The Fed Is A “Pickle”

QUESTIONS:

  • Why do $13 trillion (or so) of sovereign bonds “pay” negative interest? Does this sound like a debt bubble in search of a pin?
  • Why were four tech companies (Amazon, Microsoft, Alphabet, and Apple) worth more than $1 trillion each in stock market capitalization? Bubble valuations?

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  • Why is real estate so expensive in some locations that most people can’t afford it? Prices will come down.

What reset is necessary to restore balance, integrity, and healthy investments to our markets?

  1. Honest money that can’t be created by the banking cartel.
  2. Balanced budgets for governments.
  3. Focus on manufacturing, not financialization.
  4. Focus on real money, not debt and fake fiat currency units.
  5. Will any of the above happen? Probably not.

From Alasdair Macleod: “Coronavirus and credit – a perfect storm.”

“This article posits that the spread of the coronavirus coincides with the downturn in the global credit cycle, with potentially catastrophic results.”

From Ron Paul:

“The Fed’s counterfeiting has created the biggest economic bubble in history. A severe economic crisis will be the inevitable result. Indications from Fed Chairman Powell are that more QE will be on the way. Can an increase in the disease succeed in being the cure?”

From David Rosenberg:

This turbocharged debt cycle will end miserably – it’s just a matter of when.

From Sherrod Brown at Senate Banking Committee

“Chairman Powell, you and your highly capable staff at the Fed have been proactive and creative in protecting Wall Street and the money markets from this President’s erratic behavior. And I’m glad you have. We’re all appreciative of that. But what I hope to hear from you today is how you’re going to be proactive and use that same level of creativity to make the economy work for everybody else.”

From Sven Henrich:

“11 years after the financial crisis there is no path to balance sheet normalization, there is no path for rate hikes, there is only the path of more intervention to disproportionally benefit the same people that have benefited for the past 11 years.

“Permanent intervention. That’s their answer. That’s intellectual bankruptcy and exposes central bank policy to be an empty suit.”

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Disclosure: None. 

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