Schiff, a quack, agrees with me, the greatest economic expert in the world, and in this video he gives the essential scenario why I continually call for a stock market crash based on a view similar to Schiff's characterization.
FED is unwittingly following the '70s phenomenon of adding reserves to prevent rates from rising, only this time they only have the Tpaper rate to influence. Not that buying Tpaper contains its rate. Indeed, just like in the '70s, the Tpaper rate advances in spite of reserve additions. One could call it a psychological phenomenon in contrast to the buy to speculate in assets driven by money creation phenomenon of the '70s. Certainly they're both psychological but the former has no basis in material money, that is, in money converted to assets, for, the former only drives the stock market up immaterially.
No money from deposits, from M1, is going into stocks. In fact, money on balance has been leaving stocks for a long time. This is what ET flow has been showing, the greatest negative divergence between price and flow in history.
When it goes, it won't let anyone out. The NYSE will gap open down a magnitude similar to the '87 crash. |
