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By Gregory Mannarino TradersChoice.net
All the taper talk, “lift off”, etc. is a distraction, a lie.
Not only does the Federal Reserve have ZERO intentions of tapering anytime soon, but they have also already begun to move goalposts.
At the onset of the so-called “taper talk”, after the last FOMC meeting, I explained that not only would the Fed be moving goalposts, but they would also be INCREASING their asset purchases — NOT CUTTING BACK. As of right now, the Federal Reserve has monthly minimum targets regarding their asset purchasing program. Currently these minimums are AT LEAST $80 Billion a month in Treasury purchases, and AT LEAST $40 — in Mortgage-Backed Securities, (MBS). These are MINIMUMS!
There is no top.
Last Friday the stock market hit a trifecta, with the Dow Jones Industrial Average, the S&P 500, and the NASDAQ closing at new record highs — a phenomenon I have explained repeatedly here in the Trends Journal would continue. Moreover, the stock market is going much higher from here. The stock market hit these new record highs last week after the Fed stated that “the new Delta Covid variant is a threat to the economy” and they, the Fed, would continue to provide support. The market sees every single piece of bad economic news as a buying opportunity, and this includes supposed new virus variants.
Inflation spiking at a record-breaking pace.
I have explained for years that at one point, and we are here now, there would be no way to stop a basic phenomenon from occurring — and that is this… the many trillions of dollars created out of thin air by the Federal Reserve, in whatever form, either printed dollars, or those simply added to a digital screen, would eventually begin to chase the same/currently existing amount of goods.
The false narrative from the Fed for years has been “there is no inflation.” But now we are in an inflationary crisis — BY DESIGN. Despite the fact that we are witnessing inflation spike at its fastest pace ever, the Fed is continuing to run its “inflation creation machine.” That is the Fed is issuing debt through one door, and then buying it back via another. The inflation spike we are currently seeing, despite the fake narrative from the MSM is NOT transitory! It is deliberate and going to get much worse.
For the first time EVER, the Federal Reserve Balance Sheet has exceeded $8.1 trillion, and they are not done inflating by a large margin. Every single dollar of debt ANY central bank is allowed to issue — makes them exponentially stronger! And the Federal Reserve is on a mission to become the lender and buyer of last resort, to OWN IT ALL.
You can fully expect that every excuse imaginable, which includes any number of false-flag events and scams will be propagated and played upon the peoples of the world to allow central banks, none more so than the Federal Reserve, to continue to inflate on a massive scale.
Understanding this mechanism allows us to know exactly what we should be doing to remain on the right side of all this.
Number one:
BET AGAINST THE DEBT HYPER-BUBBLE. You do this by holding suppressed assets — anti-debt units like physical gold, and more specifically physical silver — which in my professional opinion is the most undervalued asset on earth.
Number two:
You stay long in the stock market — take advantage of this engineered bull run.
Number three:
You take advantage of the recent drop in the price of cryptocurrencies.