(VIDEO). US Economy Flatlining, Fed. Stuck, Janet Yellen Sweating. By Gregory Mannarino
In the video below I discuss how the US economy is flatlining, and how the Federal Reserve in creating a financial Frankenstein is stuck.
I also talk about how Janet Yellen must be sweating profusely on the continued missing of her inflation target despite melting the dollar.
I address the how the current Geo-political events are directly affecting the markets...
Gregory Mannarino @marketreport
The clown show just keeps rolling down the tracks. If they would actually try to unwind their balance sheet it would force rates to raise and all hell would break lose. The pressure the public is facing b/c of our dead economy coupled with the weakening dollar and stagnant wages is at the precipice of really starting to be felt by many in this country. The cheap money and credit policies of the Fed is them simply trying to keep the charade going as long as they can. If they can't keep the debt train going, the train goes off the tracks. Do we see 40 year mortgages? 10-12 year auto loans? Helicopter money in the form of a living wage? The zombie apocalypse is unfortunately alive and well.
upvoted and resteemed. thanks for the blog
Greg we will share this across the world wide web in as many sites as we can under many tags as we can so that as many people in the world can see this and we upvoted and resteemed it too
Hey Greg, one of the other items I am following is UST being held by the Fed. As of 8/2 it shows 2,465,195M being held which is a very significant increase since the beginning of the year. I have not done the full spreadsheet on this so this part of what I will say next is not quotable. It appears that the primary buyer of all new treasuries being issued by the Treasury is the Fed, which means the rally in bonds is being driven by an 'expansion' of the Fed balance sheet. How in the heck can they say they want to normalize if they are expanding? Go figure! Anyways, I went short at 2490 so I am feeling no pain. I am expecting a healthy pull-back to 2100 before we get a bounce, but that is IMHO as we may get another PPT rescue.
I do not understand what central banks like the Fed are thinking. Sure money printing goes to all sectors of the economy and we get investments. However, without proper interest rate signals we have mal-investment which usually leads to over-capacity, which leads to supply gluts which puts pressures on pricing. So you get a temporary sugar high but then the hangover is brutal.
Janet Yellen
Her temperature is swellen
Sweat beads on her forehead
Her plan is definitely dead.
As always Greg, Keep up the GREAT work!! Steem on!! Upvoted. :C)
look at the bright side Gold and silver is up
As far as we "know"...Greg is still short SLV...which happens to be the "correct" trade...cept he doesn't know it yet. :-)
As a sidenote, if Greg did in fact crap out of his SLV short and then re-enters the short within 30 days he wiped out his ability to write off any loss he incurred because of I.R.S. tax loss rules for stock traders. He most definitely incurred major losses onthat short as he was telling us he was short even as SLV was trading near 15.50. If he did not have confidence in teh trade he should have never entered it in the first place. I am alos short (and losing BIGLY) SLV. I happen to like the short even better now. So I will simply add to it and even if my previous short ends up a loser I will then be able to write off the loss plus enjoy the gain on the new entry. Greg never discusses the rammifications of closing a loser and then getting back into the same trade if you are trading outside of a tax exempt trading account. And it is an important thing to consider so I figgerd I'd cover it.
Thank you
very nice video
best of luck for ur great work for all traders