Fed raises interest rate .75bps
- Thread starter BigJim#1-8
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How many under 50 Americans do you think have value for metal? I am not arguing the historic value of gold and silver here, or that they may have their day, again, but I am probing for actual relevance to young Americans today. They grew up with everything digital and electronic. It’s what they know. Cash is even foreign to them. They know Venmo and other electronic transfer mechanisms, and they are being taught that metals are a barbarous relic. So, when people like us are largely gone from the scene, then what? What’s your junk silver or gold stacks worth to someone who has no commonality in base valuation?
Makes more sense…
www.barrons.com
Stocks Slump as Fed Rally Fades
The market seems to have reconsidered its early optimism after the Federal Reserve signaled to Wall Street that it would remain aggressive this year in its campaign to cool historically high inflation.
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Makes more sense…
Stocks Slump as Fed Rally Fades
The market seems to have reconsidered its early optimism after the Federal Reserve signaled to Wall Street that it would remain aggressive this year in its campaign to cool historically high inflation.
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You should visit r/wall street silver. Lots of young pioneering stackers on Reddit.
I actually know lots of 30 something metals buyers. Most were buying crypto too. They are now leaning more towards metals.
Rob
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Brilliant call nostradumbass stocks are cratering.
'dial got him a stawker.....yo!
hes a kang!
hes a kang!
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It slows down the entire economy. Housing market is a huge sector. Auto loans. Obviously higher payments on credit cards affect discretionary spending on retail, dining, travel, etc.
But that's just the consumer credit side. A great many corporations borrow money to grow. And corporations employ a lot of people - we're starting to see layoffs in housing and tech sectors.
I don't have any clue whether 0.50, 0.75, 1% or 5% hike is the better move - all I know is that the effects are significant for the entire economy.
And, yeah, FJB.
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This is why I been saying cash is king. They have to pop this bubble in everything. As much as it hurts the economy right now, continuing to inflate everything would also hurt. It was at the point where the next generation couldn't buy a home. Lower prices across th board will eventually get people into the housing market that have been sitting the sidelines. If you have been buying at the top or failed to take money off the table at the top then I understand it's going to be painful. For now just stack cash, sit on the sidelines and wait until the inflation numbers return to normal. Normal is 2-3%. Powell cant back off until then. Will he have the balls to go high enough and really deflate everything? Will congress cut spending to pay the interest in the debt or will they raise taxes? Interesting questions soon to be answered.
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The US will have bombs.
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The bump was a result of the fed doing what was expected. It will continue to bottom out from here.
FED raises .75 bps, and pumps liquidity into the market for a bounce, and then today comes. Rude awakening, and I would have to guess that there will be more pain coming for quite a while.
Cash/gold is king, but I can see that the dollar is in a pickle, as well as our economy. Interest rates are going to go up and that is going to make the federal debt much more expensive. The dollar has been the reserve currency, that looks like it is coming to an end.
I do not see a way to kill inflation without killing the market, and at the same time killing our economy. People aren't going to hire into a slow down, and wages are not going to catch up to inflation, and costs of things are not going to contract, we are screwed whatever way we go. I don't think that the rest of the world will be doing much better.
Russia successfully protected their currency by jacking up interest rates, and it has come back stronger. Not sure what the Russian government deficit is, but I am sure it isn't near what we have.
Japan is printing money, China has bank runs, England is raising rates, this is shaping up to be a cluster f'ck where no one is safe.
Cash/gold is king, but I can see that the dollar is in a pickle, as well as our economy. Interest rates are going to go up and that is going to make the federal debt much more expensive. The dollar has been the reserve currency, that looks like it is coming to an end.
I do not see a way to kill inflation without killing the market, and at the same time killing our economy. People aren't going to hire into a slow down, and wages are not going to catch up to inflation, and costs of things are not going to contract, we are screwed whatever way we go. I don't think that the rest of the world will be doing much better.
Russia successfully protected their currency by jacking up interest rates, and it has come back stronger. Not sure what the Russian government deficit is, but I am sure it isn't near what we have.
Japan is printing money, China has bank runs, England is raising rates, this is shaping up to be a cluster f'ck where no one is safe.
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After the the peak of the 2006 RE bubble, housing values were cut in half by 2008. It's been a long and steady climb back up and beyond 2006 levels since then. With this recession being more severe than 2006, RE values will at least be slashed in half again but my guess is they will "reset" further.
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RE is not the same sort of bubble it was in 2008.
Yes, housing is expensive and unaffordable, but there just isn't that much supply to be dumped on the market.
Household debt is nowhere near 2008 levels.
You don't have all the crazy subprime loans. (yes, some). Haven't had a massive boom of first-time RE flippers leveraged beyond common sense.
Will RE cool off, yes. 2008 crash, no. The pain will be elsewhere.
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So materials should come down along with people looking for remodeling work.
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Right you were, down like a sinking ship
think it's started. lumber i heard is way down from the top
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Margin debt overlayed with S&P. Sadly we don't get FINRA margin data until 6 weeks after. May number coming in the next week or two.
Surely, it will show further deleveraging, but how much?
All the leverage from the covid "stonks only go up" bubble have been drained, back to peak of 2018 - but money supply is much higher.
In theory, one would want to trade the inverse of this chart. Buy aggressively on margin whenever FINRA is approaching or below zero and unwind leverage as it lifts off.
Surely, it will show further deleveraging, but how much?
All the leverage from the covid "stonks only go up" bubble have been drained, back to peak of 2018 - but money supply is much higher.
In theory, one would want to trade the inverse of this chart. Buy aggressively on margin whenever FINRA is approaching or below zero and unwind leverage as it lifts off.
Crypto (BTC) crashed from $70K --> $20K in two weeks. Why ?
Roosevelt confiscated gold. You think this Manchurian candidate won't pull the plug on Au in a minute ?
I have what I have. My focus today is to continue to SHTF stockpile as best I can , and fortify the home front against the starving metrosexuals, LGBQT+P crowd, MS13, BLM, and all other ill prepared progressives.
Avalon
The most courageous act is to think for yourself
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That's possible once people start rushing to metals. Will it matter though? Remember what some of us have always said. When metal go to the moon we might not like the world we are living in. Still aside from preps it may give our families a chance.
Rob is dial's alter ego.
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This has been predicted before. Can the USA pay the interest on its debts if the rates go up? Predictions said the country would reach a point where it could not...stay tuned this is gonna be good
Cant they just print the money to make the payments?
That would explain why they are never seen together.
Jim Rickards: His Gold Price Prediction Explained...($50,000+ IS POSSIBLE!!)
314,024 viewsDec 6, 2019
We are going to keep running into bull shit until we realize that creating money out of thin air has consequences.
The bankers, politicians, and lobbyists are milking us everyday folks who just want to make a living.
We are too busy fighting each other to do anything about it.
Some of us with good careers can maybe catch some crumbs but we are up against the house and their casino.
The bankers, politicians, and lobbyists are milking us everyday folks who just want to make a living.
We are too busy fighting each other to do anything about it.
Some of us with good careers can maybe catch some crumbs but we are up against the house and their casino.
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fixed it...
i was once told that i didn't build it, so, all i ask is, don't blame me when it comes off the rails
this all belongs to the Fed's decisions which included of all things the notation that it's "workers wages" that should be "reduced" to help stem the tide of inflation - Jerome spit that out into a microphone
....i can't make any sense of that ideology, but i know who to blame for Inflation and it has nothing to do with consumers or the prices they pay for goods and services...nor the workers who toil each day just to pay their vig
The fed holding almost a third of the govs debt will certainly help, as any debt held by the fed essentially becomes interest free for the gov.
Yes, absolutely!
....but doing so will exacerbate the problem.
As Greenspan told congress, (I'm paraphrasing) they can guarantee payments of any amount necessary, but cannot guarantee the purchasing power of those payments.
How come my wife never listens to me and I am usually right?
The politicians and bankers take their cuts and leave the crumbs for everybody else. Don't expect a rocket ship in metals, but a nice slow burn up is not out of the question.
WORSE THAN 2008. THEY ARE BURNING DOWN THE HOUSE -- JIM
WORSE THAN 2008. SO THEY ARE BURNING DOWN THE HOUSE -- Jim Wille
Crypto Assets are the future! Start your journey today! https://www.mydigitalmoney.com Jim Willie returns to SGT Report to discuss the state of the state, out of control inflation and the bankers' ugly plans for all of us. https://www.golden-ja…
Avalon
The most courageous act is to think for yourself
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Sr Midas Sup +++
GIM Hall Of Fame
I watched a Jim Willie interview the other night. I think he might be right about a lot but he seems stark raving mad these days.WORSE THAN 2008. THEY ARE BURNING DOWN THE HOUSE -- JIM
WORSE THAN 2008. SO THEY ARE BURNING DOWN THE HOUSE -- Jim Wille
Crypto Assets are the future! Start your journey today! https://www.mydigitalmoney.com Jim Willie returns to SGT Report to discuss the state of the state, out of control inflation and the bankers' ugly plans for all of us. https://www.golden-ja…www.bitchute.com