Federal Reserve, UK, European Union discussed on Operation Freedom
Always a pleasure to be on your show. Dave. Good afternoon to all your listeners. I I want to touch on a couple of things you wrote on through on your on your missive this on your report actually this this past weekend. And it really is looking at the world's central banks and looking at markets around the world. And this is what you said the quote. Well, it's now official is the world's central banks have dropped all pretense now. Joined by the Federal Reserve this past Wednesday and only one policy objective. That's to prevent the implosion of the biggest financial and economic bubble. The world has ever known that they themselves created and quote at many people believe that it's that I speak. I'm speaking fear porn when I talk about. How how unstable financial markets are around the world your take? Well, it's it's very easy to tell you have to go back and look a little history. Go back to nineteen eighty seven when the Federal Reserve and. The government stepped into the the crash of eighty seven. There's no question about it. They were they were right there to prop up the Marcus. And they've been propping up the Marcus ever since. This is going on what thirty years or more than thirty years now, and they made a movie out of a call the big short after the crash of oh eight oh nine and they were there to bail out J and J P Morgan, and Goldman Sachs and everybody else that got into trouble and all the the the mortgage issue back then. And now we've reached another turning point where as you know, Jerome Powell raise interest rates in December. And the moment he did that the market just absolutely cratered. And certainly would have. Crashed if they hadn't reverse policy and within twenty four or forty eight hours, they had to step into the markets to save them where they would've crashed right there. And now, of course, the last last Wednesday. Their sole objective, as you just stated is to prop up the equity markets are making no pretense of that at all. And it's only a matter before a matter of time before the Federal Reserve has to go back into QE once again in the money printing will start. In in fact, speaking about money printing, and just, you know, just looking some of these recent headlines, not on FOX business news or CNBC s but just from Friday US manufacturing PM plunges to twenty one twenty one month lows services slump yield curve in verts for the first time since two thousand and seven recession countdown begins German manufacturing craters, sending Bundy heels negative show from recently shocking, Philly fed collapse. Biggest drop since twenty eleven US rating downgrade business spending suffers longest contraction since twenty fifteen world's largest shipping company warns twenty nineteen global economic outlook is worse than twenty eighteen and this is in contradistinction to the Hopi him. It is constantly pushed down the throat of every person that listens to FOX business news. News CNBC s Reuters or Bloomberg Andy left out the the big negative. This FedEx came up with last week and the earnings for BMW. The fact of the matter is that despite what the central banks and the governments of the world are telling you we most likely have been into recession for at least the last quarter. If not the last six months and the United States is already there. But the statistics won't be over the next two or three months because it's always a leading indicator. But but we're in recession right now. Just simple as that. And I don't care how much the smoke. They tried to blow up behind. The fact of the matter is that this bubble has run its course. And there's nothing they can do about it anymore except try to prevent it from crashing. And this goes along with something you wrote this past weekend allowing the free market to rain at this point would precipitate the biggest stock market crash in the history of planet earth, along with the concurrent meltdown of the world's financial system. Paper money of any kind would lose their purchasing power in a blinding speed and extremes would drive precious metals prices to the moon and stars as as the only safe haven left. Well, that's exactly right because what's going to happen. And there's nothing they can really do to prevent it. Except maybe slow the descent somewhat is the fact that once they're trying to save not only the stock market, but the bond market as well. And once the stock market the bond market start heading. Heading lower. There's there's only one thing left. That's commodities in general, but precious metals in particular, and as the currencies themselves to start evaluating against each other. They're also going to be devalued against precious metals and just that alone will drive the prices up, even if they do nothing this past week, the fed came out and two months ago, they were talking about raising interest rates three times this year this past Wednesday. They now cut it down to hey, we're done for the year and maybe next year. Maybe once that's it. This came out from zero hedge in particular from Saxo Bank, quote, the fed has surrendered and quote Jacobson explains. What comes next last night FOMC meeting? The fed made it official. The fed has thrown in the towel and central banks are committed to defying the business cycle. Well, that's exactly right. And that's basically what I said in Europe winning paragraph that you quoted. When when the program started today is that the banks are basically given up to there's no monetary policy anymore. None whatsoever. You know, Jay Powell's twenty five basis point rates and raised in December was was a brave attempt at trying to cool things off and I'll just read a quote from Doug Nolan squawk. Call him that it came up on Saturday morning. It's now commonly accepted that the Federal Reserve aired in raising rates twenty five basis points in December. I hold the view that chairman Powell is hoped to lower the fed put strike price. The fed was willing to disregard some market instability, hoping to begin the process of the market standing on their own the fed just didn't appreciate the degree of late. Martin market fragility has been accumulating over the years. But I don't fault them for trying and as you quote article from Saxo Bank from whoever it wasn't sachse Bank. Everybody knows everybody out there. There's anybody knows that. The central banks through world. And now the fed have basically caved to the markets, and they're just basically do the markets bidding. And as I said earlier, there's no monetary policy out there anymore. Let's add to the mix at your take on what's happening with this Brexit issue. Okay. And and this. A couple of weeks ago, I had gotten some notifications from some folks that I trust that there was between March fifteenth and March nineteenth look for some instability to the point where there could be some major instability in financial markets, and you know, the March fourteenth, we started seeing some problems in the internet with Facebook and Instagram and the night of the fourteenth fifteenth, Google G mail, this kind of thing, and then we started to get rumblings of some problems in with Bree exit deal in the like, well, this was just published yesterday on on zero hedge no deal Brexit doomsday plan soldiers in nuclear bunker, ready to go dubbed operation read full UK has activated troops and deployed them to a special nuclear bunker, beneath the ministry of defence. The UK is facing. Tough days ahead is British Prime Minister Theresa may presses forward. Brexit citizens have been warned to begin stockpiling basic supplies such as food and medicine in the event that no deal is made between the European Union and the UK. Ed, your take on exit and many people believe that this type of article is fear porn, your take on that. Because I believe it's actually one of trying to stay ahead of the curve. Well, I'll tell you one thing is this Brexit deal between the UK and Europe has been festering for a while and their view, the EU is playing hardball with the UK and Theresa May's and big political trouble back home. They were supposed to have this thing all settled by was March fifteenth and it became March twenty now. And now they give it another two weeks. But the whole thing is just an absolutely sort is mess, and that just goes along with everything else that's going on in the world right now. And that that story headline or whatever maybe mongering to a certain extent. But the fact of the matter is that UK the UK right now is in serious trouble. If they don't work out some sort of deal with the European Union. And and let's talk about. So let's say a Brexit deal is not reached the ramifications of that a financially not just many people believe all it'll be isolated to the UK or or well, maybe it might have some a little bit of an effect on the continental Europe. In fact, because all these banking institutions are linked worldwide. It has a dilatoriness affect for example, if there's instability in one area, the UK there's goes to reason that would affect the entire world. Correct. Well, there's no question about that the banking systems of the world. I don't care that the European or the American Canadian or Australian or Chinese or whatever they're also in sexually interconnected now that our problem in one area can rapidly spread to another. There's no doubt about that. To tell you the truth. If things don't go through. I think I think things will get ugly. But I don't want to speculate here right now on the fact that they may, but if it does get ugly than certainly you're going to see the ramifications far beyond what happens in the European Union. So what should people do if it starts to get a what should they do before it starts to get? We I should say to protect themselves. Well, I, you know us, you know, I'm one hundred percent of the precious metals. And the first thing I would do is I own common stock in anything. I don't care whether it's United States genita- England European Union, Australia, any I don't care where it is. I would sell all your common stock tomorrow and go to cash in precious metals because whether or not this year or breakfast thing goes through whether they settle things with China between China US, the fact of the matter is that this financial bubble. The biggest one. History of the world is that it's peaking already heading downhill, regardless of this is all of these issues are resolved. So people keep their money in the stock market in general equity markets are in dire peril right now. And let's speak about the the precious metals markets because many people including yourself and myself have been frustrated over the years in how the precious metals markets have acted in first to act that way, I'll just jump in right away..