State-Sponsored Deflation: No V-Shaped Recovery For You!

by birtanpublished on September 17, 2020

Getting right to the main page I'm gonna skip the prices of the gold and silver IOUs and I'll tell you why I call them IOUs later on in the video man I want to focus on all of these the stories on the main page because everything on here today is very

Worth reading Fed's balance sheet the other exponential curve the Fed will soon monetize the entire fiscal stimulus package global debt Jubilee no v-shaped recovery is coming why the Fed will nationalize everything US consumer

Prices post largest drop in five years deflationary another u.s. wide housing slump is coming deflationary Ray Dalio predicts a coronavirus depression deflationary Robert Shiller pandemic of fear could tip the economy into a

Depression watch episode 6 and 7 of hidden secrets of money especially episode 7 it's all about the psychology of the markets and how psychology controls velocity of currency which controls prices in the short term this

Is these are all very good to read but I want to focus on no v-shape recovery is coming and why the Fed will nationalize everything and this article has some quotes from a Bank of America economist and in the article the Bank of America

Says economies will reopen to a greatly diminished demand environment with high savings rates and very low discretionary spending again if you haven't watched episode 7 of hidden secrets of money here it is

Hi saving rates slowing the velocity of currency and very low discretionary spending meaning it'll be very hard for it to get going again for the economy to come out of its dip this argues for a u-shaped recovery so a long persistent

Bottom and a persistent large output gap in our view so instead of a v-shaped recovery you know the administration and a lot of pundits are saying oh you know this is gonna be horrible in the short term but

It'll bottom and then we'll bounce right out of this and it'll be this great economy again it'll be this great recovery baloney this is going to last you know it would probably last for a couple of years if the Fed would just

Stay out of it but what's going to happen is the feds going to get into it and it's going to last for decades the next potential step in our view is to take a page out of the Bank of Japan's playbook and implement yield

Curve control first of all Bank of Japan has proven that Keynesian economics does not work and things like you know central control of an economy has always been deadly it just does not work and Bank of America is saying here that they

Should implement yield curve control what is the yield curve first of all the yield is the yield on bonds and to to manipulate the yield on bonds either they have to buy or sell them changing the price on bonds when they're when the

Fed buys a bunch of them the price goes up and the yield goes down if the Fed sells a bunch of them the price goes down and the yield goes up and the yield curve is the interest rate that you're getting paid on the various maturities

Of bonds there's like a three month and a one-year and a five two year five year seven-year 10-year 20-year 30-year and it's supposed to get higher and higher the the interest rate is supposed to go higher and higher the further out in the

Future the longer the maturity of this bond if you're loaning your currency to the central bank for 30 years you should get paid more for them borrowing your currency because of the risk that you're taking so that's the yield curve when

They influence this yield curve it upsets a whole bunch of things because the yield curve is one of the few leading indicators of the economy this is the bond vigilantes they call them bond investors are very

Sensitive to what they think is going to happen in the future because they're loaning their currency for long periods of time to the government if suddenly the three-month Treasury goes up much higher than the 10-year trevor treasury

They're seeing a problem in the economy rather soon and they're scared to loan their currency for three months and they want more interest for it than they are for ten years this so they see something happening and then a recovery in the

Economy so they're charging more for their currency if all so if the yield curve inverts like that they see something coming soon in the economy but this is like a a crash warning system in your car it happens before the accident

Before the collision and the Fed now wants to control this now another thing about that about yields if they all go up then bond investors are expecting inflation if all of the yields on the different maturities fall

They're expecting deflation so it can tell us also what's going to happen over the long term in an economy so it's a very important leading indicator all of the other indicators that we've got are trailing indicators and what the Fed

Wants to do if they do yield curve control is control all of that so that they're going to turn this one of the only leading indicators that we have into a trailing indicator so there's nothing looking toward the future

Anymore what b.fa did not mention is that the yield curve can is that yield curve control would terminally crush any forward-looking function of the bond market which is the earliest warning

Indicator indicator of inflationary or deflationary forces across the economy with which is the earliest warning indicator that we have basically that means that with the yield curve frozen inflationary imbalances will build up

Beneath the surface and there will be no way to either observe them or respond to them besides ass price hyperinflation and soaring prices gold prices of course it is only a matter of time before the US capital

Markets get to a point where no economic or fundamental signals are reflected in risk assets risk as says there's two risk assets basically sovereign bonds and the best bond is considered the US Treasuries

So sovereign bonds and gold those are the risk assets that's really it and so if they take price discovery away from the bond market and freeze interest rates at some level there is no signaling of what is going to happen in

The future except for the price of gold and that'll you know that'll take just a little bit longer but you know it's going to come back with a vengeance resulting in a market with quotes I'm going to turn

Those into air quotes resulting in a market because it's not a real market anymore that is if not nationalized then centrally planned by the whims of a small group of Fed career economists

Most of whom have never held a private-sector job and have zero real world experience this just drives me crazy I just hate this that these people control everything and they haven't had no real-world experience how does such

Ubiquitous central planning end look no further than the USSR for the answer now I'd like you to go and watch a video it's very very entertaining you're going to love this series it's from 1992 it was produced by the BBC and it's called

Pandora's box we'll put a link in the description below the video and the very first episode shows how the soviet union was a centrally planned economy and this was the most scientific experiment in it was both socially centrally planned and

Economically centrally planned but they had thousands and thousands probably ten tens of thousands of economists deterent setting the prices of everything the myriad of prices in the economy determining what should

Happen with production numbers and and you know all of the different variables in an economy and you know how it ended I mean it collapsed it does not work this central planning there are perverse unintended consequences such as you'll

See in here one of the measurements of how well the economy is doing is how much cardboard is being produced because if you're producing a lot of cardboard you must be packaging a lot of items another measurement is how many rail

Miles are happening how so they measure how how many miles trains are covering one of the perverse consequences in this and it's an entertaining look you've got to watch this thing one of the perverse consequences was that there were train

Loads of cardboard just going around the country taking a tour of the country over and over again so they could have good results for their numbers this is one of the things that happens when you've got segregated departments of

People planning things and making things happen instead of allowing the free market to work on the radar I want to thank bullion star they are a retail dealer of precious metals in Singapore and they are one of the other precious

Metals dealers that come up with a lot of information about monetary history and what's going on in the world and you know a whole bunch of different things with economics they provide information Comex secures secrecy agreement with the

Commodities futures and trading commission under the Freedom of Information Act not to release details to the public of its market maker program for the new 400 ounce gold bar futures contract hatched with the London

Bullion market Association because disclosure would likely cause competitive harm to the Comex program begins tomorrow April 13th well that's today taking a look at a few of these things the commodity commodities

Exchange the Comex or exchange hereby notifies so they're just tell the commodities futures and trading commission which controls the Comex there so this is like a bank customer telling the bank how it's going to be

Run there they're nearby notifying the commodities and Futures Trading Commission of plans to implement the gold enhanced delivery futures market maker program enhanced delivery these things always mean exactly the opposite

Of what what they their title is and so this means no delivery most likely futures market maker program the proposed program will become effective today disclosure would likely cause competitive harm competitive who's the

Competitor on the commodities exchange well that would be the London bullion market Association and they're working with them this is like a joint venture the other competitors might be Shanghai exchange and the Hong Kong exchange but

That's minor competition the main competitor to Comex is the LBMA and this is a joint venture between them basically and so it's it would it might cause harm to their other competitors which would be me

Its retail bullion stores that sell real gold and silver that you can buy because what they're going to sell you is gold and silver that you can't actually take delivery of that's most likely why this thing exists notwithstanding this this

Presumption of confidentiality the confidential information in appendix a still would be considered confidential because it is information that Comex would not have disclosed to the public about so this is about the trading that

You're doing if you're dealing in futures contracts and this is what sets this fictitious price of gold and silver the price of gold and silver IOUs and basically this is most likely some scheme to make it an IOU nothing and its

Disclosure with substantial harm to the competitive position of Comex so the competitive position against whom well probably dealers like me that actually want to sell you physical gold and silver so

That you can protect yourself appendix a confidential treatment requested additional supplemental information redacted so they've hidden it from the commodities and Futures Trading

Commission which controls the commodities exchange this is an insane world chart of the day the first quarter performance of the major asset classes so crude oil commodities real estate the Dow Jones Industrial Average silver

Which means silver is undervalued compared to gold S&P 500 and it will catch up in in my opinion I don't give financial advice but I have bet my life on it SP 500 the Nasdaq and then here you have gold and the only thing that's

Outperformed gold is the 10-year Treasury bond and this is short-term I've said this before in the I said that it'll be a two-stage crash and that in the first stage bonds will be the short-term beneficiary and the dollar

And that is exactly exactly what's happening I want to welcome the three thousand five hundred and thirteen new subscribers and just remember hit that thumbs up button and share these videos on Facebook and Twitter thank you very

Much if you do viewer feedback this is from Friday's video should we be bailing out the billionaires ken McCormick says bailing out those deemed too big to fail or now they call them too essential to fail only creates more male investment

The continuation of being reckless knowing that a safety net is always there moreover these cronies instantly receive their federal credits while Main Street has to fight for crumbs thank you so much this is so true but you know

What this is also fraud and theft when they do this what they're doing is diluting the currency supply to create this new currency that real has no purchasing power in it until it is spent into circulation and at that

Very moment it steals purchasing power from all of the other currency that exists that's how it gets its purchasing power it's empty until it enters circulation once stolen that purchasing power is transferred to whoever gets to

Spend it first so when they bail out these institutions and stuff they're stealing wealth from you and I you're the one paying for it not the Fed not the Treasury you so on the weekend we took down a video that we had originally

Posted in 2014 at the height of QE and put in this video of helicopter van Ben the video was posted in January of 2014 and it only got twenty four thousand twenty thousand views something like that and it was a great video and it

Really predicted a lot of what was going to happen in the future and a Diane does a she's a composer and musician and lyricist and she pre sent this tune to us and she did a masterful job and then Dan Rubik my producer director just

Found all of the right images and made this beautiful video that sort of predicted the future we took it down because it only had twenty thousand dollars twenty thousand views and those views when you take him down you lose

Them so it hurts the channel but then reposted it and right now it's got over fifty thousand views so I want to thank you very much if you haven't seen it go and watch it and in the link in the information below the video in the

Description there's a link to Diane's website or Facebook page or whatever and you are hurt I'm sorry her video channel and you can go and watch it and there and watch some of her other videos and maybe subscribe to her channel it would

Be a nice gift because last week her birthday was on last weekend so go and give Diane a birthday gift by giving her some views Peter duck krill he authored a book titled the courage to act Greg hunter

Retitled it the courage to print well you know what printing requires some actual work if you've ever been in a print house those guys do work typing doesn't take much work at all and to quote one of the

Viewers that commented last week sometime the difference between one and one trillion is twelve keystrokes christy they're gonna make a movie about this era and it's going to be it's going to almost seem unbelievable you know

What there will be historians will write about this era and they're going to say what were they thinking because I'm already saying it it's just totally insane Heinrich Clausen thanks beautiful voice

Great brains and able to write real lyrics subscribed so I guess he subscribed to her channel and thank you very much I suggest everybody else follow that link under the description below and we'll have a link below this

Video for the BBC series Pandora's box please go and watch that video episode one quote of the day remember get my book it's free now Marx wrote the communist manifesto and there are ten planks of communism and the fifth plank

Of communism is the centralization of credit by means of a National Bank with an exclusive monopoly we went down this road we made it legal in 1913 and in November of 1914 we went down this road when the Federal Reserve opened its

Doors for business thank you very much for watching we'll see you next time

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