FED DREAD & THE 2018 SANTA CLAUSE RALLY POTENTIAL
The Federal Reserve Board is a pure fraud upon the American people. The Fed is not “independent” its panic word to protect itself. The Fed established when the pony express delivered US Mail, is a private stock Non Government private corporation. The secret never reported or disclosed to anyone outside the FED controlling share holders are the banks and investment banks the Fed is supposed to regulate. HOW IS THAT INDEPENDENT. That the Fed means in their panic sound bites – never under mine our independence – is as true meaning – our 80 page act of creation – assures the FED will have no check and balance no over sight no over rule no audits no anything. When congress asked “can you tell us who got the 11 trillion of tax payer money we entrusted to you – their answer is NO SIR – we fill not tell you who got the 11 trillion or which of our banks or what they even did with those trillions. Congress has no powers – zero – over the Fed save the power to merge the fed back into US Treasury.
The day that merger happens we revisit fractional banking and we stop paying interest to print money – itself an insane theft of the wealth of our nation.
The FED was an awful idea and today is pure obsolescence in 2019. The FED if you chart the Fed real track record ( total f grade since 1900 ) has created the boom bust cycles crashes in our economy, all wars, all economic hardship and pain, for pure greed to their banking shareholders. They have a track record on economics that is F grade. Never higher than F. To give the FED reverence instead of putting them all in prison, is the hypnotism you all have today but never knowing the TRUTH.
If you have just 7 minutes economists documenting the truth will make you smart on the Fed. The Fed is using tools that no longer work. They are out dated. The Fed runs economics like they did years ago. The Global Economic system is now evolving outside FED controls via AI and global economic inter-links that create a NEW DIGITAL AI ECONOMIC MODEL with less than 10,000 super money pools and sovereign nation funds all managed by AI that no control the global economic. The Fed is a monkey wrench.
Fed error in policy, is no a threat to the entire world system are core. We have noted the Fed is a 100 year old F level track record. Economies natural state is growth. Growth stops from system tampering and absue. The Fed is presently creating interest rates which impact 9 trillion in free money loans circulating in America that can not refinance their debts ( See Sears ) at the higher Fed required cost to roll over free money into 100x higher money cost. The fed is presently for no economic correctness in policy – making its largest error since 1929 and the market is telling them having lost 3 trillion in market capitalization that your policy is in error boys and girls. The FED must be merged back into US Treasury so that monetary policy is transparent, real time, audited, accountable and with over sight.
A Fed “indépendant” of checks and balances, audits, transparency, and with a long track record of creating such unnecessary financial distress, F GRADE economic policy for 100 years. Each policy error so much worse than the last. The Fed is playing hop scotch with dice and jacks in a 3D digital virtual world they lack any tools to accommodate. They are a model T Ford making policy for the bridge of the STAR SHIP ENTERPRISE. The Fed must be merged back into US treasury or our entire system is at high risk globally. You see it all in markets today.
The problem is only one. POLICY ERROR by the Fed. There are 7 trillion in free money loans outside the USA. The world of 200 developing struggling nations can not afford to massive % gains in this short time frame to their money cost. The Fed right when the boom is beginning to take hold, truncates growth, reduces the supply of money to the money lake and fast and raises the cost of the money still available in a rapidly shrining money lake by 100x in months. The world economy is being shattered by FRAUD & ERROR from a greedy Fed rewarding its banks with ever higher interest and profits. Warren Buffett gets it as he invests in almost nothing but financial institutions today. His last hurrah and not his best as time will show – in our opinion.
The FED is an antique. Treasury is the STAR SHIP. We need the Fed to be merged back into US Treasury by an emergency act of congress in 2019.
THE SANTA CLAUSE RALLY:
I must be the most rare of economist and investment bankers. I have reported to you all we felt ( sans outside events which we have many today ) THAT – by year end the world would see record new asset class values. The DEC rate increase by the Fed may impact that call to the negative we’ll see.
I still expect a Santa Clause Rally. Why? Earnings are at record. Caterpillar made over 99% of projected by Wallstreet earnings. Its best third quarter EVER. Like 100’s of other leading firms in America. Because they missed a fraction of 1% of “expected earnings” the AI trade brought the CAT down by 10% of its overall value – in the best quarter ever reported. This is not normal market value.
I have written that our markets have been under a digital attack through the election period as a winning strategy to make sanction costs back, by nations effected, by profiting from our markets by attacking them digitally. We have zero defense for these AI attacks today. The markets then behave un-naturally. The attacks have made their profits and I suspect the attackers all profit again as their tapering the attack restores market vitality. Year end portfolios I suspect will not wish to be LEFT OUT or in any way LEFT BEHIND in the Santa Clause Rally. To be sure we will no see more volatility as AI tries to figure out the head winds against the 1 TRILLION IN US HOLIDAY BUYING setting all time records into 2019.
The Santa Clause Rally we feel will depending on FED cruel system policy error impacts, raise asset values based on pure earnings outcomes to record all time highs as we have reported against the common “stuff” you are reading.
THE HEAD WINDS TO GLOBAL ECONOMICS
Trade Wars. World trade is effected by trade wars not resolved until new box top rules with no nation left behind unfold. The old protectionist model used by 100’s of nations no longer work in the new AI global inter-linked NEW ECONOMY. The global system has experienced an economic miracle of inter linking by AI in only sixty months. Today we have a new economy. Without regulatory upgrading merging the FED into USA Treasury ( to stop the economic fraud ) risk rises. Trade wars are having huge effects. China is not ok. China is falling economically to a level it can’t afford to pay its bills and borrows 300% more than it makes to operate a phony baloney economy that is truly failing. The RUN out of China by 10,000 SUPER MONEY POOLS, by companies by everyone is a market share shift that is moving forever market share out of China. China is now to identified as an IP nation of criminals, at economic war with all outsiders. Trillions have been hacked stolen and partnerships into China theft of IP the greatest cost of economics on the world stage. If China wishes to preserve its RULE OF “NO” LAW – protecting its thieves – as there is no separation of business and industry in China – in China the government is the industry and all industry is the government. Trade wars will escalate until they resolve and until then the system has head winds world wide.
Fed interest cost. The Fed policy error of reducing market liquidity and availability to capital in a rapidly shrinking lake of dollars required to lubricate economic global outcomes, is ill timed. The FED did a never before in history experiment economically. They bailed out bad bets by their banks using tax payer money by 20 trillion in the USA and central banks globally 100’s of trillions in FREE MONEY. After a decade of FREE MONEY 200 poor nations require TIME as a missing ASSET MODEL to adjust to normalizing rates that effect the world economy. The Fed is in error in policy, using old play books not relevant since 1955 – an antique failed policy maker – now raising interest way to fast way too high each time and way too frequently. Why? Looking backwards always at obsolete box top rules the FED simply is a broken institution and fully failed at making wise economic policy. THE US TREASURY has the forward looking brains engaged in the NEW ECONOMY. The Fed doesn’t believe their is a new digital inter-linked economy – where their play book is obsolete entirely. The Fed is risking a world wide system failure and total melt down as they continue their failed policy into the future. Only congress can merge the FED back into US treasury and they informed, truly must for the entire world stability. The Fed is raising interest rates for protections that are not relevant and no longer matter. Their policy error can create panic and system destruction all due to the Fed being obsolete. Today the FED is the most dangerous tinker shop to global economics having only pain and no gain looking forward. Criminal really. In my opinion if just criminal negligence.
Super Debt Bubble. There are 100 trillion dollars in bad loans never to be repaid residing as solid performing assets on financial institution balance sheets – exempt from what law we all must comply with FAIR MARKET ACCOUNTING. This credit abuse must work its way out of the system and requires TIME to do that work out. The Fed is removing time and raising interest cost to reset trillions in free money loans to roll over to 100x and 100x more cost for money. MOST can’t pay it yet. They increasingly will bust out ( see Sears Circuit City and Bebe closing 100’s and 100’s of stores ). THE GREAT SUPER DEBT BUBBLE bursting ( because of the error in fiscal policy by the criminal banks and criminal Fed who control money versus the USA controlling it as we did for 100’s of years – is a huge HEAD WIND. Debt cascade in digital AI space can crash the entire system in 72 hours as a forward head win only possible because of the extent of FED error on policy. There is no way under 100 year old terrible law, the 80 page Fed act, to influence check and balance or oversight the Fed. The illusion of Fed oversight is a fraud on the American people and the world. Headwinds.
CONGRESS – Trump lost congress. As congress unfolds into the most bitter bi partisan dysfunction the politics is war. The game is to assure Trump fails in two years to win another four years. The economy is the BIG ISSUE. If the new congress can stay united to focus hatred on everything Trump almost irrationally, the multiple attacks to derail Trump’s team, will return to normal. The most cruel vicious mean savage like wagon wheel spokes around the new Nancy Pelosi strategic HUB, is a head wind. If INFRASTRUCTURE is passed next or soon, the stimulus may offset the FED headwinds entirely. If infrastructure stalls the economic growth moving forward compressed by Trade WAR and Fed Policy will stall and 2019 will slow to a shadow of 2018. Headwinds. Unknowns. The economic consequence of a dysfunctional congress at this time in ECONOMIC HISTORY is a HIGH RISK to the global system itself as those in charge have limited perspective that SUPER CHANGE has forever buried old economics – created a NEW ECONOMIC – and the world lacks theory regulations or appreciation that OLD RULES no longer succeed in the entirely NEW ECONOMY. Head winds.
The Fed in 2018 did two errors in fiscal policy. First they shrank liquidity in the crises of a FREE MONEY SUPER DEBT BUBBLE world wide, the Fed created in the first place. For the swimming pool of money – going down down down – as liquidity evaporates to circulations needed to prosper all nations today – the Fed second act is soaring interest rates 100x higher than 2017. The market can not afford both policy errors world wide. The EU the Gulf Asia and Africa and South America and 200 developing countries can no longer see a way to grow due to the soaring cost of capital and the withdrawal of capital to their markets and plans. Headwinds.
ALTERNATIVE TO STOCKS: Equities bought for sixty month periods chart as high return parking stalls for capital and investment. Today the Fed is moving to an inverted yield curve they are creating by error in policy. When two year T BILLS or Fed Notes are paying higher than 3% money has a choice to move out of equities and balance portfolios with debt. The Fed policy is more concerned how to sell its crap 5 trillion of crap bonds it bought from its banks back into the market space today. The FED PLAN is a TIME FAILURE. The Fed using old box top rules that are fully obsolete today, simply make great error in monetary policy. TIME is required to manage the SUPER DEBT BUBBLE. The Fed is creating alternative to equity investing as you have seen, and money is rebalancing across portfolio space assured of a recession green light, from an inverted 2019 yield curve a catastrophe in new AI linked global inter-linked economics. Today markets move at the speed of AI not humans. As no one is leading the New Economy outside the US Treasury who lacks FED POWERS until the Fed I merged back in fact no one is creating successful economic policy but world leaders trying to offset their own criminal central bankers. If all major banks have been guilty of financial crimes greater than any individual ever, and no one goes to jail EVER, how would their stock holder based FED not reflect they are a single criminal gang raping national wealth. Headwinds post merger of the Fed back to US Treasury.
EARNINGS: Earnings are the bright spot. The earnings were so good going into year end. The 1 TRILLION US BUYING alone will be a tail wind. Next quarter the 4th quarter earnings will surprise from FAANG and APPLE and we suspect AI will Santa Clause Rally asset price values to new record all time highs supported by 4th Quarter earnings. As Jamie Diamond so accurately pointed out – there is so much STUFF going on “out there” that combined the STUFF globally can rock confidence and AI buying. We’ll have to see in the weeks ahead.
The Gulf: MBS is a sociopathic murderer. There is no rule of law for the Puppy King. The Saudi salud families will have to in their process define their King moving forward. MBS is no longer an asset. MBS has caused Saudi trillions in failed oil policy and lost market share. Cutting back today is silly. OPEC just gives market share to their competitors. Insane. OPEC cutting back say 1.4 million barrels a day is big loss of market share and revenue. Libyia is up now 500,000 barrels a day and soaring as a peace dividend. Iran is rising oil output. Venezuela is in its lowest out put with huge gains possible coming up. America is up over 2 millions barrels a day in 24 months – a day and soaring. OPEC is acting like it won the oil wars when it lost those wars. OPEC BREAKING UP as members pump what they wish and desire. Putin is not cutting back revenue to sanctioned Russia in the current market share wars. Every nation must protect its own customers on price and buying for market share. OPEC has been destroyed by MBS now we’ll see how much cost to a stability in the Gulf can really unfold. Trumps protection of the RELATIONSHIP WITH THE NATION must never be confused with support for MBS the murder. There is a CIVIL WAR INSIDE THE SAND PALACE and the Puppy King will find this all does not end well for he and his daddy. Trust this headwind – Gulf instability as OPEC breaks up and the economics of oil shift from OPEC to AMERICA the largest oil producer on earth. Lower oil prices are working this Holiday to pour money back into economics as the FEW AGAINST THE MANY pricing oil artificially to levels no free open market can support – is economic abuse. All such abuse must work its way out of the system. The DEMAND for OIL is no longer rising and the fall in demand is staggering as the world moves to alternative fuels that do not pollute and change our climate. The fall in oil demand between now and 2030 is higher and faster than old economics thinker have charted. In the NEW ECONOMIC WORLD ORDER the largest shift of plentiful cheap renewing fossil fuels ( the earth shifts and farts fossils fuels as a factory ) – back to market driven pricing – will foster TAIL WINDS to propel economic growth offsetting FED error in policy to some degree. We all have to wait to see how much. When everyone predicted 100 dollar oil this summer and we mean everyone we reported Oil would crash and drop to 50 dollars a barrel from over 80. Right again.
AI & REAL WARS: World War III began when the axis of evil nations created the first global Digital weapon to attack our markets in 2007. This attack created trillions of profits for sanctioned nations. In October a hardened next generation of AI digital war weapons was fired to destabilize our stock markets. The Sanctioned nations made profits with this weapon and influenced the America election with economics more than any face book post could ever hope to do. They AXIS of Evil in trade wars sent a message to the USA we have your markets in our AI. Deal with us carefully or we will destroy the entire system and see who wins on the other side. Unless we triple the SEC and global regulatory budgets and unless we develop a G 100 no nation left behind trade rule set and regulatory frame work for the ENTIRELY NEW ECONOMICS – AI DIGITAL INTER-LINKED ECONOMICS – the core system is at risk. All regulations are obsolete and unworkable as a new AI ECONOMY is Super Changing past the regulatory agency and planners capacity to remain current. Regulations are not re-tooled for the NEW AI ECONOMICS – all local while trades are in the un-regulated cloud. Until the SEC has upgrades in authority laws and AI TOOLS to regulate an AI market the SEC is regulating with old box top rules – full head winds and dangerous. We suggest CONGRESS upgrade the SEC massively before its too late. Failure to do so is a system killing risk or head wind.
Will we have a Santa Clause rally or a digital attack to help negotiate trade war outcomes using leverage ? Believe me this is what keeps US TREASURY up into the night.
OLD NEWS – NEW NEWS
Economic reporting is locked into old box top rules that do not provide accuracy transparency and lack of secrets. The old news reporting focusing on box top rules that no longer apply fail to appreciate the HEAD WIND COMBO we have reported to you. We feel in self service the Axis of Evil ( sanctioned nations ) have made their profits, have successfully influenced the AMERICAN economy and elections. Now will in removing the AI attacks and returning their own AI profit making as asset prices rise to record highs in a SANTA CLAUSE RALLY the reason for such a rally if it unfolds as we predict is earnings profits and growth. The EU is collapsing in trade war and EU legal issues and debt bombs beginning with EU Italy. Potentially a debt default cascade in the making as just one EU risk. There are many more. Britexit and others coming up. A NEW ECONOMY IS SUPER CHANGED UPON THE WORLD AND THOSE REGULATING AND PASSING LAWS HAVE NO CLUE THE ECONOMY THEY THINK ABOUT IS DONE DEAD AND BURIED AND THEY AND THEIR STAFF LACK RELEVANT DATA ON THE ENTIRELY NEW AI ECONOMY SUPER CHANGING FASTER THAN REGULATORY AGENCIES CAN RE-TOOL. This risk is the foundation risk issue.
70 years of post depression economics are dead and buried. In only sixty short months the entire frame work of global economics has gone AI where evolving AI in what we call the new AI WARS, is evolving into NEW so rapidly no one can keep pace. No one understands the NE ECONOMY. The BAD DEBT SUPER BUBBLE is a TIME item that most work out of the system as abuse over time. The lack of consideration for TIME itself is now the economic chip that may sink us all. Ignorance is the big risk. The system is a NEW ECONOMY and the global system works with rules for an old economy that is no longer here at all. See the problem more clearly now?
WHO READS THIS MEDIA OUTLET ON NEWS?
This blog is read by CEO SPACE CEO’s in over 140 nations who influence policy in their nations. Congress reads this blog and staff for world leaders read this blog to keep current in Super Change. Hedge Funds Private equity banks investment banks and lobbyist read this blog. What we document and present here is soon a debate between nations. This blog introduces policy considerations increasingly in the new AGE OF SUPER CHANGE policy makers seeking to remain out front and leading require to advance. We are typically accurate in economic forecasting, by track record our readers consider is hard data well researched and that provides MISSING DIRECTION to navigate the NEW ECONOMY. We are working increasingly with invitations from Think Tanks and policy advisers along with congressional staff on these issues.
CEO SPACE as the Top Ranked CEO Community in the world today now beginning a FORTH DECADE of serving business leaders in almost 200 nations today, works tirelessly to foster policy favorable to small business, the 90% employer and stimulus for all economics. Nations creating next generation ENTREPRENEUR LEGAL FRAME WORKS will prosper in any forward economic condition. Those nations who fail to modernize ENTREPRENEUR FRIENDLY POLICIES will wither in our opinion. We advise nations on those legal frame works as they reach out to us as more and more are doing today.
SUPER CHANGE CHALLENGE
Everything you were taught or know is obsolete today. SUPER CHANGE is re-tooling systems as AI is the new reality no one yet appreciates sufficiently as to the speed and degree of SUPER CHANGE.
The markets are changing. You just saw that. You didn’t know a digital attack was making trillions for sanctioned nations who just offset sanctions and won in their economic warfare as we yet lack tools to defend ourselves. SUPER CHANGE requires currency. New leadership brains lean faster – unlearn even faster and re-learn even faster as a brain thinking barometer. These brains insure team work at the top will make dreams work for all stake holders Old brain teams…..failing to adapt to SUPER CHANGE …will perish. See SEARS – TOYS R US and CIRCUIT CITY for recent failures to adapt to SUPER CHANGE.
To my CEO SPACE membership, I invite you to read the recent blogs on the digital attack and on your own reunion CEO SPACE event in Tampa DEC 11th. I’m asking ll readers to ask – are you current to manage forward? If not why not save year end tax bucks and acquire a lifetime membership in CEO SPACE as you become current in Super Change. If the markets are dramatically changing today do you not require some currency in the 2019 play book? How priceless is that upgrade to your mental software as a leader?
I encourage my CEO SPACE community to join their own RE-UNION Forum Dec 11th registering at our web site http://www.ceospace.net
I believe facing the head winds listed here we all do better in community together as leaders. We can and will profit in any market IF WE HAVE PRICELESS CURRENT TOOLS for doing just that.
Dec 11th the # 1 Ranked program to bring CEO’s current and keep them ahead leading is taking place in Tampa Florida. You are all invited to far better use of time and upgrading than any other priority you can set for yourself. CEO’s helping CEO’s is a miracle that assures your life style is fully insured to do well.
I encourage my readers to join us Dec 11th and for long time readers I can’t wait to meet you personally and coaching you individually which I do during the Forum week myself. We decline memberships like MBS in Saudi for moral reasons. Other than that you’re invited.
Headwinds can be tail winds if you know how to turn your plane in flight. We’ll help you.
Berny Dohrmann – KEEPING THE TRUTH ON FOR YOU INTO YEAR END RAMP BACK UP
PS: To my CEO SPACE community of readers world wide may I invite you to comment on any item and share your views ? I answer all comments myself…..personally most saying thank you. I appreciate the time to share with one another as feed back.