How does one be proud of something they’ve done or said, without looking boastful? It’s not easy, because it will usually appear that you’re patting yourself on the back to get attention.
Well, I want attention. Not for being right, but for alerting people to what the hell is going on out there.
I had this conversation the other day with a good friend. He’s tried to tell people about what’s really going on with things… from the jabs, to the banking system to the WEF, to CBDC’s and most don’t want to hear it.
Trust me I know. Ask me how I know.
So, when Powell started hiking rates, I said over and over “this is not to fight inflation, he’s hiking rates into a shaky economy to crush the middle class, cause things to break, consolidate power”
And I’ve been right. Bravo, good job and all that crap. My point is that like so many things I’ve stated over the past 30 years, some/most of it seems insane to the “normal” people. For instance when I write these articles, I often amuse myself by asking myself how many people are going to roll their eyes, call me a nut and simply discard what I’ve said. Usually it’s a lot.
So, Powell hiked and hiked, going from 0 to 5% faster than any hike schedule in modern history. His cover was inflation, which is horsecrap. That’s the excuse for his hiking rampage, not the reason. The reason was just shown to you in living color this week.
Central bankers aren’t stupid they’re simply evil. They knew damn well that keeping rates artificially suppressed for over a decade would cause trouble down the road. They also know that jacking rates as fast and high as they have would cause duration instability in many banks, especially smaller regional banks. Yet they did it.
Now banks are blowing up. Why? Because when rates were zero, banks would have no choice but to buy long dated bonds, just to get a lousy 1.5%. But when they got pushed to 5%, the bonds on their books went down mark to market. ( Bond yield and price are inversely related. Thus, as the price goes up, the yield decreases, and vice versa. This relationship exists because the bond's coupon rate is fixed, which requires the price in secondary markets to change to align with prevailing interest rates in the market.)
How does one be proud of something they’ve done or said, without looking boastful? It’s not easy, because it will usually appear that you’re patting yourself on the back to get attention.
Well, I want attention. Not for being right, but for alerting people to what the hell is going on out there.
I had this conversation the other day with a good friend. He’s tried to tell people about what’s really going on with things… from the jabs, to the banking system to the WEF, to CBDC’s and most don’t want to hear it.
Trust me I know. Ask me how I know.
So, when Powell started hiking rates, I said over and over “this is not to fight inflation, he’s hiking rates into a shaky economy to crush the middle class, cause things to break, consolidate power”
And I’ve been right. Bravo, good job and all that crap. My point is that like so many things I’ve stated over the past 30 years, some/most of it seems insane to the “normal” people. For instance when I write these articles, I often amuse myself by asking myself how many people are going to roll their eyes, call me a nut and simply discard what I’ve said. Usually it’s a lot.
So, Powell hiked and hiked, going from 0 to 5% faster than any hike schedule in modern history. His cover was inflation, which is horsecrap. That’s the excuse for his hiking rampage, not the reason. The reason was just shown to you in living color this week.
Central bankers aren’t stupid they’re simply evil. They knew damn well that keeping rates artificially suppressed for over a decade would cause trouble down the road. They also know that jacking rates as fast and high as they have would cause duration instability in many banks, especially smaller regional banks. Yet they did it.
Now banks are blowing up. Why? Because when rates were zero, banks would have no choice but to buy long dated bonds, just to get a lousy 1.5%. But when they got pushed to 5%, the bonds on their books went down mark to market. ( Bond yield and price are inversely related. Thus, as the price goes up, the yield decreases, and vice versa. This relationship exists because the bond's coupon rate is fixed, which requires the price in secondary markets to change to align with prevailing interest rates in the market.)
So they’ve got tons of these bonds that are worth “less” than originally, and worse, Depositors are leaving in droves, to go get treasuries, notes and bills from uncle Sam paying 4.5%. Thus many are in duration inversion trouble.
Well guess what? That is NOT by accident folks. The Fed knew this would happen. Yes if the bank was really nimble and smart, they’d have employed risk management to the situation but many didn’t. And what are the Bigger banks going to do about it? Swallow them.
This is a con. A scam. Again. But wait it gets better. Did you see how fast SVB investors got bailed out?? What’s up with that? Oh see, SVB was very “woke” they were hip to all the new age agenda’s. They donated to Black lives matter ( 72 million) and all sorts of LBGT programs. They took in billions from major millionaires. Do you think they’re going to let the “upper crust” of modern leftist society take a hit? NO WAY JOSE.
In fact, watch this incredible clip with Janet Yellen making excuses why ALL depositors in SVB will be made whole, while the Senator from Oklahoma’s banks will be left to fail. It’s 4 incredible minutes:
https://video.twimg.com/amplify_video/1636494618324860930/vid/888x494/VDT_kcPR8pK-qQ-O.mp4?tag=16
So there you have it. THEY decide which depositors over 250K get saved, and if your bank crumbles as people move to the mega banks, so be it. Well folks that’s the PLAN.
They want all smaller banks ground up and crushed, so that eventually there will only be 6 o 7 major banks and everyone’s in them. That way it will be much much easier to control us, and roll out their central bank digital currencies. Oh by the way, guess what’s coming in July?? The Fed’s NOW system. What’s that? It’s the prelude to the digital currencies. The test run. The tune up stage.
This from the Fed themselves:
The FedNow Service is a new instant payment service that the Federal Reserve Banks are developing to enable financial institutions of every size, and in every community across the U.S., to provide safe and efficient instant payment services in real time, around the clock, every day of the year. Through financial institutions participating in the FedNow Service, businesses and individuals will be able to send and receive instant payments conveniently, and recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments. Consistent with the Federal Reserve’s historical role of providing payment services alongside private-sector providers, the FedNow Service will provide choice in the market for clearing and settling instant payments as well as promote resiliency through redundancy. Financial institutions and their service providers will be able to use the service as a springboard to provide innovative instant payment services to customers.
And when do we get this abomination? Again from the Fed themselves:
CHICAGO – The Federal Reserve announced that the FedNow Service will start operating in July and provided details on preparations for launch.
The first week of April, the Federal Reserve will begin the formal certification of participants for launch of the service. Early adopters will complete a customer testing and certification program, informed by feedback from the FedNow Pilot Program, to prepare for sending live transactions through the system.
Certification encompasses a comprehensive testing curriculum with defined expectations for operational readiness and network experience. In June, the Federal Reserve and certified participants will conduct production validation activities to confirm readiness for the July launch.
"We couldn't be more excited about the forthcoming FedNow launch, which will enable every participating financial institution, the smallest to the largest and from all corners of the country, to offer a modern instant payment solution," said Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive. "With the launch drawing near, we urge financial institutions and their industry partners to move full steam ahead with preparations to join the FedNow Service."
Many early adopters have declared their intent to begin using the service in July, including a diverse mix of financial institutions of all sizes, the largest processors, and the U.S. Treasury.
In addition to preparing early adopters for the July launch, the Federal Reserve continues to engage a range of financial institutions and service providers to complete the testing and certification program and implement the service throughout 2023 and beyond. Montgomery noted that availability of the service is just the beginning, and growing the network of participating financial institutions will be key to increasing the availability of instant payments for consumers and businesses across the country.
The FedNow Service will launch with a robust set of core clearing and settlement functionality and value-added features. More features and enhancements will be added in future releases to continue supporting safety, resiliency and innovation in the industry as the FedNow network expands in the coming years
Are you getting all this? Crush little banks and Sheppard people into just a few monster banks. Get them all to use this processing system, which they’re hyping as the second coming of sliced bread. Then, once the most people are on board this thing, seeing how “cool” it is to make lightening fast payments, etc… they spring the trap. Now it’s no longer the NOW system, it’s full control, programmable Central Bank Digital Currency.
I don’t for a minute believe that almost full control of transactions is absent in this NOW system. If the bulk of all payments begin to go through this system, what’s to stop them from shutting off your payment to the local gun shop? Or they simply stop your direct deposit from your employer? Who do you call at the Fed to fix things??
This is Central bank digital currency “lite” folks. And it’s dangerous from many angles.
Which brings me around to the FOMC meeting Tuesday and Wednesday. The Street is begging Powell to stop rate hikes. Will he? I don’t think so.
He was tasked with hiking rates until something broke. Right now it’s a few banks with risky exposure to start ups, crypto, etc. I don’t think he’s going to be sympathetic. So, here’s my take.
He gives us a 25 basis point hike. But it’s really ALL about what he says. If he turns big time dovish, and says he’ willing to pause on more hikes, the market will go bananas higher. If however he gives us 25, and doesn’t mention pausing, only that they’re going to monitor the data…leaving open the door for more hikes in June, the market will roll over dead.
It's terribly small, but there’s even the “chance” that he holds tough and does 50. Don’t forget all these central banks are connected and the ECB just did a 50 hike Thursday. It would be a horror show in market land if he did that.
I say 25 and he only mentions pausing in the future if the data allows it. That’s my bet. Have a tremendous week all!