I have uploaded a January 6th market Update. Click here to go to the show archives page to listen or you can listen on the link below.
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–Ben Bernanke met with Hank Paulson and Tim Geithner yesterday to discuss the economy and financial system. He is surprised the markets are holding up this well and that comparisons with last decade are seriously misguided. I agree.
-Mortgage rates around the world are dropping. Denmark’s home buyers will soon borrow at 1.5%.Japanese buyers borrow at less than 1%. Germany’s rate for a 30-year is just over 2%.
-The next move for US mortgage rates is down; perhaps eventually taking out the old lows over the next few years. GET READY!
–Some smart money is building build to rent single-family housing. People cannot manage their debt-slave lives and will occupy these residences.
-The central banks are desperate to raise rates and unwind their balance sheets to have ammo for the next downturn. They will fall short and will have to resort to unconventional policy (<0% rates and bigger balance sheets)
–Ray Dalio has an agenda and it is to appease the ChiCom government, so he can deploy his billions into sweetheart ChiCom deals.
-Ray Dalio is like Tokyo Rose, but the alt-financial media, which is desperate to see the destruction of the Anglo-American establishment and NWO, pick up on his shilling to perpetuate its poverty echo chamber.
-We used last month’s IMF data to state the case that the dollar is not going anywhere for the indefinite future.
-We may be surprised that the stock markets may hold up better than the alt-financial is contemplating. When I see the alt-financial media proclaiming Dow 3,000 and that NFLX is worth $0, I think we may bottom sooner rather than later.
-The tens of trillions in new sovereign bonds that were issued this past decade are being used as monetary equivalents and leverageable assets to buy up all sorts of assets. Those with the collateral will do the buying. These bonds can help the nations to issue more debt. This outstanding debt is highly deflationary as it must be serviced and paid back, thus creating a sucking force out of the economy.
-Asset prices will continue to rise and all this social spending will just crowd out private investment and further impoverish the average person. These people will cry out to government for help, which will only further tighten the poverty shackles.