Financials Matter

"It's Not Just About Finance"

You’re Gonna Need a Bigger Chart


Who doesn’t remember Chief Martin Brody’s (Roy Scheider) famous quote from JAWS?  “You’re Gonna Need a Bigger Boat.”

Ironically (or NOT) Scheider’s ad-libbed line remains as one of the most memorable lines in American films.

Unlike Hollweird, in today’s world, we now have the Federal Reserve channeling their best Roy Scheider (We’re Gonna Need a Bigger Chart) after seeing their balance sheet jump from $5.3 Trillion on March 25 to $5.8 Trillion on April 1…an increase of $557 Billion in one week.

On April 2, it reached $5.9 Trillion.

So, in the past three weeks – since the start of the Fed’s unprecedented bailout of everything on March 13 – their balance sheet has increased over $1.6 Trillion.

“Tis but a pittance!”

For another insane statistic, go back to August 2019 – when the Fed balance sheet was a measly $3.8 Trillion – and the shrinkage in reserves supposedly triggered the REPO crisis.

Fast forward to today and you’re looking at a 60% increase in their balance sheet with no end in sight.

According to a former NY Fed staffer, the Fed’s balance sheet will double to over $9 Trillion by the end of 2020


So, what does that actually mean for you and me?

It means that unless there’s a major change (or RE-Set) along the way we’ll need the Fed to buy up everything in sight with dollars created out of thin air AKA your tax dollars.

You can almost see the Great White Federal Reserve Shark circling the waters, while most small businesses are bleeding to death.

In the meantime, …

Adding insult to further injury, the Small Business Administration (SBA) has selected an Admitted Felon with a history of Abusing Customers to handle the distribution of billions from the recent Covid-Stimulus Bill to help small businesses keep their employees working.

The admitted felon? Citigroup.

Citigroup’s Citicorp subsidiary was charged with, and pleaded guilty to, a criminal felony count brought by the U.S. Department of Justice on May 20, 2015 for its role in rigging foreign currency trading.

Its rap sheet for a long series of abuses to its customers and investors since 2008 is nothing short of breathtaking.

For the record, during the financial crash of 2007 to 2010, Citigroup received the largest bailout in global banking history.

This was after its former top executives had walked away with hundreds of millions of dollars that they cashed out of stock options.

Citigroup received over $2.5 trillion in secret Federal Reserve loans; $45 billion in capital infusions from the U.S. Treasury; a government guarantee of over $300 billion on its dubious “assets”; a government guarantee of $5.75 billion on its senior unsecured debt and $26 billion on its commercial paper and interbank deposits by the Federal Deposit Insurance Corporation (FDIC).

As they say, “You Just Can’t Make This Stuff Up.”

Read more about it – and how to fight your way out of this mess – in our April’s edition of “…In Plain English.”

It’s the best investment you can make for less than $10.





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