This is getting ridiculous What is the FED to do??!!! What CAN they do? Stocks are going to drop. Yields are climbing fast. The dollar is gaining strength.... Looks like more Brrrrrrrrrrrrrrrrrrrr.. The printing will continue until morale improves. If inflation is soaring, why on earth would the dollar rise? We truly live in an upside-down world! Nothing makes sense anymore. You can burn your economics textbooks. Clown world 2.0. Inflation has hit health care too, do not get sick and eat good food, edible food most of all. Not everyone considers inflation a bad thing. People with assets, such as housing, are going bonkers. There is a boom in luxury cars. Homeowners are using the increased equity in their homes to finance the purchase of a new BMW, Audi, or Mercedes. The percentage of luxury vehicles on the road is at an all-time high. All it takes is a few insider trading scandals and the highest inflation print in 30 years, and suddenly the Fed Heads get REAL quiet. And nobody's saying zilch. Success has a thousand fathers, failure is an orphan. US equities are the only game in town, inflated by China. When they fall, it will be due to a China sell-off prior to a provocation in Taiwan. They are continuing the inflation/deflation saw, literally a saw, first one, then the other, then the other, then the other. Just imagine walking down the street and being attacked by thugs daily that punch you in the stomach, the face, the groin, and one guy is in charge of heisting your wallet during the scrum. Rinse and repeat this daily, that's our world. This is great news! It gives people a chance to get more Bitcoin and gold before the bottom drops out of the fake money scam. Gold has become a must-own insurance asset. It isn't just the technicals, which short-term look over-bought due to high RSI, but the litany of fundamental factors which have been stretched too far ever to be solved through a normal correction. Like interest rates, which can now never be normalized without causing massive stress, budget deficits that can never be reduced, pension and entitlements liabilities that can never be fully funded, etc. This last price move, combined with ten years of built-up general market excesses, combined with a large-scale, steady, determined, persistent buying by major investors determined to hedge US dollar assets, much lower trading and storage costs, and large scale abandonment of precious metals during the past seven-year bear market; are finally pushing gold across the rubicon into that of fulfilling a role once again as a mainstream asset. In a colloquial sense, it is probably about that time where generalist investors say, "Oh, eff it!" and realize how dramatically underweight they are in crisis insurance assets in general and gold in particular. This is no better demonstrated by the gold weightings across asset management heavyweights, who are now going to have to do what they always do with gold, which is to pile in at any price. Watch for more positive gold price action as this big tide turns. If all these hurting banks weren't pumping so much money into the stock market, they wouldn't need the Fed to bail them out time and time again, so why doesn't the Fed just change the rules to make them maintain more cash on hand. Banks could stop the repo issue today, all they have to do is stop loaning money and rein in their balance sheets. That they don't suggest, they can't. Because if they did, the interest rates would necessarily skyrocket. The Crowding out effect. Both the gold and silver manipulation and the over loaning by banks shows fundamental tensions in the system. The tension that is driven by debt. Silver is manipulated lower to leverage gold down and mask the real problems. This is a problem created by central banks that will not be blamed on them because they always escape scrutiny. If you are a bank and you have your own reserves. Why should you offer your reserves and bear whatsoever risk when you have the FED that is willing to do your work and bear all risks. MORAL HAZARD cubed. The Federal Government has grown so large that it is sucking the liquidity out of the system. They sell Treasuries, and to replace the liquidity sopped up. The Fed has to buy them back. It's that simple. The FED is following the MADOFF plan, which worked so well, until, well, it didn't. Until then, you citizens are all investing mavens. Treasury bond markets are dry. The Fed has to mop up quickly before others do. The government has to keep issuing new debt, or the markets will crash because the Fed could not provide the daily liquidity infusions otherwise. So forget about a balanced budget. It can never happen. Virtually all debt is being monetized, including old debt that isn't being rolled over. America has become Weimar Germany. We just don't have hyperinflation yet. Europe is in a recession, Japan has been offering negative interest rates for some time, and the rest of the world is messy- given Saudi Arabia, Venezuela, Iran, China, and trade war, Brexit (how bad can they screw this up), Yemen, Russia, North Korea, and so on. These issues will and can impact our economy, which has been slowing, so the FED is dropping, which is supposed to incentivize our country/corporations/small businesses that lower rates will make it cheaper to expand/hire. But with rates so low anyway, it is more an emotional exercise to show the FED is watching and will help to keep us out of a recession. Boy, what we really need right now is a major distraction, perhaps a military conflict of some sort. That's what I'd do if I wanted to knock us back into a dark age. Best to let the financial system collapse and let us spend the next 5-10 years fighting over where we go next. I think that this is the last leg homeward bound for the money printers. The Fed finally got it and is currently in the process of validating (yet again) Von Mises: "There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved." - said Ludwig Von Mises. The secret to never having to have another Lehman moment is to keep the printing presses running , simply. I think the gold enthusiasts will finally be getting their wish! One thing is for sure: gold always tells the truth. It can be manipulated, but once the herd makes its move, there's no controlling it. One fine day, the plebes will wake up and ask What the hell is going on. Gold is now trading at $2500 an ounce, and all hell will break loose. It will last as long as there is confidence. Take a look at an exponential curve and tell me again why you think this charade can continue for another decade or two. It's been 50 years since the dollar was decoupled from gold. We are finally on the business end of that curve right now. I have news for you: advancement on the x-axis won't be continuing for another 10 or 20 years. The real name of the killer has finally broken out of this "new math" for running the banking system. And the black swan has come into focus. It's the repo market. Yes, it all goes back to maintaining credit and liquidity. Now we can actually give the cause a name. Well, at least now we know. Stash some cash and keep stacking gold and silver. I just don't understand why people insist on coming back to this well over and over again. Why do we continue to debate that the federal reserve is going to slow down its money-printing........when we have clearly reached a point where that is NOT POSSIBLE without causing a catastrophic economic meltdown. And I am defining "economic meltdown" as the deflation of over inflated paper assets. You know, the Ponzi scheme of higher prices to keep the Ponzi going? We have crossed the Rubicon. There will never be enough real economy........not enough hours in the day.......not enough resources in existence to generate enough "economy" to pay the tab we have created at the Fed. The Fed is now having to print so the interest can be covered. Any real economy is being suckered up by interest payments........all by design. Banksters don't care how worthless the money becomes as long as the interest generates "real" income for them from the "real" economy. Debt becomes a tool that sucks anything real and meaningful into your coffers via interest. They'll even print up more debt, and give it to you to pay your interest as long as some of the interest charges are still gleaning real assets for them. Your land is paying them interest......your auto is paying them interest.......your whatever that is in hock is paying them interest......YOU are paying them interest with your labor. Everything is spinning off interest/rent/juice to the banksters because it is all supported/propped up by debt. So talking about banksters "tapering" is like talking about a bankster shooting himself in the foot........intentionally. It ain't gonna happen. There are "fifty ways" to pump more debt into the system. Shutting off one and opening another is NOT tapering. "
The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more
No comments:
Post a Comment