GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Saturday, October 31, 2020

👉Major Banks & Hedge Funds start Shorting the Dollar -- The Mother of all Trades -- Got Gold?

👉Major Banks & Hedge Funds start Shorting the Dollar -- The Mother of all Trades -- Got Gold? Major Banks & Hedge Funds start Shorting the Dollar -- The Mother of all Trades -- Got Gold? It is getting dicier by the day and looks as if everything is about to fall apart. America is headed for tough times. The same could be said for most of the world. An old order is fading because what cannot go on forever won't. Get ready for the biggest collapse in human history. The Fed is preparing to extend its bond-buying program. Parabolic debt expansion. We did not boom the economy; we boomed the debt. Massive debt to keep the market up. More stimulus to add to the more national debt. The trade deficit is ballooning, with no end in sight. The dollar has come under increasing pressure since late March after the Federal Reserve pledged unlimited liquidity to support an economy hurt by the coronavirus pandemic. Interest rates are at 0% and can't be lowered to provide easy money (If they go negative, banks take from your savings). A few people have all the money, and everyone else gets by on debt. Real unemployment is still very high. Less money is being spent globally, with the exception of online retail. Dividend-paying stocks now the only game in town. The economy is not good, and I believe the stock market will figure it out soon. Trillions of greenbacks rolling off the printing press every week, making the US Dollar worth less than dirt. Forex foreign investors dumping Usa fed bonds with the US dollar before being wiped out Dumping the dollar with bonds is the play. We're going to go through the biggest short squeeze in history on the dollar. Major banks and hedge funds are now shorting the dollar. Many investors, especially the big ones, were seeing the decline of US dollars months ahead. The short positions in the future market have increased over the past 16 months. Hedge funds are shorting the dollar and are bearish on the greenback for the first time since May 2018 in the latest sign that the world's top reserve currency is declining further and unlikely to bounce back any time soon, Bloomberg reported. The greenback has fallen about 6% against the euro alone since the start of the year. There's a big short position on the dollar. And when that gets unwound, It's going to cause chaos around the world. It's going to be the biggest driver for asset prices over the next two years. This was just a matter of time before these different knock-on effects started taking place, and that's what we've seen over the last three months. This initial dollar move is the whole move. We're nowhere near the beginning of the end. In the debt-based monetary system, if capital doesn't flow and move, it literally comes crashing down. When you lock economies down, and don't let people go out, and don't let people work, and don't let trade goods flow, it essentially takes the monetary velocity to zero, and it just can't exist in that type of scenario. When that happens, you get markets that are just seeking liquidity at all costs. It has nothing to do with fundamentals; it has nothing to do with the normal supply and demand characteristics. It literally has to do with get me dollars no matter how you do it. That's kind of what we went through, and I think that will happen again going forward. Deflation on main st, inflation for stocks. A lot of asset prices, a lot of commodity prices are going to come down, let's call it, over the next six, 12 to 18 months, whatever the time period is. But after that happens, in the next ten years, we're going to look at an inflationary storm. Inflation is coming. We're going to get supply shocks where prices are going to start to rise, not because demand is rising, but because supply is just being strained. So I definitely see that as the end game; I just don't think we're there yet. The big dollar crash hasn’t even come yet. We’ll check back on the dollar confidence in 6 months or so! Owning gold is the best hedge against inflation and deflation. There are times where you can own gold to get rich, and there are times to own gold for insurance. I think right now it's a good time to own gold for insurance. Gold is going through the roof. But I still think it's possible that in the short term it goes down. At the moment, gold is about 0.5% of total global assets; during 1980, it was 3%, so technically gold can easily go up six times to $12,000. You want to look at how the dollar has been doing since 1971 when Nixon cut the dollar off the gold exchange standard? Valued against gold, the dollar fell from $34 an ounce to $1990. The Fed has been successfully manipulating the price of Gold since 2012. All in an effort to prop up the Dollar. This success is tentative and cannot be relied on. Backing the Gold-Backed ETF's is a cover for their actions! Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. Many of you have asked me where they can buy silver and gold bullion. You will find in the description box the links where you can buy American Silver Eagle, Silver Bars, or Rounds. I highly recommend that you start stacking some Silver Bullion for the future. The US dollar has been recognized as money for less than 250 years. Gold, more than 5,000 years. In the last 120 years, since the creation of the Federal Reserve, the value of the US dollar has been depreciated by 98%. Gold has stayed roughly the same as it's ever been. During times of strife and stress, gold is the ultimate "fear index," and the price rises. The one thing that no person employed in any aspect of finance or government (or journalism either) wants to consider, but is very, very much a factor right now, is the possibility (probability? near-certainty?) of the total loss of the US dollar and it's being replaced by something else. In such a case, it is still guaranteed that gold will retain value. Gold is a store of value, no matter what happens. The market has been surviving on one thing and one thing only, Debt, debt acquisition. That's because, with all the stimulus, the stock market is functioning as an inflation indicator; low dollar, high stocks-high dollar, low stocks. It's a net-zero after inflation is taken into account. The reason for the correlation is that the US dollar is the reserve currency of the world. The global economy is driven by debt, and all this debt is ultimately underwritten in US dollars. When the pile of debt is increasing, it is a net positive for the stock market (and all other asset classes, including real estate, commodities, gold, bonds). An increase in debt is negative for the US dollar because when debt increases, each dollar you hold buys less and becomes less valuable. When the US dollar starts to rise, it means that the global pile of debt has started contracting. The debt starts contracting because there is a crash (stocks, bonds, real estate, commodities) underway in some corner of the world. As a result of the crash, the debt underlying that asset class has to be written down or written off due to bankruptcies or insolvencies. This is a net positive for the dollar because the crash has taken out of circulation some of the (debt) dollars. The remaining dollars become more valuable because each dollar you hold now buys more. Politicians didn't use the time they bought with huge debt since 2008. So now they got no tools to use. Except for helicopter money, which the US already did. So what's next? They'll tap into savings. And abolish cash. The giant bag of money has to settle somewhere. China is unsafe, real estate sketchy, bonds doubtful, cash has a negative yield. Interesting to see how low for how long. When you have a central bank artificially suppressing rates since 2008 THIS IS WHAT YOU GET. A MASSIVE BUBBLE. With all the free money floating around with government stimuluses and the crazy printing of money, the dollar is bound to collapse. So knowing that one way to benefit from all this funky money is to short the dollar. Market observers and analysts are all misreading the yield curve implications. Decades ago, large banks were the main risk-takers in the market in terms of volume, turnover, and capital formation. The Dodd-Frank and Volker rule during the housing crisis had changed the whole market landscape. Restrictions on bank risk-taking have limited banks' ability to penetrate into risk-taking, and requirements on capital safety and reserves make large financial institutions to be more client-oriented and risk-averse. It is similar to what Europe had since long ago, and European banks, particularly with consumer operations, were not allowed to carry broad-based risk trading in the equity market. This is why many European banks opened subsidiaries in the USA, seeking riskier and fast trading opportunities along with access to Fed's liquidity support. On top of that, within the last 30 years, there was a massive shift toward electronic trading, and the rise of the passive index industry had overthrown banks as major asset managers and risk-takers. The business model of such a fund industry is looking for fee collection from portfolio managers and investors. Without sophisticated technology and fast trading algorithms, such a business model could not exist as fund offerings of different structured products needs to have almost perfect dynamic hedge as investors and portfolio managers buy and sell such products for hedging or trading purposes. Coupled with very friendly regulation from SEC that allows ETF-like structures to dominate the market along with efficient and fast technology, massive cross-asset computerized setups, and Autobots, the yield curve has lost some predictive recession power as large bank institutions are no longer the biggest part of the curve active players. The risk has been shifted to the FEDs, which means it’s a national solvency & credit issue rather than private sectors in the past. The feds and governments are working together to put excessive liquidity into the market in the hope to spark economic growth and inflation. The problem is that I don’t see an exit strategy for FEDs back to normalcy now. It’s likely that this bubble will be even bigger and run longer than any previous bubbles as it’s fundamentally created by the FEDs around the world. And when it pops, it will probably hurt assets in developed countries more than developing countries as that where the bubble is. No rate hike for at least two years, most likely longer. Wall street is painting the tape to bluff recession so they can pick up stocks at low prices. Inflation is a story that’s still in the early innings with lots of fuel behind it. Also, don’t forget that the US treasury is now a big net seller of bonds monthly, which hasn’t been the case for a decade. The house everyone is looking at has been knocked off its foundation, or if you are building a structure off measurement from the prints, you eventually will run into a "bastard spot" so defying logic and mathematical structure or even balanced economics that involves a heard of idiots in the Eccles building rather than a sound footing and then explaining the current bond market is absurd to me. America's existence with its accruing debt is totally reliant on others and manipulation to finance it, and that is not worthy. This is all theater to me, and it's gonna rock those out of bed one night. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my back up channels; I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends!

2 comments:

  1. We are over due for a decline in Real Estate and some inflation.

    Chris
    Owner CEL Financial Services
    IRS Registered Tax Preparer
    Registered bonded California CTEC Tax Preparer
    https://incometaxprepfillmore.com/income-tax-santa-paula-ca

    ReplyDelete
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