“America is falling. You have a situation [where] we’re living on borrowed money. We’re living on borrowed time,” says Greg Mannarino, founder of traderschoice.net and financial strategist. He paints a bleak picture of the American economy as indicated by the inverted yield curve. Mannarino also expresses skepticism about the authenticity of newly released job data. “It’s not checked by a third party. There’s no bearing on reality. The economy is in free-fall. People are maxed out.” Plus, he warns a new market crash coming because the Federal Reserve “artificially suppressed rates,” reinflating a bubble. “If action is not taken by central banks to keep rates suppressed more than they are now… this market is going down a lot from here.” He also predicts a debt market meltdown, claiming that the Fed has to buy the debt and “create cash out of nothing” to keep targeted interest rates. “A central bank’s power sides in only one thing.. and that is its ability to inflate,” he concludes.
#investing #federalreserve #gold #inflation
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Chapter stamps:
0:00 Inverted yield curve
5:40 Recession
11:13 Nasdaq and S&P 500
19:27 U.S. dollar
21:39 Commodities…(read more)
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The Fed Needs Inflation to Survive, U.S. Is Living on Borrowed Money and Time
The Federal Reserve, commonly known as the Fed, plays a critical role in the United States’ economy. In trying times, such as the current economic crisis caused by the COVID-19 pandemic, the Fed implements various measures to stabilize the economy and prevent a complete collapse. However, a lesser-known fact is that the Fed needs inflation to survive and fulfill its mandate effectively.
Inflation refers to the general increase in the prices of goods and services in an economy over a period of time. While excessive inflation can be detrimental to an economy, a moderate and controlled level of inflation is essential for economic growth. It promotes spending, ensures price stability, encourages investments, and helps alleviate the burden of debt on individuals and governments.
The primary instrument the Fed uses to influence inflation is monetary policy. By adjusting interest rates and implementing quantitative easing measures, the Fed can stimulate or slow down economic growth, depending on the prevailing economic conditions. Lowering interest rates encourages borrowing and spending, thereby boosting economic activity and, ultimately, inflation. Conversely, raising interest rates restricts borrowing and spending, curbing inflation.
Apart from effectively managing inflation, the Fed’s other crucial responsibility is to maintain full employment. By setting inflation and employment targets, the Fed aims to strike a delicate balance that keeps both in check. However, in times of economic volatility, such as the ongoing pandemic, achieving these dual goals becomes more challenging.
The COVID-19 pandemic has severely impacted the U.S. economy. Businesses shut down, millions lost their jobs, and consumer demand plummeted. To limit the damage and prevent a complete breakdown, the Fed took drastic measures. It injected trillions of dollars into the economy, lowered interest rates close to zero, and bought large quantities of government bonds and mortgage-backed securities—an approach known as quantitative easing.
While these measures served their purpose by preventing a catastrophic economic collapse, they also carry risks. The U.S. is effectively living on borrowed money and borrowed time. As the national debt continues to soar, surpassing $28 trillion in March 2021, the U.S. is becoming increasingly reliant on creditors to finance its spending.
Moreover, the prolonged ultra-low interest rates have their own consequences. While they stimulate borrowing and spending, they also discourage saving and encourage excessive risk-taking. This can create asset bubbles, such as the housing bubble that led to the financial crisis in 2008. It is essential for the Fed to strike a balance between promoting economic growth and preventing another financial catastrophe.
As the U.S. continues to grapple with the economic fallout from the pandemic, it becomes increasingly evident that the Fed needs inflation to survive and effectively manage the economy. Inflation allows for greater flexibility in managing the national debt, reduces the burden of debt on individuals, and aids in economic recovery.
However, the challenge lies in achieving moderate inflation that is neither too high nor too low. The path ahead for the Fed requires a delicate balance, ensuring that inflation remains at a level that supports growth, while not spiraling out of control.
Ultimately, as the largest economy in the world, the U.S. must confront its current reliance on borrowed money and time. The Fed’s role in managing inflation and employment is pivotal, but addressing the underlying structural issues and reducing the national debt are equally critical. By striking a balance, the U.S. can lay the foundation for a stable and sustainable economic future.
Watch the "The Big Short" again … 99% of people are clueless.
The popular notion of the seven hills of Rome can be interpreted as mountains, kingdoms or rule. The first five are described as those that have been. The sixth is one which is– in the time of John on Patmos– the rule of Imperialism. America has regressed back to the default of Imperialist rule. This Imperialism head, the sixth is comprised of 4 stages; the united Roman Empire, an east-west balance of power, a One World Gov't and a 10 horn or kings, world kingdom out of which arises the seventh head: the Antichrist, who is the final expression of the times of the Gentiles. This is how it will work out. Messiah's return will destroy all of this and those who are in Christ will live into His Kingdom and eternally.
Interesting , a number of the most eminent market experts have been expressing their views on the severity of the impending economic downturn and the extent to which equities might plummet. This is because the economy is heading towards a recession and inflation is persistently above the Federal Reserve's 2% target.I need ideas and advice on what investments to make to set myself up for retirement.
So correct, debt market ticking time bomb
My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in US.
What people do you tell about the yield curve.
Obviously not your average people, as most average people are at the whims of the wealthy, who pay little tax , comparably, and manipulate the markets.
Kinda old news , been going on since the 1960’s and gaining ground since, when the wealthy had to pay 80-90 percent tax. No wonder the coffers are empty, No wonder you have more billionaires than ever today. No wonder you have individuals , being worth 10’s of billions of dollars. No wonder you have 1 out of every 4 people loosing their homes to medical bills.
The problems we face are from , money, greed n power. Nothing can fix that for the average people.
Just food for thought.
Market declines, soaring inflation, a significant increase in interest rates by the Fed, and rising Treasury yields all point to additional losses for portfolios this quarter. How can I profit from the present market turbulence? I'm still debating whether to sell my $125,000 ETF/Growth Stock portfolio.
Greg truly cares. I love his channel. Thank you for bringing him back on.
If the bad numbers you quoted all the time and with great accuracy and I could even see the gleam in your eyes when there were horrendous jobs numbers like 400,000 jobs lost in one month. So if you thought those numbers were real when bad then why are they fake now when they are really good when it’s the same governmental agencies ??????
Can you have Gerald Celente back on? Loved his interaction with you also any chance of having Mark Moss on?
If inflation is "needed to survive " then the money system is a giant ponzi scheme.
I could listen to someone this intelligent talking the truth all day!!
A number of the most eminent market experts have been expressing their views on the severity of the impending economic downturn and the extent to which equities might plummet. This is because the economy is heading towards a recession and inflation is persistently above the Federal Reserve's 2% target. As I'm aiming to create a portfolio worth no less than $850,000 before I turn 60, I would appreciate any advice on potential investments.
GREAT.
WE LOVE DANIELLA CAMBONE.
WE LOVE GREGORIO
(GREG)
MANNARINO.
STAY STRONG.
EMERITUS PROFESSOR
BJNG (BRIAN).
Don't forget we will go down in history as The Oil People..hint hint hint:)
greg knows his stuff
You’re not going to run anywhere in the New World Order. So it’s time to restore the Republic here in the United States of America. Ever read the Declaration of Independence?
Another couple of sharp shooters gonna tell us what's coming and what we need to do.
I saw part2 and had to come backwards and watch part1, he doesn't miss much.
….. also to create conflict & war amongst nations in order to gain profit.
Thank you this guy really understands the rigged markets. The FED could also stop inflation by recapturing the 5T they printed during Covid. I doubt silver will ever return to 15-1 but I do agree gold will head much higher as countries trade in their Tbills for bullion.
The data is FAKE FAKE FAKE.
Only time will tell…… We’ll all check back in a year.
The Fed's Jerome Powell says his actual goal is to weaken the job market, and Lagarde from the ECD said she doesn't know where inflation came from. Read that again. They're not dumb, LIES are just a mechanism to deploy their Big Plan unbothered. The Big Reset, Agenda 2030, what is their plan? we will find out soon.
Greg, one of my top favorites.
The Banksters appear to be the ones who tell us that we can not live without "Capital".
The fact that many Humans have existed without the use of Capital for thousands of years,
appears to be overlooked.
Are Humans so gullible?
Love your channel. Can you get Greg on with Peter Schiff?
Where is part 2?
Great interview, as always with Greg.