Another clue to the upcoming bloodbath – Outgoing Fed Chair, Janet Yellen, questions asset bubbles

First, we had Bonesman and US Treasury Secretary, Steve Mnuchin talking down the US dollar. Then we had Alan Greenspan, the former USFed Chair who deftly guided last decade’s well-scripted collapse, talking of asset bubbles. Now, we can add Janet Yellen to the lengthening list of puppets who are carrying out their scripted talking points to accelerate this growing manufactured “crisis” timeline.

According to Bloomberg;

Outgoing Federal Reserve Chair Janet Yellen said U.S. stocks and commercial real estate prices are elevated but stopped short of saying those markets are in a bubble.

Commercial real estate prices are now “quite high relative to rents,” Yellen said. “Now, is that a bubble or is it too high? And there it’s very hard to tell. But it is a source of some concern that asset valuations are so high.”

“Well, I don’t want to say too high. But I do want to say high,” Yellen said on CBS’s “Sunday Morning” in an interview recorded Friday as she prepared to leave the central bank. “Price-earnings ratios are near the high end of their historical ranges.”

Bloomberg – Yellen Says Prices `High’ for Stocks, Commercial Real Estate (02/04/2018)

Recall what I have been saying for the past several weeks; the US government and the US Fed desperately need to establish another aggressive round of quantitative easing. The US Treasury will issue more than $1 trillion in new Treasuries in 2018 and there is not enough global demand to soak up all this new issuance.

This is where the genesis of the upcoming manufactured crisis appears. As the US Fed raises rates it is damaging the dollar in the foreign exchange markets. This is driving up Treasury yields. This, in turn is beginning to severely impact ALL asset markets.

Mortgage rates in the US are now at about 4.5%. House prices cannot afford rising rates. My concern is that the private equity firms that invested in single family rentals will have to unload en masse to cough up cash for their leveraged positions. Anyone with cash and unleveraged assets will be able to come in and buy up residential properties very cheaply. The process will happen fast, but the damage will linger for years.

I have been saying for the past couple weeks that nothing will be safe in this upcoming manufactured crisis. Friday’s price and market action was a quick lesson for those looking for safe havens in this upcoming manufactured calamity. The Fed will come in as our hero, but the blood needs to flow.

Everything sold off on Friday. Gold sold off and silver got destroyed. The miners fell hard. Oil producers got laid waste. Stocks were manhandled. Bonds of all kinds were pummeled. the crypto market was destroyed. Once I saw Yellen’s interview this morning, I sold all my trading positions in my cryptocurrency portfolios.

I already warned my readers and subscribers two weeks ago to sell all stocks. I had been holding stocks on a short-term basis, but after Mr. Mnuchin talked down the dollar, I liquidated all my equities.

What makes this upcoming crisis unprecedented is that bonds will not get the usual support, unlike the previous “crises.” It will be the bond sell-off that will provide the catalyst for the Fed to appear with the solution.

Politics don’t matter here. If you are caught up supporting Trump or Hillary, I feel sorry for you. You are looking in the wrong direction. If you have been a Martin Armstrong fan, good luck to you. he has not been genuine. He is compromised and his advice has been costly.

Cash is the only asset we can count on right now. Do not speculate in currencies. There are no free markets and the whims of the central bankers can lay waste to your balance sheet. Stick to the currencies you commonly transact with.

Recall a couple weeks ago when I pointed out that Ray Dalio of Bridgewater was joking that those in cash will get burned. I told you he was completely wrong.

I have saved myself so much money and grief over the past month or two, by staying disciplined and focused. I am trying to relay to you what is soon to come. I always stated that as long as US Treasuries and the US dollar remained firm the leveraged buyout of the world we discussed would continue. Unfortunately, we are looking at the next phase of the globalist’s plan. Please understand what is coming. It transcends politics and the stuffed shirts that Naomi Prins talks about. This is about something much bigger.

Regards,
Chris

February 3rd Update – Look for the clues to understand what our adversaries are planning

I have uploaded a new show podcast for February 3, 2018. Click here to go to the show archives page to listen or you can listen on the link below.  I have included links to relevant articles and media on the Show Archives page.  The latest show is on the top of the page.

-Look at the numerology in the markets to see the globalist calling cards. The March 2009 (3/6/2009) low in the S&P 500 was 666. Yesterday’s drop in the Dow Jones was 666 (665.75).
-Another clue… Yellen’s last action on the job was to severely penalize Wells Fargo. This problem had been brewing for over a year, but the USFed chose to act yesterday.
-Yesterday was Yellen’s last day on the job. Powell will be the Fed Chair during this manufactured crisis. Yesterday’s stock drop was not a coincidence.
-The USFed desperately needs to institute another round of QE. The globalists have to manufacture another crisis to get this objective met.
-The USFed is in charge of policing the banks in the banking system. It could have easily forced the banks and broker/dealers last decade to discontinue underwriting all those exotic mortgages, but it chose to do nothing. In fact, before last decade’s RE collapse, Bernanke and Greenspan both said that these loans were not severely impacting the RE market.
-30-year mortgage rates are now at 4.5%. This has already begun to unwind real estate. The data and numbers just haven’t shown it yet.
-Naomi Prins writes an article that has received a lot of traction in the alt-media. The problem is that she redirects the reader to focus on the stuffed shirts and the “men of Trump.” She says that Trump now owns the Fed. Obviously, the owners of the Fed own Trump.
-Trump will get the blame. Naomi Prins will look prescient, although she got it wrong. Notice that Prins appears on Russia Today (RT), the globalist-controlled Tokyo Rose of alt-media. She is the perfect useful dummy for the globalists.
-Oil and metals are rising, but the shares of the prospectors and miners are falling. Their cost of capital and input costs are rising as well.
-I still stand by my research behind bitcoin. If bitcoin never had its blow-off top and prices were currently at this level we would all be talking about bitcoin as the wave of the future. I still think it has a strong future.
-The people shorting bitcoin are most likely miners. It costs, on average, $6,000 to mine a bitcoin. If I were a miner of size I would short on price rises and arbitrage for risk-free profit.
-If I were a venture capitalist and had $100 million to invest in blockchain, I would not buy $100 million in crypto. I would start my own pump-and-dump altcoin.

February 1st Show – Globalist trash-talk and USFed policy are undermining the confidence in the US dollar and US Treasuries

I have uploaded a new show podcast for February 1, 2018. Click here to go to the show archives page to listen or you can listen on the link below.  I have included links to relevant articles and media on the Show Archives page.  The latest show is on the top of the page.

-The table is being set. Last week, Bonesman, Steve Mnuchin, welcomed a weaker dollar. Every time he opens his mouth he damns it with faint praise.
-Today, Alan Greenspan says the stock and bond markets are bubbles. He says bonds are more concerning than stocks. I agree.
-Will the USFed cause the next real estate downturn?
-As long as the central banks are on the bid buying stocks they should continue to levitate. But, are they up to something? Will it last?
-According to game theory, it is easier navigating the financial markets when we know our adversaries. The USFed and the globalists, who control the media, are working against us and the nation-state. If we know their modus operandi and understand their objectives, we can invest successfully.
-Their goal is to appear as our heroes; providing solutions to the problems they cause.
-The controlled press like Bloomberg and CNBC are saying the USFed policies will strengthen the dollar. I say the opposite. They are all working to fool us and to create the upcoming manufactured crisis.
-As always and by definition, most will be on the wrong side of the equation and will lose a lot of money.
-The Trump regime will get the blame.

Regards,
Chris

Are we being set up? The USFed is intentionally causing the dollar to collapse

I came across this article from CNBC this morning titled, [t]he dollar is doing something it hasn’t done since 1987. It states that the US dollar is having its worst January since 1987. We know what happened in 1987.

When the crash happened I was in my senior year burying my nose in Econometrics, Game Theory, and Corporate Finance textbooks; but vividly recall listening to WINS news in NYC as they detailed the carnage.

Notice how the CNBC article ends;

A bullish catalyst coming?
This week, we kick off the first Federal Reserve meeting of the year. While the odds of an interest rate hike are low, most analysts see three rate hikes this year, with the first expected in March. As rising rates tend to strengthen the dollar’s relative value, we may be about to see some strength return.

If you listened to my podcasts and read my notes from the past week, you would know that I think this is the worst course of action the Fed can undertake. It will lead to the opposite result.

It specifically mentions US Treasury Secretary and Skull & Bonesmen, Steve Mnuchin’s comments about the weakening dollar. It conflates the Trump regime with the weak dollar.

This is why I say we are being set up.

It is important to keep in mind that it won’t be the weak dollar that causes any catastrophe; rather, the weak dollar will be the result of the flawed policies that caused the dollar to weaken. Moreover, the Trump regime will get the blame. When the catastrophe occurs, the controlled press will comb the wreckage and blame the “America First” policies of the Trump regime. They will say we need to think globally.

Recall from what I have stated in the past. The US dollar rises in anticipation of any rate increases. The three rate increases proposed by members of the USFed are already baked in the cake. I bet that if the USFed said they were done raising rates the USD would rally.

Is today’s price action a dry run?

I am looking at my trading screen this morning and all I see is a sea of red ink. Nothing is being spared – not even the cryptos. The only thing trading up is the 10-year US Treasury yield.

At least gold and silver are flat. Stocks are down across the board, but the GDX is down.

The private equity firms that invest in single-family real estate will be OK. Obama made sure that their debt was insured by Fannie-Mae.

Regards,
Chris

 

January 28th Update; A melting US dollar will be the catalyst for the next rinse and repeat cycle

I have uploaded a new show podcast for January 28, 2018. Click here to go to the show archives page to listen or you can listen on the link below.  I have included links to relevant articles on the Show Archives page.  The latest show is on the top of the page.

Please look at the .pdf file of my accompanying notes.

-A detailed analysis of what I think will be the catalyst for the next financial crisis.
-Trump will most likely get the blame and the crisis will occur during his presidency. He will be the fall guy for the fallout from the depreciating dollar.
-I base this on the behavior of the parties involved [The US Fed and US Treasury Secretary (and Skull & Bonesman), Steve Mnuchin]
-Cryptocurrencies may continue to move higher, but the amateurish and disingenuous actions of the crypto gurus are leaving a bad taste in the institutional investor’s mouth.
-Be aware of the crypto shilling. It is similar to the gold shilling, except it is not as sophisticated.

January 26th Update – US Treasury Secretary and Skull & Bonesman, Steve Mnuchin, following script to blow up US dollar and US bonds

I have uploaded a new show podcast for January 26, 2018. Click here to go to the show archives page to listen or you can listen on the link below.  I have included links to relevant articles on the Show Archives page.  The latest show is on the top of the page.

-Skull & Bones member and US Treasury Secretary, Steve Mnuchin, “stuck” his foot in his mouth by saying he desired a weaker dollar. He tried to back track a day later, but only looked more foolish.
-We discussed this already; this is the last thing the US needs, as all the other major central banks are executing QE programs.
-The raising of short-term rates in the US has been dollar destructive. He knows this and is only helping to fan the flames.
-Mnuchin is following the well-planned script to set up the next financial catastrophe. Add him to the lengthening list of the cast of characters who will help cause the next financial crisis.
-I know this script can seem convoluted and complex, but the trends seem to be establishing themselves more and more everyday.

Regards,
Chris

January 24th Show – The US Fed is being willfully ignorant; we are being set up… again

I have uploaded a new show podcast for January 24, 2018. Click here to go to the show archives page to listen or you can listen on the link below.  I have included links to relevant articles on the Show Archives page.  The latest show is on the top of the page.

-The USFed and other central banks got us to this point with all the QE and bond buying. Now they are “forgetting” all they did and are withdrawing the IV-drip.
-An in-depth analysis and commentary of how the US Fed is setting up the financial system for the next “catastrophe”
-Any shocks will, of course, be manufactured. Unfortunately, it will all be very real to you and me.

Regards,
Chris

January 21st Market Update – What will the USFed do going forward? QE4 is needed, but how will it happen?

I have uploaded a new show podcast for January 21, 2018. Click here to go to the show archives page to listen or you can listen on the link below.  I have included links to relevant articles on the Show Archives page.  The latest show is on the top of the page.

-Armstrong is wrong in saying the Chinese and Japanese are manipulating the dollar to please Trump.
-The Chinese and Japanese are selling Treasuries, because they are afraid of further losses. The USFed is raising rates, which have ironically hurt the dollar, because these higher rates are hurting the longer-dated Treasuries. It’s a self-feeding loop.
-The USFed will have to institute some sort of new QE program. USTreasury net issuance is set to double this year and there is not enough global demand to soak up all the new sovereign debt.
-Higher mortgage rates are beginning to impact home purchases.
-Don’t look for rental rates to drop. They will continue to rise as government intervention only makes rents increase. Real estate investors benefit the most from any government program designed to help the working-class renter.
-The Obama regime worked to obtain federal backing for private equity landlord debt. Both sides of the aisle are working against the common folk.
-With asset prices as high as they are getting out of debt, including mortgages, is the best course of action.
-Has gold topped out or will it go higher? I see more of the same.
-If you think the CBOE Bitcoin futures created increased volatility just wait until the CME futures expire this week.

Regards,
Chris

January 17th Update; Are we bullish on cryptocurrencies or the blockchain technology?

I have uploaded a new podcast update for January 17, 2018. Click here to go to the show archives page to listen or you can listen on the link below.  The latest show is on the top of the page. This is not the weekly show.

-Is this it for the cryptos?
-Being bullish on the blockchain technology does not mean being bullish on cryptocurrencies. Many busted out tech companies from the late 90’s provided the groundwork for building up the internet.
-This correction is different than previous ones as the composition of investors and traders are different. The crypto traders and investors are still wildly bullish.
-The futures market has completely changed the cryptos. Without futures contracts bitcoin could still be making all-time highs.
-The first futures contract expires today.
-I have noticed over the past couple months that the large multinational corporations and banks have been building up their blockchain patent portfolios and not including any conversation with the cryptocurrencies.
-Did the globalists allow the cryptos to run up, so they could get the computer programmers fascinated with the blockchain technology?

January 11th Show – Truth and Morality; Is Everything Relative? 

I have uploaded a new show podcast for January 11, 2018. Click here to go to the show archives page to listen or you can listen on the link below.  I have included links to relevant articles on the Show Archives page.  The latest show is on the top of the page.

Wednesday’s shortwave show (1/10) was a rebroadcast of last week’s show.

Regards,
Chris