Trump Scheduled to Be Arraigned Tuesday at 2:15 PM ET (Connecting the Dots: Alvin Bragg, Justice Juan Merchan, Michael Cohen, CNN & Soros Funding, All Networking)

Trump Scheduled to Be Arraigned Tuesday at 2:15 PM ET (Connecting the Dots: Alvin Bragg, Justice Juan Merchan, Michael Cohen, CNN & Soros Funding, All Networking)

Newsmax

By Eric Mack    |   Friday, 31 March 2023 02:33 PM EDT

https://www.newsmax.com/newsfront/indictment-donald-trump-juan-merchan/2023/03/31/id/1114601/

After Manhattan District Attorney Alvin Bragg secured the grand jury vote to indict Donald Trump, the former president is reportedly scheduled to be arraigned Tuesday by acting Justice Juan Merchan after 2:15 p.m. ET.

Merchan is the same judge that presided over Bragg's tax fraud prosecution of Trump's company last year.

Trump will reportedly remain at Mar-a-Lago in Palm Beach, Florida, through the weekend, and travel to Manhattan on Monday, sources told CNN.

The grand jury voted Thursday to indict the former president. The indictment was sealed, but Reuters reported Friday a judge is now authorizing Bragg to make the existence of the indictment public, Reuters reported.

It is not clear whether that news will merely tell the country what media is already widely reporting, or whether the nature of the charges against Trump might be coming out before Tuesday's arraignment.

The chain of events in Manhattan court are, according to reports:

1.     Indictment (Thursday)

2.     Surrender or arrest (perhaps as soon as Monday)

3.     First court appearance: Booked and fingerprinted (Tuesday)

4.     Arraignment, which could also be the first appearance, particularly if a plea is entered (Tuesday no sooner than 2:15 p.m. ET)

Trump will be fingerprinted and have a mugshot taken but Joe Tacopina, one of Trump's lawyers, said the former president would not be placed in handcuffs.

Heavy security has been put in place around the Manhattan courthouse where Trump is to be booked on charges that have not been made public yet.

"I'm sure they'll try to make sure they get some joy out of this by parading him," Tacopina said of the New York prosecutors who filed the case against Trump.

A grand jury indicted Trump after hearing testimony from a number of witnesses about a $130,000 payment to adult film actor Stormy Daniels to buy her silence about an affair she had with Trump in 2006.

Following his booking, the 76-year-old Trump will be arraigned before a judge at which time he will be presented with the charges and enter a plea.

The judge then decides whether a defendant should be released on bail or taken into custody.

Tacopina said Trump will plead not guilty.

Once Trump is arraigned and enters a plea, there will be a series of preliminary court hearings to set a date for a trial and decide on witnesses and evidence.

Tacopina said he would seek to have the charges dismissed without going to trial but that there is "zero" chance the former president enters into a plea agreement with prosecutors.

"President Trump will not take a plea deal in this case," he told NBC's "Today." "It's not going to happen. There's no crime."

While the criminal charges remain sealed, it is difficult to predict whether a potential conviction could see the unprecedented situation of a U.S. president being sentenced to prison.

The charges against Trump are believed to involve business fraud and campaign-finance violations, but whether they rise to the level of felonies — which carry potential jail time — is unknown for now.

Trump has no criminal record and whether he would be sentenced to prison in the event of a conviction remains to be seen.

Trump can — and undoubtedly will — pursue his 2024 White House campaign despite facing criminal charges.

Nothing in the Constitution prevents someone from running for the nation's highest office while facing charges, and even a conviction would not bar him from serving as president.

Judge Juan Merchan Wiki Bio

https://wikibiography.in/judge-juan-merchan-wiki-bio/

2006 to Present

Judge Juan Merchan has been an Adjunct Faculty Member at the Hofstra University School of Law since January 2000.

Connecting the Dots:

Michael Cohen received his BA from American University.

Gary D. Cohn is a trustee at the American University and a trustee at the Harlem Children's Zone.

Foundation to Promote Open Society was a funder for the Harlem Children's Zone.

George Soros was the chairman for the Foundation to Promote Open Society and a benefactor for the Harlem Children's Zone.

Joseph M. Gregory was a trustee at the Harlem Children's Zone and is a trustee at the Hofstra University.

Judge Juan Merchan has been an Adjunct Faculty Member at the Hofstra University School of Law since January 2000 and is the acting New York Justice U.S. Supreme Court for Donald Trumps Arraignment Tuesday April 4^th, 2023.

Peter S. Kalikow is a trustee at the Hofstra University, was a commissioner for the Port Authority of New York and New Jersey and a funder for the Bill, Hillary & Chelsea Clinton Foundation.

Open Society Foundations was a funder for the Bill, Hillary & Chelsea Clinton Foundation.

George Soros is the founder & chairman for the Open Society Foundations and was the chairman for the Foundation to Promote Open Society.

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

Lawrence H. Summers was a trustee at the Brookings Institution (think tank) and is a professor; former president of Harvard University.

Henry Louis Gates Jr. was an honorary trustee at the Brookings Institution (think tank), is a professor at Harvard University and an Oak Bluffs (MA) Martha’s Vineyard homeowner.

Alvin Bragg completed a Bachelor of Arts from Harvard University and received a Juris Doctor from Harvard Law School.

Lani Guinier is a professor at the Harvard Law School and an Oak Bluffs (MA) homeowner.

Charlayne Hunter-Gault was an Oak Bluffs (MA) Martha’s Vineyard homeowner and was a correspondent for CNN.

Vernon E. Jordan Jr. is an Oak Bluffs (MA) Martha’s Vineyard homeowner, Valerie B. Jarrett’s great uncle, a president emeritus for the Robert Trent Jones Golf Club (Gainesville, VA) and an honorary trustee at the Brookings Institution (think tank).

Valerie B. Jarrett is Vernon E. Jordan Jr. great niece and the senior adviser for the Barack Obama administration.

John G. Roberts Jr. is an honorary member of the Robert Trent Jones Golf Club (Gainesville, VA) and the chief justice for the U.S. Supreme Court.

Judge Juan Merchan is the acting New York Justice U.S. Supreme Court for Donald Trumps Arraignment Tuesday April 4^th, 2023 and has been an Adjunct Faculty Member at the Hofstra University School of Law since January 2000.

Joseph M. Gregory is a trustee at the Hofstra University and was a trustee at the Harlem Children's Zone.

Foundation to Promote Open Society was a funder for the Harlem Children's Zone.

George Soros was the chairman for the Foundation to Promote Open Society and a benefactor for the Harlem Children's Zone.

Gary D. Cohn is a trustee at the Harlem Children's Zone and a trustee at the American University.

Michael Cohen received his BA from American University.

Michael R. Bloomberg was a benefactor for the Harlem Children's Zone, a New York (NY) mayor and a general partner at Salomon Brothers.

Lewis S. Ranieri was a vice chairman at Salomon Brothers and is a trustee at the Hofstra University.

Judge Juan Merchan has been an Adjunct Faculty Member at the Hofstra University School of Law since January 2000 and is the acting New York Justice U.S. Supreme Court for Donald Trumps Arraignment Tuesday April 4^th, 2023.

David S. Mack is a trustee at the Hofstra University and was a commissioner for the Port Authority of New York and New Jersey.

H. Carl McCall was a commissioner for the Port Authority of New York and New Jersey and the comptroller for the New York state government.

Christopher J. Christie was the New Jersey state government governor and is married to Mary Pat Christie.

Mary Pat Christie is married to Christopher J. Christie and the chair for the Hurricane Sandy New Jersey Relief Fund.

Hurricane Sandy New Jersey Relief Fund is a relief organization for Hurricane Sandy.

Robin Hood Foundation raised money for the Hurricane Sandy relief.

Jeff Zucker is a director emeritus for the Robin Hood Foundation and is the president of CNN Worldwide.

CNN Worldwide is a division of CNN.

Steven A. and Alexandra M. Cohen Foundation was a funder for the Hurricane Sandy New Jersey Relief Fund, the Robin Hood Foundation and the Harlem Children's Zone.

Emma Bloomberg was the chief of staff for the Robin Hood Foundation and is Michael R. Bloomberg’s daughter.

Michael R. Bloomberg is and Emma Bloomberg’s father, was New York (NY) mayor, a donor for the Robin Hood Foundation and a benefactor for the Harlem Children's Zone.

Foundation to Promote Open Society was a funder for the Robin Hood Foundation and the Harlem Children's Zone.

George Soros was the chairman for the Foundation to Promote Open Society and a benefactor for the Harlem Children's Zone.

Gary D. Cohn is a trustee at the Harlem Children's Zone and a trustee at the American University.

Michael Cohen received his BA from American University.

Joseph M. Gregory was a trustee at the Harlem Children's Zone, and is a trustee at the Hofstra University.

Judge Juan Merchan has been an Adjunct Faculty Member at the Hofstra University School of Law since January 2000 and is the acting New York Justice U.S. Supreme Court for Donald Trumps Arraignment Tuesday April 4^th, 2023.

Resources: Past Research

Analysis: Donald Trump Would Win Election Today Based on Current Polling (Past Research on Hofstra University)

TUESDAY, SEPTEMBER 27, 2016

https://thesteadydrip.blogspot.com/2016/09/analysis-donald-trump-would-win.html

Rep. Alford to Newsmax: I Don't Believe Anything From 'Hack' DA Bragg (Connecting the Dots: Alvin Bragg, Michael Cohen, Joe Biden & Soros, All Networking) (Past Research on Alvin Bragg, Michael Cohen, Joe Biden & Soros)

THURSDAY, MARCH 30, 2023

https://thesteadydrip.blogspot.com/2023/03/rep-alford-to-newsmax-i-dont-believe.html

DeSantis Sends 2 Private Planes of Illegals to Martha's Vineyard (Connecting the Dots: Martha's Vineyard & Soros Funded Think Tanks All Networking) (Past Research on Oak Bluffs (MA) Martha’s Vineyard)

SATURDAY, SEPTEMBER 17, 2022

https://thesteadydrip.blogspot.com/2022/09/desantis-sends-2-private-planes-of.html

Rep. Alford to Newsmax: I Don't Believe Anything From 'Hack' DA Bragg (Connecting the Dots: Alvin Bragg, Michael Cohen, Joe Biden & Soros, All Networking)

Rep. Alford to Newsmax: I Don't Believe Anything From 'Hack' DA Bragg (Connecting the Dots: Alvin Bragg, Michael Cohen, Joe Biden & Soros, All Networking)

Newsmax

By Jeffrey Rodack    |   Thursday, 30 March 2023 01:39 PM EDT

https://www.newsmax.com/newsmax-tv/mark-alford-alvin-bragg-hack/2023/03/30/id/1114446/

Rep. Mark Alford, R-Mo., ripped into Manhattan District Attorney Alvin Bragg, calling him a "hack" and said he doesn't believe anything he's doing in connection with the grand jury's investigation of former President Donald Trump.

Alford made his comments during a Thursday interview on the Newsmax show, "National Report."

"I don't believe anything this hack DA is doing to try to keep [former] President Trump out of the Oval Office once again. This hack DA, funded by George Soros, has done everything he can … you mean to tell me that he would be persecuting a former president like this if he were not running for office again? There's no way.

"This hack DA is going to do everything he can — look at parking tickets, even look if he ripped a tag off a mattress — to disqualify [Trump] constitutionally from getting into the Oval Office again.

"That's not going to happen."

Alford said Bragg and others are nervous about Trump's prospects. "Look, I'm not a legal expert, but from what I know, an indictment does not make you unqualified to run — a conviction would. And so, they're going to do everything they can on every front to try to try to keep this president from running.

"He'd ahead in the polls. Look at the recent polls that are out. And he's got great numbers over [Florida Gov. Ron] DeSantis now. DeSantis is either stagnant or dropping, and Trump is rising.

"The American people have had it with this administration. They know that if President Trump had been in office, still, we would not have this war that we have in Ukraine, we would not have China breathing down the neck of Taiwan. We would not be in this economic malaise that we're in. It's got to end."

Regarding budget negotiations, he said: "President [Joe] Biden has said on three separate occasions that he's going to sit down and negotiate with our leader, our speaker, Kevin McCarthy. He has failed to do so.

"We need to have a balanced budget. This president now is playing chicken with the American people. And he is about to cluck up our economy worse than he already has."

Alvin Bragg Bio, Wiki, Age, Height, Wife, Salary, Net Worth

Published on: March 17, 2023 by Ijaj Ahmad

https://biographybio.com/alvin-bragg/#Education

Education

Alvin Bragg first studied at Trinity School and then completed a Bachelor of Arts from Harvard University. He then received a Juris Doctor from Harvard Law School.

Michael Cohen (lawyer)

https://en.wikipedia.org/wiki/Michael_Cohen_(lawyer)#Early_life_and_education

Early life and education[edit]

Cohen was raised in the town of Lawrence on Long Island, New York.^[5] His mother was a nurse, and his father, a Holocaust survivor, was a surgeon.^[5][16] Cohen is Ashkenazi Jewish.^[17] He attended Woodmere Academy^[18] and received his BA from American University in 1988 and his JD from Thomas M. Cooley Law School in 1991.

Connecting the Dots:

Michael Cohen received his BA from American University.

Julian Bond was a distinguished professor at the American University, a director at the Center for Economic and Policy Research and a director at the People for the American Way.

Open Society Foundations was a funder for the Center for Economic and Policy Research.

George Soros is the founder & chairman for the Open Society Foundations, a board member for the International Crisis Group, was the chairman for the Foundation to Promote Open Society and a benefactor for the Harlem Children's Zone.

Foundation to Promote Open Society was a funder for the People for the American Way, the Harlem Children's Zone.

Mark L. Schneider is the SVP for the International Crisis Group and was a trustee at the American University.

Gary D. Cohn is a trustee at the American University and a trustee at the Harlem Children's Zone.

Joseph T. Eldridge is the chaplain for the American University and a director at the Center for International Policy.

Philip Brenner was a director at the American University and is a director at the Center for International Policy.

Foundation to Promote Open Society was a funder for the Center for International Policy and the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Lawrence H. Summers was a trustee at the Brookings Institution (think tank) and is a professor; former president of Harvard University.

Alvin Bragg completed a Bachelor of Arts from Harvard University.  

Henry Louis Gates Jr. was an honorary trustee at the Brookings Institution (think tank) and is a professor at Harvard University.

Cameron F. Kerry is a fellow at the Brookings Institution (think tank), John F. Kerry’s brother and a senior counsel at Sidley Austin LLP.

Michelle Obama was a lawyer at Sidley Austin LLP.

Barack Obama was an intern at Sidley Austin LLP, Charles J. Ogletree Jr. was his college mentor, the president of the Harvard Law Review.

Charles J. Ogletree Jr. was Barack Obama’s college mentor, is a professor at the Harvard Law School and an Oak Bluffs (MA) homeowner.

Alvin Bragg received a Juris Doctor from Harvard Law School.

Lani Guinier is a professor at the Harvard Law School and an Oak Bluffs (MA) homeowner.

Vernon E. Jordan Jr. is an Oak Bluffs (MA) homeowner, Valerie B. Jarrett’s great uncle, a president emeritus for the Robert Trent Jones Golf Club (Gainesville, VA) and  an honorary trustee at the Brookings Institution (think tank).

Valerie B. Jarrett is Vernon E. Jordan Jr. great niece and the senior adviser for the Barack Obama administration.

John G. Roberts Jr. is an honorary member of the Robert Trent Jones Golf Club (Gainesville, VA), the chief justice for the U.S. Supreme Court and the chancellor for the Smithsonian Institution.

Joseph R. Biden Jr. is a regent at the Smithsonian Institution, the president for the Joe Biden Administration and spent Thanksgiving at David M. Rubenstein’s home.

David M. Rubenstein is a regent at the Smithsonian Institution, the co-chairman for the Brookings Institution (think tank) and Joe Biden spent Thanksgiving at his home.

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Lawrence H. Summers was a trustee at the Brookings Institution (think tank) and is a professor; former president of Harvard University.

Henry Louis Gates Jr. was an honorary trustee at the Brookings Institution (think tank) and is a professor at Harvard University.

Alvin Bragg completed a Bachelor of Arts from Harvard University and received a Juris Doctor from Harvard Law School.

Lani Guinier is a professor at the Harvard Law School and an Oak Bluffs (MA) homeowner.

Vernon E. Jordan Jr. is an Oak Bluffs (MA) homeowner, Valerie B. Jarrett’s great uncle, a president emeritus for the Robert Trent Jones Golf Club (Gainesville, VA) and  an honorary trustee at the Brookings Institution (think tank).

Valerie B. Jarrett is Vernon E. Jordan Jr. great niece and the senior adviser for the Barack Obama administration.

John G. Roberts Jr. is an honorary member of the Robert Trent Jones Golf Club (Gainesville, VA), the chief justice for the U.S. Supreme Court and the chancellor for the Smithsonian Institution.

Resources: Past Research

Obama Releasing Nearly 6,600 Federal Inmates Starting this Weekend (Past Research on the Harvard Law School)

SUNDAY, NOVEMBER 1, 2015

https://thesteadydrip.blogspot.com/2015/11/obama-releasing-nearly-6600-federal.html

American University Rewrites English Language to Adopt Bizarre Left-Wing Vocabulary (Past Research on the American University)

FRIDAY, AUGUST 28, 2015

https://thesteadydrip.blogspot.com/2015/08/american-university-rewrites-english.html

Who Really Controls Our Universities? (Connecting the Dots: Soros Funded Think Tanks) (Past Research on Harvard University)

WEDNESDAY, AUGUST 24, 2022

https://thesteadydrip.blogspot.com/2022/08/who-really-controls-our-universities.html

Hours After John Kerry Demands Green Transition Accelerated – His Emissions Closet Swings Wide Open (Connecting the Dots: Cameron Kerry, John Kerry, Teresa Heinz Kerry, Soros, the Climate Reality Project, the Brookings Institution (think tank), the EPA and onto the FDA, Pfizer & Johnson & Johnson. It’s the Network That Never Ends. One Project (Climate Change) Just bleeds into the Next (Covid Project)) (Past Research on Cameron Kerry)

THURSDAY, JULY 21, 2022

https://thesteadydrip.blogspot.com/2022/07/hours-after-john-kerry-demands-green.html

Smithsonian Admits to Destruction of Thousands of Giant Human Skeletons in Early 1900′s (Past Research on the Smithsonian Institution)

WEDNESDAY, DECEMBER 10, 2014

https://thesteadydrip.blogspot.com/2014/12/smithsonian-admits-to-destruction-of.html

Smaller Bites – (Connecting the Dots: Gwyneth Paltrow & Soros Funding)

Gwyneth Paltrow’s bizarre ‘we lost half a day skiing’ quote goes viral

Actor Busy Philipps joined in the roasting, posting a selfie with the now-infamous quote

https://www.independent.co.uk/

3-27-23

Rachel Sharp

https://www.independent.co.uk/news/world/americas/gwyneth-paltrow-court-ski-testifies-b2308597.html

Gwyneth Paltrow has been mocked for her testimony in her ski collision trial after she gave a bizarre answer when asked how she had suffered as a result of the 2016 crash at issue in the proceedings.

The Hollywood star and Goop mogul took the stand in Park City, Utah, on Friday to testify in the civil case brought by retired optometrist Terry Sanderson.

During her courtroom testimony, Paltrow was asked about the “losses” she had suffered from the crash.

“Well, we lost half a day of skiing,” she dryly responded.

The quote quickly went viral on social media with Twitter users mocking the actor over her response.

Fellow actor Busy Philipps also joined in the roasting, posting a selfie of herself and Jen Tullocon posing with cocktails on Instagram.

She captioned the post with the now-infamous line: “Well, we lost a half day of skiing.”

Other social media users sarcastically offered “thoughts and prayers” to Paltrow while others posted mocking memes.

“Thoughts and prayers to Gwyneth Paltrow, who suffered the loss of half a day of skiing,” one person tweeted.

Actor captioned her Instagram post with the now-infamous line

(Busy Philipps Instagram)

“You lost half a day of skiing @GwynethPaltrow ?!Oh, please tell that to people who have lost their homes from war or natural disasters. Or those who have lost loved ones. Cry me a freaking river,” added another.

Another person shared footage of a riot, writing sarcastically: “stunning footage of protestors angry at the news of Gwyneth Paltrow’s irrevocably lost ‘half a day of skiing’ after a septuagenarian normie had the insolence to get in her regal way on the slopes”.

The bizarre trial has not been lost on social media users, with one comparing Paltrow’s now-viral quote to another moment which raised eyebrows among viewers.

Earlier in the trial, the court heard how Mr Sanderson was no longer able to enjoy wine tasting as a result of injuries he says he sustained in the accident.

“Catching up on Gwyneth Paltrow case and spoiled for choice who to empathise with. Gwyneth lost half a day’s skiing, the plaintiff can no longer enjoy wine tastings. Has the universe experienced such suffering before?!” one person tweeted.

Mr Sanderson, 76, has accused Paltrow of crashing into him on a ski slope at the Deer Valley resort in Park City, Utah, back in February 2016.

He claims the crash left him with “permanent traumatic brain injury, four broken ribs, pain, suffering, loss of enjoyment of life, emotional distress and disfigurement”.

He is seeking more than $300,000 in damages.

Meanwhile, Paltrow claims it was Mr Sanderson who actually crashed into her.

Her team has sought to accuse the 76-year-old of trying to exploit Paltrow’s fame and wealth, with the skier telling his daughter afterwards that he was now “famous”.

She is countersuing for just $1 and for her legal fees to be covered.

In court on Friday, Paltrow testified that for a brief moment she thought the ski collision was in fact a sexual assault as she felt Mr Sanderson crash into the back of her.

The Oscar winner described how she “froze” as she says his set of skis suddenly “forced my legs apart”.

“His body pressed into my back so I froze, I don’t know how far the skis came through but I felt his body pressing against my back,” she said.

“There was a body pressing against me and there was a very strange, grunting noise,” Ms Paltrow said. “My brain was trying to make sense of what was happening.”

She added: “I thought, is this a practical joke? Is someone doing something perverted? This is very strange.”

Paltrow said she was not in any way accusing Mr Sanderson of sexual assault but had just been “trying to put together what could possibly be going on behind me” in that moment.

Mr Sanderson is expected to take the stand in the case on Monday morning before his legal team rests its case.

Connecting the Dots:

Gwyneth Paltrow is a director at the Robin Hood Foundation.

Foundation to Promote Open Society was a funder for the Robin Hood Foundation.

George Soros was the chairman for the Foundation to Promote Open Society.

Resources: Past Research

Gwyneth Paltrow: ‘I’ve Earned Everything Myself’ (Harper’s Magazine) (Past Research on Gwyneth Paltrow)

THURSDAY, JANUARY 1, 2015

https://thesteadydrip.blogspot.com/2015/01/gwyneth-paltrow-ive-earned-everything.html

‘Not QE’ as Fed Trapped Between a ‘Rock and a Hard Place’ (Connecting the Dots: FDIC, Federal Reserve, St. Louis Federal Reserve, Department of the Treasury & Soros Funding, All Networking)

‘Not QE’ as Fed Trapped Between a ‘Rock and a Hard Place’ (Connecting the Dots: FDIC, Federal Reserve, St. Louis Federal Reserve, Department of the Treasury & Soros Funding, All Networking)

BUSINESS COLUMNISTS

The Epoch Times

By Lance Roberts

March 18, 2023Updated: March 18, 2023

The Marriner S. Eccles Federal Reserve Board building in Washington on March 16, 2022. (Saul Loeb/AFP via Getty Images)

https://www.theepochtimes.com/not-qe-as-fed-trapped-between-a-rock-and-a-hard-place_5132744.html

Commentary

“QE” or Quantitative Easing has been the bull’s siren song for the last decade, but will “Not QE” be the same?

Last week, amid a rash of bank insolvencies, government agencies took action to stem a potential banking crisis. The Federal Deposit Insurance Corporation (FDIC), the Treasury, and the Fed issued a Bank Term Lending Program with a $25 billion loan backstop to protect uninsured depositors from the Silicon Valley Bank failure. An orchestrated $30 billion uninsured deposit by 11 major banks into First Republic Bank followed. Those deposits would not occur without Federal Reserve and Treasury assurances.

The details of the Bank Term Funding Program were described in the Federal Reserve press release.

“The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution’s need to quickly sell those securities in times of stress.

“With approval of the Treasury Secretary, the Department of the Treasury will make available up to $25 billion from the Exchange Stabilization Fund as a backstop for the BTFP. The Federal Reserve does not anticipate that it will be necessary to draw on these backstop funds.”

Banks quickly tapped the program, as shown by a $152 billion surge in borrowings from the Federal Reserve. It is the most significant borrowing in one week since the depths of the Financial Crisis.

Refinitiv Chart: RealInvestmentAdvice.com (Courtesy of St. Louis Federal Reserve)

The importance of this program is that it will inject up to $2 Trillion into the financial system, Bloomberg reported.

“‘The usage of the Fed’s Bank Term Funding Program is likely to be big,’ strategists led by Nikolaos Panigirtzoglou in London wrote in a client note Wednesday. While the largest banks are unlikely to tap the program, the maximum usage envisaged for the facility is close to $2 trillion, which is the par amount of bonds held by US banks outside the five biggest, they said.”

As Bloomberg notes, major banks like JP Morgan likely will not tap the Feds lending program due to the stigma often attached to such usage. Moreover, there are roughly $3 Trillion in reserves in the U.S. banking system, of which the top five major banks hold a significant portion. However, as I noted last week in “Bank Runs:”

The Fed caused this problem by aggressively hiking rates which dropped collateral values. Such has left some banks which didn’t hedge their loan/bond portfolios with insufficient collateral to cover the deposits during a ‘bank run.’

As shown, the rapid increase in rates by the Fed drained bank reserves.

Refinitiv Chart: RealInvestmentAdvice.com (Courtesy of St. Louis Federal Reserve)

The demand by banks for liquidity has now put the Federal Reserve between a rock and a hard place. While the Fed remains adamant in its inflation fight, the BTFP may be the next QE program disguised as Not QE.

Investor Conditioning

Classical conditioning (also known as Pavlovian or respondent conditioning) refers to a learning procedure in which a potent stimulus (e.g., food) becomes paired with a previously neutral stimulus (e.g., a bell). Pavlov discovered that when he introduced the neutral stimulus, the dogs would begin to salivate in anticipation of the potent stimulus, even though it was not yet present. This learning process resulted from the psychological “pairing” of the stimuli.

Such conditioning has happened to investors over the last decade.

In 2010, then Fed Chairman Ben Bernanke introduced the “neutral stimulus” to the financial markets by adding a “third mandate” to the Fed’s responsibilities—the creation of the “wealth effect.”

“This approach eased financial conditions in the past and, so far, looks to be effective again. Stock prices rose, and long-term interest rates fell when investors began to anticipate this additional action. Easier financial conditions will promote economic growth. For example, lower mortgage rates will make housing more affordable and allow more homeowners to refinance. Lower corporate bond rates will encourage investment. And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion,” Ben Bernanke said in a Washington Post Op-Ed in November 2010.

Importantly, for conditioning to work, when the “neutral stimulus” is introduced, it must be followed by the “potent stimulus” for the “pairing” to complete. For investors, as the Fed introduced each round of “Quantitative Easing,” that is, the “neutral stimulus,” the stock market rose, that is, the “potent stimulus.”

As shown, asset prices rose as the Fed expanded its balance sheet.

Refinitiv Chart: RealInvestmentAdvice.com (St. Louis Federal Reserve)

While many suggest that the Fed’s QE programs have no impact on the financial market, the near 87 percent correlation between balance sheet changes and the market would imply otherwise.

Refinitiv Chart: RealInvestmentAdvice.com (Courtesy of St. Louis Federal Reserve)

This is why investors cling to each Fed meeting in anticipation of the “ringing of the bell.”

In Pavlovian terms, the “pairing is complete.”

BTFP Is Not QE

While the BTFP facility is technically Not QE, it does reverse the Fed’s efforts to reduce financial liquidity. The chart below shows that the Fed’s balance sheet has surged since last week, reversing more than six months of previous tightening.

Refinitiv Chart: RealInvestmentAdvice.com (Courtesy of St. Louis Federal Reserve)

This reversal of liquidity is not surprising given the recent rout in the banking sector. J.P. Morgan noted on Friday that U.S. banks lost nearly $550 billion in deposits last week. Panicked investors were transferring funds to major banks from regional banks, which put further stress on already discounted collateral due to the Fed’s rate-hiking campaign.

“The big picture from the H.4.1 release is that the U.S. banking system induced the Fed to expand its balance sheet and inject $440 billion of reserves in just one week. That large liquidity injection reverses a third of the previous $1.3 trillion of reserve tightening since the end of 2021. Given such a backdrop of elevated banking system liquidity or reserve needs, this naturally raises the question of whether the Fed can continue QT [Quantitative Tightening], similar to 2018/2019.”

As we have repeatedly discussed, it was only a matter of time before the Fed “broke something.”

“The economy and the markets (due to the current momentum) can  DEFY the laws of financial gravity as interest rates rise. However, as interest rates increase, they act as a “brake” on economic activity. Such is because higher rates NEGATIVELY impact a highly levered economy.”

Refinitiv Chart: RealInvestmentAdvice.com (Courtesy of St. Louis Federal Reserve)

History is clear about the outcome of rate hiking campaigns.

The question is whether the Fed’s Not QE can fix the problem.

The Fed Created This

As noted in this past weekend’s newsletter, the Fed must choose between fighting “inflation” or again bailing out the financial system in the name of “financial stability.”

Of course, this entire situation is entirely due to the Federal Reserve.

In October 2020, I wrote an article arguing that Neel Kashkari was wrong and the Fed was indeed creating a “moral hazard” by injecting massive stimulus into the economy following the pandemic. The Oxford Languages definition of moral hazard is: “The lack of incentive to guard against risk where one is protected from its consequences, e.g., by insurance.”

Unsurprisingly, zero interest rates, $5 trillion in fiscal policy to households, and $120 billion in monthly QE removed all “risk” from owning risk assets. The spike in inflation and speculative risk-taking was the result.

The “lack of incentive to guard against risk” becomes problematic when monetary, fiscal, and zero-interest-rate policies are reversed.

Yes, this is all the Fed’s doing.

However, since the turn of the century, the Fed has been able to repeatedly support financial markets by dropping interest rates and providing monetary accommodation. This was because inflation remained at low levels as deflationary pressures presided.

Refinitiv Chart: RealInvestmentAdvice.com (St. Louis Federal Reserve)

With inflation running at the highest levels since the 80s, the Fed risks creating another inflationary and interest rate spike if they focus on financial stability. However, if they focus on inflation and continue hiking rates, the risk of a further crack in financial stability increases.

I don’t know which path the Fed will choose, but the markets have little upside. The moral hazard the Fed created in the first place has now come home to roost.

Views expressed in this article are the opinions of the author and do not necessarily reflect the views of The Epoch Times.

Connecting the Dots:

Timothy D. Adams was an undersecretary for the U.S. Department of the Treasury and is a director at the Atlantic Council of the United States (think tank).

Open Society Foundations was a funder for the Atlantic Council of the United States (think tank).         

George Soros is the founder & chairman for the Open Society Foundations.

Herbert M. Allison Jr. was a director at the Atlantic Council of the United States (think tank), the assistant Treasury secretary for the Barack Obama administration and an advisory committee member for the Federal Reserve Bank of New York.

Timothy F. Geithner was the president for the Federal Reserve Bank of New York, the treasury secretary for the Barack Obama administration and an overseer at the International Rescue Committee

Foundation to Promote Open Society was a funder for the International Rescue Committee.

George Soros was the chairman for the Foundation to Promote Open Society.

John C. Whitehead is an overseer at the International Rescue Committee and was the chairman for the Federal Reserve Bank of New York.

Indra K. Nooyi is an overseer at the International Rescue Committee and was a director at the Federal Reserve Bank of New York.

W. Michael Blumenthal is an overseer at the International Rescue Committee and was a trustee emeritus at Princeton University.

Albert Einstein was the founder of the International Rescue Committee and a professor at Princeton University.

Paul R. Krugman is an economist at Princeton University and was a consultant for the Federal Reserve Bank of New York.

Kathryn A. Hall is a trustee at Princeton University and an Economic Advisory Council member for the Federal Reserve Bank of San Francisco.

John F. McDonnell is a benefactor for Princeton University and was the chairman for the Federal Reserve Bank of St. Louis.

Alan S. Blinder is a professor at Princeton University, a friend of Ben S. Bernanke and was the vice chairman for the Federal Reserve Board.

Donald L. Kohn was the vice chairman for the Federal Reserve Board, a member of the Federal Open Market Committee and is a senior fellow at the Brookings Institution (think tank).

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank) and the International Rescue Committee.

George Soros was the chairman for the Foundation to Promote Open Society.

Maurice R. Greenberg is an overseer at the International Rescue Committee, the chairman for the Federal Reserve Bank of New York and a benefactor for the Harlem Children's Zone.

Michael R. Bloomberg was a benefactor for the Harlem Children's Zone and is the founder of Bloomberg LP.

Bloomberg Politics is a division of Bloomberg LP.

George Soros was a benefactor for the Harlem Children's Zone and the chairman for the Foundation to Promote Open Society.

Foundation to Promote Open Society was a funder for the Harlem Children's Zone.

Richard S. Fuld Jr. was a benefactor for the Harlem Children's Zone, a director at the Federal Reserve Bank of New York and a director at the Robin Hood Foundation.

Foundation to Promote Open Society was a funder for the Robin Hood Foundation.

George Soros was the chairman for the Foundation to Promote Open Society.

Jeffrey R. Immelt is a director at the Robin Hood Foundation and was a director at the Federal Reserve Bank of New York.

Stephen Friedman was the chairman for the Federal Reserve Bank of New York and is a trustee at the Aspen Institute (think tank).

Foundation to Promote Open Society was a funder for the Aspen Institute (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Paul A. Volcker was a lifetime trustee at the Aspen Institute (think tank), the chairman for the Federal Reserve System and the president for the Federal Reserve Bank of New York.

Richard A. Debs was the COO for the Federal Reserve Bank of New York and a trustee at the Carnegie Endowment for International Peace (think tank).

Open Society Foundations was a funder for the Carnegie Endowment for International Peace (think tank).

George Soros is the founder & chairman for the Open Society Foundations and was the chairman for the Foundation to Promote Open Society.

Foundation to Promote Open Society was a funder for the Carnegie Endowment for International Peace (think tank) and the Brookings Institution (think tank).

John C. Whitehead is an honorary trustee at the Brookings Institution (think tank) and was the chairman for the Federal Reserve Bank of New York.

Glenn H. Hutchins is a trustee at the Brookings Institution (think tank) and a director at the Federal Reserve Bank of New York.

Donald L. Kohn is a senior fellow at the Brookings Institution (think tank), was the vice chairman for the Federal Reserve Board and a member of the Federal Open Market Committee.

Alice M. Rivlin is a senior fellow at the Brookings Institution (think tank) and was the vice chair for the Federal Reserve Board.

Ben S. Bernanke was chairman for the Federal Reserve Board, is a friend of Alan S. Blinder, a professor at Princeton University and the and a distinguished fellow at the Brookings Institution (think tank).

John F. McDonnell is a benefactor for Princeton University and was the chairman for the Federal Reserve Bank of St. Louis.

Richard C. Blum is an honorary trustee at the Brookings Institution (think tank) married to Senator Dianne Feinstein and an Economic Advisory Council member for the Federal Reserve Bank of San Francisco.

Louis W. Cabot is an honorary trustee at the Brookings Institution (think tank) and was a director at the Federal Reserve Bank of Boston.

Susan M. Collins is a nonresident senior fellow at the Brookings Institution (think tank), and a director, Detroit branch for the Federal Reserve Bank of Chicago.

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank) and the Committee for Economic Development.

George Soros was the chairman for the Foundation to Promote Open Society.

Lee C. Bollinger is a trustee at the Committee for Economic Development and was the chairman for the Federal Reserve Bank of New York.

William J. McDonough is a trustee at the Committee for Economic Development and was the president & CEO for the Federal Reserve Bank of New York.

Peter G. Peterson is a trustee at the Committee for Economic Development and was the chairman for the Federal Reserve Bank of New York.

John E. Sexton is a trustee at the Committee for Economic Development, was the chairman for the Federal Reserve Bank of New York, and the chair Council of Chairs for the Federal Reserve System.

Roger W. Ferguson Jr. is a co-chairman for the Committee for Economic Development and was the vice chairman for the Federal Reserve Board.

Barbara B. Grogan is a trustee at the Committee for Economic Development and was the chair - Denver branch for the Federal Reserve Bank of Kansas City.
James E. Rohr is a trustee at the Committee for Economic Development, a member of the Federal Advisory Council to the Federal Reserve Board and was a director – Cleveland for the Federal Reserve Bank of Cleveland.

Lee C. Bollinger is a trustee at the Committee for Economic Development and was the chairman for the Federal Reserve Bank of New York.

William J. McDonough is a trustee at the Committee for Economic Development and was the president & CEO for the Federal Reserve Bank of New York.

Peter G. Peterson is a trustee at the Committee for Economic Development and was the chairman for the Federal Reserve Bank of New York.

John E. Sexton is a trustee at the Committee for Economic Development, was the chairman for the Federal Reserve Bank of New York and the chair Council of Chairs for the Federal Reserve System.

Roger W. Ferguson Jr. is a co-chairman for the Committee for Economic Development and was the vice chairman for the Federal Reserve Board.

Jeffrey A. Joerres is a trustee at the Committee for Economic Development and a director at the Federal Reserve Bank of Chicago.

Foundation to Promote Open Society was a funder for the Committee for Economic Development and the Roosevelt Institute.

George Soros was the chairman for the Foundation to Promote Open Society and is Jonathan Soros’s father.

Jonathan Soros is George Soros’s son and a senior fellow at the Roosevelt Institute.

Cantwell F. Muckenfuss III is a director at the Roosevelt Institute and was a counsel to the chairman for the Federal Deposit Insurance Corporation (FDIC).

Paul S. Sarbanes is a governor at the Roosevelt Institute and was Martin J. Gruenberg’s senior counsel.

Martin J. Gruenberg’s senior counsel was Paul S. Sarbanes and is the chairman for the Federal Deposit Insurance Corporation (FDIC).

Resources: Past Research

Rep. Ken Buck on D.C.’s Swamp: Politicians Are ‘Bought with Taxpayer Dollars’ (Researchers Note: Follow the Money!) (Past Research on the U.S. Department of the Treasury)

SATURDAY, APRIL 15, 2017

https://thesteadydrip.blogspot.com/2017/04/rep-ken-buck-on-dcs-swamp-politicians.html

100 Years of Government Theft (Past Research on the Federal Reserve)

MONDAY, DECEMBER 23, 2013

https://thesteadydrip.blogspot.com/2013/12/100-years-of-government-theft.html

Smaller Bites – Bank of America Corp. (Bailout Company) (Connecting the Dots: Bank of America Corp. (Bailout Company), The Federal Deposit Insurance Corporation (FDIC) & The Soros Funded Think Tanks, All Networking) (Past Research on the Federal Deposit Insurance Corporation (FDIC))

FRIDAY, NOVEMBER 11, 2022

https://thesteadydrip.blogspot.com/2022/11/smaller-bites-bank-of-america-corp.html

'Ballad for Trayvon Martin' Debuts at Princeton (Past Research on Princeton University)

SATURDAY, DECEMBER 7, 2013

https://thesteadydrip.blogspot.com/2013/12/ballad-for-trayvon-martin-debuts-at.html

Paul Krugman insists 'we won't be' in a recession after admitting he was wrong to dismiss inflation concerns (Connecting the Dots: Paul Krugman, Princeton, The Federal Reserve, Soros & his son, Soros Funded Think Tanks, National Bureau of Economic Research, Mikhail Gorbachev, the Communist Party of the Soviet Union & an Orchestrated Crisis) (Past Research on the Federal Reserve Bank of St. Louis)

THURSDAY, JULY 28, 2022

https://thesteadydrip.blogspot.com/2022/07/paul-krugman-insists-we-wont-be-in.html

Game Change: The Massive Conflict of Interest In Bloomberg Politics’ Attack On ‘Duck Dynasty’ (Past Research on Michael R. Bloomberg)

TUESDAY, MAY 5, 2015

https://thesteadydrip.blogspot.com/2015/05/game-change-massive-conflict-of.html