A Short Preview:

Theme: Corruption Ain’t What It Used To Be

Ask Catherine will be posted on Friday here.

Interview: A 21st-Century Approach to Energy, Part III – What Can I Do? with Charlie Stephens

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154 Comments

  1. Would FDIC legally be able to settle claims using CBDC or new iteration of dollar? Could they pay you back in a currency other than the one that was insured?

    1. Likely. However, when you are in a financial coup, the enemy makes up rules and it is hard to predict what rules they will make up.

    1. Not sure how to answer that question. That is like asking how the Atlantic Ocean impacts the people of who live on the Eastern Seaboard. Is there something specific?

  2. “The Great Taking” is a short book published for free, online, by David Rogers Webb in May 2023

    In it, the author argues that “essentially all securities owned by the public in custodial accounts, pension plans and investment funds are now encumbered as collateral underpinning the derivatives complex” and that “ownership of securities as property has been replaced with a new legal concept of a ‘security entitlement’, which is a contractual claim assuring a very weak position if the account provider becomes insolvent.”

    You and John may appreciate the short chapter on Security Entitlement, among others, and I would be very interested in what you think.

    The Great Taking
    https://mpalmer.heresy.is/webnotes/TheGreatTaking

    Chapter on Security Entitlement
    https://mpalmer.heresy.is/webnotes/TheGreatTaking/Security-Entitlement.html

    1. David Webb highlights a critical legal distinction between owning a “security” and owning a “security entitlement against an account provider.” He says that in US and Canada investors own security entitlements against the account provider and that this can mean in the event a custodian becomes insolvent an investor who believes they own a security outright may end up with a weaker claim to the security than other creditors.

        1. Do you think it is true that one could end up being treated as an unsecured creditor with respect to stocks/other securities held in a brokerage account at Fidelity in the event Fidelity became insolvent? Meaning an investor who believes he owns these outright could end up with a weaker claim to those securities than secured creditors? It wouldn’t surprise me too much at this point, but I don’t know.

          1. Isn’t this what has been happening lately where class A shareholders did NOT get reimbursed after bankruptcy?
            Also UBS taking over Credit Suisse?

      1. Listened to part one of a multi part by this author today. Glad I read the comments, since I was about to share with CAF ?

    2. Call me stupid, but isn’t that the issue of re-hypothecation Catherine defines as 20 people holding a mortgage to the same property / stock / investment but only one is left standing. Who owns the asset?
      This is finally getting interesting after so many years!

    3. I heard about it too via Ivor Cummins’ channel and then read this booklet earlier in the week.
      Very interesting and even more reason to focus on assets outside of the system I’d say.
      Hopefully the Sweden conference will be made available online at some point, at least at a discount i hope!

  3. Catherine, what’s your opinion on Kevin McCarthy’s voting out as speaker of the House? Would be interesting to see what’s happening behind the scenes. Thanks, Christian

    1. Agreed.

      Lots of talk about Trump taking over as Speaker. Is this even possible? As far as I’m aware there’s never been a Speaker who wasn’t already a member of the House.

      However, per article 1, section 2 of the Constitution, all it says is “the House of Representatives shall choose their speaker and other officers…”.

      In today’s barmy world, I wouldn’t rule out anything.

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