Filmmaker, book author and renowned radio host Steve Quayle says all the bizarre and violent global headlines are telling him we are living in Biblical times.
Earthquakes, famine, war, persecution and plagues were all predicted by Jesus Christ in the “End of Days.” Quayle says, “Let’s just take the locust plague. It was the ninth plague of ancient Egypt. The locust plague now that is infecting, eating and devouring Africa and the Middle East, and it’s gone into China. . . . It’s eating its way across Asia. . . .
The overview is when Jesus spoke about ‘wars and rumors of wars,’ he also talked about famine. He talked about pestilence. He talked about betrayal. He talked about people who will be persecuted, and people are being persecuted and murdered all over the world who are Christians. It’s now coming to the United States. So, there is a global persecution going on now.”
Quayle goes on to say, “In order to bring about the New World Order, they have to absolutely destroy the old world order. They want no nationalism. They don’t want national identity. They don’t want individual borders, language or culture. They don’t want individual currency. They don’t want anybody that can think outside the official global mindset. Star Trek called it the ‘Borg.’ There is a word I have come up with, ‘Borgicated.’ We’ve all been Borgicated.”
When it comes to the economy, Quayle says, “So, now we are seeing an economic morass, upheaval and tumult. The best term to describe that is convulsion economics, or another word I made up, ‘convulsinomics.’ When someone goes into convulsions, it is something that is beyond their control. There are involuntary responses taking place. We have economics in convulsion. There is no true price discovery. There are only manipulations. . . . The ‘D’ word, debt and the basis of debt, and debt and death go hand in hand. The reckless abandonment of all the world now, it’s seriously just print, print, print, print, print. This is why the metals (gold and silver) will explode.”
What should people do? Quayle says, “God can protect. Jesus says he’s a Good Shepherd and his sheep hear his voice, but there are so many false shepherds out there trying to steal the sheep. . . . I find all answers and solutions are in the Word of God.”
In closing, Quayle says, “In the coming days, the two most precious commodities will be fresh water and edible food. It may not be what you are used to, but edible food. . . . When you see the major volcanos of the world going off simultaneously and cannibalism filling the headlines, know that we are entering into Tribulation times.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with radio legend and filmmaker Steve Quayle.
What the Fed Can Do: Print and Buy, Buy, Buy March 8, 2020
Everyone with a pension fund or 401K invested in stocks better hope the Fed becomes the buyer of last resort, and soon.
Much has been written about what the Federal Reserve cannot do: it can't stop the Covid-19 pandemic or reverse the economic damage unleashed by the pandemic.
But let's not overlook what the Fed can do: create U.S. dollars out of thin air and use these dollars to buy assets either directly or through proxies.
Let's also not overlook how much the Fed can print/buy. The Fed's balance sheet currently stands at $4.24 trillion. Doubling this to $8.5 trillion would bring the balance sheet to 39% of U.S. GDP ($22 trillion) and 7.5% of total U.S. household assets ($113 trillion). In the context of GDP and household assets, doubling the balance sheet would be extraordinary but not destabilizing.
Note how the the Fed's balance sheet remained flatlined for 10 weeks and only popped higher this past week:
12/25/19 $4.165 trillion
1/1/20 $4.173 trillion
1/8/20 $4.149 trillion
1/15/20 $4.175 trillion
1/22/20 $4.145 trillion
1/29/20 $4.151 trillion
2/5/20 $4.166 trillion
2/12/20 $4.182 trillion
2/19/20 $4.171 trillion
2/26/20 $4.158 trillion
3/4/20 $4.241 trillion
Why would the Fed double its balance sheet? One reason would be the Fed moves from being the lender of last resort to the buyer of last resort, that is, the buyer of iffy assets no one else will buy such as junk corporate debt and junk bonds.
Why would the Fed become the buyer of last resort? To keep the entire financial system from collapsing under the weight of junk debt and fast-evaporating collateral.
Much has been written about the divide between financialized assets and the real economy, including many posts on this site. The financialization of the economy has richly rewarded the top 10% at the expense of the bottom 90% (and rewarded the top 0.1% at the expense of the top 10%), and this has generated socially and economically disruptive wealth and income inequality.
But even as we decry the widening gap between the financial sector and the real-world economy, we have to deal with the reality that the entire economy has been financialized and is now dependent on debt, leverage and asset bubbles.
If the stock market drops 50%, that wipes out pension funds, 401Ks, and mountains of leverage.
In other words, the Fed has to save all the asset bubbles to save the real-world economy which is now dependent on the excesses of financialization that have enriched the few at the expense of the many.
Everyone with a pension fund or 401K invested in stocks better hope the Fed becomes the buyer of last resort, and soon, as once stocks crater 50% or more, there's no way to recover the $16 trillion that evaporated, or stop the dominoes from falling.
Good Morning Mr. Bruce, did you get any chance to see my plate form?? Do not you think I could qualify your LPOA offer?? I work Monday-Friday, 8.00-4.00 pm EST, If I work/play stocks/forex, full time, I could do better Results Under your supervision. Waiting for your reply. Thanks & have wonderful day.
Good Morning Mr. Bruce, did you get any chance to see my plate form?? Do not you think I could qualify your LPOA offer?? I work Monday-Friday, 8.00-4.00 pm EST, If I work/play stocks/forex, full time, I could do better Results Under your supervision. Waiting for your reply. Thanks & have wonderful day.
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I was not able to open your platform. Please check the numbers and do a screenshot here. Please call me because we need to speak on the telephone at 514 247 0775
{quote} Good Day I was not able to open your platform. Please check the numbers and do a screenshot here. Please call me because we need to speak on the telephone at 514 247 0775 Thank you Bruce
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Do you want me to PM you, or email., or just drop my User ID & pw here?? plz advise. thanks,
With all eyes focus on the stock market indices, crude oil, and credit markets, VIX is feeling left out and so have exploded back above 60 for the first time since Dec 2008...
As Sven Henrich noted over the weekend, we’re faced with the most critical time since the financial crisis. That’s not my opinion, this is what the $VIX says. It’s behaving in a very unusual and rare way and everyone better pay very close attention. When I made the $VIX 46 call in January it seemed like an idiotic call to make for $VIX moves into the 40’s are extremely rare. But it happened and $VIX hit 46 a week ago and now on Friday $VIX hit 54 before again reverting below the trend line I had originally drawn in January (see Big Calls).
What’s the $VIX really saying here? That the Fed and every central bank on the planet are at high risk of losing total control over these markets in which case $VIX could go to 90 and $SPX could ultimate drop to 1800-2000. That’s not hyperbole, that’s what the charts say, the same charts that told you $VIX 46 was coming and that suggested a big drop was coming.
Last week’s panic rate cut by the Fed was a complete failure.
Again the Fed misread the market and the incompetence is stunning. On February 20 and 21 Fed speakers were arrogantly cheerleading and arguing no rate cuts were necessary. Two weeks later they panic cut. The Fed has been wrong and chasing reality for years now. Everything they’ve done has been in response to markets, the balance sheet roll-off was a failure and now they have expanded to record treasury holdings, their rate cuts since 2019 have all been ineffective and now coronavirus, which in fairness they couldn’t have possibly seen coming, is wreaking havoc on the entire market construct.
Nobody can blame the Fed for the coronavirus, but what I will blame them for is the asset bubble they have created. The multiple expansion they unleashed on markets in 2019 and into early 2020 were a complete reckless disaster and now we’re possibly staring at the greatest bull trap ever.
None of this is normal, none of this speaks of control or calm. These are signs of panic and price movements utterly out of control. A crash in various asset classes. The risk:
That some funds are getting wiped out and over-leverage and unpreparedness and fear among retail investors will cause the calm passive investing trend to turn into ‘get me out at all cost’ panic selling. A systemic deleveraging the likes of which we have never seen before. And then it wouldn’t matter if the virus situation improves. The damage will already have been done, companies would have to tighten belts, lay off people and the business cycle would turn in earnest:
Nobody can know how this plays out. But be sure they will try to save it and global stimulus is coming. The Fed will be eager to want to rectify its embarrassment last week. They will meet again in March, so will the ECB and the BOJ. The question is: Can they afford to wait this long? Can global fiscal authorities wait this long without offering massive stimulus packages?
The $VIX says they may not be able to afford to wait.
$VIX over 60 was the highest $VIX reading since the financial crisis. This could mean a lot.
There is clearly an opportunity for control to be re-established. Central banks have managed to control volatility every single time it reared its head since the GFC. But right here and now they are challenged more than ever since the crisis. This is very binary. They either retain control or not. In 2008/09 when they didn’t retain control this happened:
$VIX ran to 90. What’s notable here is that the $VIX 90 spike did not happen at the beginning of the bear market. It happened later when $SPX was already down 30% off the highs. So be clear: Just because $VIX makes a high does not mean markets bottom. It has meant that in recent years when central banks remained in control. It does not mean the same thing when they are not in control.
Bottomline here:
We’re witnessing the most profound challenge to central bankers since the GFC. Their appeasement of markets since 2009 has left us all vulnerable.
The constant subsidy of markets and the economy as led us to the largest credit and asset bubble in our lifetimes and the architects of the monstrosity have left themselves weak and depleted. They are now begging for fiscal stimulus from governments that are traditionally slow to react. The big bazookas will come the question whether it will be too late.
Fact is markets last week failed to recapture the big trend line:
Unless they can recapture this fast, i.e. this in this next week or two it looks to be a massive bull failure.
The $VIX is screaming from the top of its lungs: Intervene NOW! There is massive damage inflicted underneath with potential for far reaching systemic ramifications and the very same people the called for calm and higher prices in February are suddenly waking up to all this.
Markets are massively oversold at the moment, but oversold can stay oversold if systemic selling commences in earnest. The up and down of last week highlights not only the bear market nature of this market at the moment, but also accentuates an important tactical message: Don’t be stubborn about anything. There is massive risk to the downside as well as the upside.
{quote} Good Day I was not able to open your platform. Please check the numbers and do a screenshot here. Please call me because we need to speak on the telephone at 514 247 0775 Thank you Bruce
Authored by Doug Kass via Seabreeze Partners, The Panic of 2020
* These are uncertain times that require political, financial and economic leadership with experience, creativity and a steady hand
* Unfortunately the car has been driving without wheels, (thoughtful policy or without a foundation of value) and it has just crashed
* Equities (now, in pre-market trading, are at about 2800 as measured by the S&P Index) have slightly undercut my expected 2850-3300 trading range
* Disasters have a way of not happening and value almost always emerges out of panic
* I am buying Spyders at under $279 in pre-market trading and I plan to add to my equity holdings today
Last week I wrote "Panic Goes Viral". I was premature in viewing investment opportunities as I had no idea that the panic over the last few days was simply a precursor to this weekend's broader selloff.
Over the weekend one old Black Swan (coronavirus) and a new Black Swan (substantially lower energy prices) joined forces in the pond as the collapse in yields and energy prices are serving to crater global equity markets this morning.
In scope and rapidity, the accumulated declines in bond yields and stock prices are unprecedented.
Remarkably, it was less than four weeks ago that The Goldilocks market was in place. TINA ("there is no alternative") was the watchword of market participants' faith.
An evolving and vulnerable market structure has importantly contributed to these rapid price declines and the consequent fallout is unknown and worrisome.
The Administration, our political leadership and The Federal Reserve will be put to the test over the next few days and weeks.
Arguably (sadly and frankly), it remains my view that these bodies (which have not delivered a steady hand and assurance in time of current developing market and health crisis) may not be up to the current task. Unfortunately, I am not optimistic that they have the fortitude, experience, creativity and intellect to deal with the market and economic challenges that lie ahead. Stated simply, the captain, managers and the bench consists of a number of subpar players that seem more beholden to optics (and reelection) rather than policy - dangerous in a world that has grown flat, interconnected and networked.
An evolving market structure (dominated by products and strategies that know everything about price and nothing about value) will now be tested.
There will be enormous fallout where large bets have gone wrong - ranging from bond, equity, commodity and VIX positioning.
Fortunately, markets, over history, have a way of clearing price and returning to intrinsic value (even while the country's leadership is foundering) - setting up for better times ahead even as those around the markets are losing their heads and may be ill equipped to respond responsibly and, again, without a steady and thoughtful hand. The same observation applies to the global economies - growth resets lower and, ultimately, resumes its trajectory of growth.
So, while our leadership lacks and structural market risks are being exposed, the market opportunities may soon become deafening. But, as fear and panic have so quickly replaced complacency, few will have the guts to capitalize on that opportunity.
At 6:15 am S&P futures were at about an equivalent of 2790 - which is approximately 60 handles, or approximately 2% below the low end of my projected 2850-3300 price range that I anticipated over the first half of 2020.
I am adding to my Spyders at below $279 now and I plan to use this panic (and slight undercut of my projected trading range) to selectively buy more equities.
{quote} You need to CALL ME. YOU NEED TO LISTEN TO ME. So for the last time this is my business and I have no time to waste with those that cannot call me. When you call me you will understand. TIME is MONEY and I have no time to throw away. Bruce
Money Flow Trading Method along with Risk Management
