The TreeceCo Report
By Tony Treece
Today’s jobs report further indicates that central planners are losing their grip on reality. Manipulating the markets will only last so long as people have faith in the markets, and sadly most people do not have the cerebral ability to comprehend that things are not as reported on the nightly news.
The difficulty in deciphering what to make of today’s report can be a lesson in patience. The alleged unemployment numbers decreased to their lowest levels since the economic downturn began; however, it only appears that way because unemployment benefits have run out for millions.
In December, 1.7 million people’s unemployment benefits expired, thus driving down the unemployment numbers. Those numbers are set to go lower when more benefits expire over the next few months.
The government’s market manipulation of dumping trillions of dollars into the market by printing was slowed when the unemployment numbers decreased. They were forced to keep their word that they would lower their $85 billion per month buying.
With the mainstream media blaming the “polar vortex,” the dismal jobs report further indicates that the Treasury and Federal Reserve are losing their grip. It would not be surprising for the Fed to announce next month that bond buying (electronic money printing) will have to drastically increase.
Don’t forget the shadow housing inventory the Fed owns. Bank regulation does not require foreclosed homes to be put on the market. As opposed to taking a loss on the foreclosures, since the market value has gone down, most banks are holding large reserves of empty houses on their books. The Federal Reserve buys mortgage securities also.
In fact, I’ve heard numerous reports of people’s houses being foreclosed on and the bank allowing them to remain in the house for three or more years so as not to drive the market down further. Empty and foreclosed houses do nothing to increase the values of homes.
Imagine what real estate prices would be if the shadow inventory was allowed to surface. Real estate investments have the potential to go upside down quickly.
I don’t have a crystal ball to tell the future, but I know things are not as they seem. I know that I don’t have to participate in the seedy happenings of a manipulated market. I can secure my savings from nefarious propaganda.
When the economic collapse begins in force, you do not have to be left in shambles. Begin preparing today. Give us a call to learn how you can prepare.