader and more interconnected world of investment banking. 

The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in July 2010, was a significant reform measure after the 2008 financial crisis, aimed at reducing risks in the financial system and increasing transparency and accountability, especially within banking and investment practices. While the Dodd-Frank Act introduced a comprehensive set of reforms intended to address the weaknesses in financial regulation that contributed to the crisis, it did not reverse the repeal of the Glass-Steagall Act of 1933 that was effected by the Gramm-Leach-Bliley Act in 1999.

Key Components of Dodd-Frank

Volcker Rule:Aimed at limiting certain kinds of speculative investments. It restricts banks from making certain kinds of speculative investments that do not benefit their customers and places limits on the ownership and relationships with hedge funds and private equity funds, echoing some of the spirit of Glass-Steagall’s separations but not reinstating it.

Financial Stability Oversight Council (FSOC) Designed to identify and mitigate systemic risks to the financial system.

Consumer Financial Protection Bureau (CFPB) Established to protect consumers from abusive financial services practices.

Enhanced Prudential Standards and Oversight The Dodd-Frank Act also imposed stricter capital requirements and supervision for large banks and financial institutions deemed systemically significant.

While the Dodd-Frank Act did not reinstate the Glass-Steagall Act or directly reverse its repeal, it tackled the regulatory gaps and issues that had become apparent in the financial system, particularly after the 2008 crisis. It sought to strengthen financial regulation and oversight to prevent future crises, without specifically segregating the businesses of commercial banking, investment banking, and insurance services as Glass-Steagall once did.

The collapse of Lehman Brothers should’ve been more closely dissected… Perhaps some may have seen the movie “The Big Short” which illustrated how and  who can and do manipulate in manner that was, in the not too distant past, illegal under the regulations imposed by Glass-Steagall, and its not the calls and puts allowed to be bundled up as Junk bonks in the Options Market by which but since Glass-Steagall dissolution the return of the unlimited resources by too-big-to-fail banks along with their Venture capital thru the hands of money managers in the hedge funds are allowed to run these basically Ponzi schemes are basically the reason we are where we are in this field of crony capitalism that obtained a firm grip as as result of the Lehman brothers debacle, which should’ve been more closely examined.

To compound the matter members of Congress such as the likes of Nancy Polosi are provided a mechinism to massively profit from this silver platter of  Quid Pro Quo arrangement which is firmly behind this DEI, Idenity Politics (supported by some of the medical establishment), as well as the War mongers from the Military Industrial Complex supported by of both parties (primarily headed by Dick Chaney and his treasons daughter of Jan.6th vintage which was on display for everyone to see clearly why and how certain people in leadership position were so badly used and abused in such a horrific manners so as to render false testimony and follow such an obvious plan of decite and deception that they almost got away with the Big Lie, that was concocted in the Bio-labs in Ukraine and in China, lead by a former MI6 agent and Ukraine citizen who was not only but planned and was a key operational agent on the pay-roll of our very own FBI after he had gone rouge, friend of the DNC, Hunter Biden and company in the name of Daniel Steel. But alas the plot ended when Steel’s cover was blown, but no matter no other than he Digital Currency King himself Sam Bankman-Fried arrives to help run the Chinese Money Laundry with again straight from the pockets of the American Taxpayer.  Only in America!

Now the DoJ is attempting to close x (Formerly Twitter) by perusing Charges on Elon Musk… The only social portal that takes free speech I to consideration and the only obstacle that is preventing the government from closing down of the First Amendment completely. Approaching this problem they’re using a kind of Pincer attaching the flanks of Free Speech on two directions simultaneously. Taking out Elon Musk with lawfare and taking down Tic-Toc similar to the Patriot Act but on Steroids. That is for those who have not read what the House passed, provides the President the power, at his discretion, to close any portal that he deems as hostile to American interest.