It is extremely rare that I get to use the word “guarantee” in my business. However, I am very comfortable using that word when saying that I “guarantee” you and I- and pretty much everyone outside of the “club” have NO IDEA what the Fed and other central banks are up to. This is true probably going back to 1913 when the Fed was established but with the way things are happening these days it is glaringly obvious that there is something going on that has the authorities spooked- at least.
Dr. Mark Skidmore uncovered $21 trillion missing from HUD and the Defense Department from 2000-2015. The government’s answer- change the accounting rules to hide any future adjustments and make this information a national security issue so FOIA (Freedom of Information Act) requests can be denied. Hey- it’s all fixed!
Does anyone think this started in 2000 and ended in 2015? How many other federal agencies are there that this may have also happened in?
I went to the Federal Reserve’s website to try and figure out just what is happening now. All I could find out is that the REPO operations are in full bloom and are running between $60 billion to over $100 billion per day. We also know that they are buying $60 billion per month of treasury bills. According to research done by Money GPS the Fed’s balance sheet is growing faster than during QE3. This makes sense when you look at the Fed’s own website and the REPOs and Reverse REPOs don’t seem to add up. Their site seems to say that the REPOs are the Fed buying the asset for a day (or in some cases 2 weeks) and the reverse REPOs are when they are bought back. In looking at last week’s data it appears to me that FAR more was bought by the Fed than was repurchased. At least from Monday to Thursday (Nov. 18-21) REPOS are listed at $311.83 billion and reverse REPOs are listed at $79.8 billion for 4 days. It appears that $232 billion is unaccounted for. Could it be that the banks are not able to buy some back the next day as planned?
Interest rates are obviously being held artificially low by those who can conjure up “money” out of nowhere and manage bond prices higher and rates lower by buying assets that nobody who had to work for the money would ever buy. Like Greek or other southern European debt that is yielding less that US Treasuries in most cases even though these countries are far inferior if looking at default risk. Heck, even some corporate debt is trading with a NEGATIVE yield. That, along with even sovereign debt has never had a negative yield- until now!
Not only is the Fed cranking it up but also the ECB, the Bank of Japan, the Chinese Central bank and the rest. The numbers are truly staggering and it appears we are headed for a blow-off top that may mark the end of an era.
While this may sound concerning it just may be the best thing that could happen.
Right now, there are hardly any assets that sport a fair (willing buyer and willing seller setting the price) price. All assets are being manipulated so that the imbalances have grown so wide that only a massive revaluation- likely in an instant- will fix it.
The many, who will likely be totally unprepared because of the 24/7 propaganda that “all is great” times will be tough for a while but there will be a recovery- as there always is. Those who prepare will likely be able to take advantage of the price carnage and buy assets that they can’t imagine owning today. For others, they may have to wait for the authorities to pick up the pieces and start over.
My guess is that this is being done on purpose to usher in a new system of crypto currencies issued by central banks which will allow the authorities to track, tax and monitor all commerce. It will also allow for the authorities to determine who can buy and sell based upon a social credit score (like in China) or some other means of controlling the masses.
Again, that might sound Orwellian but all of the facts seem to point in this direction.
On the bright side many could have their physical wealth destroyed. Having said that they will hopefully still have their health. They will also hopefully still have their senses and come to realize that there are FAR more important things than “money” and stuff. Things like friendships. Things like community. Things like family and good hard work which benefits not only the individual but society. We just may get back to what originally made this country great. It was the character of the people. We have obviously lost our character particularly in the last 50 years or so. We went from rugged free- thinkers to a bunch of mind-numbed serfs in a matter of a generation. This had to be done on purpose.
If we had any character as a nation the Fed and other central banks could NEVER have gotten away with what they have done particularly in the past 10 years which I believe will go down in history as the time with the most ridiculous financial ideas ever conceived being tried even though anyone with a brain should have seen the folly of unlimited “money” printing, financial engineering and “experts” determining winners and losers rather than letting free markets do the job.
I am not aware of one central planning episode that worked out long-term but could give hundreds of examples where they have failed miserably.
Having said all of this I am very thankful that I am aware that while money is important there are many things far more important that those in charge can’t take away.
This is particularly true if you are prepared for what may be coming our way. They can’t take away your character, they can’t take away your friendships and they can’t take away your relationship with your maker- whatever that might mean to you.