Will the Cure be worse than the disease I'm
pretty certain it will
But in this bloomberg opinion article the feds cure risks being worse than the disease
Jim Bianco
says that an alphabet soup of new asset buying programs will essentially
Nationalize large swaths of the financial market and the consequences could be profound
This is from Bianco research and it's actually a fairly old article. I just ran across it
I don't know how I missed it. It was on our website, but I was reading an article
from the livid von Mises Institute
look Ludwig von Mises is considered the dean of the Austrian School of Economics and
They believe in free markets and a reasonably fixed currency supply like gold that the government or a man cannot manipulate
But this is sort of old and in the article jim says in just these past few weeks
The Fed has cut rates by 150 basis points to near zero and run through its entire
2008 crisis handbook
That wasn't enough to come markets though
so the central bank also announced 1 trillion a day in repurchase agreements, which we've discussed much earlier and
unlimited quantitative easing which we also
discussed which includes a
hard to understand
625 billion of bond buying a week
Going forward at this rate. This is what's been one of the things that's brilliant about the article
Jim was the on Jim Bianco was the only one to bother to do the math. Usually hi
I do things like this, but is there the article but I should have calculated this when I saw the program's come out
The Fed will own two thirds of the Treasury market in a year
What does that mean? Well, you take this, you know a Treasury is a claim on future
Taxation and say you're getting an income stream paid for by future taxes that we all have to pay
So that's what the Treasury is selling when they any sovereign government when they sell one of their buns
They're selling a stream of future
taxation and that's what you're buying the principal and the interest is paid for out of our taxes and
This is every year
So if you take the six hundred and twenty five billion of bond buying per week that the Fed is doing they get to counterfeit
612
fifty six hundred and twenty five billion dollars worth of
Currency into existence dollars every week
times 52 and this is the amount of taxes that every if you divide that into three hundred and thirty million people
We are all going to owe
ninety eight thousand four hundred and eighty four dollars and eighty five cents to
Pay the principal and the interest on those bonds that the Federal Reserve
But by counterfeiting six hundred and twenty five billion dollars into existence each week
The article goes on the Fed will finance a special purpose vehicle
Spbv for each acronym and here are the acronyms
These are each a separate program. Some of them are going to be special to special purpose vehicles and
This was as of the date of the article since then there have been more that have been added
These to conduct these operations the Treasury using the exchange
Stabilization Fund will make an equity
investment in each special purpose vehicle and
Be in a first loss position meaning the government. The Treasury will be guaranteeing these things
What does this mean in essence the Treasury not the Fed is buying all of these securities and backstopping of loans
The Fed is acting as banker and providing finance the Fed hired Blackrock Inc. Hmm. I've heard that name before
to purchase these securities and handle the
administration of the special-purpose vehicles on behalf of the owner the Treasury
in other words, the federal government is
nationalizing large swaths of the financial markets
The Fed is providing the money while its currency not money to do it
Blackrock will be doing all will be doing the trades in effect
The Fed is giving the Treasury access to its printing press
Fed chair on Powell needs to tread very carefully indeed to ensure his cure isn't
Worse than the disease and believe me it will be
So that was on the front page
I got to it through this article, but I want to show you this article here deflate very deflationary outcome has begun
blame the Fed and this is from
Mike mish shed luck and I've been following him for years. He's great. I love miss shed luck
So go and read this story asset bubbles will pop
outcome deflation whenever a central bank blows a particular
Portion of the economy the stock market or a real estate or whether it whatever
Into a bubble, it works the economy and distorts it and it's out of sync with the rest of the economy and the market
It's not the free market. We've got a manipulated market, but the market nonetheless
eventually overwhelms that manipulation and tries to put this back into balance and it snaps below and then you know, so
It will try to correct the imbalance that was created by the central banks. And if the if the
imbalance is
inflationary the inflation of one particular portion of the economy the
Rebalancing the inevitable correction is
deflationary and since we've got bubbles in
stocks
real estate and
Bonds, except the bond bubble
This is going to take these deflation zuv
the stocks and
Real estate are going to cause people to go to bonds so they will keep on going their bubble will go further and longer this
Is the two-stage crash that I've talked about?
The but the bond bubble is not gonna pop right away on the radar. This is John McAfee or
McAfee however, you want to say it
I'm not sure but John developed the antiviral software he ran for president and the libertarian ticket
Several years ago and then didn't pay taxes for several years
Fled as a fugitive fugitive on his yacht and now travels around the world and still broadcasts through YouTube
But anyway, he says
before kovat 19 our world economy was teetering on the verge of collapse and it was and I'm going to
Read to you in an upcoming
Special episode. I'm going to a special video. I'm going to read part
Of the almost everything bubble
Which comes from my book the great gold and silver rush of the 21st century?
it was teetering on the verge of collapse because of corrupt inept leadership, but
miraculously
Heroic ovid 19 happened and it is now responsible for the economic chaos created by our leaders
Response to it. So this is the the
Cure being worse than the disease and it isn't this disease
It's this disease up here that it was we were teetering on the edge
because that's because of central banking the way it's conducted and
They're going to act like they're saving the economy and it's only going to make things worse. What is happening now is the inevitable inevitable
collapse of the bubbles that were created by the Bernanke and then Yellen
so
It's it's very fortunate for all of these leaders
That this happened because now they get to blame it on this instead of the inept leadership
Thank you. John chart of the day. And this is from Ronnie Chevrolet
And Ronnie is a friend of mine from increment MA in Ag and they produce the in gold we trust report
gold in local currencies versus domestic stock indexes year-to-date performance in 2020 and
This is great because what he's done here is all of these major countries on the planet
This is their performance in gold measured in their currencies and this is the performance of their stock markets
So thank you very much Ronnie the the performance of gold once again in each
country's currency and
the performance of their stock markets gold is
Doing what it is supposed to do if you want leverage for gold what I do is I buy silver because it's going to provide
Big leverage to gold I believe one day. I want to welcome the thirty eight hundred and fifty seven new subscribers
Remember to hit that notification bell if YouTube
unsubscribes you or
Unnoticed go back and hit them again and then share these videos on Facebook and Twitter
This is very important get them out to as many people as you know, because the more people we can get prepared for this
The less bad things will be and what I really worry about is
when the majority votes for socialism
They are voting for this to become a permanent pit of economic despair behind the scenes
This is the Hollywood Bowl
You can see the Hollywood sign right up there and I used to take my company for outings. We do different things
I believe we did three or four outings at the Hollywood Bowl and so here's me and this is my company here
and
at least most of them some people can't make it sometimes and
We're watching. I think it's the 100th birthday celebration if he had lived that long for Frank Sinatra
you know, I discovered Sinatra in my late teens and
started going to his concerts and I saw Sinatra a dozen times from the mid 70s to
1992 was the last time I saw him he died in 1998, but I started to watch all the you know
I saw him a couple dozen times
and I started watch all the bands that he played with and I started getting all of his albums and
Some of these swing bands are just smoking hot and if you don't think so. You need to revisit your position
This is great stuff. I saw Ray Charles play the Hollywood Bowl
I saw Benny Goodman play The Hollywood Bowl before he died
You know
I used to go and see all these people and like Ray Charles
died a couple months after I saw him Count Basie died a couple of months after I saw him the last time
Sammy Davis jr. Somebody said you got a stuff going to concerts
Because like I was killing these people anyway great outing that's behind the scenes viewer feedback
How far will the markets drop?
This is from wing zero
And he says idiocracy was a warning not an instruction well
Thank you very much wing zero if you haven't seen idiocracy
Please try and run it or something. It's
Hilarious it is. Like I said, it's the smartest dumb movie ever made and it's it's sort of coming true
Shem J
Okay, you're smart and you're right. That's enough
Can you please give some examples to non millionaires what to do practically in financially?
To a quadruple question mark I don't need what happened
We all know about economic downturn. Well, you do need to know what happened
The reason that I was able to predict all of this is by studying monetary history
Seeing how things repeat and then studying things like Ben Bernanke's
2002 speech that laid all of this out and gave me the premise of my book
What they were going to do in a crisis was all laid out
Years before and when you complain you take that and a couple of with monetary history, you understand it. I
Can spit first of all so, you know, please don't shout
We're not going to respond to any more comments that are typed in all caps
but
You need to know what happened
and I
you're asking me to give you examples and give you a
economic advice or
Investment advice I don't give any investment advice
What I do is I tell people what I'm doing and guess what it's all in my book
Which I've been trying to give you and it would take me a couple of hours
To explain this here, and I just do not have the time. So please go and get a copy of my book. Its
1895 is the list price Sant Amazon still sells them
I don't know what price there has it. But basically what I want to do is give you $15
Let me give you it's you know
1895 if you buy it in an airport bookstore
But if you buy it off of Amazon, it's less. I don't know how much less
I'm not even going to try and say this
Watch Grand Tour on Amazon or top gear with Jeremy Clarkson, Richard Hammond and James May
You know what? I watched the entire
Original series all of the you know year after year. I just thought this was very entertaining and I am a car guy
I just love cars and
But there's really no redeeming value here other than your entertainment and
I'm looking for things that make me a better person. I'm looking for things that teach personal
integrity and
You know, I just
Am trying to find something there's this short where I can sit down watch dinner and and watch one
Episode of something and learn something and feel like I'm becoming a better person for it
from the day of reckoning and day of reckoning this was
We on the weekend
we released the final ten minutes of episode seven of hidden secrets of money and
Sam Scott says shout out to Mike Maloney this video finally got my dad who's a baby boomer to listen to me about this stuff?
Thank you, Sam Scott
I'm not going to
attempt this
Ten years. I was given a copy of your book as a Christmas present and
I want to thank whoever gave you the book. You know that I
Get in touch with them and thank them once one more time for giving you that as a Christmas present
It made perfect sense then and I paid attention to the lessons now in these turbulent times
I think I am as good I am in as good a place as possible. Thank you, Mike
Thank you for saying this because and I'm glad that you're in as good a place
Like I said, we've got to get as many people protected from what is going to happen
So that not everybody becomes poor because one day if the majority votes for socialism
Then we are all permanently locked in this pit of
deflationary despair
Jeffro
Several years ago hidden secrets of money episode four changed my life breasts persuade persuading me to prepare for what is happening today?
Thank you, Mike. Thank you. Jeff Roe
mosey Wales
Mike Maloney has contributed more to my economic education than four years of college and two years of graduate school, you know
There's college professors that have flown to events that I was at just to say tell me that they use this in their curriculum
You know, they're not allowed to make it officially a piece of their cricket curriculum because they have to teach
the
misguided
Keynesian
economics pablum that is
Part of this, but they're also getting their students to watch hidden secrets of money as part of their
their background and
When I first started doing these videos
The very first ones I was doing myself
There was a Ron Paul interview that I did and I pinned the microphone on Ron Paul
I'm the guy that set up the cameras and the lighting I did everything and
Cameron my the guy that does my news ran the sound and
we
interviewed Ron Paul, and I'd ask him a question and then just let him go and
one of the people said that
He learned more in for the the 45 minutes of that video than he had learned in economics
Then he had learned in the four years of college to get his degree in economics
And so thank you very much mozi
Music-maker
I'm a financial planner and you're one of my heroes
thank you music maker because most financial planners just follow a
formula and one day that formula turns out to be wrong and my family was a victim of it and it's what led our
Financial planner that was just following what he had been taught his formula
Lost a whole bunch of what my father had left my mother
which should have lasted her for the rest of her life and
He lost the vast majority of it
I took it over and I started studying the markets and everything and that's what left led me down this road
You taught me more about how the economy works than any of my lectures?
could I want to thank you so much for saying that and I want to thank you for being one of the
exceptions when it comes to financial planners because you've rounded things out by
Entertaining the concepts of what is considered the other side, you know?
Everybody's taught this Wall Street stuff wizard. You should bring back the beard you'd be the Gandalf of metals. Thank you very much wizard
I may just do that one day except it's going to be a beard of a different color
Meme of the day but first let me give you a copy of my book
And if you want these answers read it, it's all in there really and then the meme of the day
Don't steal the government hates
Competition and I'm absolutely sure this is Ron Paul in the background and this is his office
In tête is the this little town in Texas. I can't remember whether it was Clute or
But anyway, he is such a humble unassuming man
That and he has this little office. He doesn't care about Flash and fixtures
I think it even had green shag carpeting. I know it had walnut paneling from the 70s or 80s
but
He is just such a wonderful man. Thank you very much for watching. We'll see you next time
