This isn't a solution, though it would be nice to have.
The problem isn't banking, its both regulatory and inflationary policy and the mechanisms that allow it to continue deficit spending indefinitely at the expense of future generations (who have no say or vote because they haven't been born yet), as well as current generations of our globalisation partners (from the bad loans we hold over them which were funneled back to companies like Main).
This notably fails when you have an existential threat, and are unable to raise the capital needed to defend oneself as what happened going into the second world war.
The federal bank usury loophole does need to stop though.
They "buy" it all and collect the assets and hand you the bill (indebt your nation) and the runaway inflation- to which they report is nonexistent. Gaslighting is the Fed's main tool. No one has noticed yet the Russell 2000 index (the real stock market) silently crashed 35%.
Not sure a lower low trend from peak is a good indicator that a crash is over where it won't go further down. There's real potential for a reverse catapult in the down direction.
I think it is unlikely that the Russel will move against the trend on the stock markets and the stock trend is now long in the medium term in my opinion. We will see.
Just a bear market rally. Always remember that bear market rallies are very strong, suckling people back in. Its an inflationary bear market, leading to a deflationary hard recession Q1
42 year bull followed by a 1.5 year correction of just 9% with no capitulation and back to another bull? Not likely. The purchasing power of the portfolio is now down by 35-40% (real terms) just in the past two years without even a crash yet.
I'm new to following Greg... I'm hesitant to get into Cryptos because it seem like the "Emperor's New Clothes"... nothing to back it. Which is similar to the US dollar...
But why is crypto any different? Can someone explain?
Let's say we buy Silver (SIVR). It's trading about $23 per share (today), which represents an ounce of silver. Or suppose I buy physical silver hand have some stashed under the bed.
When the whole market crashes and we have a new CBDC. (central bank digital currency)... how do we know if the value of the silver asset will be converted into any meaningful unit of measure.
Let's say it all hits the fan... then each Oz of silver should be able to buy me a meal at my local restaurant, and that value will convert into some number of CBDC units.
Will the government tell all of us what the conversion rate of $$ to the new CBDC units will be?
The meal at the restaurant may cost me 1 CBDC (about $23 in today's dollars). But if there was hyper inflation, then perhaps it will cost me 100 units of CBDC (or about $2300) for a meal.
How would a conversion to a digital currency curb inflation? It looks to me like we'll have the same problem either way.... but the unit of measure may be different.
You don't know, which is why you diversify and don't put everything in a single basket.
That said, large enough market inefficiencies in almost all cases force an alternative market. The more inefficient it becomes the greater the chance.
Look at what's happening in Argentina right now with the preferred black market conversion rate of USD on money transfers from dollars.
The problem with CBDC is there is no credibility that it is ever a store of value. Worst case, there will be corresponding arbitrage on commodities, the physical stuff is also pegged under actual value (if you follow those markets closely). It gets used up in a number of industrial processes unlike gold.
It is immoral for the Federal Reserve to spend the currency of WE THE PEOPLE without our permission. Congress should abolish the Fed immediately. Greg M. could do a far better job and with greater morality!!!
"WTI crude futures shed more than 3% on Thursday morning.
China demand concerns are compounded by weak economic data coming out of the U.S. and the European Union.
Markets saw industrial and manufacturing output lag in the U.S. for October.
A day after the Energy Information Administration (EIA) released its inventory report showing a 3.59-million-barrel jump in U.S. crude oil stockpiles, oil prices are trading down well over 3%. At 10:39 a.m. on Thursday, Brent crude was trading down 3.18% at $78.60, pulling further from the $80 threshold. West Texas Intermediate (WTI) was trading down 3.43%, at $74.03, for a loss of $2.63 on the day. The EIA’s crude stockpile build was the highest since August. Data reports showing lower oil processing runs from Chinese refiners in October, month-on-month, have also reignited demand concerns, despite OPEC’s missive early this week that these concerns are overblown.
The market, for now, remains unconvinced on China, the world’s largest crude importer. China demand concerns are compounded by weak economic data coming out of the U.S. and the European Union. On Wednesday, the EU slashed eurozone growth forecasts for 2023 from 0.8% (forecast) in September to 0.6%.
At the same time, markets saw industrial and manufacturing output lag in the U.S. for October, with another hike in jobless claims, as well. So far, an announcement coming out of Washington that sanctions will again be tightened on Iran has done nothing to buoy prices, with an ING analyst saying in a note on Thursday that “while sanctions have remained in place, the U.S. has not enforced them strongly, which has allowed Iranian oil exports to grow this year”, Barron’s reported. Oil prices are now the lowest they have been since July this year, despite OPEC+ production cuts, which are now believed likely to extend into at least the first quarter of 2024, and perhaps the first half. Analysts now believe there are no conditions in place for Saudi Arabia to move to reverse its voluntary cuts. On November 26, OPEC+ will hold another ministerial meeting.
The 10 year has been 4.49 (really 4.5) for a couple days now. And 4.5 is still high. We were shocked when it hit 4.5 a couple months ago, so this is not a bull market, and, no, the Fed is not buying it all. Only an idiot would jump into the casino now.
What we all have not been told is that oil is NOT a fossil fuel. The earth creates it. Water is the only item that is in more abundance. Energy should be almost free of cost. We have been ripped off for years.
The solution is to abolish the debt
Return to a commodities based system
Outlaw central banks
Outlaw fractional banking
Sell every banker’s holdings
Abolish the stock market. It not be a public option. Individuals can sell interest in their own products or dreams
Lastly you prosecute lairs!!
Yes there will be weeping and wailing by the elites--it is their turn to suffer
My 2 cents by Dreaming!!!
This isn't a solution, though it would be nice to have.
The problem isn't banking, its both regulatory and inflationary policy and the mechanisms that allow it to continue deficit spending indefinitely at the expense of future generations (who have no say or vote because they haven't been born yet), as well as current generations of our globalisation partners (from the bad loans we hold over them which were funneled back to companies like Main).
This notably fails when you have an existential threat, and are unable to raise the capital needed to defend oneself as what happened going into the second world war.
The federal bank usury loophole does need to stop though.
We then reset all property values back to values pior to the Federal Reserve act of 1913.
They "buy" it all and collect the assets and hand you the bill (indebt your nation) and the runaway inflation- to which they report is nonexistent. Gaslighting is the Fed's main tool. No one has noticed yet the Russell 2000 index (the real stock market) silently crashed 35%.
"the Russell 2000 index (the real stock market)" <<< very true.
BUT: Looks like the crash is over.
https://finviz.com/futures_charts.ashx?t=INDICES&p=m
Not sure a lower low trend from peak is a good indicator that a crash is over where it won't go further down. There's real potential for a reverse catapult in the down direction.
I think it is unlikely that the Russel will move against the trend on the stock markets and the stock trend is now long in the medium term in my opinion. We will see.
Just a bear market rally. Always remember that bear market rallies are very strong, suckling people back in. Its an inflationary bear market, leading to a deflationary hard recession Q1
Me think we are in an inflationary BULL MARKET.
https://finviz.com/futures_charts.ashx?t=ES&p=m
42 year bull followed by a 1.5 year correction of just 9% with no capitulation and back to another bull? Not likely. The purchasing power of the portfolio is now down by 35-40% (real terms) just in the past two years without even a crash yet.
We have seen a stock market crash in 2008/2009 and in 2020.
Wall Street on Parade.com. www.wallstreetonparade.com.
Abort the Feral Reserve, abort the Central Cranks now before they abort you….
I'm new to following Greg... I'm hesitant to get into Cryptos because it seem like the "Emperor's New Clothes"... nothing to back it. Which is similar to the US dollar...
But why is crypto any different? Can someone explain?
I say cryptos are a Ponzi scheme too. But that doesn't mean they're not a good (short-term) investment before the inevitable crash.
You don't want to be holding the tulips when the mania ends.
Let's say we buy Silver (SIVR). It's trading about $23 per share (today), which represents an ounce of silver. Or suppose I buy physical silver hand have some stashed under the bed.
When the whole market crashes and we have a new CBDC. (central bank digital currency)... how do we know if the value of the silver asset will be converted into any meaningful unit of measure.
Let's say it all hits the fan... then each Oz of silver should be able to buy me a meal at my local restaurant, and that value will convert into some number of CBDC units.
Will the government tell all of us what the conversion rate of $$ to the new CBDC units will be?
The meal at the restaurant may cost me 1 CBDC (about $23 in today's dollars). But if there was hyper inflation, then perhaps it will cost me 100 units of CBDC (or about $2300) for a meal.
How would a conversion to a digital currency curb inflation? It looks to me like we'll have the same problem either way.... but the unit of measure may be different.
I'm perplexed!
You don't know, which is why you diversify and don't put everything in a single basket.
That said, large enough market inefficiencies in almost all cases force an alternative market. The more inefficient it becomes the greater the chance.
Look at what's happening in Argentina right now with the preferred black market conversion rate of USD on money transfers from dollars.
The problem with CBDC is there is no credibility that it is ever a store of value. Worst case, there will be corresponding arbitrage on commodities, the physical stuff is also pegged under actual value (if you follow those markets closely). It gets used up in a number of industrial processes unlike gold.
Hotel California = You can check-out any time you like But you can never leave!
Bitcoin = You can buy it anytime you like But you can never sell it!
All they are doing is propping up a failed system since 2008. Yet so many still believe in worthless fiat.....
They were never taught about money so its understandable that they have no idea who Mises was.
Yes, that is for sure!
WTI
Maybe we have seen THE low in WTI at this very moment.
(am not so sure) Will wait to buy my positions back. (fear vs. greed / safety first).
Where did the MMRI go?
Technical problems. GM will fix it asap.
It is immoral for the Federal Reserve to spend the currency of WE THE PEOPLE without our permission. Congress should abolish the Fed immediately. Greg M. could do a far better job and with greater morality!!!
WTI
"WTI crude futures shed more than 3% on Thursday morning.
China demand concerns are compounded by weak economic data coming out of the U.S. and the European Union.
Markets saw industrial and manufacturing output lag in the U.S. for October.
A day after the Energy Information Administration (EIA) released its inventory report showing a 3.59-million-barrel jump in U.S. crude oil stockpiles, oil prices are trading down well over 3%. At 10:39 a.m. on Thursday, Brent crude was trading down 3.18% at $78.60, pulling further from the $80 threshold. West Texas Intermediate (WTI) was trading down 3.43%, at $74.03, for a loss of $2.63 on the day. The EIA’s crude stockpile build was the highest since August. Data reports showing lower oil processing runs from Chinese refiners in October, month-on-month, have also reignited demand concerns, despite OPEC’s missive early this week that these concerns are overblown.
The market, for now, remains unconvinced on China, the world’s largest crude importer. China demand concerns are compounded by weak economic data coming out of the U.S. and the European Union. On Wednesday, the EU slashed eurozone growth forecasts for 2023 from 0.8% (forecast) in September to 0.6%.
At the same time, markets saw industrial and manufacturing output lag in the U.S. for October, with another hike in jobless claims, as well. So far, an announcement coming out of Washington that sanctions will again be tightened on Iran has done nothing to buoy prices, with an ING analyst saying in a note on Thursday that “while sanctions have remained in place, the U.S. has not enforced them strongly, which has allowed Iranian oil exports to grow this year”, Barron’s reported. Oil prices are now the lowest they have been since July this year, despite OPEC+ production cuts, which are now believed likely to extend into at least the first quarter of 2024, and perhaps the first half. Analysts now believe there are no conditions in place for Saudi Arabia to move to reverse its voluntary cuts. On November 26, OPEC+ will hold another ministerial meeting.
By Tom Kool for Oilprice.com
F.Y.I.
https://seasonalcharts.de/img/ENERGY-FUT/CRUDEOIL.GIF
US Treasuries are now sub prime.
The 10 year has been 4.49 (really 4.5) for a couple days now. And 4.5 is still high. We were shocked when it hit 4.5 a couple months ago, so this is not a bull market, and, no, the Fed is not buying it all. Only an idiot would jump into the casino now.
Thanks Greg!
Good stuff Greg. Thanks!
What we all have not been told is that oil is NOT a fossil fuel. The earth creates it. Water is the only item that is in more abundance. Energy should be almost free of cost. We have been ripped off for years.
Silver doing very well relative to DXY today, while other metals are flat to down vs. DXY.
Have you done a comparison of this for the asset class excluding the paper portions?
I needed to be more specific sorry. I was / am comparing ETFs of the various metals vs. DXY (and also vs. spot gold). It is for trading purposes.
Lets see how fast they empty the reverse repo facility.