Nomi Prins: Secret Banking Crisis Looms; What the Fed Doesn’t Want You to Know

ITM Trading, Released on 5/22/24

“The Fed needs to understand its boundaries and stop pretending it’s like inflation Superman,” says Dr. Nomi Prins, geopolitical finance expert and bestselling author. She explains that the Fed has no ability to impact real inflation — the increased prices that individuals and companies face daily. She also discusses how the Fed is operating in conjunction with big banks. Banks remit their excess earnings to the Fed, which then passes those earnings to the Treasury Department. However, because the banks haven’t reported enough of their excess earnings, the Fed is operating at a loss. She warns that if these banks collapse, we can expect more quantitative easing and a return to zero interest rates.

00:00 Fed cut rates
3:00 Five Flashpoints for Q-3
6:19 Credit cards debt
9:11 U.S.-China tariffs
12:11 Geopolitics moves
13:32 Inflation
15:29 Commodity prices
19:20 Banking crisis

Nomi Prins is an American author, journalist, and Senior Fellow at Demos. She has worked as a managing director at Goldman-Sachs and as a Senior Managing Director at Bear Stearns, as well as having worked as a senior strategist at Lehman Brothers and analyst at the Chase Manhattan Bank. Prins is known for her books All the Presidents’ Bankers: The Hidden Alliances that Drive American Power, Collusion: How Central Bankers Rigged the World and Permanent Distortion: How the Financial Markets Abandoned the Real Economy Forever.

Notify of

Inline Feedbacks
View all comments

She explains that the Fed has no ability to impact real inflation.” That has to be the most idiotic comment ever: the Fed, by monetizing the debt, literally creates inflation.


I think she means the Fed only finances the debt after the Treasury puts its securities up for bid. The ball is in the Treasury’s court to start — it pre-sells its treasuries at auction and then it goes to the Fed to get the loot, if I understand the process correctly.

Please correct me if I am wrong.