Increase rates or the currency will suffer

 Hi Readers 

Markets are continuing to be volatile, 

We are starting to get a really clear picture of what occurs when the central banks don't match the reserve currency (US Dollar ) rate rises.

It doesn't matter how strong or weak there economy is money will move for a better rate of return.

Australia at the present time is one of those countries right now that is staring down the barrel of a currency attack. The official cash in the US is 4.75% and in Australia its at 3.35%. So why would you buy Australian bonds when you can buy US with a 1.4% better rate of return. This is the reason that funds are leaving Australia, and your seeing Our banks and the A$ being sold off. Australia has to attract money to come here and buy its bonds and the only way to do it is to raise the cash rate more than the US. So yes readers higher rate than many of you think are coming but there is another way to tackle this issue and that's for the government to cut debt/spending. Yes more suffering which annoys me as it can be avoided if people took responsibility for there actions and not worry about what will be written about them.

Also note that if it costs more due to the lower Australian dollar by business you can bet that they will be passing it on to the consumers. Yes inflationary.

We saw the other day the New Zealand Reserve Bank come out and hike rates again by 50bps, even tho they have just gone through a cyclone. 

So don't fooled by what Reserve Banks say around the world, they are fully aware of what they need to do and don't care what happens to anyone. Governments obey the Central Banks not the other way around as many people think.

Inflation increasing world wide

 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.

 

Non Farm Payrolls exposed clues moving forward.

 Hi Readers 

So the Fed only moved .25% on rates, and the market had an orgasm and exploded higher. We saw the dollar come down to the low 100.50 levels before the realization kicked it that the FED is fully aware that the US economy falling apart. So while the media is spinning out bullshit that the Fed is going to pivot the reality is that even if they want to they can't. Taking the interest rate route was wrong but now can't stop, as it will put a tailspin into wage rises.

This is the reason the all the central banks are now fixed on raising rates to stop wage rises. In real term at the current level peoples wages are similar to 2007 buying power. Yes we have lost a decade of wages growth and its the consumer who is feeling the pain, but as long as the media keep pressing that things are improving people are blaming themselves for the positions they are in. Who walks away free from the responsibility of easy lending, YEP the banks.

The one thing people need to understand is that mortgage's in the US are fixed at the level they are created where as in Australia they fluctuate with moves by the central bank.Therefore the impact is immediately affected where as in the US no one cares if rates go up as your rate of 2% is what it is for the life of the loan. Sure new rates have the new rate and people then start refinancing when rates come down, but little affect till then.   

Now Fridays Non Farm Payrolls have put a spanner in the works, yes we are now hearing that the FED is going to orchestrate a soft landing. Nothing can be further from the truth,  The economy is falling apart and while the jobs numbers are true or false the bottom line is that there are jobs out there, US employers are going to have to pay up. Its why so many companies aren't getting rid of people as they might need them, so there reducing there hours. Oh and the other crap your hearing about layoff's be very skeptical of it. why would you train staff 2 years and then sack them to save cost, just doesn't make sense, but until I find facts won't comment.

Dollar has bounced from Wednesday and you now need to understand that the playing field has changed. Fed has tried to assist overseas central banks with a weaker dollar, but inflation round two is coming and they are aware of it. Lumber, Copper and Sugar aren't falling in demand or price. So the move up on the dollar will hurt asset prices moving forward so just be aware of it.

The UkraineAmerican/Russian war is starting to seriously affect the world economy. The US needs to refill the strategic reserves, public sentiment is starting to turn on the US with 22,000 marine sending a letter to the joint chiefs that they will not fight against Russia should they be ordered and should the US send troops that they will make there own way to Russia and fight with the Russians against Ukraine.

GEOpolitical events will start to impact asset markets so take note.

We saw the dollar move slaughter Gold and silver prices some what and yes while there is a little more to go I'll be using it to buy moving forward.

To the Crypto traders becareful  a stronger dollar will dip bitcoin and Alt coins, so be on the look out for signs.

The Central banks around the world are going to have to increase rates quicker moving forward or else there currencies will devalue and inflation in there countries will continue to increase.Regardless of what they have said to the media moving forward not increasing will increase costs to the public.

As always use the above as an indicator to your own work.

The above is based on Financial Astrology 

Ask your financial advisor on more on the above

Fed is selling the Dollar

 Hi readers 

Market are behaving as expected. We see the stock market pushing up until end of the month and start of next month expect downward moves.

It's interesting to see that the debt celling has been reached and congress is doing the usual games of looking to score points.

Let me put it to you this way the current defense budget currently is the total amount of the US budget in 2004. Yet everything else has been cut. Makes you wonder, regardless who is in power.

Its official readers the Fed is selling the dollars to reignite inflation once more.

Don't understand why tho as the US can only just make the interest repayments on the debt, yet the capital is continuing to increase. More pain is coming readers and this time it will be very inflation/deflationary.

What do I mean by that, cost will rise and farmer/manufactures will hold out for price, refuse to pay it and they will cut production its as simple as that. Farmers won't carry losses as has been the case previously. Yes we will have a striking economy with a lower purchasing power. Those of you who are holding metals there might be a bumpy ride next 6 weeks but after that your in the box seat.I dont think silver will trade under $20 moving forward and gold under $1830.

Part 2 of the deflationary signs has popped its head so, I'm just waiting for the third and that will be the sign to load up on metals.

While many think the Fed will pivot, looking at the Fed's astrological birth chart it  looks as tho the Fed will hold there nerve and keep raise through 2023 but at smaller amounts.

Yes raising rates while the economy is slowing is something many under 50 years old haven't seen, but will be the case. Strikes for pay rises are coming world wide, the employment shortages we have seen have peaked and companies will start releasing people or cutting back there hours.

Those in retail will just chop and change product lines instead of discounting them. High price label designs are a thing of the past as people won't have the financial capacity to afford it.

I'm already told by people who run online businesses that people are wearing outfits and then sending them back 3 days later wanting refunds. The online businesses are going to go through a serious shake up.

To the crypto traders please be careful, yes bitcoin has increased by over 45% from the current lows but my astrology is showing more falls, and lower lows. Alt coins haven't increased as much across the board so just be very careful it just looks like a set up for a weekend dive, when it comes.

The above is based on financial astrology.

Use it as an indicator to your own reseach.

Ask your financial advisor on more on the above .

Retrogrades are over time to think clearly

 Hi readers 

We have gone through the retrogrades and have clear air ahead of us, where we can all make sound decisions on anything you choose.

During the retrogrades we saw rubbish that has been coming out of the media regarding inflation and that the FED will pivot as it won't need to move on rates.

Its very difficult to shut off the media crap that's hammered into everything you research.

I guess its why the most  successful traders do there own research and stick to there own methods.

The US is raising the Debt limit yet again, which will never be paid.

But as long as there is trust in the debt base system then it's on with the show.

Regardless of where you are the debt based system is continued to be pushed but this is now about to be turned on its head. the world has been lured into debt by buying assets, property, shares or goods. While the banks have insurance on all debt which is written, 

People don't understand contract law and as a result the media will convince the world that greed was the reason for defaults. That's far from the truth but the truth hurts so lets not go there.

Currently we are seeing professional money sell into the rallies in stock market while the media is convincing people that a new bull market has become.

The puppet traders from YouTube in the crypto market are all excited that Bitcoin has started a rally and while this is there belief it isn't mine. Yes Bitcoin has moved higher because of the lower US dollar but for how long until the dollar starts to rally once again.

Inflation since it was understood over 160 years has never gone away on the first attack, its always been reduced and then comes back with a vengeance. 

So just keep that in mind as things progress this year we will see inflation above recent highs.

The US is first taking the inflation hit then the world will feel it.China opening up won't slow it or keep it at bay as its a debt based inflation which is in bedded.

Again interest rates aren't the answer, but that's what we are all told to believe. As I said before if central banks increase bank reserves, commercial banks would be forced to be more strict with lending.

That would reduce the lending power by 40%, which will reduce everything in value. But why do that when you can just make people feel guilty and pay more interest for there houses or debt.

So the astrology is showing a couple more positive day and then the market will turn a head lower.

Market should bounce one more time in February and then March begins the time bomb period.   

As always use the above as an indicator to your own work.

The above is all based on Financial Astrology.

Ask your financial advisor on more on the above.

.

Looking back and forward 2022/23

 Hi Readers 

The markets haven't performed a expected over the year. Last year everyone was calling for 5000 on the S&P and yet it ended up dropping 1150 points. Inflation was running and was called transitory by the Bullshit media.

Interest rates where cheap and we got told they would stay there until 2024. How things have changed!

I can't release  predictions just yet that will come in a months time as professionals have paid for it.

So lets look at the Astrology moving forward, both Jan and Feb show weakness at the start of the months and strength at the end of the months. Its March that the trouble will start and wont stop.

Between March to August the potential for a crash is real. I expect it but there will be more of a sharp down move and then a stabilization and then a drift even lower.

We are seeing inflation growing, I say this because we have moves 3%  on rates and have only achieved a 1% move down on inflation, so as you all know rates don't work as I've stated, tighter lending standards do, but banks wont push that just yet, the bank still want to mop up the remaining smart asses who think they are rich I guess.

Right know you should be all preserving your money, and be ready to buy assets once the shit hits the fan. Property has already begun with agents having to work to get property sales, its no longer a sellers market and while many believe the bullshit there told agents are now being realistic on prices. Peoples buying power has decreased by 20% so the ability to pay and service loans now is being looked at with a fine tooth comb. Anything under a million you can get away with a few things but anything over a million dollars loan's are going through the hopes so to speak..

In the stock market you are seeing that the small cap spec stocks can't find money or buyers, this is very evident with the volumes your seeing. Large cap stocks still have the volume due to super funds and 401K buying. Its for this reason that small and mid cap stocks are bleeding in price while large caps are just down, not by much.

For those of you who don't know we are in a recession the definition doesn't change. By the time the authorities announce it what changes?  

Many of you are being swayed by people who have there own opinions of whats going on and that's fine. 

All I just want to say is that you must think for yourselves, the next 16 months will be the best buying time of your lives in every market, and if you think long term you wont see these prices ever again in your life time. 80% of the population world wide will close in and be slaves to banks while the other 20% will be buying distressed assets at fire sale prices. I say this because people haven't prepared themselves for higher rates, inflation and lower income.Those of you who have will have the ability to purchase assets at bargain prices because you have what the 80% don't have ? MONEY

The world has been educated buy the rich MF that cash is trash ! well I don't think so, as cash is now KING.

I did say to some of you at the start of December that I saw the first sign of Deflation, YES in deflation metals explode, there is one more move down in metals before they start moving higher and I doubt we see these prices again.

Inflation is still here and while its still here I see Commodities going much higher. Yes energy and grains have dropped in price, but have they. Paper tradings isn't a true indication of the real price.Similar to Silver where price is at $24 you cant buy it from dealers at that price,you are paying a premium, this is also occurring in the grains market. So just be aware that it will correct itself at some point.

The Russian/Ukraine war will wane this year, as the Americans are being snookered and don't even know it yet. By the time they realize it the US economy could be in a potential depression and what pisses me off is that the people end up paying for it. 

Please! moving forward work out your wants and needs and stick to you needs for the next 9 months.

You will all thank me for it, at the end of 2023.

As always the above is based on my interpretation of Financial Astrology.

Ask your financial advisor on more on the above.

The above isn't financial advise .

 

3 retrogrades at the one time .

 

Hi readers 

Hope your all well and spent time with family during Christmas.

For the amateur Astrologers out there we will have 3 retrogrades in affect from the 29th December we will have Mars retrograde still , Mercury retrograde 29th and the Uranus retrograde still.

Such an awesome combination to say the least.

Mars volatility in the markets

Uranus technological delays,

Mercury communication, and planning issues.

Anyone making New year resolutions or plans they should already be done or wait until end of January. 

Making plans now will fail, communicating with people will turn into arguments for the stupidest of issues, any sort of technology issues you have at the present time be it phone, or computer will be hacked .

Since August we have seen a number of companies being hacked and that's due in part to Uranus retrograde. Those of you who direct debt with the multinational companies that got hacked will see exactly what they hacked after the 22nd of January. Loans will be pulled out of banks with your details, that's the game that hackers play, they don't take peoples details for fun or bull shit ransom. That's what the media tells you but that's not true.

The Mars retrograde has see both major countries have issues, Russia and China.  As Mars goes direct motion after January 12th you will see both countries become much more dominant that what they have been over the last 7 months.

We will see energy become a real issue with co-operation checkmating the world on oil prices, and yes the US and NATO will then ask for peace. ( after all of NATO country got rid of there old military hardware).

The Mercury retrograde will have people on edge, earth signed people will feel it more, Capricorn, Taurus and Virgo's. Fire sign people will also get shocks from it, Aries, Leo and Sagittarius people will have there moments.In fact from when mercury goes dark this will start for the above signs. That's usually 3-4 days before.

So if you have had any little disputes with people during the dark side of the mercury retrograde then your in for a tough time. Regardless of whether your right or wrong either choose your words carefully or these friendships or family squabbles will explode into an unforgivable event.

People will find themselves stranded also during this period as weather and profits will replace schedule dates for departure.

To the crypto traders/investors blockchain and NFT's are also in the firing line. Expect news to come out which could nail the Alt's market. More fraud is on the way so be patient and wait, 

Yes 2023 will be the year that we start buying at very discounted prices, 2022 has been a year of falls and bankrupting both professional's and amateur traders. There is no reason to accumulate at current prices when they can half again. Yes I expect them too.

Disclosure I do have orders to buy 20 bitcoin at $10k  order is on until 12th of January.

For those who want to know yes I do see a financial collapse next year. and I do anticipate to see the S&P under 2000 at some point but more on that later.

In Metals we might see one more dive, and by April we won't see these prices again for years. For those of you who know me I hate metals but the astrology for them is strong with deflation on the way .

As always the above is based on my interpretation of Financial Astrology.

Ask your financial advisor on more on the above.

The above isn't financial advise .