Money Matters Airs Thursday September 19, 2013 NOON PST. New update! Read Read Read!

The Feds Blink

Marc’s Notes;

Sometimes I hate it when I’m right.

I have been screaming from the rooftops since 2008 “it won’t be enough”.

I have been ranting from the table tops since they QE started they will never be able to stop QE.

I have been pounding the counter that the Feds might taper but then back off soon thereafter or just back off the taper all together before they even start.

BINGO!

Today the Federal Reserve backed down from its promise to taper saying the economy was (my words here) to weak to stand on its own.

Remember this month’s “taper” was suggested to be just reducing mind you, not stopping, but reducing their printing of 85 billion a month to 75 billion a month. This is still a massive amount. They were just going to SLOW down the money printing and only by about 12%.

Now I ask you, how strong is this so called recovery if it can’t stand a mere reduction in the pace of the money printing?

Not very.

It also demonstrates the down right deception we are exposed to from the informational outlets illustrating our economy all the way to the Feds interpretation of it. Haven’t they been telling us the economy is improving?  And how long have they been telling us that? Remember Bernanke’s “green shoots” reference a half a decade ago? After 5 years we now are printing more than ever (over a trillion dollars a year) and as of today we are not strong enough to even slow down a mere 12 %. Now that’s one sick economy apparently!

The facts remain; the money printing is off the charts. The Feds are now buying almost 100 % of all Federal AND mortgage debt. This means without this massive money creation the US Treasury AND the mortgage market (which means all the banks balance sheets as well) would implode into such a carnage as to make 2008 look like a walk in the park.

Not only is this banana republic stuff to the umpteenth fold, the backpedaling today was monumental in its future ramifications.

The Feds major blunder today included:

Destroying what credibility they had left by altering a major policy decision at the 11th hour.

Admitting by their change that the propaganda they have been spewing forth on the health of the economy has been just that; Propaganda and lies.

Increasing market complacency to the point of lunacy by again providing Wall Street with the green light that the Feds have their back and then giving them the money to gamble with.

Setting up incredibly dangerous market dislocations and distortions by continuing this insane money creation and promising to peg interest rates to the floor until kingdom come.

Kowtowing to Wall Street and Washington in the face of our humongous deficits by continuing to finance their spending at the insane rate of over a trillion dollars a year.

Setting the stage for the biggest blow up in world history by spreading the disease through the entire planets economies because the US dollar is the world’s reserve currency.

What the Feds failed to realize is that they had set the stage and prepped the markets for the taper. The markets had already spit up when they first announced it and had digested the taper. It was EXPECTING the taper. The window was OPEN for them to taper. Now that they back pedaled, when they talk again about tapering the markets will spit up again only next time it will be much worse. Even the hint of a taper will send the markets reeling as traders rush to exit before a replay of the last market crash happened when the first taper was announced.

Now investors, hedge funds, banks and brokerages will be lulled to sleep expecting easy money and ultra low rates for years to come until the major crash is brought about by the real taper when it happens.

I can’t tell you what is going to happen in the days or weeks to come but gold was up $60.00 today in the face of the announcement and that was just one reaction. Once the Chinese and the rest of the world digest the news that the US has lost all sense of responsibility when it comes to its maintaining the value of its currency, their reactions could be a whole other ball game. I suspect a wave of volatility will wash over the markets this fall starting tomorrow. Ludwig Von Mises “Crack up boom” begins today.

(look in up or use this link)

http://www.mercenarytrader.com/2010/12/weekender-the-von-mises-prophecy-...

Now more then ever you must protect yourself. This thing is about to go crazy. Crazy up, down and sideways. The madmen are in charge. Let the chips fall where they may. Natural market forces are sweeping towards us like a tsunami of reality. They are not at our shores yet but the wave is already formed and approaching.

Keep tuned, take a class from me, meet with me or get the Dream Portfolio. Do something before it’s too late. Email me with any comments or questions, I am here to help.

Notes:
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Note:

In the next newsletter I will be including a Grass Valley Little League form. You can help sponsor kids to play baseball and get advertising as well. Whether it’s just putting your family name out there or helping a friends business or your own or just donating, our community needs our kids out of trouble and playing healthy games and activities, away from violent video games and bad influences. Please consider helping our kids. Look for the form in the next email.

Note:

Also the Turkey Matters kick off is right around the corner! I buy turkeys for the Nevada County Food Bank. You mail in a check to ANY FOOD BANK YOU PREFER. Make the check out to that food bank. I will match it with my own funds up to $5,000.00. If you prefer a food bank other than NC FOOD BANK or INTERFAITH FOOD MINISTRIES, also provide me an address to mail the checks to. Help me feed our poor! I match all funds you send in so your money goes twice as far!

Money Matters airs tomorrow with a change in topic due to today’s Federal Reserve move. “The Feds Blink”. Tune in noon PST Thursday September 19 on KVMR FM or on the web. www.kvmr.org.

All for now,

Marc