Have ALL leading members of the Federal Reserve system lost their flipp’in minds? Just three weeks after former Federal Reserve Chairwoman Janet Yellen suggested the Fed should buy stocks, Boston Fed President Eric Rosengren this week also suggested that the Fed should buy “a broader range of assets” such as corporate bonds, and YES, STOCKS! So let me get this straight: The Fed’s irresponsibility creates a big fat massive credit market problem, but they want to instead fix to the stock market???
Money talks, and Wall Street had gotten used to getting its way. Now along comes a little tiny coronavirus flu bug, and it has brought Wall Street banks, hedge funds, and the world economy to their knees!
When founded in 1914, the Federal Reserve’s sole purpose was to ensure the dollar maintains a stable value. Since 1914 the dollar has lost 98% of its value, and since 1971 when President Nixon ended gold backing for the dollar, it has lost over 85% of its value. In the next few years, as the Fed prints and adds TRILLIONs to the currency supply, the dollar will likely lose 100% of its value! THE FED HAS FAILED ITS MISSION and should be ended effective immediately!
A central bank’s answer to EVERYTHING is to print more currency! We should all know this by now. Stocks drop? Print currency! Impeachment? Print more currency! AIG fails? Bail ’em out with trillions in printed currency!
Now we face a coronavirus flu pandemic, and we are learning that the proper prescription is…..drum roll please…… print more currency. Yup! The Federal Reserve along with other central banks believe they can cure a bad flu bug by adding more currency to the money supply!
The Dow Jones Industrial Average fell by over 600 points Friday, and is primed for a substantially larger and prolonged bear market, perhaps taking the Dow down by over 50% in the next 2 years. The news media is blaming the coronavirus pandemic, but there is much more to this market panic than 15,000 people out of a world population of 8 billion getting a bad flu!
In the past month, I have learned of two cases where LARGE banks (US Bank, and Bank of America), have refused to honor legitimate checking account (demand deposit) withdrawal requests for a larger amount of cash! Let me begin by pointing out…..THIS IS FRAUD!!! I have encouraged the harmed depositors to reach out to the local 9-News station, and publicize what they experienced. Here are their stories as related to me.
Where do I buy gold? Is it better to buy coins, or bars? What about collector coins? I am often asked these questions, and will attempt to summarize the various options you have when it comes to storing wealth in bullion. Please note, this is NOT investment advice and is intended as education only.
The Federal Reserve, along with other central banks around the world, are recklessly bringing the world economy to the edge of an abyss from which there will be no graceful exit.
The zero, and negative, interest rate policy they have instituted is blowing up financial asset bubbles like none ever seen in our lifetimes! Just as when an avalanche is permitted to excessively build up on a hillside, when the disaster happens, the communities in its path will be decimated!
War in the Middle East? Possibly nuclear war? Not a big deal. Just keep buying stocks! Impeachment? Nothing to see here! It’s just politics as usual. Longest bull market and economic expansion in history? Don’t worry, the Fed has our backs. They won’t let it fall. 2nd highest valuations EVER on the S&P 500 index? Just keep shoveling your hard earned paycheck into those 401(k)s! Buy for the long haul! The credit markets at FIVE THOUSAND year highs (aka: interest rates at 5000 year lows, even going negative)? It’s okay. It’ll work itself out over time. You gotta jump on this while it lasts!
I typically try to avoid the sensitive political commentary minefields, and prefer instead to focus on financial ideas where I can add value. But today’s rhetoric by the Bolshevik terrorists who occupy the US House of Representatives has finally pushed me over the edge!