Month: February 2019

Whatever little credibility the Powell Fed still had has been permanently shredded.

Throughout the last 15 months, the Powell Fed has maintained that it would be able to normalize Fed policy. This meant interest rates at historic norms (above 3%) and the Fed balance sheet back at pre-Crisis levels (~$1 trillion).

The Fed pushed this narrative hard throughout 2018, to the point of explicitly stating it would not reverse policy unless the financial system experienced a crisis so dramatic that it damaged consumer spending.

Then came the October-December stock market meltdown, and the Powell Fed abandoned ALL of its hawkishness regarding rate hikes in a matter of weeks.

However, it wasn’t until late last month that the Fed began to talk about abandoning its balance sheet reduction too. Starting in late-January, one by one, Fed officials began talking about ending the Fed’s balance sheet reduction early.

Fast forward to yesterday and Jerome Powell stated on record to Congress that the Fed would STOP shrinking its balance sheet when it (the balance sheet) reached 16%-17% of GDP (roughly $3.3-$3.5 trillion).

I realize these numbers are hard to picture, so consider the below chart. For a year, the Fed CLAIMED that it was 100% certain it could shrink its balance sheet to the red line.

Now it is claiming it will stop at the blue line. And all it took for the Fed to give up on its plans was the damage caused to the markets by the dip in the green box.

Anyone who continues to believe the Fed has a clue what it’s talking about in terms of forecasting or the impact of its monetary policy on the financial system is insane.

However, the fact remains that the underlying issues in the financial system are still in place. Those issues are:

1)   Too much debt/ leverage.

2)   Too little capital.

And if the Fed is not going to be able to normalize policy to reduce leverage in the system, then the Political elite will need to come up with other sources of capital to do so.

With that in mind, the current political agenda to push for Wealth Taxes, cash grabs and other means of raising capital all makes sense.

Consider the following:

• The IMF has already called for a wealth tax of 10% on NET WEALTH.

• More than one Presidential candidate for the 2020 US Presidential Race has already openly called for a wealth tax in the US.

• Polls suggest that the majority of Americans support a wealth tax.

And if you think this will stop with the super wealthy, you’re mistaken. You could tax 100% of the wealth of the top 1% and it would finance the US deficit for less than six months.

Which means…

Cash grabs, wealth taxes, and more will soon be coming to Main Street America.

Indeed, we’ve uncovered a secret document outlining how the Fed plans to both seize and STEAL savings during the next crisis/ recession.

We detail this paper and outline three investment strategies you can implement right now to protect your capital from the Fed’s sinister plan in our Special Report The Great Global Wealth Grab.

We are making just 100 copies available for FREE the general public.

You can pick up a FREE copy at:

http://phoenixcapitalmarketing.com/GWG.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

Whatever little credibility the Powell Fed still had has been permanently shredded.

Throughout the last 15 months, the Powell Fed has maintained that it would be able to normalize Fed policy. This meant interest rates at historic norms (above 3%) and the Fed balance sheet back at pre-Crisis levels (~$1 trillion).

The Fed pushed this narrative hard throughout 2018, to the point of explicitly stating it would not reverse policy unless the financial system experienced a crisis so dramatic that it damaged consumer spending.

Then came the October-December stock market meltdown, and the Powell Fed abandoned ALL of its hawkishness regarding rate hikes in a matter of weeks.

However, it wasn’t until late last month that the Fed began to talk about abandoning its balance sheet reduction too. Starting in late-January, one by one, Fed officials began talking about ending the Fed’s balance sheet reduction early.

Fast forward to yesterday and Jerome Powell stated on record to Congress that the Fed would STOP shrinking its balance sheet when it (the balance sheet) reached 16%-17% of GDP (roughly $3.3-$3.5 trillion).

I realize these numbers are hard to picture, so consider the below chart. For a year, the Fed CLAIMED that it was 100% certain it could shrink its balance sheet to the red line.

Now it is claiming it will stop at the blue line. And all it took for the Fed to give up on its plans was the damage caused to the markets by the dip in the green box.

Anyone who continues to believe the Fed has a clue what it’s talking about in terms of forecasting or the impact of its monetary policy on the financial system is insane.

However, the fact remains that the underlying issues in the financial system are still in place. Those issues are:

1)   Too much debt/ leverage.

2)   Too little capital.

And if the Fed is not going to be able to normalize policy to reduce leverage in the system, then the Political elite will need to come up with other sources of capital to do so.

With that in mind, the current political agenda to push for Wealth Taxes, cash grabs and other means of raising capital all makes sense.

Consider the following:

• The IMF has already called for a wealth tax of 10% on NET WEALTH.

• More than one Presidential candidate for the 2020 US Presidential Race has already openly called for a wealth tax in the US.

• Polls suggest that the majority of Americans support a wealth tax.

And if you think this will stop with the super wealthy, you’re mistaken. You could tax 100% of the wealth of the top 1% and it would finance the US deficit for less than six months.

Which means…

Cash grabs, wealth taxes, and more will soon be coming to Main Street America.

Indeed, we’ve uncovered a secret document outlining how the Fed plans to both seize and STEAL savings during the next crisis/ recession.

We detail this paper and outline three investment strategies you can implement right now to protect your capital from the Fed’s sinister plan in our Special Report The Great Global Wealth Grab.

We are making just 100 copies available for FREE the general public.

You can pick up a FREE copy at:

http://phoenixcapitalmarketing.com/GWG.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

Whatever little credibility the Powell Fed still had has been permanently shredded.

Throughout the last 15 months, the Powell Fed has maintained that it would be able to normalize Fed policy. This meant interest rates at historic norms (above 3%) and the Fed balance sheet back at pre-Crisis levels (~$1 trillion).

The Fed pushed this narrative hard throughout 2018, to the point of explicitly stating it would not reverse policy unless the financial system experienced a crisis so dramatic that it damaged consumer spending.

Then came the October-December stock market meltdown, and the Powell Fed abandoned ALL of its hawkishness regarding rate hikes in a matter of weeks.

However, it wasn’t until late last month that the Fed began to talk about abandoning its balance sheet reduction too. Starting in late-January, one by one, Fed officials began talking about ending the Fed’s balance sheet reduction early.

Fast forward to yesterday and Jerome Powell stated on record to Congress that the Fed would STOP shrinking its balance sheet when it (the balance sheet) reached 16%-17% of GDP (roughly $3.3-$3.5 trillion).

I realize these numbers are hard to picture, so consider the below chart. For a year, the Fed CLAIMED that it was 100% certain it could shrink its balance sheet to the red line.

Now it is claiming it will stop at the blue line. And all it took for the Fed to give up on its plans was the damage caused to the markets by the dip in the green box.

Anyone who continues to believe the Fed has a clue what it’s talking about in terms of forecasting or the impact of its monetary policy on the financial system is insane.

However, the fact remains that the underlying issues in the financial system are still in place. Those issues are:

1)   Too much debt/ leverage.

2)   Too little capital.

And if the Fed is not going to be able to normalize policy to reduce leverage in the system, then the Political elite will need to come up with other sources of capital to do so.

With that in mind, the current political agenda to push for Wealth Taxes, cash grabs and other means of raising capital all makes sense.

Consider the following:

• The IMF has already called for a wealth tax of 10% on NET WEALTH.

• More than one Presidential candidate for the 2020 US Presidential Race has already openly called for a wealth tax in the US.

• Polls suggest that the majority of Americans support a wealth tax.

And if you think this will stop with the super wealthy, you’re mistaken. You could tax 100% of the wealth of the top 1% and it would finance the US deficit for less than six months.

Which means…

Cash grabs, wealth taxes, and more will soon be coming to Main Street America.

Indeed, we’ve uncovered a secret document outlining how the Fed plans to both seize and STEAL savings during the next crisis/ recession.

We detail this paper and outline three investment strategies you can implement right now to protect your capital from the Fed’s sinister plan in our Special Report The Great Global Wealth Grab.

We are making just 100 copies available for FREE the general public.

You can pick up a FREE copy at:

http://phoenixcapitalmarketing.com/GWG.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

Whatever little credibility the Powell Fed still had has been permanently shredded.

Throughout the last 15 months, the Powell Fed has maintained that it would be able to normalize Fed policy. This meant interest rates at historic norms (above 3%) and the Fed balance sheet back at pre-Crisis levels (~$1 trillion).

The Fed pushed this narrative hard throughout 2018, to the point of explicitly stating it would not reverse policy unless the financial system experienced a crisis so dramatic that it damaged consumer spending.

Then came the October-December stock market meltdown, and the Powell Fed abandoned ALL of its hawkishness regarding rate hikes in a matter of weeks.

However, it wasn’t until late last month that the Fed began to talk about abandoning its balance sheet reduction too. Starting in late-January, one by one, Fed officials began talking about ending the Fed’s balance sheet reduction early.

Fast forward to yesterday and Jerome Powell stated on record to Congress that the Fed would STOP shrinking its balance sheet when it (the balance sheet) reached 16%-17% of GDP (roughly $3.3-$3.5 trillion).

I realize these numbers are hard to picture, so consider the below chart. For a year, the Fed CLAIMED that it was 100% certain it could shrink its balance sheet to the red line.

Now it is claiming it will stop at the blue line. And all it took for the Fed to give up on its plans was the damage caused to the markets by the dip in the green box.

Anyone who continues to believe the Fed has a clue what it’s talking about in terms of forecasting or the impact of its monetary policy on the financial system is insane.

However, the fact remains that the underlying issues in the financial system are still in place. Those issues are:

1)   Too much debt/ leverage.

2)   Too little capital.

And if the Fed is not going to be able to normalize policy to reduce leverage in the system, then the Political elite will need to come up with other sources of capital to do so.

With that in mind, the current political agenda to push for Wealth Taxes, cash grabs and other means of raising capital all makes sense.

Consider the following:

• The IMF has already called for a wealth tax of 10% on NET WEALTH.

• More than one Presidential candidate for the 2020 US Presidential Race has already openly called for a wealth tax in the US.

• Polls suggest that the majority of Americans support a wealth tax.

And if you think this will stop with the super wealthy, you’re mistaken. You could tax 100% of the wealth of the top 1% and it would finance the US deficit for less than six months.

Which means…

Cash grabs, wealth taxes, and more will soon be coming to Main Street America.

Indeed, we’ve uncovered a secret document outlining how the Fed plans to both seize and STEAL savings during the next crisis/ recession.

We detail this paper and outline three investment strategies you can implement right now to protect your capital from the Fed’s sinister plan in our Special Report The Great Global Wealth Grab.

We are making just 100 copies available for FREE the general public.

You can pick up a FREE copy at:

http://phoenixcapitalmarketing.com/GWG.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

The Fed is truly terrified of what’s coming.

Last Friday, a number of Fed officials gave speeches at prominent Central Banking conferences.

The contents of these speeches reveal a degree of terror that runs completely counter to what is happening in the markets today. To look at the surface of things, the stock market has surged over 18% in the last eight weeks and is now less than 5% of its all-time highs.

Meanwhile, the Volatility Index, or VIX has broken below 15 and is  close to erasing ALL of the spike that was induced by the October- December sell-off.

Against this backdrop of market calm, the Vice Chair of the Fed, Richard Clarida (he’s also the Fed’s highest ranking economist and the primary advisor to the Fed Chair, Jerome Powell) stated that the Fed might consider introducing new easing tools in the future, including policies that the Fed had previously rejected as being too extreme.

We are talking about:

1)   Targeting bond yields, much as the Bank of Japan has done.

2)   Potentially buying stock directly via futures, index funds, and ETFs.

3)   Negative Interest Rate Policy

And more.

Let me ask you… if everything is going well, and the financial system is stable, why is the Fed’s #2 guy talking about potentially introducing policies that are so extreme, the Fed previously rejected them when dealing with the 2008 crisis?

The answer is simple… the Fed knows that another crisis is at our doorstep and that when it hits, the Fed will be forced to engage in even more extreme policies than it did in 2008 to hold the system together.

In chart form, the Fed knows that in December we came DARN close to breaking the bull market from the 2009 low. And it knows that once that line goes it’s nothing but a massive air pocket to below.

Put simply, a Crash is coming… and the Fed is preparing for it now.

You should too…

On that note we just published a 21-page investment report titled Stock Market Crash Survival Guide.

In it, we outline precisely how the crash will unfold as well as which investments will perform best during a stock market crash.

Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research