Hi readers
We have just had the FOMC meeting and what did we learn from it.
Geez I love how astrology never lies.
From not looking to increase rates until 2024 we are now looking at 2 increases in 2023 and this all occurred in what one month ? really nah complete bullshit, this started in February and as the inflation isn't transitory as you are told to believe, the fed now realizes that they have snookered themselves into a corner and the only way out is to raise rates.
The Repo market has been in reverse since March with more money in the system than collateral.
So banks basically hand the money bank into the fed and are being paid to do it instead of loaning the money out into the economy.
Fed has been slowly selling out of there corporate bonds they hold and while the market is holding it together they have been slowly tightening monetary policy.
What you have to understand readers is that once your are being paid $20 per hour to wash dishes there is no way you are going to accept $12 per hour down the track.
This is why its inflationary and not transitory which you are being told by media dumb asses who don't understand economics.
The one thing you need to look at is the must needs not the storage needs, that's when you know there is inflation.
By that we mean grains, oil, coffee,lumber and meats, these are the commodities that will tell you if there is inflation or not.
Please don't be foolish and think that metals are the indicators of inflation, they are not.
Example projects can be delayed if any metal is too high in price.
The above commodities are the must needs of human life and whatever the price it will be paid.
With the current drought in the US at the present time prices will continue to increase whether the FED likes it or not.
If the US cant meet there export requirements then export clients will look elsewhere and this inflationary issue will be exported to other countries also.
This is something the FED or any central bank can't stop, as this is the free market.
So lets assume that wheat increases to $1000 per tonne do you think the farmers in the US who have it are going to sell it at $650 as not to increase inflation.
This is why its not transitory inflation, inflation is running at 13% currently in the US but the bullshit number is around 5.%.
The question some are asking is it hyperinflation and the answer to that is no not yet.
Had the fed taped off the bond purchases in November 2020 they would still have bullets to fire at any potential threat.
Right now there a sitting duck just praying the market doesn't wake up to whats really going on.
As they will loose all credibility, but then again did they really have any.
The central banks who have also followed the FED are in the same boat so to speak and they run the risk of there bond markets running and forcing massive losses on those central bank purchases.
In regards to the stock market I'm sitting on the sidelines waiting, I have money and waiting for my discounts to come.
In regards to the Crypto Market I haven't bought anything as i see them way overpriced.
Happy to wait for the collapse, if the stock market falls there is no way the crypto market will stay up.
In regards to property, mum and dad banks are almost tapped out, property loans aren't being serviced and banks are starting to feel heat, as a I'm seeing property investors being told to either pay up the arrears or we will mortgagee sale on the property.
Its not as bad in other states as it is in Melbourne, a penthouse in south bank is on the market at $850KAU, owner bought it off the plan at $1.6 million AU.
Yep property market is pushing higher we are being told, total bullshit yet the media spin the so good story. Yes farming properties are red hot at the moment with $400,000 per acre in some areas but not in the central and inner suburbs of Melbourne, where property is sitting on agents books.
Be smart and wait discounts are coming
