A response to a subscriber; Will the Fed and PTB crash the markets with Biden as President?

Chris, do you think the Fed will let the market crash with Biden as president? Most Democrats I know believe that Democrats are better for the stock market, which is true historically (we know that the Fed, not politicians, largely controls the market, but the public doesn’t).

I don’t think the Fed would have ever let the market crash while Obama was president — he was scripted as the “non-white savior.” I get the impression that Biden is being scripted by the SoS as “incompetent.” But I also know that a lot of Democrats actually like Biden and associate him with Obama.

According to the script, Trump “interfered” with the Fed in 2018 and then experienced a vicious bear market a few years later. Biden, on the other hand, is praising the Fed’s independence and trusting them to do the right thing. I could see Biden being rewarded for trusting and promoting the SoS.

https://apnews.com/article/biden-jerome-powell-government-and-politics-economy-2b9295779a17e425d0d8da6f0f82176e

Carlos

Here is my response:

I doubt it. Much of what Powell says is designed to allow the markets to take care of the problems themselves and the premise of the article you forward is there for public consumption. While the Fed and the PTB did crash the markets during the latter end of Trump’s presidency, which allowed Biden to be “elected,” I doubt we’ll see the same as long as Biden/Harris is President.

I do observe how this inflation problem has appeared during the earliest parts of Biden’s first term and not on the latter end. I estimate that much of the inflationary issues will iron themselves out before Biden runs for reelection. He can claim victory.

The managers at the Fed need to keep the government in business; that’s its most important objective. All the other ostensible objectives are for public consumption. Thus, interest rates, at least real ones, need to stay low. The FED is concerned about inflation to the extent that it allows the Fed to continue to fund government operations. The FED is trying to guide the markets accordingly and to perhaps assuage inflationary concerns to the extent that people regain confidence in its monetary policies.

I think Biden is doing a terrific job for his handlers and so much of the Great Reset objectives are on track to being achieved under his guidance, or lack of, and have to believe that they hope he gets in for another four years. Imagine if Biden dies and Harris becomes president. She’s the least talented hack that I could possibly imagine, but with her black skin, so much can be achieved through shaming of the white folk.

Why do the prices of income-generating assets outperform under Democrat presidencies?

And I agree with you on your assessment regarding the performance of the stock market; it performs better under Democratic presidencies. Whether or not this is intentionally engineered, is up for debate. But one thing to me is clear and this is counterintuitive; the average citizen who was either born or already living here previously are more adversely impacted by Democratic policies than those of Republican-controlled regimes.

As for me, I prefer Democratic presidencies as I own income-generating assets. Income-generating assets always perform well under Democrat socialist largesse, which is why the stocks markets tend to outperform under Democratic-controlled regimes.

As a conservative citizen, I eschew the Democratic party (not a fan of the Republicans either), but as a landlord and investor, I prefer Democratic presidencies. The top 10% make more money and can more quickly consolidate their wealth.

I marvel at how the blue-states voters and minorities refuse to see this. Nonetheless, the more the media portray Republicans as neo-Nazis, the wealthier the top 10% become at the expense of the bottom 90%.

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14 thoughts on “A response to a subscriber; Will the Fed and PTB crash the markets with Biden as President?

  1. I was asked if the US could default on its debt.

    Here’s the answer. The USG has already effectively defaulted on about 10% of its debt in the past 18 months from inflation. UST owners got stuck with the bill.

  2. We know the force majeure is getting close when Canada moves to ban handguns and the synagogue of Satan is engineering more staged shootings for maximum death.

    The synagogue of Satan is working feverishly to get our guns before its Japheth golem of the Soviet Union and CCP invades the United States and the West.

  3. Jobless claims come in lower and expected. Productivity still disappointing and unit labor costs much higher than estimated.

    Unit labor cost of 12.6% year over year. Productivity down 7.3%, which is actually better than the -7.5% predicted.

    I have recommended a number of shipping stocks over the past two to three weeks and all of them doing well. I especially like GASS, is it ships natural gas liquefied.

  4. I have no way to determine whether or not my diet, supplements, and exercise prevent diseases and cancer, but three of four sisters have had or currently have cancer. Both parents died from cancer. I skate by with no problems.

    I still do not need any glasses though my whole family has always needed them.

    All four sisters take Synthroid. My mom had thyroid cancer. I have a normally functioning thyroid.

    I come from a shallow gene pool from a health standpoint. I skate by with no issues. Haven’t been to a doctor for any health issue in almost 20 years. I don’t know what it’s like to struggle with health issues and I thank God almighty for my easy life.

    Okay. One thing I consume everyday for cancer prevention; 15-20 bitter apricot kernels a day. Boy, can they be bitter, but what we hear about them being toxic is another bullshit lie. The s of S makes sure you stay in their system. I have been taken them for years now. Perhaps off and on for over a decade. I now buy a 2lb. bag at least every couple months.

    I guarantee my friend will eventually die from her cancer, yet she will never want to listen to anything I have to say.

    You want to be self-sovereign? I do, and that’s why I do what I do regarding my health.

    F the doctors who are no longer there to heal you. Pray to God and he will show you what you need to do to stay out of the doctors office.

    Life is so much easier with health and happiness! When I look at other 56 year-old people they look like they are already half dead. I just skate by, but it takes a lot of upfront work to learn first.

    God bless and Jesus saves.

    1. Appleseeds have the same or similar chemicals in them. I gobble them up. I looked into B17 years ago when an acquaintances sister used apricot seeds to successfully treat treat a cancer. Glad to hear of your experience with them.

      1. Indeed. I eat the entire apple. The core is the most nutritious part for the reason you state.

    2. Stress is also a determine factor – you’re living your life the way you want to, on your terms. You don’t have an employer micromanaging you. This could be the difference. I think I am healthier now then when I was working full time – I have time to exercise, sleep, make healthy meals.

      1. Great point. I just don’t have the stress anymore. No job with the testimony of Jesus in my heart….

        Stocks looking like they want to pop some more.

  5. Looks like another sell on the rallies phase to stocks is here. With oil doing what it’s doing, I don’t know how stocks can rise.

    More Democrat objectives to “free” us from “fossil” fuels. The young indoctrinated dunces are green and think expensive gas is the answer to force us into electric cars. Where is the electric made?

  6. ‘Inept and incompetent’ American voters want to DITCH Biden and ‘wish Trump had won’

    https://www.express.co.uk/news/politics/1619547/joe-biden-us-president-donald-trump-voters-2020-elections-white-house-poll-news-1619547

    According to the poll of 1,500 likely voters for the Washington DC based Democracy Institute, 54 percent said they would prefer Trump to be President now compared to a woeful 43 percent for Biden. It comes as Biden is mired in an economic crisis and has been accused of “a failure of leadership” which is seeing Americans turn their backs on Ukraine.

    According to the Democracy Institute/Express US monthly US tracker poll, almost three-quarters of the country (73 percent), believe America is heading in the wrong direction under Biden.

    He has not been helped by a national shortage of baby formula, even though he has ordered emergency supplies with 61 percent blaming him for the crisis.

    A depressed US electorate also appears to expect the worst under Biden’s leadership, with 63 percent expecting the US to enter a recession.

    Inflation, economy and jobs are all the top issues of concern for Americans according to the findings.

    The poll says that six in 10 Americans think Biden has handled the economy poorly.

    And more than half of Americans (54 percent) are unhappy with Biden’s record as President and believe he is incompetent.

    In contrast, the door appears to be open for a Trump return after the controversial 2020 election in which he and his supporters claim the Democrats cheated in.

    Almost two-thirds (65 percent) don’t believe Biden will secure a second term in 2024. When matched against Trump, the former President comes out on top by 48 percent to 43 percent.

    Trump also beats the most likely Democrat candidates with Hilary Clinton repeating her 2016 loss by 47 percent to 41 percent according to the poll and Vice President Kamala Harris losing by a crushing 48 percent to 37 percent.

  7. Residential real estate definitely seems like the best asset to have right now. Dividend stocks are also holding up, for the most part. The market is rewarding income-generating assets, as you’ve been saying. Real estate gives you both an income and a protection against inflation.

    The media and the Fed have been yammering about inflation for the last few months, which as we all know is too late. The causes of inflation (war, China lockdowns, “covid”) are beyond the Fed’s control, but the Fed is feigning ignorance by acting as if rate hikes and QT are the solution. But here’s the thing: The Fed is right that these policies will help with the “inflation,” but they will do it by making Americans much worse off, due to crushing their wealth. So “inflation” will be cured by making Americans too poor to afford anything. That is not what is best for the people, and the Fed knows it. They are suddenly acting as if their “2% inflation mandate” is sacrosanct. They are about to force a cure that is worse than the disease.

    I also read about how the Fed was “blinded” by high gas prices during the lead up to the 2008 crisis. Inflation was perceived to be high, which is why the Fed failed to loosen rates and help the banks. I see a very similar setup here — the Fed embarks on aggressive tightening due to being “blinded” again by gas prices and commodity prices, which are supply issues. Then the system collapses again, because the underlying weakness is ignored. I’m already seeing warnings about liquidity problems. Coinbase could be the next Lehman.

    As a real estate owner, this is probably just noise to you. You’ll be fine. Worst case is a 20% drawdown. But those of us who have been funneled into growth stocks by media encouragement and performance-chasing have a lot to be worried about.


    1. (My responses are indented and in bold)

    Just a few questions/observations:

    Could this recent shake up in the crypto world be the result of people cashing in to buy real estate or other real and/or perhaps income generating assets? I have to believe BC was created as a tool for the Chinese to get their money out of the country. The MSM is heavy on the real estate down turn news right about the time crypto isn’t performing well, or even getting outright bashed in the press. The steep ramp up of property may be too steep for the investors so they need to take it down a few clicks?

      Investment real estate is experiencing a bonanza for those who are landlords. Residential real estate; tails you win/heads you win. Thank you Democrat policies. Not being partisan, but the party policies are done “ironically.” Democrat voters get hosed, yet are too “smart” to know it. I wouldn’t think too hard about the creation of bitcoin. Look at the explosive growth in M2 and now price inflation. Without the crypto idiots bidding up the cryptos, gold would be perhaps as high as double its current price. Sure, btc and the alts provide laundering capabilities, but that’s small potatoes when compared to the size of some of the asset classes.

    Those who legitimately qualify to buy over priced houses are likely making far too much money than they are worth. I can’t help to wonder if this is hiding something. Add covid and the work from home master plan and you have a fine recipe for 100% price increases in the housing market.

      Trees don’t grow to the sky, and housing is due for a change of direction from a price point. So what? My rents are spiralling higher. Even in my condos, rents are up 35% over the past 5 years. That’s excellent growth. There should be a shakeout and I am sure there will be, but landlords are raking in the cash flow. Wow! what a sector housing has been. Democrat policies have really helped me as rental supply has been and continues to be restricted.

    Are the big tech companies still running on low cost loans? Is this why they can throw money around like it’s candy? If and when the low cost money flow is shut off will we see massive layoffs and more foreclosed properties? Are we being set up for another massive residential property buyout from the likes of Blackstone?

      3-4% money with 8% CPI means cheap money. Low real cost of capital. This is why talk of recession seems to be so important with many analysts. Will earnings continue slowing? The investors know the IRRs and cap rates of SFRs and continue to pour money into the sector.

      How to create a perfect storm that benefits the big investor firms: Create a situation that the general public realizes as an incredible investment opportunity. Example: I read that Home Depot would be a hardware store rather than a major force in the stock market if it wasn’t for the $250 / $500K exemption turning everyone into house flippers. Then in perfect timing, we have house flipping shows all over TV.

        I have been saying this since 2016 on my blog and shortwave show. The $250k/500k cap gains exclusion on owner occupied housing created a whole new industry. HD and LOW would be mid-level firms without this exclusion. Since RE provides its holders with manifold benefits, with tax benefits being a HUGE one that the alt-finance dummies fail to recognize, the people became a nation of house flippers. Previous tax code pre-1998 did not motivate seller to sell for top dollar. That changed under the 1997 TRA, phased in for 1998. Notice how SF housing implied cap rates began dropping and the bubble to housing started forming in 1998, and went parabolic after 9/11.

        Now the institutions have finally caught on to all this and the sector is ripe for a complete institutionalization. The homeowners and landlords will be forced out or will cash out, but will never be able to afford their housing EVER AGAIN! If your mortgage is 3-4% for a conforming 30-year amortization, DO NOT SELL! That mortgage is cheap money financing. The media are there to shake the tree and get you out of housing.

      So to that point, BC became a money laundering tool after 08 to con mostly the alt right out of their dollars. The alt right is also fed news from Zero Hedge how the dollar is going to collapse, etc… so invest in this new thing to get around the Fed. People running up crypto value only benefits those who will cash out. BC is a clever and legal way of stealing other people’s dollars?

        Bitcoin was created as a “track-and-trace-indoctrination” substitute for gold. Created just as M2 and money stock measures went parabolic in the QE world, its primary objective was to create a completely new asset class to leverage and use to build all the asset booms, while knocking down gold a bunch of notches. Gold is a much more effective anonymous laundering tool than cryptos, but the media, news, and shows like Breaking Bad show evil cash or cryptos as laundering tools. BTC is better for overseas laundering as it can evade national jurisdictions. Perhaps s of S bribe people with it.

        The plebes allow their wealth to be stolen, and have been educated through their social proof on the news, social media, and TV to freely choose to make the worst financial choices. I see it all day long. Dumb and dumber making important financial decisions. Don’t think too hard as to why we now have btc.

      I can go on but perhaps you get my point.

    1. https://www.opindia.com/2022/05/sweden-immigration-integration-immigrants-prime-minister-violence/

      All those past few decades of Europeans mocking the United States for our gun violence is coming back home to roost.

      The adversary brought in an influx of open border immigration into the USA. Nuclear family units are good, but in open doors you don’t know whose coming in. And through indoctrination took out the fear of God in the youth. The Europeans are now experiencing that same melting pot plus the indoctrination of the “do what we please lifestyle, because tomorrow we die.” This is why mocking is never good. Perhaps if they prayed for the United States instead of mocked they would had avoided this. I don’t know.

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