Saturday, December 12, 2020

👉Fed to Increase QE Creating A Frankenbull Market Converting Corporate Debt Into Consumer Inflation

👉Fed to Increase QE Creating A Frankenbull Market Converting Corporate Debt Into Consumer Inflation The Fed to Increase QE, Creating A Frankenbull Market & Converting Corporate Debt Into Consumer Inflation. Unemployment trends, food bank lines, pandemic surge, impending shutdowns, and political instability. The market will never see the crash coming, but it is coming. $1.3 billion asset purchases by central banks every 60 minutes since March. Buyers of last resort to keep assets prices in bubble territory. The M1 money supply is up a record 46% year-over-year. Things are getting pretty intense. Banks are buying up closed and bankrupt businesses increasing profit for wall street and the monopoly corporations. You might get those rollback deals and lighting sales on Amazon but was it really worth it? We are being led down the rose-lined path to socialism, communism, wealth confiscation, the destruction of our constitution, and all rights we have had in this nation since its founding. The Central banks are literally buying it all. These bankers are destroying the lives of hundreds of millions of people. Counterfeiting money to make purchases is not buying it stealing. Another fraud day in the bubble stock market as the FED never allows stocks to sell-off. O% money was easy - to prop up their Big Tech friends - one doesn't even need a community college economics degree to know what would happen. Now they want to channel more money to Big Tech and weaken Banks and the Oil and Gas industry. I am all for getting rid of coal - but this feel-good Fed green deal response only helps other countries to step in and fill the void - as windmills and solar panels are a long way from meeting our energy needs. Letting the Fed print trillions of dollars of unearned money to bail out the stock market, financial institutions, and now corporations is destroying the value of earned income and savings. Allowing the Fed to lower interest rates into negative real rates so an already indebted society can borrow and spend even more of its future earned income so that we can continue to live beyond our means today is just insane.And we've been doing it for 40 years now. Allowing the Fed to prevent true price discovery in the markets is just criminal and will destroy the free market economy for decades to come. This near Zero Rate scheme is basically a wealth tax on Americans, and the US Dollar is going to end up only being worth a penny? Very sad that True American Entrepreneurs would sit back and let The Fed and Central Banks sellout America!!! Congress and Government leaders are selling us out. Every policy they put in place is so short-term focused - with no regard to future consequences. They have destroyed generations to come. The US dollar is being decimated. The currency dilution steals value from every other dollar already in existence. If one believes the official inflation rate is generally understated, real GDP growth is likely lower. This is where monetary policy exacerbates protracted deficit spending and those on the margin. Simply consider the real assets that stand behind the financial assets of stocks, bonds, etc. Then consider the hugely inflated valuation ratios of those investments (PEs for stocks, gutted interest rates themselves for bonds, etc.), and it is no mystery where all the inflation exists. Interest rates are the price of borrowed money. When the system has been hugely injected with trillions in unbacked new money supply, interest rates are driven to zero because the supply of investable funds has hugely, hugely outstripped the demand from new real asset investment opportunities. The aggregate ratio between financial ownership claims and underlying real asset values is grotesquely engorged. Any poor bastard caught in the US Dollar domain does not have the luxury of holding out investable funds because of laughably inadequate risk-adjusted recompense in bond markets. Fed policy of helicopter money dumps has terminally diluted every financial market denominated in US Dollars. So, low-interest rates are not a sign of no fear of inflation; but rather, they are the evidence of the Fed’s crushing success in creating it. In terms of rich/poor/middle class, those who hold tangible assets benefit from inflation. Those who count on wages or hold paper assets/cash, not so much. The inflation is there in spades. Learn about the velocity of money. The inflation is in the assets. QE money chased assets while the real economy has struggled to recover. The recovery has been very selective; hence inflation showing up in 25% of the population through wealth creation. The bottom 75% who hold little assets cannot stimulate enough activity in the real economy for inflation to show. This cycle has been different in so many ways. A flat yield curve might not, in fact, be an early sign of recession since it's the central banks disrupting the yield curve. It could be a false flag. We are heading towards recession but keep an open mind and a balanced portfolio. We are in uncharted waters here. There is definitely something more dark and sinister going on in the background. January 1, 2021, ALL FDIC banks MUST make digital wallets available to ALL customers. Something is about to crash. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. Many of you have asked me where they can buy silver and gold bullion. You will find in the description box the links where you can buy American Silver Eagle, Silver Bars, or Rounds. I highly recommend that you start stacking some Silver Bullion for the future. How short-sighted is the federal government? The Cares ACT was a rush job that just created a whole new class of winners and losers. And some of the winners of the stimulus are zombie businesses that provide no real value. The federal government should have provided massive stimulus into the national infrastructure. This is needed on so many levels. In fact, our infrastructure is falling apart and rotting since the baby boomers in Congress decided decades ago they did not care about the future. Even in 2017, Trump scrapped the infrastructure update proposal. Not only does infrastructure investment provide the highest long term ROI, but it also would improve the standard of living for everyone. Oh, and it would stimulate the economy now, and long term as these national projects would drive demand for employment and get people back to work! Each day the magical buying comes in to support the market. How long until they own all the assets? The idea behind QE is to buy the assets at high prices no-one else will pay using their fiat dollars to keep 'liquidity' in the market. Is that right? So if you're a central bank and you can print an infinite amount of fiat, doesn't this eventually end with the FED (or ECB, et al.) owning everything? It seems like this program allows people get to the exits and cash out of what would otherwise be a painful repricing of assets, but it seems extremely short-sighted to me because the FRN's are debased with all the printing, and all the real-world assets are going to end up on the FED's ledger. Doesn't this end with everyone holding bags of worthless toilet paper and you paying rent to the FED because they own your house, your car, the company you work for, etc., etc.? Now basically, everyone is left reliant on QE, stimulus, and the corporations are also reliant. The Frankenbull is solely powered by the Fed. The assets they buy only hold their value because the banks buy them. They can't stop printing. It will continue to grow in an exponential manner because if they stop, the assets they own would be valueless; they really are taking us to Mad Max territory. How long before the NWO owns all business and performs the RESET? So the US government should immediately raise corporate taxes 200%? The Old fiat monetary systems are declared obsolete, and a new Universal Basic Allowance has been introduced to cover the needs of the ordinary citizen. Only governments and multinational businesses use a digital Credit Mark to account for the movement and trade of raw materials. The democratic functions of western parliaments are reduced to votes for regional members of a unity government. Prime Ministers are chosen by internal vote. Private property has been abolished, all goods and assets sequestered by governments to allocate as required. Televisions have been issued to citizens, and giant screens broadcast twenty-four hours a day in the city squares. Fed seems to be waiting for a multi-trillion stimulus before increasing Treasury purchases. It looks like they may have to wait a few more weeks. Fed better buys everything sooner than later as it seems main street folks are starting to understand that the Fed’s main purpose is to enrich the elites. CNBC article today titled “Americans increasingly see the stock market as a barometer just for the rich, not the whole economy” had some shocking stats. When you see a shift in the country of 20% that believe the stock markets are rigged (most of which do not invest in said stock markets), that is a paradigm shift of epic consequences for “Trickle-down Fed” policies. The bottom 90% are losing faith in the Fed lies of helping the main street. The bottom 90% have more votes than the top 10%. Fed is at risk politically, so better “Make billionaires Rich Again” as regular common fly-over folks are getting wiser to the Fed as a wolf in sheep clothing. Wait until the manufactured inflation starts to impact the working families of this nation. The gap between those who have enough stock to make a difference in their lives; and those who do not will widen. And this is not a healthy situation for the country. The central banking game is truly a Socialist endeavor. It finances the things Margret Thatcher said would soon run out of “other people’s money.” It hides the cost of war by purchasing the debt created to fund those wars. It is operated by the unelected who make economic decisions behind closed doors, and they themselves insulated from any ill effects (like inflation) for they have inflation-protected pensions, courtesy of us.But what of us? The latest example of how the Fed’s outsized presence in markets, which began with the 2008 financial crisis and showed no signs of ending, is distorting traditional trading strategies: It’s squelching volatility, adding fuel to a record-setting advance in stocks, leaving credit markets priced to perfection, and curbing Treasury yields at levels that no longer fully reflect market sentiment or investors’ belief in the economy. The central banks have suspended the fundamental of a free market, supply/demand price discovery. In so doing, they have made asset evaluation a folly and misallocation of assets a game of no consequence. The history of this nation until 2008 is that Fed Funds equal or exceed inflation. Since 2008, this has been suspended, for good times and bad, for the benefit of whom and at a cost to whom? Hayek said central bankers decide and intentionally aid one group to the detriment of another, and the one group has been harmed since 2008. That group that had nothing to do with the systemic threats created by over leveraging and irresponsible speculations. Here’s the process as I see it, 1) Overvalued asset classes start falling as holders finally notice that income streams don’t match overheated valuations. 2) The Fed, worried that panic selling of asset class will, a) hurt wealth effect propping up spending and b) increase interest rates, hurting investment, hurries to print trillions in unbacked money to buy those falling, overvalued asset classes. 3) As a result, the selling banks/holders of those cratering asset classes get overpaid for their overvalued assets, in Fed “high powered” money (which the banks can turn around and use to make *new* leveraged loans, at a multiple *higher* than what they got from the Fed). The Fed gets the “falling knife” asset classes in exchange. 4) The newly flush banks start making their leveraged up loans (or sit on a chunk of the Fed QE, for which they get paid a small profit margin on “idle reserve balances” by the Fed). 5) Those new bank loans bid up the prices of financial investments or real assets, creating consumer inflation (later or now). I may have some of the details wrong, but I think the overall gist is right. I wonder if a clear graphic would help the public understand just how dangerous this self-licking ice cream cone the Fed has created is. Basically, it is a machine for converting going bad government and corporate debt into consumer inflation. That doesn’t seem to be fully registered with the public, and I wonder if that is because no one is laying out the basically simple 4 or 5 steps involved. Only those who own some fertile land over freshwater, some livestock, and seeds, gold, silver, guns and ammo, a LONG way from big cities, will survive this mess. The elites pushing the insanity will of course run away where no one can lamppost them. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my backup channels; I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends! Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
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