By David Treece
What in the world is going on? This week President Obama and Joe Biden met with Federal Reserve Chair Janet Yellen. The Fed is not governed by politics so it is unusual for a President and Vice President to meet with the person who determines American monetary policy, but this is only the beginning of weird happenings.
The Federal Reserve held another closed-door meeting to discuss “bank supervision.” If you missed last week’s newsletter, go back and read why the fundamentals of banks make them a terrible place to park money. And last week we did not even discuss the issue we are covering today. The signs could not be clearer that banks are in trouble.
World leaders convened in Washington to discuss world finance. From G20 leaders to the International Monetary Fund (IMF) heads to the World Bank leaders.
Paul Volcker, Alan Greenspan, Ben Bernanke – are all past Federal Reserve Chairmen. The three men joined current chair Janet Yellen for a meeting. The foursome has been making public appearances recently, which is highly unusual.
Alan Greenspan has been making the rounds on news network shows to float the idea of stronger monetary intervention. On CNBC he said that the Federal Reserve’s monetary policy has done everything that it can do to stimulate the economy. He went on to say that outside of another round of quantitative easing (money printing) there is not much else the Fed could do. In the same breath he contradicted himself and said he doubted whether it would actually do anything productive for the economy.
On the same day CNBC also reported a Gallup poll that stated the average American believes the economy is getting worse. Greenspan continued by saying he disagreed with IMF head Christine Lagarde that negative interest rates would help perk up the economy. A simple explanation of negative interest is that banks charge depositors to hold their money. The thought is that that this will incentivize people to spend money and not save it at banks.
Christine Lagarde is a promoter of globalism and the one world economy. She desperately wants a new world order. When these ideas are floated they are disguised with statements about eradicating poverty etc. She has said, “A lot of things have gone global, but there is one thing that has not gone global and that is tax. It is still very much a local affair.”
Please understand that when world leaders like Lagarde say things like this, know that she is speaking about stripping American sovereignty and freedoms. Her desire is to place America and the world under United Nations control and put in place a world political delegation to oversee all the minions of the world.
Couple this with the fact that China is set to announce on Tuesday April 19th that they have acquired enough gold to set the price themselves. For years they have been making moves to back their currency, the yuan, with gold. It is unclear at this time how this will impact the world finance market, but those of us who have understood that the London Fix is rigged may finally see integrity come to the pricing structure for precious metals.
Back to the banks. Analysts are reporting that, this quarter, banks will report their worst earnings since the before the Great Recession began. The drop in oil prices is causing some companies that drill oil to file for bankruptcy. The price of oil should not increase any time in the near future outside of government manipulation. This is killing profits and oil producers. Banks have made extensive loans to oil drillers.
These are just a few of the things going on with the economy, yet the Dow Jones is flirting with 18,000. Fundamentally it makes no sense! The “Plunge Protection Team” is outing itself to anyone who is aware and observing these events. We anticipate sudden laddered drops in the stock market over the next few months.
Let’s hope that stock market investors are not rushing their assets to banks like the Austrian bank that the European Union imposed bank bail-in mandates on. Some reports indicate that depositors will receive 0.46 euros per euro on deposit. Wow!
Get out now! This may be the last call!