Thursday, November 12, 2015

Confidence in the fed has peaked and its all down hill from here. [PST]

I've often described Yellen as the disposable fed and in fact I think she was set up by the male oligarchy to take the coming fall.  Time will tell if I'm right about that but falling treasury prices will be the clear and certain sign that confidence is being lost in the institution of the federal reserve.  These two vids from EWI are worth watching IMO:

https://www.youtube.com/watch?v=i_knlqDNqZA


https://www.youtube.com/watch?v=wz3rqovQbHY


I am also on record for years now as saying that before the US-led global debt Ponzi collapse is done that the federal reserve will be shut down or greatly hobbled in power.  After all, the con man always goes down at the end of the con.

I also mentioned that we know that hyperinflation is not far off if Congress takes control of the money supply for itself.  If the fed mismanaged the money supply for its own gain then Congress will be far worse.  Unless we return to something that cannot be easily gamed like an audited gold standard, etc. massive of even hyperinflation will be the eventual outcome.  Velocity of money will skyrocket and that will be one of the signs to look for.

But closer in, falling treasury prices should be the first sign and the Proshares 7-10 year ultrashort should be a major beneficiary of this change.  Few people took notice but there was a clear and massive unicorn tail event that occurred in conjunction with the big sell off of the markets in late August.  That event will turn out to be the start of a major bear market.  As treasuries begin to fall and interest rates pick up speed into a 3rd wave, how can it possibly be good for stocks?  You can't have it both ways.  Rising treasuries and lower rates is what PST (the inverse bod fund) was showing us.  There is no time value in this baby so it is safe to buy and hold for long periods of time if the trend is in your direction.

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