We’ll find out how strong the American economy really is very, very soon.
British markets are in chaos after the Bank of England said it would no longer be buying bonds to prop up pension funds.
That’s going to spark a major political crisis… on top of the one already brewing because of high energy costs.
Revolts against globalization have sparked populist uprisings around the the world, but the truth is that no country can be fully isolated from everyone else.
Look at the consequences that have resulted from simply trying to isolate Russia…
It still appears that America is in a strong comparative position, but that could also be challenged by increasing energy prices… something not helped by OPEC+ cutting production.
(And it looks like the White House may have mishandled that situation… see more below).
Remember, keep your cool and use your technical toolkit. Gains are possible in any market… even if it means shorting the financial elites.
Sometimes, the so-called experts really don’t know what they are doing.
Keep Moving,
WORD ON THE STREET
Tulsi Switches Parties, UK In Financial Crisis, Bond Outflows Hit Highs
- Hold On To Your Butts – The Bank of England is going to stop buying bonds on October 14, which means pension plans could be in danger. Pension plans are now in a desperate race to raise cash. If they can’t, look for the United Kingdom to suffer a ruinous political crisis.
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Tulsi Gabbard Leaves Democrats – Former presidential candidate and congresswoman from Hawaii Tulsi Gabbard said she is leaving the Democratic Party. “I can no longer remain in today’s Democratic Party that’s under the complete control of an elitist cabal of warmongers,” she said in a statement. But that’s probably not the end of her political career – her announcement came on the day she launched a new podcast, “The Tulsi Gabbard Show.” Will she be running again… this time as a Republican?
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Worst Stretch Since 2013 – Outflows in American bond funds are in the worst situation since 2013 as Barclays estimates outflows are about $67.8 billion this year. Fixed-income assets are being pummeled by the Fed’s program of continuous interest rate increases, something that shows no signs of slowing down.
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The Debt May Finally Matter – At some level, I think we all know the federal debt can never really be “paid off.” But someone has to buy that debt. The Federal Reserve won’t do it anymore. Interest rates are going up, which means the federal government has to dig up more money just to cover the payments every year. And foreign investors are increasingly turning away, creating a potential crisis. Bond markets were closed Monday for Columbus Day, but reopened yesterday to a mixed picture, with the 2-year rate dropping 4 basis points while the 30-year yield gained slightly.
HOT SPOTS: What’s Going on in Geopolitics
- Zelenskyy Calls For Air Defense – The G7 group of industrialized nations pledged support for Ukraine “as long as it takes” as Russian airstrikes continued, knocking out power in several areas around the country. President Volodymyr Zelenskyy called for the G7 to provide more anti-aircraft weapons to counter the assault. “Russia wants to provoke chaos in Ukraine and in the entire democratic world,” he charged, pledging that anti-aircraft weapons would stop the Russian bombardment.
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Belarus Moves Closer To Intervention – Belarussian President Alexander Lukashenko has charged in recent weeks that Ukraine has threatened his country. Belarus has hosted Russian troops and served as a staging point for the invasion, but its own military has not directly participated. President Zelenskyy called for a “mission of international observers to monitor the security situation.” If NATO troops were stationed by the border and an incident occurred, that could trigger Article V and direct NATO intervention.
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Did White House Tell Saudis To Keep Oil Flowing Until Election? – The Wall Street Journal published a report charging that American officials told Saudi Arabia to delay any decision to cut oil production for a month, which would push it past the midterm elections. America also reportedly warned the Saudis that production cuts would be seen as aligning with Russia. As Saudi Arabia cut production, it seems these warnings did not work. President Joe Biden said there would be “consequences” for Saudi Arabia and said the USA will need to re-evaluate its relationship with the Kingdom.
CUTTING EDGE: What‘s Happening In Tech
- Russia Labels Meta Platforms A Terrorist Group – Facebook and Instagram are already banned in Russia for “Russophobia.” Now, the Russian government is going a step farther. The parent company, Meta Platforms, is now on a list of terrorist and extremist organizations, essentially cutting it off from the Russian market.
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Mark Zuckerberg Shows Off New VR Headset – He may be an “extremist” in Russia, but at least Mark Zuckerberg can escape into the metaverse. The CEO showed off the new Quest Pro VR headset, which contains new augmented reality technologies and will begin shipping on October 25. The catch? It will cost $1,500. The Quest 2 headset only cost $400. Talk about inflation.
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TikTok Targeting Amazon – TikTok, the most visited site on the Internet in 2021, is reportedly planning to build its own product fulfillment centers in the United States. According to LinkedIn job postings reviewed by Axios, the company is preparing an “international e-commerce fulfillment system,” including a free return program. However, it appears the company will still work with outside vendors for transportation.
FOR YOUR CONSIDERATION
“A CBDC provides practically unlimited opportunity for tyranny and government abuse, so we can probably assume it’s a sure thing as soon as they develop the ability to do it.”
Ok, so Mr. X doesn’t think very highly of the government and the Powers That Be. That’s what happens when you’ve worked in Washington…
But the interests of the financial and political elite and crypto boosters may actually be aligning. And he argues there’s a long term case for not giving up on cryptocurrency.
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