This is incredibly important, and will effect everyone who thinks they own assets at a centralized security depository. From Alasdair Macleod at alasdairmacleod.substack.com:
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.
A consequence of the debt-cum-credit bubble imploding, which it is set to do perhaps within a few months is a potentially rapid decline in collateral values. As they decline, loans will be foreclosed by lenders, leading to forced sales of stocks into declining markets which according to economist Irving Fisher made a major contribution to the depth of the 1929—1932 Wall Street crash. It is relevant today, given the record level of margin funding illustrated below, financing speculative leveraged positions in US equities totalling three times as much:
One question this raises is that in their long-term planning, have the authorities foreseen a possible collateral crisis of this sort and taken advance action to deal with it in case it becomes reality? The answer appears to be in the affirmative. The question, but perhaps not the true motivation is addressed in a book by David Rogers Webb, The Great Taking.[i]
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