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The Fed Says, “Let Me Squeeze Your Dollars…5 Basis Points at a Time”

The Fed Says, “Let Me Squeeze Your Dollars…5 Basis Points at a Time”

I still maintain no one will mark June 16th, 2021 as the day the world changed. Watching the dollar surge into this weekend thanks to a breakdown in the euro only validates that conclusion in my mind.

Remember, on June 16th Presidents Biden and Putin met for a summit which altered the course of geopolitics forever, agreeing to disagree about Nordstream 2 and reversing the worst of U.S./Russian relations among other things.

While that was happening the FOMC met and reversed the flow of dollars globally.

I told my Patrons something was up on June 18th. Then I did 2 hours worth of podcasts on it (herehere, and here) after thinking it through. Finally, after fully digesting it I wrapped it all up in a lengthy post on July 3rd.

The Fed’s decision to pay 5 basis point on Reverse Repos was the subtlest but most effective way to taper without tapering, tighten without tightening and undermine the WEF’s Great Reset while seemingly still supporting it.

I can hear the howls from the gallery who think otherwise so I’ll address them first.

Yes, normie macro-guys, the bond market has been screaming at the Fed that inflation is soaring and they need to raise rates.

Yes, first year domestic policy students, the Fed looks like it is putting pressure on Republicans to cave to Nancy Pelosi’s hardball over the Infrastructure, Budget and Debt Ceiling deadlock, so far to no avail.

Yes, second year geopolitics students, the Fed is forcing China to respond to soaring commodity prices while simultaneously trying to defend the yuan.

Yes, these are all effects of the Fed’s move in June.

…click on the above link to read the rest of the article…

From the Notebook: Killing All the Birds With One Pile of Gold

From the Notebook: Killing All the Birds With One Pile of Gold

French President Emmanuel Macron, whose poll numbers are abysmal and needs a sincere shot in the arm, just gave away the plot with his outside voice.  I’ve noticed this trend within The Davos Crowd in recent months, speaking with their outside voice what they only ever talk about internally.

That plot, by the way, is to transfer power over the global money supply to the International Monetary Fund (IMF) by eventually doing away with individual central banks.

To that end Macron’s latest proposal is to bailout Africa because COVID by coordinating $100 billion in gold sales of national reserves of the G-7. Who would they sell that gold to? The IMF. That money can then be distributed by the IMF, expanding the supply of SDRs — Special Drawing Rights — using the gold as collateral for the development loans.

He’s talking about $100 billion here.  That’s around 1600 tonnes of gold at current prices.  32150.7 ounces/tonne x $1900 per ounce. $0.06109 billion per tonne.  1610 tonnes of gold.

Now, interestingly, a reader on Twitter put a lot of pieces together with this, saying, in effect that this is the humanitarian cover story for the upcoming liquidation of Italy.

Having spoken with the Mittdolcino.com, an Italian blog with a similar mission, it is well understood within Italian circles that his liquidation of Italy is well underway and Mario Draghi was put in power to effect this.

Italy, officially, has 2450 tonnes of gold, give or take.  Macron can ask them to pony up because they owe at least that much to the ECB and Germany through TARGET2.  Draghi has already made it explicit that there will be no Italeave without paying that debt…

…click on the above link to read the rest of the article…

The Fauci Files, The WuFlu and the War to Come

The Fauci Files, The WuFlu and the War to Come

Isn’t is amazing how quickly things seem to change when it’s in the interest of those that think they run the world? For years we’ve been trying to get access to Hillary Clinton’s missing e-mails as Secretary of State but to no avail. However, at the most opportune time in the collapsing COVID story, Dr. Anthony Fauci’s emails are uncovered and broadcast to the world.

The same mechanism, FOIA, that Hillary has stonewalled us on for six years uncovers Fauci’s emails in six weeks?

Doesn’t that strike you as just the slightest bit odd?

Fauci was the hero bureaucrat facing down the evil and ignorant President Trump over COVID-19. He became a national celebrity playing down treatments like Hydroxychloroquine and Ivermectin, flip-flopped on wearing masks and running cover for a corrupt WHO/CDC while whitewashing his own involvement in COVID’s origin.

For all intents and purposes this lying, evil, Janus-faced troll set policy for the entire country.

And from the moment anyone broke a story about the origins of COVID-19, the damage control began behind the scenes and the public shaming and deplatforming began.

And democrats of all stripes cheered him on, simply because he came with the right credentials and an antipathy to Trump.

As the face of the the scientific establishment, he terrorized millions into submission of Americans using fear over a virus not much more deadly than the annual flu. His constant changing the goalposts on ending lockdowns and spread prevention guidelines while needing to remain in front of the narrative kept people crazy with imaginary death statistics, fraudulent models and overwrought case counts while elevating the prevention principle beloved by state-worshipping Boomers and their younger ‘adjacents’ to its most ludicrous extreme.

…click on the above link to read the rest of the article…

Market Weekly: Game Stop Revolution or the Matrix Reloaded?

Market Weekly: Game Stop Revolution or the Matrix Reloaded?

I have to say as revolutions go, this one is hilarious.

Game Stop opened this morning above $330 per share, a sentence I never thought in a million years I’d ever write.

This open nearly ensures that all the attempts yesterday to push the price back down to bail out the hedge funds desperately short have failed spectacularly.

There’s options expiration today which will fundamentally change the way we look at markets if Game Stop closes in this range.

Because it shows that when people act in the aggregate they can overwhelm the attempts by a few central planners to control you.

Your best proof that this is at least a part of what’s going on is the way Wall St. and the regulators in D.C. are reacting. Because they are screaming that this is outrageous, that we need stronger enforcement tools to ‘ensure the integrity of our markets.’

That’s just code for ‘only we’re allowed to game the markets not the little people.’

And with options expiring on Game Stop nearly every week in February and March this game isn’t over by any stretch of the imagination.

Populist is a Four-Letter Work

In fact, It’s the beginning of a new form of populist revolt.

We’ve seen what they think of populist revolts. They have utter disdain for them. They squash them and hope to ignore the consequences.

Vote for Trump? Can’t have that happen again.

Speak out against any facet of the Great Reset? Get censored.

Try to build a new platform not controlled by them? Get deplatformed.

Show up at the Capitol to peacefully assemble? Get caught up in a false flag to justify arresting you and shaming you into submission.

…click on the above link to read the rest of the article…

From a Hamilton Moment to Perpetual Debt Slaves: This Is the True Face of the EU

From a Hamilton Moment to Perpetual Debt Slaves: This Is the True Face of the EU

Over the summer while the U.S. was mired in the worst kind of color revolution with race riots, economic shutdowns and the worst kind of divisive politics, the European Union was celebrating its great achievement.

A seven-year budget and COVID-19 bailout package that was heralded as German Chancellor Angela Merkel’s “Alexander Hamilton Moment.” Because that legislation, meant to be the cornerstone of Germany six-month stint as the president of the European Council finally granted the European Commission the ability to issue debt, collect taxes and disburse funds.

That would be the way the COVID-19 relief funds would be raised and distributed. It was the first moment of fiscal integration under a central EU body that would bypass the individual member states as the means by which to raise capital.

It would be the first step in the process of consolidating debt issuance and euro creation under the control of Brussels, rather than continuing to carry out the fiction of individual sovereign debt.

The euro is a fatally flawed currency because of this and if it is to survive deeper into the 21st century having only one central issuer of it, the EU itself via the European Commission and the European Central Bank, with one aggregated risk profile (interest rate) is necessary.

The current leadership of the EU was put in place to make this happen on powerful Germany’s watch. And in July is looked like it was done. The markets loved it. The media hailed Merkel as the great leader of Europe. Some countries balked, the so-called Frugal Five, but eventually they signed off on the draft legislation once they were no longer directly on the hook for any more wealth transfers from them to perpetual problem children like Italy, Greece and Spain.

…click on the above link to read the rest of the article…

U.S. Color Revolution: The Not So Phantom Menace

U.S. Color Revolution: The Not So Phantom Menace

“There is no civility, there is only politics…
The Bureaucrats are in charge now…”

— Senator Palpatine

The Black Revolution in the U.S. is proceeding according to script. We are into the 3rd act of it.

Act I was the Coronapocalypse setting the stage for vastly expanded government powers and the systemic undermining of the sitting President.

Act II was the summer of violence and fake polling data which created the illusion of a society at war with that same President for not addressing the needs of the people.

Underneath the headlines the forces arrayed against Trump were building the infrastructure to ensure that however the people voted on November 3rd, the outcome was pre-determined in their favor against him.

Act III is the election itself and the aftermath. The coup has begun. The pressure campaign to force the incumbent Trump, hated by the establishment, to concede has ratcheted up to eleven.

This is all very normal for color revolutions, just ask Alexander Lukashenko in Belarus or Viktor Yanukovich formerly of the Ukraine. We can’t ask Slobodon Milosovic. He dead.

But one thing happened they didn’t count on, Trump actually winning the election by margins in swing states that couldn’t be overcome without overt and blatant fraud.

That’s created the opportunity for a complete reversal of the current results and a successful countering of the color revolution strategy, which rests on a media-made frenzy supported by foreign government leaders to oust the sitting president from power quickly without proper adherence to the process.

And that feeds the plot points for the next eight weeks until Congress convenes to certify (or not) the Electoral College.

…click on the above link to read the rest of the article…

Market Friday: Is This the End of COMEX Paper Gold?

Market Friday: Is This the End of COMEX Paper Gold?

There’s been a lot of speculation in the Gold community about what’s happening in the market this year. 2020 has been wracked with unprecedented gyrations in the gold market.

It’s also seen gold finally breach the $2000 level and, this week after a nasty correction, is still holding onto most of its recent gains.

This rally in gold and the persistent supply tightness which has kept gold futures in contango for most of the year are indicators that something has fundamentally shifted in the gold market.

And now, the question on a lot of people’s minds is whether we’ll see the end of the fiction of the paper gold market as epitomized by the futures market on the COMEX.

Alistair Macleod’s recent article detailed the gyrations of the gold futures market explains why he felt the so-called bullion banks who work with the central banks to keep gold control have, in fact, lost control.

His detailed the use of open interest on the COMEX to push and pull the price of gold and how the market changed after March 23rd when the futures premiums blew out to a high of $70 over the cash price in the forex markets.

Screen Shot 2020 08 06 at 11.25.08 AM

Using mass liquidation to crater the price of gold and force thinly-margined, weak longs off their positions is a classic COMEX raid on the gold and silver markets.

And if you look closely at this chart you’ll see a few moments where dramatic drops in open interest didn’t result in big price drops. So, either longs ponied up the cash to stay in their positions or the buying into those ‘raids’ so intense that attempt failed to break the psychology of the gold market.

…click on the above link to read the rest of the article…

The Fed is Determined to Prove the QTM Right

The Fed is Determined to Prove the QTM Right

gold-dollar-trap

Milton Friedman famously said, “Inflation was always and everywhere a monetary phenomenon.” But Friedman didn’t live through the QE years here in the U.S. and blatantly ignored the twenty plus years of Japanese deflation despite QE and insane levels of money printing during the latter years of his life.

Because Friedman, like a lot of modern economists, adhered strictly to the Quantity Theory of Money (QTM).

And as an Austrian economics kinda guy I somewhat agree with the QTM. I agree with Ludwig von Mises on this, as you would expect. So, how do we square the QTM with the evidence that QE in all of its guises has resulted in deflation, as expressed by the general price level, where ever it has been tried?

Martin Armstrong ask this question all the time and is openly hostile to the QTM. And his arguments have some merit, because, as he rightly points out the QTM only looks at the supply side of the money equation.

It cares not about the demand side. He’s right about that. What he’s wrong about is that the Austrians, like von Mises, haven’t considered this either.

Demand for money is just as important as the supply of it. And during a crisis, the demand side of the equation for any particular currency may, in fact, be more important.

This is what the Fed has struggled with for the past twelve years. The demand for the U.S. dollar has far outstripped the increase in supply, causing a far lower aggregate price rise than anticipated by the QTM.

…click on the above link to read the rest of the article…

Podcast Episode #38 – Can America Survive the Civil War Now Underway

Podcast Episode #38 – Can America Survive the Civil War Now Underway

The fires may be out for now, but they have not been fully extinguished. The Culture War of the past ten years has quickly exploded into a Civil War. It doesn’t matter that this explosion was amplified by agent provocateurs and cynical political operatives hoping to retain control over the power centers.

This cultural inversion, in the words of Jonathan Pageau, that we have been going through these past four years in response to the election of Donald Trump is accelerating quickly and will reach its zenith with the November election.

And in the cycle of human civilizations after inversion comes death. What kind of death will it be? And what kind of rebirth will occur on the other side of that.

…click on the above link to listen to the podcast…

Where’s the Beef? – Not on the Horizon

Where’s the Beef? – Not on the Horizon

The reports continue to come in that there’s a real problem with the U.S. food supply. From McDonald’s reviewing their supply chain for beef to the pleas of ranchers already staring at feeding issues with last year’s poor harvests the signs are there for a major supply dislocation in beef going forward.

Kroger is limiting the amount of beef and pork people can buy. My local Winn-Dixie has had limits on large cuts of pork for the past couple of weeks. Pork loins have been gone for weeks now, so no pork jerky for us, which is a tragedy.

Now Wendy’s, which doesn’t use frozen beef, is reporting more than 20% of their stores are out of beef.

Stephens analyst James Rutherford noted 18% of Wendy’s restaurants were “completely sold out of beef items as of Monday evening,” reported Bloomberg

“By our count 1,043 Wendy’s units were selling zero beef items yesterday evening,” but within the figure, about 128 restaurants were still selling beef chili. Rutherford added that the shortage varies across the country and said some restaurants still have full menus, while states like Ohio, Michigan, Tennessee, Connecticut, and New York are “fully out of fresh beef.” The note also said Wendy’s is “more exposed” to meat shortages because of its reliance on fresh beef compared with its competitors. 

If you subscribe, like I do now, to the idea that this Coronapocalypse is mostly a cover story for the failures of the global financial and political system to usher in a new round of totalitarian control then destroying the most vulnerable, yet important, part of our food supply would be a key strategic goal.

My talk with Patrick Henningsen of 21st Century Wire recently covered the motive, means and opportunity for why this perspective should be our default setting.

…click on the above link to read the rest of the article…

Lockdowns Ending but Their Politics Still Rule

Lockdowns Ending but Their Politics Still Rule

dollar-tide-apes-trump

While it looks like the worm is turning against the draconian economic shutdowns decreed by governments, so much damage has already been done it likely won’t matter now.

I began the week hopeful that my home state of Florida would lead the way towards challenging the anti-human and thoroughly intolerable lock down mentality imposed on us by officials at the WHO, NAIAD, Johns Hopkins and the IHME.

That hope continued earlier this week while watching Governor Ron DeSantis give a half-hour presentation of why Florida not only outperformed all of the grossly negligent predictive models but nearly every other state in the union in nearly every metric relevant to COVID-19.

It, however, vanished completely when he finally unveiled his new plan, which was to graciously allow the private economy to get back to 25% capacity, following the same tyrannical guidelines of those now discredited members of President Trump’s Task Force.

I guess I need to remind myself of why hope is the most negative of all emotions.

“Phase One is a baby step,” DeSantis said during a news conference at Tampa General Hospital. “We are deliberately going to be very methodical, slow and data-driven on this because I think people want to have confidence things are going in a good direction.” He said a slow approach would also give the state an opportunity to step in to handle any spikes in the disease that might occur.

But this is typical political double-speak. Because the political pressure on DeSantis, Trump and other ‘Red State’ Governors to not open things back up has been enormous. If it wasn’t he would have shown more spine.

But, the numbers don’t support DeSantis’ decsion at all.

…click on the above link to read the rest of the article…

“Don’t Trace Me, Bro” — Just Say No to Contact Tracing

“Don’t Trace Me, Bro” — Just Say No to Contact Tracing

Contact Tracing? Really? That’s the next big government program to push for total surveillance over our lives. Now the real fallout from the Coronapocalypse comes to light.

The very people who created a fake pandemic out of faulty statistics, media fear-pimping and the rankest of propaganda are now pushing the total surveillance state to protect us (them?) from the next crisis.

James Corbett from the Corbett Report just published an excellent video discussing ‘contact tracing’ as promulgated by (who else?) the Clinton Global Initiative to create an army of new Brown Shirts to assist our wise and benevolent leaders in managing us like livestock.

James is urging us not to use their Orwellian term, and I agree with him. But the best way to do that is to make fun of it and them.

I propose just looking at them and saying, “Don’t Trace Me, Bro.”

As always when they want to herd us towards a terrible idea they first have to come up with a harmless sounding euphemism for it. Either that or just call it a war that we’re going to fight and win together, you know, for kids!

But this was always the plan with this virus. We can speculate as to why this has been done, why it was directed from the commanding heights of our society but, in the end, that speculation is irrelevant.

This is happening, it’s here and they are now working to square the circle. The goal is to finish off the last vestiges of anonymity and individuality started with the destruction of financial privacy during the Clinton Adminstration, which was wrapped in the classic government phrases “Know Your Customer” and “Anti-Money Laundering”

…click on the above link to read the rest of the article…

Who’s Next to Fail in the Post-COVID World?

As much as I hate to invoke The Ayn Rand lest I give off the impression I’m some kind of Objectivist, which I am most certainly not, the engine of the world is coming to a halt.

Money velocity has been falling for years. It is now cratering as we hide in our homes from a bug that eventually we will all have to reconcile with. Credit is the engine of the world of today. 

It is the gas which fuels the engine of the world.

COVID-19 has cratered the global economy exposing the internal rot within our hyper-financialized global economy as nothing more than a pyramid of Ponzi schemes…

… piling credit on top of credit until there are no more greater fools to sell the new debt to.

That’s the system we have. And it is collapsing precisely because the world is situated at the point where there is little more productive capacity to monetize and pull that capital from the future to fund the new debt.

It won’t matter if we replace this system with pure helicopter money without debt as the Modern Monetary Theory proponents argue. We’re already doing a version of this by having the central banks buy debt they never intend to sell on the open market. So, the debt itself is without value. The money printed from those bonds is as much scrip as if the bond had never been issued.

But the time lost by people in pursuit of uneconomic ends by mispricing risk and servicing debt they are legally obligated to service is real.

The engine is sputtering as trillions are printed to kick it back over one more time. But the gas has too much ethanol in it. There’s not enough air. 

…click on the above link to read the rest of the article…

Don’t Be Fooled by the Deplatforming of Facebook

Don’t Be Fooled by the Deplatforming of Facebook

The push for speech control escalates. There is now a concentration of stories concerning social media companies and their role in shaping political thought.

We are nine months from a pivotal presidential election in the U.S. and the push is on to ensure that the outcome goes the way those in power want it to. 

Three times in as many weeks billionaire busybody George Soros has attacked Facebook CEO Mark Zuckerberg, demanding he be removed because he is working to re-elect Donald Trump. 

This seems like an absurdity. But it isn’t. It’s all part of the game plan. 

Create a controversy that isn’t real to seed a narrative that there’s a problem in need of a solution. Facebook has been the center of this controversy to inflame passions on both sides of the political aisle to ensure the desired outcome.

They want regulation of all social media companies to create unscalable barriers to entry for new ones while curtailing free speech on the existing ones.

Warren Buffet would call that a moat. I call it tyranny. 

Enter Attorney General William Barr.

He weighed in recently that we need to have a conversation about Facebook et.al. in relation to their Section 230 immunity under the Communications Decency Act.

Section 230 grants immunity to companies like Facebook and Google from prosecution for content hosted on their services as they argue they are not publishers but rather just pass-through entities or platforms of user-generated content.

Now, it’s pretty clear for the past few years the social media companies have been acting with open editorial bias to deplatform undesirables. They rewrite broadly defined terms of services and EULAs (End-User Licence Agreements) which they use to justify controlling what content they are willing to host.

…click on the above link to read the rest of the article…

After Missiles Fly, Iraq Becomes the Battleground

After Missiles Fly, Iraq Becomes the Battleground

The future of the U.S.’s involvement in the Middle East is in Iraq. The exchange of hostilities between the U.S. and Iran occurred wholly on Iraqi soil and it has become the site on which that war will continue.

Israel continues to up the ante on Iran, following President Trump’s lead by bombing Shia militias stationed near the Al Bukumai border crossing between Syria and Iraq.

The U.S. and Israel are determined this border crossing remains closed and have demonstrated just how far they are willing to go to prevent the free flow of goods and people across this border. 

The regional allies of Iran are to be kept weak, divided and constantly under harassment. 

Iraq is the battleground because the U.S. lost in Syria. Despite the presence of U.S. troops squatting on Syrian oil fields in Deir Ezzor province or the troops sitting in the desert protecting the Syrian border with Jordan, the Russians, Hezbollah and the Iranian Quds forces continue to reclaim territory previously lost to the Syrian government. 

Now with Turkey redeploying its pet Salafist head-choppers from Idlib to Libya to fight General Haftar’s forces there to legitimize its claim to eastern Mediterannean gas deposits, the restoration of Syria’s territorial integrity west of the Euphrates River is nearly complete.

The defenders of Syria can soon transition into the rebuilders thereof, if allowed. And they didn’t do this alone, they had a silent partner in China the entire time. 

And, if I look at this situation honestly, it was China stepping out from behind the shadows into the light that is your inciting incident for this chapter in Iraq’s story.

China moving in to sign a $10.1 billion deal with the Iraqi government to begin the reconstruction of its ruined oil and gas industry in exchange for oil is of vital importance. 

…click on the above link to read the rest of the article…

Olduvai IV: Courage
In progress...

Olduvai II: Exodus
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