Hi members,
In this week’s webinar, I discussed why we cannot trust the government and believe they will bring everything back to normal.
They have been lying to us for a couple of years now saying inflation is transitory. Since the Russia-Ukraine war began they have used that as an excuse to say inflation could last a little longer. They still haven’t learned from the mistakes of the 2008 recession and you will see this later in the article. But first, let’s look at what the UK is up to.
United Kingdom
A few weeks ago the British pound almost tanked to 1.0000 against the USD when the new PM Truss announced new tax rules. The market didn’t like it and a sell-off began. The pound could have crashed even further if the BOE hadn’t intervened with an emergency Bond buying program. This also saved the pension funds of 2 million people which would have gone bust.
You can view that post by clicking the link below:
How bonds could break all markets
Since that incident, the new chancellor Kwarteng was fired within 38 days by the PM. Investors also piled their cash into sterling money market funds at more than three times their usual rate.
Investors pile into market funds
Now Finance minister Jeremy Hunt is covering his duties. He didn’t have many options but to go old school and scrap almost all mini-budget rules set out weeks ago. He has done this so the markets calm down and the pound becomes more stable.
Hunt scraps almost all mini-budget rules
After this chaos, the new PM Truss has faced a lot of backlash and the people have lost their trust in her taking the UK economy forward. It won’t be a surprise if soon she faces a no-confidence vote in the parliament like ex-PM Boris. However, she is still confident that she can lead the Tories in the next election.
Truss confident to lead tories
Here is a person I strongly recommend to follow, Alf was managing a billion-dollar fund for one of the biggest banks in Europe. He definitely knows what he is talking about and explains it to the guy in the main street markets in much simpler words.
Here is his recent article on the pension drama that is going on and why this could be the next problem if governments and banks don’t take it seriously.
Now lets’s move to the US where the drama is still going on and still shocks me that the USD is a safe haven currency after all the mess that is going on.
United States and inflation
The US is finding new ways every month to keep the press quiet whenever the Dollars credibility is being questioned. Recently Secretary Yellen also changed the meaning of a recession as they had two negative GDP readings in successive quarters. The FED clearly don’t know what they are doing and their excessive quantitative or money printing since COVID has taken inflation to new levels. What were they expecting?
Here is a summary of things she has said in public speeches, it is mindblowing considering she is the secretary of the US treasury
Yellen said she doesn’t know what determines inflation
She then admits inflation is high but not like the 70’s as the people now trust the government to bring down inflation unlike before. She must be joking.
She then admitted she was wrong about inflation being transitory a year ago. She also said, “at the time, didn’t fully understand, but we recognize that now.”
A week later she said in the press that it won’t be a decade-long problem.
Inflation wont be a decade long problem
The Moral of the story is that the FED or any other banking system can say what they want. If they get it wrong then they can change what they said and end it with, didn’t fully understand at the time but now we do. If you trust whatever your government says then you are being fooled, they get paid to hide the truth from the people and the main in the street. Don’t believe a word they say because they will do the opposite. The whole game is rigged and that is why we need to be financially educated to have a basic understanding of how economics work.
What also shocked me was Ben Bernanke being awarded a nobel prize for studying the great depression of the 1930s and the 2008 crisis. He was the person responsible for implementing new measures to bring the US out of the recession in 2008. “The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis,” Bernanke told 60 Minutes then.
I wonder what he has to comment on how to stop this soaring inflation without causing a recession.
Insider trading and Scandals
It was reported in 2020 during the coronavirus that many senators had sold/dumped their stocks before the market tanked to avoid taking huge losses. Some senators bought a few other stocks that would benefit and would profit from the coronavirus situation.
Here are a few articles you can read on this
Insider trading lowest under trump administration
Warren calls for cftc investigation
Then we have Nancy Pelosi whose husband Paul Pelosi has been heavily involved in stock trading. He has sparked a debate about whether to ban lawmakers and their spouses from trading. according to an insider analysis Pelosi estimated wealth is around $46.1 million. Paul Pelosi also recently sold a portion of his NVIDIA stocks when Pelosi visited Taiwan for a chip deal.
Then we have Jamie Dimon who is the CEO of one of the largest banks in the world JP Morgan Chase & Co. He too has been involved in many criminal cases. Under his individual record, Dimon has listed two pending civil cases, four criminal cases, and a withdrawn customer dispute. JP Morgan, in 2020 has been involved in racketeering in the markets. They have been involved in tens of thousands of gold, silver, platinum, and palladium unlawful trading. Here are a few articles to read on
Former President Trump is also facing several legal cases against him. The list is too long to write down so here is a link below
Trump Sexual misconduct 26 accusations
The Nonsense doesn’t stop, lets look at Europe
Below is Christine Lagarde, Head of the EU bank “dumbing things down” for the general public. This video was recorded in December 2021 when she was still claiming inflation was temporary. She explains in the video with her hand gestures how inflation was just a little “hump that would be coming down soon… it will decline in 2022”.
See her video below: I have never seen anything so patronizing, and obviously massively wrong. But if the financially uneducated don’t pay attention then that’s great for those running the show.
Here is Christine, in her best Inspector Clouseau voice explaining about the “hump” 🙂
In 2016 she was found guilty of criminal charges over a massive government payout to a business and her role in it.
Ursula the former defense minister also had a scandal. A parliamentary committee is investigating accusations of nepotism in connection to the allocation of contracts worth hundreds of millions of euros to external consultants.
Then in the UK BOE governor Andrew Bailey has also been involved in several scandals in the past. He has been criticised over his role when he was in the FCA for failing to deal with or prevent a string of scandals.
A year later he was then cleared of this scandal.
Now recently when the pension funds nearly went bust, Bailey again came into the headlines as accused of falling asleep in meetings about a serious pension misselling scandal. The FCA is under pressure to investigate this matter as millions of people’s pensions are at risk.
Also, Tony Blair received Knight Companion of the Most Noble Order of the Garter earlier this year. He is the same man who was responsible for the Countless deaths of innocent civilians and servicemen in various conflicts. Iraq is one of them. He should be held accountable for the war crimes he has been part of.
There was a petition signed by more than 1 million people to have his honor removed.
Petition signed to remove honour
In Summary, the message is to not trust what the government says or the people running our banks. It is all a rigged game and we need to be financially educated to understand how an economy works. If we don’t financially educate ourselves it will haunt us in the future as we need to have a plan when things get bad in the future. The government can change things any time as I have shown you above. So time to wake up, get up and make a plan.
We are NOT a “tipping service” our aim is to teach you how to trade for yourself.
The full webinar is below, click the four arrows for full screen
Kind regards,
Marc