I know what I'm about to say is no surprise to anyone at this point.
But the markets make absolutely no sense what so ever right now.
What's going on?
Why are the markets rocketing; Despite 40 million jobs lost, 10s of thousands of businesses closing their doors forever & riots breaking out in over 400 cities around the country...
Simple. $2.8 TRILLION dollars added to the FED's balance sheet and fractional reserve minimums now merely being recommended practice, as opposed to legally enforced.
What this really equates to is, as Jerome Powell best put it last month, "Unlimited money."
A thesis the markets now reflect to be the intended path of the Federal Reserve.
So go deep, as, in the premature words of Ray Dalio "Cash is trash!"
But not in securities, while securities will make you great short term returns, as the FED continues to inflate their values to maintain confidence in the market, every point the DOW rises is your dollar losing 1% of it's current value. Inflation just told Thanos 'hold my beer,' as the DOW/S&P values are no longer reflective of market health, but the devaluation of the US dollar.
What the FED is doing isn't a new concept, it's a behavior as old as time, and perhaps the best, most recent parallel I can draw to what we're seeing is the Souk Al-Manakh hyper bubble. The US stock market is now completely untethered from reality, and as such the FED has made it crystal clear that they've given up any hope of maintaining the dollar's stability or status as the global reserve currency going into the next 3-5 years. Instead, they will provide stability of value for those at the top who own the stock market so they can plan where to reallocate their value as the global FIAT experiment comes to it's climactic ending.
I had hoped (naively) that the FED would realize that by biting the bullet and allowing the markets to decline, they could preserve the dollar's hegemony for at least another decade, if not two. But it's clear they have different plans in mind. Perhaps this is why we've seen the "Digital Dollar" along with a universal basic income method of distribution, being continually reintroduced to the house ever since the first stimulus package. At this point I wouldn't be surprised to find greenbacks being burned to heat people's homes by Christmas as the country is forcefully transitioned onto a new, digital, dollar.
But the markets make absolutely no sense what so ever right now.
What's going on?
Why are the markets rocketing; Despite 40 million jobs lost, 10s of thousands of businesses closing their doors forever & riots breaking out in over 400 cities around the country...
Simple. $2.8 TRILLION dollars added to the FED's balance sheet and fractional reserve minimums now merely being recommended practice, as opposed to legally enforced.
What this really equates to is, as Jerome Powell best put it last month, "Unlimited money."
A thesis the markets now reflect to be the intended path of the Federal Reserve.
So go deep, as, in the premature words of Ray Dalio "Cash is trash!"
But not in securities, while securities will make you great short term returns, as the FED continues to inflate their values to maintain confidence in the market, every point the DOW rises is your dollar losing 1% of it's current value. Inflation just told Thanos 'hold my beer,' as the DOW/S&P values are no longer reflective of market health, but the devaluation of the US dollar.
What the FED is doing isn't a new concept, it's a behavior as old as time, and perhaps the best, most recent parallel I can draw to what we're seeing is the Souk Al-Manakh hyper bubble. The US stock market is now completely untethered from reality, and as such the FED has made it crystal clear that they've given up any hope of maintaining the dollar's stability or status as the global reserve currency going into the next 3-5 years. Instead, they will provide stability of value for those at the top who own the stock market so they can plan where to reallocate their value as the global FIAT experiment comes to it's climactic ending.
I had hoped (naively) that the FED would realize that by biting the bullet and allowing the markets to decline, they could preserve the dollar's hegemony for at least another decade, if not two. But it's clear they have different plans in mind. Perhaps this is why we've seen the "Digital Dollar" along with a universal basic income method of distribution, being continually reintroduced to the house ever since the first stimulus package. At this point I wouldn't be surprised to find greenbacks being burned to heat people's homes by Christmas as the country is forcefully transitioned onto a new, digital, dollar.