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Thursday, November 16, 2023

Deflation evidence is showing up

 Hi readers 

We are seeing move evidence of deflation and while the US media keeps pumping the idea that the FED will cut rate this is all an illusion and I'll tell you why.

With the Fed there only active on the short end of the market the long end of the bond market is demand driven. Right now know one wants to purchase US debt as its starting to become toxic. 

We are also starting to see all the easy money which was handed out to corporations to keep them afloat and buy the crap stock back are all struggling to raise money. Yes even Nivdia which issued billion in bonds to buy there own stock back in 2021 mature in December. They have offered bonds to the market at 5.25% with no interest being shown.

What's this is demonstrating is that the FED has no choice but to keep rates where they are or even raise them. as cutting them will only ignite inflation.

Money is going to cost while assets will depreciate. How is this going to take place you might ask, very simple Employment. Your job you have right now is your only security, you either making your repayments or you putting food on the table. We are just seeing small uptick in the jobless claims in the US and the market and media believe the FED will cut rates. The FED is officially paralyzed by the bond market, they no longer have the ability to sway long term rates with comments or talk.

In Australia we are still a good 9 months behind the FED and need to raise rates further as if it wasn't for China buy Australian resources Australia would be an Argentina Economy. Rates in Australia need to be above the US just to become attractive to international investors. Its why you are see the government slowly cut project funding to states and there is more coming. The fact that the government runs to China to make sure China allows students and wealthy people come to migrate in Australia is embarrassing to say the least. Reason they doing that is to salvage the property industry/market. If it wasn't for the affluent Chinese coming to buy property in Australia, property would already be down by 35%. The fact are the Chinese knows exactly where Australia stands should push come to shovel so China is and they should look after there own interests.

To the American readers Australia has been doing what your Gavin Newsome is doing. Because the Chinese President is coming to town San Francisco is being cleaned up of all the rubbish and shit on the streets, and yes his admitted it when asked by the media.

The world is being lead by fools at the present time regardless where you are from there all talking the same stupid language, sacrifice your own people to protect the few, and the media will sell it.

What shits me is why is it ok for foreigners to own your countries land but you can't own there's?

The banking sector is fully reliant on Chinese migration to keep there profitability going. 

Australian banks are the most profitable banks in the world readers and that's only because its a cartel. They all meet up and inform one another of there intentions, take it in turns who has rates lower than the other 3 and move money amongst themselves. Government is told what they are allowed to say or do with them and that's it. Any politician who even thinks about policing the banks will face a full blown recession the like the world hasn't seen. Banks simply stop lending for a month and everything in this little country called Australia goes to shit. So who runs the country readers, that's right banks do and we allowed them too because we are all greedy.




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