Janet Yellen, James Bullard, 6.9 Trillion discussed on Biz Talk Radio Programming


Of the Fed presidents I spoke about one early this morning. Shannon was just telling me about Bullard. Uh, James Bullard from the ST Louis Fed. Saying that, you know. So here we are. We're looking at Um You know, a short fall a dramatic shortfall. Obviously, we've got we've got spending at 6.9 Trillion, and we've got income revenue of 3.8. Um, that means we've got to print trillions of dollars worth of bonds of dead in order to have the money to pay our bills and it this goes back to what I have been saying. So if I'm wrong about this, which is sounded like I am because some of them are saying Uh, there's two are saying that we could see tapering this year start to taper. I said a month ago, and I'm going to stick to it. And so they do something different, But so they just taper but My my opinion is that they're going to cut. They're going to raise rates. Even if it's um 12.5 basis points. We're going to raise rates something and try to avoid tapering As long as they possibly can to try to put it off. Um And I say that because Janet Yellen Could care. I mean, right, she's she's saying, Okay, we raise rates slightly. That won't dramatically hurt us. You know if we raise rates by 12.5 basis points We're probably going to be adding about, uh, $100 billion. Maybe not that much. Maybe 75 billion to our service of our day. If we taper Um, we really got a problem because now we got to find somebody to buy 30 trillion $30 billion of our debt. And that's not going to be so easy because nobody is buying our debt, and I'm saying nobody. I'm talking about governments. China is not buying Japan's not buying. The Netherlands isn't buying nobody's buying. So we get China. Japan are, um, number number two or number three debt holder, the Federal Reserve being number one. So, um We? She has to be pressuring. Your own power. And I say that with a great deal of certainty, because I can't be wrong. She's raped. I would hope that at least if they're not smart enough to do something about the debt, they're smart enough to panic. About The cash flow. And if that is the case she's got to be. And I got to believe it is the case. They've got to be pressuring, Uh, pal, that you can't stop. You're it. You're our largest buyer day. You so you can't stop. That's my thought. But if they raise rates, I would be very happy. But I would like to see both go on like to see, you know, cut 30 billion of debt a month. That we're buying and raise rates by I'm not even asking for a quarter ammonia, asking for an eighth of a 1%. Uh, rates and nobody's going to care about that The markets are going to care. There will be a knee jerk reaction in the markets, so they realize it's only an eighth of 1%. And it doesn't necessarily mean that it is a trajectory that's going to continue for any length of time. Although I kind of think would be because inflation as 5.2% Is really at I don't know 10, 10 and 10.7, at least by now, Um, they got to start raising rates. Even Bullard was talking about inflation running hotter than what? They wanted it to go. Did he say that? Yeah. Again. Yeah. And you know it is And do you heard the I didn't? I was on the era when we didn't hear it. But did he say anything? Alluding to that It wasn't temporary inflation, or did he? Did He dismiss that at all? Or just didn't bring it up? He didn't use the word transitory or say it was temporary. He did say that he expects it to linger into next year. So all right, so That's his way of not saying that's not temporary, like, Yeah, you know, um And I'm hearing company after company I read, uh from company financials. Last night. That It's a It's, uh, CS 30 who I added to my buy list this morning, but I read their financials last night or, uh, I already reviewed their financials. This was something else that I get. Um, I'm able to get And indicating that they are somewhat concerned about not only wage inflation, which is, uh, you know, a big big issue. But they're saying product inflation. So if any of you know the company I'm talking about CS 30, you know that they deal in a number of different commodities. And food, kinds of things. Um, that would not be considered commodities, but, um, are food products, uh, to make their food products and they're saying that the cost the law can't raw materials for lack of better, um, but the raw materials that they're dealing with every day. Are going up to a mathematically so they say that there Inflation, both wages and and raw materials. Is here to stay, and they are, in fact passing on all of it along to the consumer so that that connects the dots perfectly to know when we start to talk about While if inflation is going up, What do we do about that Well traditionally to hedge to inflation has been equities. And that's the perfect way. The explanation you gave just totally connects the dots between how we combat inflation. Hands. I put them on the vilest. So, um, because number one, they're staple. Good, solid, stable and you're going to see Um more hedging. I believe in things like consumer staples. Commodities..

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