Will this be the FINAL financial BUBBLE? We discuss how President Donald J Trump may actually be the new Federal Reserve Chairman.

Hey, hey, hey everybody, welcome to another Money Today. Another day, another crazy, crazy time. It’s Sunday right now where I’m at in California, and tomorrow the markets will open. Now, I’m sure a lot of people are going to predict what’s going to happen, nobody knows. And that’s the weirdest thing about this market. I mean, it’s always been difficult to predict, but now the things that traditionally may have made sense no longer make sense.

So, of the Dow Jones goes down, we would expect gold to go up, or maybe vice versa, we can’t predict that anymore. The stock market has been down, gold has been down. Some are saying, oh, it’s had this resurgence, no, it’s still down for the past 30 days. So, a lot of things are not making sense. Crypto seems to be kind of holding its own right now, it’s somewhat volatile, but it’s pretty much maintaining, considering everything that’s going up, but it’s not going way up or way down, even with all this volatility. Nothing seems to make sense.

But, if nothing makes sense and I have nothing to tell you, then why would I make a video? Well, I do have something to bring up. Remember, we’ve been talking the last, I don’t know, week or so, about this reinflation of the bubble and are they going to reset like a lot of big gold bugs have been saying that we’re in for a reset? Or are we in for just another bubble for maybe another 5 or 6 years, you know, 2008 lasted until now, maybe they can get, I think it’s because it’s an exponential rise, the bubble has to be pushed bigger, which, so many people thought that was impossible, there’s no way they can blow that bubble up again.

Well, yes, they can. Very coincidental, and this isn’t conspiracy theory, it just happened to be right at the exact time the market was imploding, we got an even bigger bubble, which is the coronavirus worldwide, central banks just printing more than ever before, and the United States is no exception. We have literally, I don’t know, what is this going to be, 4, 5, 10 times the amount that it was in 2008? So, things are bubble, you know, this is bubble, re-blowing up of bubble time. But does that automatically take away the reset idea? I don’t think it does. I think it could just be a vehicle to get us to that reset, which, there is some evidence pointing to that.

Now, I don’t know if you guys have seen this article, it’s from Yahoo Finance. It basically says The Fed’s Cure Risks Being Worse Than The Disease.  It’s just an opinion, a Bloomberg Opinion. But I’ve been looking for anybody to rebut this or to say hey, maybe that’s not the case. Things are so complicated when it comes to the Fed right now that it’s very difficult, it’s kind of like a derivative or something, it’s very difficult to get to what the truth is.

But I’m going to read this real quick, some of it, you know reading gets too boring, literally I’m going to put the link in the description and if you want to read the whole thing, which I suggest, then you go do that. But I am going to take an excerpt here. Okay, so we all know the bailout is coming. Now, last time that came directly from the Fed, at least as far as my understanding. But the way that it’s working this time, the Fed can’t do it. And I’ll just read along here.

To put it bluntly, the Fed isn’t allowed to do any of this. The central bank is only allowed to purchase or lend against securities that have government guarantee.

So how can they do this? The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, using the Exchange Stabilization Fund, will make an equity investment in each SPV and be in a “first loss” position. What does this mean? In essence, the Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing. The Fed hired BlackRock Inc. – (just a side note, I’m not a big fan) – to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury.

In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades.

This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.

Alright, I’ll let you keep reading on that. But evidently it’s been kind of going that way for a while, but now it’s superficial.  So, that puts my theory that I mentioned a few weeks ago, that the basis points were dropped to zero worldwide basically to get rid of the central banks. That doesn’t mean we’re free and clear, by the way, even if that does happen. Central bankers have been behind pretty much every change in the monetary system, so this is the time where we’ve really got to pay attention.

Essentially what could happen is if all the banks around the world go to negative interest rates or zero, refinance the debt through the central bank, the central bank takes on all the debt, then they all go bankrupt, and then we reset the financial system. This is how I see it happening, totally a prediction, not financial advice in any way, just my prediction, and I’m saying that things are starting to kind of head in that direction. We know the Swift system, the credit card system, the banking system is dead. That’s Finance 1.0. We will have to come up with a Finance 2.0, it will probably be electronic.

So, how will that happen and is that going to be a good time to erase the debt? Obviously, we’re not going to pay it, and who do we owe it to, right? Especially if the debt is all taken on by the central banks. So, this is my theory and it is starting to look like it’s more and more backed up by fact. But, in the near term, it does look like we have inflated another bubble, and that may carry us for a few years. So, very interested to hear your thoughts on this article, and please, if you know anything about whether this is true or  not, I really appreciate your comments. Alright, thanks, I’ll see you in the next one.

Eric Phillips

View all posts

Add comment

Your email address will not be published.