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illuminati seed's avatar

The people believing Powell or trying to "catch his bluff" are idiots. If the FED raises rates, the economy will be in much worse shape than pausing for a long time. If the FED cuts rates, it will be 10X worse than 2008. The FED has no choice but to keep rates paused to smooth out the yield curves, but is using a hawkish tone to try and signal to institutions that the economy and markets are "up shits-creek", and the FED will do the buying from here, even though they can't do anything to stop the aftermath. Expect more CEO's to step down, and more investors to cut their investments publicly as we move into 2024...if we can make it that far without a crash.

The RRepo Rate finally crossed below $1.2 T back in October this year, and this when the markets started rising. When the Reverse Repo Rate goes to zero, the Federal Reserve is going to run out of assets to keep the markets propped up. The only way they can keep liquidity flowing is if they cut rates, but by cutting rates with yield curves inverted and the Ten Year Yield still 230+ basis points higher than when they cut rates in 2019, this will create a "Crash Landing" scenario, not a "hard landing" as seen in 2007-2008. The Federal Reserve is melting up the market because this is what happened in Japan in early 1990's. Rates were rising at a fast pace, Japans 10YY was rising at its fastest pace ever, and the Nikkei 225 was melting up. This is where the phrase "melting upwards" came from. It was because the Japanese central bank knew that no matter what they did, it would result in a "worse-case-scenario". Now the FED is "melting" it up. It could hit new highs, but at what cost?!

Gold/Silver are painting a picture that real money knows something we don't, and real money is scared by pushing itself into other asset classes that benefit from economic decline. JP Morgan has spoofed the precious metals market for years, to keep the spot price lower than it should be, and now smart money is flooding into it. I'm slowly getting out of Gold/Silver for a nice gain, because what its telling me, with the market melting up, is that a massive crash is going to happen faster than people are talking about...and when fear drives the equity markets, all markets fall with it. Then the inverse bubbles start to pop.

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Ol Hickory's avatar

My energy stocks are completely flat while the S&P is green every single day. I think they’re trying to suppress energy for a while longer in order to keep the CPI low.

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