DiMartino Booth

[macdon02]

Danielle is ex Dallas Fed, resigned in 2015 I believe. It's a 2 hour podcast but there's a couple "bombs" in this that are worth considering as possibilities. She starts at 10 min mark, gets good at 30.


https://castro.fm/episode/pDOJaD

[AlbertaFarmer5]

Thanks for posting. Didn't want this thread to go uncommented incase you think no one is paying attention. Good link, hadn't heard of her before, or the podcast.

[errolanderson]

Danielle is highly respected stateside for calling a spade-a-spade in markets. She has tremendous insight into the internal workings of the U.S. Fed.

[Misterjade9]

I listened to it as well, I am not smart enough to say I understand all of it, but what I do understand is that between failed ideology, failed policy and good old fashioned greed and stubbornness, the horse is out of the barn in regards to our banking and monetary systems. Errol, how now does that change?, or does it, are we too far down this path that there is no turning around?

[errolanderson]

I listened to it as well, I am not smart enough to say I understand all of it, but what I do understand is that between failed ideology, failed policy and good old fashioned greed and stubbornness, the horse is out of the barn in regards to our banking and monetary systems. Errol, how now does that change?, or does it, are we too far down this path that there is no turning around?

I've had the privilege of connecting with Danielle about 1 year after she left the Fed in 2017. We do speak the same language when comes to market manipulation and its inevitable consequences. This was a brief opinion I posted last week.

Fed Chairmen Powell is now be touted as a hero in Wall Street dodging the latest market bullet by unleashing infinite money printing. And little by little, investor caution and risk management is again waning. Market momentum definitely influences investors as does the ongoing U.S. Federal Reserve safety net. But the reality is; it’s already been more than ten (10) years since the financial markets cannot stand on-their-own-two-feet without central bank support. In other words, financial debt markets have been artificially controlled and highly manipulated for more than a decade.

An interesting recent survey suggests; nearly 80% of investors know equities are highly overvalued, but risk appetite, and the threat of negative interest rates have investors willing to walk into high risk, overvalued equities regardless. But this raises a serious question for all financial markets.

Global economies, (including the U.S. economy) are now clearly in-recession. Fed Chairman Powell: Artificial market support does not fix a long-term chronic debt problem. This debt problem will not go away. Now, the U.S. Federal Reserve is effectively powerless. Monetary stimulus in the form of unending money-printing does not generate economy and does not generate jobs. Yet, the U.S. Federal Reserve now almost controls the entire U.S. financial market, including the junk bond market.

But economic reality is sobering and truthful. Financial markets simply cannot be artificially supported to the benefit of Wall Street forever. And as we move toward the 2nd half of 2020, financial stakes take-on a whole new view and more risk. What’s developing sets-the-stage of a possible incoming financial market shock event heading into the 2nd half of 2020. 2021 (in our view) is the beginning of a global financial reset.

Markets can’t be sustained artificially forever. But speculation right now is rampant. Yet, the piper eventually has to be paid, whether investors want to or not. These are the waters markets are sticking their toe into . . . Investors at these massive valuations are now convinced that a market crash is unthinkable, that investors can safely buy equities regardless of a deepening recession, that the U.S. Federal Reserve forever has-their-back. Nothing could be further from-the-truth . . . . ProMarket Wire

[AlbertaFarmer5]

Just read the speech by BoC's new governor. No big surprises, claims interest rates will remain this low for a long time, but won't go lower.

And then there was this curiously worded statement:

Macklem said the Bank of Canada will provide "a central planning scenario for output and inflation" and related risks when it releases an updated monetary policy report next month.

Where have we heard that central planning concept before?

[errolanderson]

Just read the speech by BoC's new governor. No big surprises, claims interest rates will remain this low for a long time, but won't go lower.

And then there was this curiously worded statement:



Where have we heard that central planning concept before?

The lines of political ideology are now getting blurred globally. Personally, believe that the U.S. is in desperate need of a credible third party (as Danielle indicated) to lure in badly needed and better political talent.

Loonie is apt to work its way higher on the recent fallout in the USD and rising U.S. COVID cases . . . .

[dustnbones]

Markets cant be artificially propped up forever, but can they be propped up long enough that it crushes any short sellers, or long enough that a firm recovery is in place to lessen the blow?

[ajl]

While all eyes are on the Fed, do keep in mind that all the other countries of the world including Japan, China, European central bank, canuckistan have been paying their bills with printed cash for generations now. The Fed is doing what others have done so everything continues to be relative. This is why the predicted crash in the US dollar has not happened yet and those who bet heavily on that occurrence continue to wait. Farmers will have to ask themselves if they are ready for farm land values to fall to 1/3 of present levels along with stock equities and bonds because that is the implication if this is truly the end of fakenomics.

[AlbertaFarmer5]

While all eyes are on the Fed, do keep in mind that all the other countries of the world including Japan, China, European central bank, canuckistan have been paying their bills with printed cash for generations now. The Fed is doing what others have done so everything continues to be relative. This is why the predicted crash in the US dollar has not happened yet and those who bet heavily on that occurrence continue to wait. Farmers will have to ask themselves if they are ready for farm land values to fall to 1/3 of present levels along with stock equities and bonds because that is the implication if this is truly the end of fakenomics.

Yes, Everytime I read someone ranting about US finances, and the imminent failure of the USD, it seems that they view it in isolation. There is no alternative. The US has been in a cold trade war with China for years, and part of the fiscal policies are in response to the massive debt bubble China has been using to undercut everyone on everything. Just like the last cold war, they only need to outlast China.

[errolanderson]

Yes, Everytime I read someone ranting about US finances, and the imminent failure of the USD, it seems that they view it in isolation. There is no alternative. The US has been in a cold trade war with China for years, and part of the fiscal policies are in response to the massive debt bubble China has been using to undercut everyone on everything. Just like the last cold war, they only need to outlast China.

In the cold war, the U.S. economy was far more productive and in an upswing . . . now they are in a downswing.

[AlbertaFarmer5]

In the cold war, the U.S. economy was far more productive and in an upswing . . . now they are in a downswing.

Relative to who? That does matter.