Hi readers
How good is this market, which one do you want crypto, commodity, stock or bond markets.
There all just want to give money to you.
We heard last week the puppet show of the Federal Reserve come out with bull shit about Disinflation?
What does the word disinflation really mean because I had no idea.
A TEMPORARY REDUCTION IN INFLATION . That's the true mean of disinflation. Doesn't mean its going down nor does it mean a permanent reduction.
So temporary can mean a month or 2, but its still there.
Market all when into orgy mode and started pushing higher yet inflation is push higher. Markets refused to listen until the PPI numbers came out and decided that yes inflation isn't going down yet.
First and only rule which you are taught in finance is don't fight the FED. As a bear I've have had plenty and as stubborn as I am have come out always second best. Now the bulls are fighting the Fed with every excuse under the sun and yet market are give the bears money for jam.
Again as I have said before and the stupidity of central banks is as follows, rates don't need to go up as long as commercial banks tighten lending standards. Central banks can hit the commercial banks financially if they don't comply but refused to. Therefore its all by design that rate will go higher and until they increase to the levels of inflation it's not coming down.
What people don't seem to understand is that inflation is far worse than rate hikes. I say that because rate hikes only affect those who have taken on debt, where as inflation affects everyone including pensioners who are unable to work and draw a higher income as Gen Z,Y or whatever.
So the fact that the Reserve bank of Australia is dragging there feet when raising rates is already increasing inflation in Australia with a lower dollar against USD. They are fully aware of it but are playing along with it to hopefully increase exports to China and Export there way out.
This strategy is delusional, as Australia now only exports food and minerals, everything else is imported which is passed on to the consumer which the consumer decreases there ability to purchase unless they take on further debt. Welcome to the cycle.
While many of you think that the Reserve Bank of Australia or the Federal Reserve work for the Governments of there countries this is NOT TRUE.
They are owned and run by the IMF who in turn is owned by the Rothchilds. Yes they are private enterprises who take orders on what to do by the WEF.
That's why people have been entrapped into Debt and now find themselves with negative equity in there homes and unable to play there mortgages. All the smart ass ticktokers who talk about property developments are either now in so much debt that banks are selling everything or they have lost 70% of there investments due to indebtedness.
Expect the government of Australia now to reduce the negative gearing on property to squeeze developers and then governments will spin the bull shit that they are helping out first home buyers by reducing property prices to help people buy there first home. The real reason will be that the government needs to pay the interest bill on the free money it was paying out during Covid.
In the next post I will look at astrological aspects which will affect stock markets 2023.
For now is obvious that the new generation of investors are pure gamblers, speculating in every market, and this will be there down fall. People are no longer creating things its a simple buy and sell mentality. Whether that's distribution, or property or stock market there is no creative mentality, instant gratification, which this year will be there destruction.
Our farmers world wide are getting old and yet there children aren't continuing the family businesses. Companies are no longer manufacturing in there own countries, and people are becoming lazy. Yes China has played the world by sweeping up all the manufacturing, but this will all change this year .
The US is the reserve currency of the world at the present time but this won't be the case moving forward, unless the US changes its approach to debt, I'm 70% sure that after 2025 it will be something else not the USD.
