Markets Rally and FOMC Minutes
US indexes rocketing higher today, reversing yesterday’s late day POTUS tweet plunge. As the SP500 is trading near the 3400 area:
The FOMC minutes continue to play both side of the risk aisle, stating uncertainty about the growth of overall GDP, a rise in unemployment and risks due to Covid. On one hand they state things like,
“In addition, the inflation forecast for the rest of the year was revised up slightly, as some recent consumer goods prices were stronger than expected. Nevertheless, inflation was still projected to be subdued this year, reflecting substantial slack in resource utilization and the sizable declines in consumer energy prices earlier this year."
So even though forecast for inflation expectations were revised up, their projections are still looking subdued. Its a great way to kind of double speak and cover everyone’s expectation, but does little to add any credible insight.
Some other key take aways:
"All members agreed to incorporate into the post meeting statement key elements of the Committee’s revised Statement on Longer-Run Goals and Monetary Policy Strategy."
"The Committee’s statement thus indicated that over coming months it would be appropriate for the Federal Reserve to increase its holdings of Treasury securities and agency MBS at least at the current pace to sustain smooth market functioning and to help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses." (Yea right we all know what businesses do with the money…buybacks and as for household credit, laughable)
"Almost all participants continued to project that real GDP would decline in 2020, with the median projection anticipating a decrease of 3.7 percent" (Pretty good considering a global shutdown if you ask us!)
"Most participants expected inflation to rise over the next three years, although about half of them expected PCE price inflation to still fall short of the Committee’s longer-run 2 percent inflation objective by the end of the forecast horizon. " (What the hell are they saying, that they really don’t think inflation can increase above 2%, hah no kidding when velocity is going south, and you are cutting the equilibrium of interest rates into negative territory, expecting inflation is like expecting an ice cube to stay frozen in the desert!)
So once again, the central banks have proven that they don’t really care one way or the other, rather the only objective is to increase debt and to keep interest rates low. PERIOD!
You know another thing on our minds, we have been watching Narco’s series on Netflix, yes shameful since they are on our banned list for their indecency but we can’t help but think with all the cash the Cartel’s have built up over the years and with as little of cash there actually is, Just exactly how much can the central banks truly control? The real money, the physical is most likely in the hands of the global cartel’s, what that figure might be, who knows, $500 Billion, $1 Trillion? Whatever it is, its substantial and we can’t help but think the reason for all the debt expansion is because they really can only control the electronic money of debits and credits. Cash, is the only privacy left, even all crypto is traceable, or at least Bitcoin can be traced completely to a certain key.
We have also uncovered this sad truth, that even if you cancel a credit card, change your pin and begin to use it for let’s say Uber or Lyft, did you know that those apps store your old cards and once you enable your new card, that means any apps that had your old card are now charged to your new card automatically.
So what’s the point of changing cards and pins for security if once you enable the new ones, any apps that have your old card stored will now automatically be able to charge anyone who had access to your old card thru an app, to the new card you just implemented.
I was told this is for seamlessness, for customer service, so that continuity of service could be maintained. But all this begs the question as to who is bearing any security risk than? Visa, the issuing bank? The merchant? Or are they all inexplicable tied now. Sure seems like a hackers dream to me, one by which apps are exploiting for continuity but failing to realize the dynamics behind the continuity and blanketing access just because you have a new card and a new pin, which now also enables your old ones to be automatically changed to your new card.
Ok we will be back with more later!
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