more rate increases coming

 Hi Readers

Its been a while since I've last posted and I do have a number of posts to post.

I deliberately held back posting just to see how the market and peoples views of whats playing out.

I've got to say that I am really disappointed peoples thinking moving forward.

The thought that governments or central banks are going to sign blank checks to people is a massive delusion. 

Interest rates are going to continue going higher for the simple reason, inflation is a nuclear bomb politically. People will tolerate it for a while but once the savings are gone the patients runs out and the blame becomes permanent.

The FED and the Biden administration know this and while the market believes the FED will pivot and cut rates to protect the economy or the stock market, I doubt this will take place and I will explain why?

The FED first made the error of buy junk bonds and keeping rates low for far too long.

They had the opportunity to move in February 2021 but refused to and doubled down on there bond buying.

The FED then when inflation in March started to show up started calling it transitory.

Since when was this word ever used in finance ? never.

Yet the market believed the FED and not what was taking place, its was when the bonds yields started to rise that the FED had to back down and realize that the market wasn't believing the bullshit it was being fed (transitory).

Now that the FED has increased rates repeatedly market participates and trying to convince the FED to pivot, and that the economy will fall into a recession if they don't.

People have become so trained to being told that the media can convince people including in finance of what equates to a recession.

The economy has already been in a recession since March 2022 but the official 2 quarters of negative GDP came out a fortnight ago and now we here the bullshit again about we might get revisions and what have you.

For those who don't know during good times central banks cut the money supply by increasing rates and flood the system with cheap money during a recession, to boost productivity.

So what is the FED doing right now ?  the total opposite and they have no choice  due to the above error. (inflation)

So now lets look at what the FED's hedge is to raising rates and not taking responsibility for there actions.

It's call the Jobs market, people are demanding higher wages and either companies pay up or workers will walk. Over the last month all I've seen is companies laying off staff not employing. Yet the numbers are showing 12 million  job openings.

I put one very simple question to you, if there is basically 2 jobs out there for every unemployed registered worker then why is US GDP dropping.

For companies chasing staff means they are pumping out production and profits yet in the Q2 profit results every company was clearly stating that they missed forecasts or they are experiencing lower sales or production moving forward.

So now that you understand how central banks are playing this game moving forward, you can position yourselves to take advantage of it.

Central banks don't give a shit about the economy's, they will keep raising rates until inflation comes down. 

The world should be watching the FED because all central banks are playing the same game. The FED as stated previously exported the inflation around the world, so watch whats taking place in the US as economy's are just months behind.

As this is being posted there is an hour to go before the CPI numbers come out, and yes they will be lower, but still 4 times higher than what the FED's target rate of 2% inflation.

Media will start spinning out the bullshit of inflation has peaked but I don't believe so.

US government is selling oil from its strategic reserves, Biden has been begging the Arab nations for more oil production but no one gives a rats.

The FED is doing its job by cutting peoples expenditure by raising rates and killing demand.

After the midterm election I think oil will make a come back to higher prices.

Grains haven't changed yet the paper price has fallen, crop yields look very poor but the USDA won't publish real numbers in yields as grains will explode in price.

Unless you do your own research obtaining data from government agencies, it must be taken with a grain of salt.

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

Ask your financial advisor on more on the above.

I am not a financial advisor, and the above is for educational purposes only

9% inflation top in yet? I think not

 Hi Readers .

So inflation has now hit 9% of what we are told , Bond rates are dropping in yield and we are being conditioned or should I say convinced that all is fine and there is nothing to see.

Well lets just question that !

The rental component of the inflation measure is just 5.4%, now My understanding is that rents have gone up by at least 20% nation wide in the US, internet websites have said it crystal clear that rents have increased by 26% nation wide.

Food increases on average have gone up 21% yet the inflation numbers don't even come close to that and lets not start about energy component also.

As I said before until rates are above the rate of inflation we aren't going to see inflation come down.

The Fed is going to move again even tho they will regret it, they have no choice but to move on rates.

They are trying to manipulate the inflation by increasing the value of the USD and manipulate the commodity market. But unfortunately what the Fed doesn't realize or understand is that there is a major difference between the paper price of commodities and the real price of commodities.Paper prices is what the media and market participants know. The real price of delivery is what the users are buying and passing onto the consumer. So here is the next level of misunderstanding which all central banks don't get.

All food processes who buy raw commodities increase prices slowly, as not to spook the consumers/customers. So when prices do come down and there costs do come down prices to consumer don't move down they stay where they are until margins and profits have been restored.

Its not discretionary spending where your convincing people to buy something they don't need or peoples businesses income comes from sales of products.It's food which yes is a perishable product but people need to have it, there is no choice.  

Something to keep in mind moving forward the inflation rate in the US is around that 19% mark which shadow stats has shown.

Also note that with the stronger USD inflation as I said months ago is being exported overseas.

We are witnessing countries go broke and people are starving yet the world media isn't showing anything of it.Yes things are going to become more difficult moving forward but as longs as your aware of the truth then you can take measures which can somewhat insulate the blow. 

Your seeing provinces in China where people can't take there money out to buy the normal household items. Yes this started in April and has spread from 1 bank to 6 banks.

In Sri Lanka the government defaulted on debt and the people have rebelled against the government as prices inflation has forced people to go hungry as they simply can't afford the costs of food and energy. As I have said it before the one thing governments fear is there own people rebelling.

In Australia we are starting to see cracks everywhere also, previously covid rules would act on stages, Yet this time around nothing is being acted upon. Which has finally shown people that it was never about there health, there was an agenda to in debt people and small businesses, then when the so called support came along  small business never qualified yet every multinational business/asx listed did. The fear or rebellion was so great this time that the federal cabinet was called in and reinstated stimulus cheques immediately to people to stay home if they have covid.

My concern is that everyone I know who has been double jabbed has had covid a second time. Yet those who haven't been jabbed are fine, just putting it out there as the truth is painful to accept.

 Now here comes the reality check for some of you who don't understand whats taking place.

Covid is going to reduce the unemployed levels and as a result will show that there is a strong labour market, which is the justification the central banks will need to increase rates against inflation. Yet getting away from the reality that it was the central banks that created the environment of cheap money to lure more debt into the market. As the world runs on a debt base system.

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

Ask your financial advisor on more on the above.

The above is based of  financial astrological aspects.

 

On for the Australian investment community

 Hi readers

We are continuing to read how there is a housing crisis in Australia. 

How is that possible when the census came out with numbers that simply blew me away. Over 1.1 million homes are vacant. 16% of apartments are vacant and 14% of townhouses. I say this because I’m hear of rents going up yet homes are empty.

I understand landlords why they refuse to rent the property out. Bad experiences can lead you to being shy next time around. But how can this be people with debt yet to lease income and hopeful of just selling it at higher prices. 

This is where properly had become a gambling’s spectacle and need to end by all means. House are for people to live in not for gambling and it’s for this reason that I hope rate run to 5% and house prices fall 50%, it’s the only way that this will change people’s view on housing.

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

Ask your financial advisor on more on the above.

I’m a financial astrology not a financial advisor. 

BBUS is the best investment moving forward

 Hi readers

So where are we looking forward. Inflation is rising regardless of what the number is and the cost of living is outstripping wage rises which in turn is putting people backward even this they don’t realise it.

Those with families at the present time are feeling the pinch with the cost of groceries exploding. Many younger people are only experiencing higher energy cost at the present time but believe me this will change after September . 

So where do we look at investing moving forward? 

As your all aware I hold my core positions of BuB, DXB and BBUS. 

I will be looking to increase my BBUS exposure as I don’t see anything worth buying at the present time. I anticipated that gold and silver  would of been slammed by know but this hasn’t happened yet. Hence why I refuse to buy both gold miners or specs stocks.

There is no rush just slowly look at accumulate at a certain price. We have time until September , after that the trouble will start and if there is manipulation until the mid terms that’s ok too as the longer it takes the heavier the fall will be. 2023 will be the disaster year for the stock market and world economy. 

House prices I think regardless of where you live will see 2005 prices or lower, just depends on how indebted the economy is to the housing market. In Australia for example I can see a  Halving of prices if not more from the peaks.

This is what the astrology is showing and that’s why I’m putting it out there . Wether you agree with it or not is a matter for you. 

Inflation pressure will continue and regardless of what anyone says rates have to go up. The RBA in Australia is so far behind that it won’t surprise me if they move .75% -1% in a weeks time. The Australian dollar is in the firing line as there is no value to hold Australia dollars. I’ve heard the bullshit of don’t fight the central banks on what they say, but on this occasion they are full of shit, if you think that the Fed or the BOE or the ECB is going to dictate commodity prices you are gravely mistaken.

I have 2 businesses which are production firms of foods and a joint investors in another and I can tell you no central bank can dictate prices. 

Not all commodities are cash settlements, they are deliverable, grains, oil, and soft commodities are just that. They are not like gold which are cash settled at the expiration date. It’s for this reason the Fed or any central bank can’t control price’s with interest rate rises. 

Just remember that when you hear the media bullshit. Inflation was were way before Ukraine war but the US and NATO blame the war. 

The media said that Russia defaulted of debt which isn’t true, Russia has shit loads of cash, the Ruble is at a 8 year high to the US dollar. China and India is selling Russia oil to the world and making a 22% commission on the trades. Yet the world is being told that Russia is struggling total crap. 

As always the above is based on financial astrology.

Ask your financial advisor on more on the above.

I’m a financial astrology not a financial advisor.

Tax implications

 Hi readers 

So what a year 2021/22 has been.

ABR/5EA has matured and we liquidated our position of it. It was as I said before a wonderful ride, from 20-40cents to $3.35-$3.50. While many of you have banked the profits and have moved on the little leech in the background called the ATO will be looking at you.

You made 1000% percent return and yet the little maggot will be knocking on your door asking for there cut.

I’ve tried to secure you as much as possible with the 50% rebate on the stock holding over 50% on capital gains but you will still have to pay some tax. So for those of you who have bought new homes while others have bought cars, boats, jet skis or camper vans please be aware that the ARO will visit your paperwork.

I’m not a tax advisor so please talk to your tax account regarding your profits on the stock .

For those of you who haven’t sold you obviously know something I don’t and wish you well on the stock moving forward. 

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

I’m not a financial advisor I’m a financial astrology.

Seek professional advice on more on the above.

Tax book squaring

 Hi Readers

Once again it’s that time of year where book squaring up is occurring. Those who are holding profits are selling while those who are in losses are also selling.

Many moons ago the bottom line that only matters to fund managers with clients was the profit and losses and today it hasn’t changed. I wouldn’t take to much of what is going on seriously at the present time as it’s simply book squaring.

Manager who have booked losses and selling profitable position to cover losses. You don’t get paid on losses reader only profits. 

We have seen the ASX gain value with the S&P but this is very short term, once the squaring up is over we will see a continuation of the selling. I say that because everything that is occurring is very inflationary but both governments and the central banks. 

The Fed is letting bonds mature from there balance sheet and still buying MBS. Yet they are looking/ talking about increasing rates. 

The economy is shrinking and they are very aware of it and know full well of what there actions are doing to people, but there is no regard for what people are going through. 

Please be aware that rates are going much higher and if you do have debt understanding that depending where you are there is recourse except in the US 

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

The above is based of financial astrology.

Ask your financial advisor on more on the above.

I am a financial astrology not a financial advisor.

Crypto market is going down for 16-18 months

 Hi Readers

Its the first time my email inbox has exploded and its for that reason that I decided over the weekend to do some work moving forward on bitcoin.

I understand that many of you have a number of alt coins too but if Bitcoin moves everyone moves. So over the next 16-18 months the Crypto market is in a lot of trouble.

I don't care whether you take what I say on board or not but the bottom line is we will see lower lows than many expect. Its cost's $11,621 to produce one bitcoin, yes other area's of the world it does cost more.So until Thursday I have orders as I've stated but after Thursday all will once again change.

I strongly believe with the astrology that I have seen going forward Bitcoin will break $10k, and could go much lower. For the time being its not a good idea to put price targets, but after October we can have a much better idea of price levels.

No its not going to zero so please don't be sucked into scare mongering by those who missed the move and hate themselves for selling too early.

Yes it will go up and yes it will make new highs but that wont happen for another 5-6 years so before you invest in it you need to be aware that the investment you make will be long term.

I'm not about to tell you its going to a million dollars per bitcoin because its not. Can it get to $136,000 absolutely, as the astrology after 2025 looks huge for cryptos but it will take time and the volatility will test peoples blood pressure levels.

So please think about investing in don't just jump into cryptos without a plan or long term objective.

Talk to your financial advisor about the above.

All the above is based on Financial astrology.

I am a Financial Astrologer, Not a financial advisor.