Collateral crisis in a stock slump

Spectacular stock bubbles are always followed by stock collapses. If the USG is to secure banks and debt zombies, it will have to take control of collateral. This is how they will do it.

Some of our subscribers have requested clarification of David Brady’s The Great Taking, and whether there is a hidden motive behind security dematerialisation. This is the process whereby stock certificates are done away with and replaced by a ledger entry on a centralised security depository, such as America’s DTCC, Euroclear, and Clearstream.

The management of a corporation has an obligation to provide an income stream to its shareholder, which is the centralised register, not the underlying investors. That becomes the centralised register’s obligation, opening the way for your stock to be used as collateral without your knowledge or permission.

The purpose of this article is to explain the circumstances whereby this might happen.