Mike Maloney- "The Truth About the Fed's Rate Cuts" and more 11-13-19

The Truth About the Fed's Rate Cuts (Wait For the Final Frame) - Mike Maloney

Nov 11, 2019

“What is going on with the world economy?” That’s how Mike Maloney begins his new video, which is actually not about the economy, per se, but about currency abuse, interest rate cuts, and a big fat warning about the coming recession.

Mike starts with a slide he’s shown before, US currency creation, but he revisits the topic so he can compare it to Switzerland. In response to the financial crisis, the US created about five times the original amount of its currency—but the Swiss created TWELVE times!

Further, the US stopped currency creation in 2014, but unbeknown to most investors, the Swiss didn’t end their currency creation until just last year. All this from a country that supposedly has one of the strongest fiat currencies in the world.

The Swiss franc has long been regarded as the most reliable and solid—yet it has been diluted and debased worse than the US dollar. The message being, those fiat currencies widely considered to be “strong” by international investors are actually just as weak or weaker than the US dollar, and thus highly vulnerable to a monetary and financial crisis.

Mike then touches on the latest hot button issue in finance today, repurchase agreements (overnight loans the Fed makes that banks promise to “repurchase”).

Check out the sudden spike in this chart from Mike’s video.In just the past few months, $215.5 billion worth of repurchase agreements have been created. You’ll notice it was flat for a full decade, and now is higher than it was at any time during the Great Recession. We agree with Mike’s reaction when he asks, “What is going on with the world economy?”

Why have almost a quarter of a trillion dollars in repurchase agreements been created when the economy is growing, unemployment is at record lows, and the stock market is at all-time highs? Clearly something else is going on behind the scenes that suggests not all is as well as presented.

Mike ends with a “scary” chart about interest rate cuts and recessions. He uncovers something we haven’t seen anyone else talk about. Follow Mike’s cursor as he counts down the relationship between interest rate cuts and the timing of the next recession. It’s quite eye-opening. Mike ends with a four-word warning: “You better get ready.”

Are you ready for the next phase of economic, financial, and monetary madness? The Fed’s desperate attempts to keep the game going are blatantly obvious, so Mike’s warning is not hyperbole.

https://youtu.be/u-i1nbpLfZY?t=1

Would China and Russia Use the “Nuclear Option” on the US?

Nov 5, 2019

Would China and Russia really use the “nuclear option” on the US—in other words, dump Treasuries to punish the US and push their countries higher? Such a move would cause a severe spike in US interest rates, crash our stock market, and easily push the economy into recession.

It’s an extreme scenario, and many analysts believe it would temporarily hurt their own economies, too. But neither is the risk zero, given the unending tension in the trade and currency wars.

As Mike Maloney and Ronnie Stoeferle discuss in their third video, while US Treasury holdings of both countries are in decline, they are both simultaneously loading up on gold. Russia has been a long-standing buyer on a monthly basis, and China has now added gold to its Reserves for 10 consecutive months.

As Ronnie says, “it’s no coincidence that China is updating its gold reserves monthly.” The gold-buying trend stretches beyond China, Russia and other emerging markets. Many countries in Europe have been aggressively adding gold to their Reserves—for example, Poland, Romania, and Hungary. Further, many of these countries are repatriating their gold from London.

In other words, the gold buying isn’t coming just from countries that are hostile to the US, but also its allies.

https://youtu.be/uQpE1uTjgec?t=2