News, Rumors and Opinions Thursday 12-16-2021
Holly and Wolverine:
WOLVERINE (Dec 16, 2021 at 10:10:26 AM)]:
Just received a telephone call from a very high contact and said
“ It’s coming it’s coming it’s coming” Very excited
I’m also very excited as I can’t go to sleep either like Holly.
HOLLY: I’m getting the same calls
Holly : I’m telling you there is no false hope! That’s my message! I have verified and people who know me know I do not put stuff out for naught.
I am very careful what I put to my name! I have always edged on being very conservative in when to expect this, so for me to be so positive, that should speak volumes!
What I am saying is I have tangible evidence that this is happening in regards to our blessing now and all pieces are being connected.
Courtesy of Dinar Guru
Breitling Question: "How do you feel about the articles where they say they're almost done paying Kuwait and The IMF giving them another good report. How do you feel about that?" It gets us very very close.
Frank26 Wouldn't it be amazing if they showed them the new small category notes? But first they have to explain to them the new small category notes. They have to explain to the exchange rate changing. Think about it. You barely have an education of maybe 1st grade/2nd grade and they hand you something brand new. A new currency and you're supposed to understand and go about your business? Of course not silly rabbit. That's why the education is so important. Why? Because it must not fail with the citizens of Iraq.
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‘Dragflation’ is here, Fed will ‘blow everything up’ once rates hit this level - Gerald Celente
Kitco News: Dec 13, 2021
The Federal Reserve is now fighting the strongest inflationary environment since the 1980s, and pressure is mounting for the Federal Open Market Committee (FOMC) to begin not just tapering asset purchases, but hiking interest rates.
Gerald Celente, publisher of The Trends Journal told Michelle Makori, editor-in-chief of Kitco News, that should an “artificially low” interest rate policy end, disaster would hit global financial markets.
Steven Van Metre: Fed is Running out of Tools to Save the Market
Palisades Gold Radio: Dec 16, 2021
Steven discusses his latest video on why Q.E. does not mean money creation. The Fed is just swapping assets and forcing money into the commercial banking system.
Two main banks are absorbing most of the stimulus money. Most money is stored in the banking system and is not moving. They want to suppress and lower interest rates while pushing the dollar higher. The bond market doesn't work the way most people think.
Investors need to understand this system because it will explain most things. The pandemic created many supply issues and caused a lot of money to flow back to the United States. This is now impacting foreign countries which are dollar starved.
Steven is concerned that most investors are in the wrong asset classes and don't understand how bonds work. We're going to see interest rates move lower and the economy will likely head down.
Q.E. traps dollars thus causing a shortage which drives the price for dollars higher on a global level. By trapping money in the commercial banking sector it reduces monetary velocity. They want to get the global economy moving again and therefore they want to export as many dollars as possible.
Consumers are now returning to their normal needs for money by borrowing from credit cards. He explains the effects of the dollar rising and how this could play out like the 2007 crisis. A rising dollar indicates tightening and that means prices for everything else will move lower.
Steven discusses the actions the Fed will take when equities sell-off. In the past they would do more Q.E. but this time they may have a hard time deciding what to do.
The Fed is being blamed for inflation and they aren't responsible. The Fed may have a hard time doing Q.E. next time around for political reasons and he believes the Fed put is now completely out of the question.
Timestamp References:
0:00 - Introduction
0:36 - His Recent Video
4:54 - Two Main Banks
8:10 - Bank Reserves
10:10 - Q.E. Suppresses Rates
11:35 - Presentation
15:04 - Money Markets
16:55 - Q.E. Traps Dollars
22:55 - Dollar Ceiling?
24:50 - Inflation & Base Money
33:39 - Listener Questions
40:09 - Bond Vigilantes
47:26 - Fed, Q.E. & Housing
50:28 - Gold, Dollar & Markets
56:13 - Fed Tools & Equities
1:00:10 - Gov't Spending & Debt
1:04:20 - Debt Monetization
1:06:02 - Cause of M2 Growth
1:09:10 - Wrap Up
Talking Points From This Episode:
- His contrarian macro thesis.
- Fed actions, rates, and inflation.
- Coming liquidity crunch and opportunity.