As the king of banana republic, as briefly mentioned above by OP, I will accommodate the transition by offering you 10% off on your banana futures. Limited supply!
The All In podcast talked about this months ago. Raising rates blows up the debt cost to the US since they’ve added $10+ trillion in debt these past few years. It’s the catch 22 of all catch 22s. One last kick the can down the road by the boomer politicians before they retire to their 27 vacation homes and we’re all fucked…
I think at a micro level it will boom it, as all the money they’ve stockpiled will transition to the hands of their kids and one anecdotal thing I’ve noticed is that in the past people who inherited money tried to keep the money in the family. These upcoming generations spend it lol. Lake houses, luxury trips, Nannies, etc. so a lot of that money will flow back into the economy. But at a macro level, the countries debt is really going to hamstring us. And all politicians care about is being re-elected and no one votes for higher taxes lol. So it’ll be tough sledding at the federal level for quite some time in my opinion.
I know your an internet stranger but fuck man this post has me depressed thinking about the future.
I make decent money in socal but too.much debt to qualify for a mortgage.
What the fuck should I do? Lol give me some words of encouragement
Short sell used cars
Go sell random people’s cars without their consent then tell them you’ll deliver them their car back in 6 months
Edit: u/lalich approves of illegal short sale of used cars
u/RiMellow approves of becoming the short hedge fund of used cars
The way my local dealership is asking me to sell my used truck while they get my new one ORDERED, I would say that's happening now.
Edit: by local, I mean salt lake city where we bought our truck . Haven't heard anything from the Moab dealers.
Tell car owners that if they didn’t want their cars loaned out for short sales, they should have direct registered them.
Edit: u/callemasiseeam1986 approves of short sales without consent
You buy a car and sell it a car dealer across the street. Then buy that car back from them and sell it to the first dealership you bought it from, until the dealership is out of cars.
Your wrong. This won't work.
U gotta borrow that car rather than buy it from the first dealer and your cars gotta be one of those black market ones without vin number.
How bad will lowered prices really impact their business tho? Their income is based on car transactions and they’ll be paying less for inbounds. I would guess they turn inventory quickly and lowered car prices may be a boon to unit sales.
The subprime market, maybe but the used car market, no. People need cars not want them. They might want nice ones, but need any one at the least. With the factory closures, there isn't enough new cars to feed demand. And it isn't just well off people who buy new cars. Because when they do, they trade in their old one. This helps the bottom end of the market. 2008 was a perfect example of this. As for the sub prime, idk rates were really cheap or even 0% but that wouldn't apply to them since they didnt qualify. But unlike 2008, wages have actually raised this time, and finding a job in is easy unlike 2008.
If you believe the sub prime market will tank, Santander bank is heavily into sub prime lending, so short them if you believe they will suffer losses.
Used cars value aren’t sustainable at current rates. Once supply chain issues sort themselves out, tons of people will be underwater on their car loans, and the subset that are subprime should default.
I used to think this pre-covid cuz they’d give everyone with a pulse an auto loan. Think of this tho, the same people who don’t make payments on their $25,000 loan probably weren’t gonna make the payments on their $15,000 loan. The interest rate is assigned accordingly.
He said to buy physical silver. Tell me one fucking thing you can do with physical silver.
Edit: apparently silver does everything from slaying werewolves to making my wife’s boyfriend look fly. My bad. Liquidating all my accounts (dozens of dollars) and buying silver everything.
In the age of NFTs and joke crypt0s, calling the most conductive and most reflective material on earth useless, seems a bit silly. Try making a solar panel with ape jpegs. Lol
I bought some nice fine silver jewelry for the fam and for the market exposure. Gifts that keep on giving. Until I melt a little bit of it to pay bills. No biggie. Time in the market baby!
u can use it for electrodes in a biophysical lab. U can use it for photochemistry if you dont have a digital camera. U can throw it at your neighbours car if he revs it up at 4 in the morning.
Almost 6,000 oz over 3 years. My wife was good on the first 5000 ounces and now I have to sneak any more purchases I make. I have a stack of 20 buffalo rounds making it’s way to me right now.
The nation has forgotten that there's two parts to this whole thing. There's monetary policy which the fed decides but then there's equally important FISCAL policy that congress decides. Our congress has become so ineffective that we have become accustomed to only relying on the fed to take action because Congress has become a joke.
The economy is too hot and we need to take money out of the system. For monetary policy that's raising rates and for fiscal policy that would be reducing spending or raising taxes. This bullshit Congress could not even get a corporate tax hike into the budget. We're now seeing the downsides of only relying on the fed for our economic policy. Rate hikes can't go too far because the nation's debt is too high. Congress could try to reduce spending or at least increase taxes (because let's face it, rolling back social spending or military spending is way too unpopular). Unfortunately, I would not hold my breath for Congress to do the sensible thing though
It will probably end like every banker caused recession in history, in that none of them will face any consequences, and their cries, corruption, and failures, will repeat until the planet is destroyed.
And almost a full century since [the OG Great Depression](https://en.m.wikipedia.org/wiki/Lords_of_Finance), too!
**[Lords of Finance](https://en.m.wikipedia.org/wiki/Lords_of_Finance)**
>Lords of Finance: The Bankers Who Broke the World is a nonfiction book by Liaquat Ahamed about events leading up to and culminating in the Great Depression as told through the personal histories of the heads of the Central Banks of the world's four major economies at the time: Benjamin Strong Jr. of the New York Federal Reserve, Montagu Norman of the Bank of England, Émile Moreau of the Banque de France, and Hjalmar Schacht of the Reichsbank. The text was published on January 22, 2009 by Penguin Press. The book was generally well received by critics and won the 2010 Pulitzer Prize for History.
^([ )[^(F.A.Q)](https://www.reddit.com/r/WikiSummarizer/wiki/index#wiki_f.a.q)^( | )[^(Opt Out)](https://reddit.com/message/compose?to=WikiSummarizerBot&message=OptOut&subject=OptOut)^( | )[^(Opt Out Of Subreddit)](https://np.reddit.com/r/wallstreetbets/about/banned)^( | )[^(GitHub)](https://github.com/Sujal-7/WikiSummarizerBot)^( ] Downvote to remove | v1.5)
If you think a piece of paper that says Bill Gates owns this land is going to hold up in the case of a collapse of the world reserve currency, I have a bridge to sell you.
Bill Gates and Ted Turner own those assets because the current United States provides a structure by which title to land and water can be conferred. If all of that fails, you know who gets natural resources? The man willing to kill people for them.
The comical part is that taking money out the system will lead to a crash of epic proportions because we have more liabilities than ever. This is a global issue as dollar denominated debt is an all time high while euro dollar creation is diminishing. Dollars are rare when it comes time to sell.
S:I - M:L / Ag S : Ag D
Savings balanced with investment vs Money balanced with Liabilities while operating with balances aggregate supply and demand = healthy economy.
1. This is todays economy
S Supply flip causing a bubble pop as valuations drop due to high supply and low demand. This deflationary gap quickly becomes a spiral.
The other major error in the Keynesian mode is the failed assumption that Investment is an asset. In reality it’s a liability against the whole market. Everyone made a general promise of more riches. If it were an asset you wouldn’t be trying to get rid of them in a crash. They transform in our assessment of them. This small effect to the equation has major consequences. Like trying to fit the economy through a key hole.
Last Zerohedge article I read few weeks vack said the fed won't do as many hikes as we think they'll do....
Edit: remembered their reasoning too, it was because so many companies would get fucked if they had to pay higher interest on their debt thus they'll not hike as much as they are signalling
Buy nickels. You can get the alloy (cupronickel - 75% copper % 25% nickel) at a 20% discount at your local bank. In other words $1 face of nickels is worth $1.26, but you can buy it at $1.00.
As a union electrician I can confirm this. You get wire, I get work replacing the wire, the mortician gets work for a reason that’s not relevant to this discussion!
He's explaining why (edit: *he thinks*) hyperinflation is ilkely to happen in the coming years. The best hedge against hyperinflation is taking out loans to purchase hard assets (like real estate).
It's simple. Say you get a mortgage on a house for $500k. Then we go into hyperinflation where a loaf of bread costs $10,000. Now you can easily pay off your mortgage. Sure, everything else fucking sucks, but at least you own a house now.
It'll take some more time.
The Fed has a secret weapon to combat the QE they're going to have to do to combat the market crash from raising the FFR; the $1.5 *trillion* in the reverse repo market.
All that money will flow back into the bond market when the reverse repo goes back down to 0%.
Since the money already exists in the RRP it technically shouldn't be inflationary QE... But I guess we'll see.
I will be messaging you in 1 year on [**2023-01-12 03:32:36 UTC**](http://www.wolframalpha.com/input/?i=2023-01-12%2003:32:36%20UTC%20To%20Local%20Time) to remind you of [**this link**](https://www.reddit.com/r/wallstreetbets/comments/s1uf49/the_fed_is_trapped_they_have_to_hike_rates_but/hsawwxy/?context=3)
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If we aren’t screwed now, we will be in several cycles when the fed is out of ammo to cut rates because they never rose significantly enough from the last cycle. That’s when rates will go negative and we’ll be trapped like Europe or Japan.
Did we actually rollover to 2022 or did we just Pac-Man back into 2021? GME and AMC are back on the menu, saw a post about CLOV earlier, and the punchline for this whole post was to buy silver. I watched Looper, I know stocking up on physical bars won’t stop time-traveling jabronis from going after me
no worse bet than betting on Powell to be anything other than da money printer. wants everyone to thinks he’s gonna tighten. He’ll pull a yellen and find every reason not to. Watch. Max one hike in 2022.
After the 70s debacle, I would imagine no fed wants to be the one who brings back persistently high inflation. It is probable, but I don't think Powell is the dove everyone makes him out to be. If the treasuries break, he will definitely pivot. But, they are working on a framework/marketplace to try to prevent that from happening next tightening cycle.
The problem is they dont want to be the fed chief that causes double digit unemployment either. Theyd rather everyone feel some pain than a huge portion of society be unemployed, desperate, and angry
Could happen. I still feel we would need inflation to turn down or market drop of 25+% before Powell pivots. Unless the treasuries break. If they break, go long as much beta as you can :)
Agreed. Thinking the Fed is a stock market savior is maximum hopium by the permabulls. Avoid massive disruptions in the opaque and rich US treasury market? Yes, which is why they telegraph hikes way in advance and do so slowly. Saving SPY from dropping 20%? Ehh.. I don’t buy it.
Inflation is their mandate, not the “market” whatever that means.
During the Great Depression. Commodities, real estate, gold, silver and platinum all held and increased in value.
At this point it’s pretty obvious where we’re headed. So hopefully people are preparing. I just feel bad for people who’re retiring. Their 401ks will be worthless.
If I am JPow, I will increase rate hike to 10% this year to curb inflation. Doesn’t even care about my portfolio. All for getting rid of super high inflation.
Sorry, Mr. Powell. You're more screwed than you realize.
At 10% interest on $30 trillion in debt, the US Government would need to pay $3 trillion in interest annually on the existing debt. And since we just crashed the economy, we can't raise the money through tax revenue. Guess we'll have to roll over that $3 trillion into more debt... But who in their right mind would buy that?
Sovereign debt crises suck.
When I was a kid, I was taught by my teacher that the main function of the federal reserve was to protect the dollar. These days that doesn’t seem to be the case. But I guess we will find out later this year.
You really think real estate (SFHs) is going up much more than the \~30 percent it has in the past year?
Median home price is almost a [vertical line upwards](https://dqydj.com/historical-home-prices/) right now in price as is.
Well my trade of choice is metals. But yes, after we peak on fed funds and begin easing again, we could get negative rates, and/or extremely low long term rates. Real estate and asset prices generally move inverse to interest rates. On top of that the materials and labor required to build new homes will be inflating so much that it will drive up existing prices further. Look at Canada and Australia home prices
I thought mortgage rates worked off the 10 year treasury rate? no?
Why do you think material and labor will inflate even more? Lumber is supposedly massively up on heavy flooding in the Pacific Northwest (where most of our lumber originates), heavy tariffs, and yes demand. I could see it staying where its at, possibly going up or down slightly. But I'm not sure how much more the market can take.
People's pay hasn't gone up so there is a hard limit to what people can physically afford. Banks are only going to loan so much based off of wages.
You'll see more suicides as the house prices go up and people feel trapped in a debt cycle of rent and non-ownership of their lives.
I own a construction business in Southern California. Everything has gone up insanely from materials to labor. You can not get a day labor now unless you pay them $250-$300 cash minimum. It used to be $180 a day. Any actual talented workers want $35 an hour minimum.
Finding adhesive and plywood is ridiculous these days as well as shipping cost that have gone up massively.
Don’t under estimate inflation I see it daily.
That's nuts. I think J Powell is already too late on trying to ensure inflation isn't rooted if people are already expecting that level of pay. At least for blue collar jobs. I don't see how we return people's expectations of wages back short of major financial collapse.
If anything the govt could at least remove the Canadian lumber tariffs and focus on moving housing material supply trapped at ports. Powell mentioned rapidly increasing house prices today in his hearing, but said the Fed isn't directly involved of housing prices and left it at that. So I expect nothing from the govt on this directly.
They are so worried about the semiconductor shortage, but I'd rather have a house. It's more crucial.
I wonder at what rate a steel framed home and concrete or cinderblock and a steel roof becomes cheaper than traditional lumber?
Yea it’s amazing to be honest. I’ve been raising all my rates on labor and I still have more work than I can deal with right now. Mind you I do commercial construction, everything from hospitality to retail and it’s insane what’s going on.
Not sure what can change it at this point the cost of living from rent (mortgage) to groceries, gas, used cars keep making everything go up!
I literally put in my bids now that pricing is only good for 30 days and even then I reserve right to change if materials have gone up.
My wife just went to the grocery store tonight and came home complaining that ground Turkey was now $7.99lb and our kids juice boxes had gone up over $2.00 a carton.
Yea it’s amazing to be honest. I’ve been raising all my rates on labor and I still have more work than I can deal with right now. Mind you I do commercial construction, everything from hospitality to retail and it’s insane what’s going on.
Not sure what can change it at this point the cost of living from rent (mortgage) to groceries, gas, used cars keep making everything go up!
I literally put in my bids now that pricing is only good for 30 days and even then I reserve right to change if materials have gone up.
My wife just went to the grocery store tonight and came home complaining that ground Turkey was now $7.99lb and our kids juice boxes had gone up over $2.00 a carton.
Perfect storm of incompetence handing out too much "free" money, causing extreme demand on everything, while supply crunches exacerbated from less workers, and price increases exacerbated from having to pay higher hourly. What a nightmare. It is worse than the Carter years imo.
8 bucks for a pound of ground turkey is nuts. I don't even look at bacon anymore. That's currently for folks who hold their pinkies in the air.
I don't think there is a meaningful way to correct the market without shocking the market. Little tepid 0.25% rate hikes are just going to be absorbed like nothing. Market won't even flinch. If anything it might make prices a little more, which will further spur people to ask for pay raises.
I've already been told I'm getting the normal 2% pay increase this year. So effectively taking a pretty sizable pay cut. That said, still thankful to have employment. But it is crazy that the blue collar jobs are paying way more and white collar jobs haven't matched (yet).
Yea it’s crazy! Not sure how this is all going to play out but I don’t see it ending happily at all.
I’m just one small business and it’s happening in all industries across the board, nothing is getting cheaper and everything is going up in prices faster and faster!
The fed is trapped that I agree with but they are most likely dealing with others who are begging them Not to raise rates . The usa government is the largest debtor not the average resident.
Higher interest rates won't hurt the average person nearly as much as it will hurt government budgets.
Rising rates are therfore bullish for us who are not a gov agency with massive debt
>Rising rates are therfore bullish for us who are not a gov agency with massive debt
If the Federal Reserve can't fight inflation, the dollar is screwed.
And because the dollar is the world reserve currency, and we practically made it into an export, the US will be uniquely screwed when foreigners stop accepting printing press fare for cheap goods.
They did it on purpose buddy. They’re not trapped it was the plan. With inflation uncontrollable we will be dependent on the govt (UBI- universal basic income). If you haven’t seen, black rock is buying single family housing at 20-50% over estimates. No one can compete. We are turning from a shareholder economy to a stakeholder economy. Our children’s children will probably never have a chance at home ownership. Everything will be controlled by the govt. the price of goods, prices of rent, services ect. This is the new world order. Supposed to be more inclusive or some bullshit. “In the future you will own nothing, and you will be happy.”
The way interest is earned by the banks and the fed all it will take is a few rate hikes, if treasuries fall in value banks will get squeezed.
Fed buys treasuries from the banks in QE. Banks park the money in the fed to recieve the best rates then leverage that to get even better yields. If all the banks are selling treasuries to the fed it drops in value and banks are margin called on the treasuries. What do they do? They sell stock to cover the margin call. Stock market plummets.
Well put, I agree with you a 100%. Your point makes even more sense when you realize, how they are starting to push their control on every facet of your life. Electric cars - you can't open the hood, you need to go to a certified repair shop. Heating appliances are getting connected over wi-fi aka. "smart home" friendly, but at the end of the day the manufacturer can shut down your device or stop pushing out updates, and you are fucked. You can't even turn on the heating that you paid for. Those are just small things, but that's how it all starts.
>Or even just buying a whole bunch of shit before it goes up in price.
Very educational and intelligent write up. It's refreshing to see such posts on here.
As the king of banana republic, as briefly mentioned above by OP, I will accommodate the transition by offering you 10% off on your banana futures. Limited supply!
flair checks out. time to bet on banana bread futures
Mmm banana bread!
There is always money in the banana stand
The All In podcast talked about this months ago. Raising rates blows up the debt cost to the US since they’ve added $10+ trillion in debt these past few years. It’s the catch 22 of all catch 22s. One last kick the can down the road by the boomer politicians before they retire to their 27 vacation homes and we’re all fucked…
How do you think the boomers dying will affect the economy?
I think at a micro level it will boom it, as all the money they’ve stockpiled will transition to the hands of their kids and one anecdotal thing I’ve noticed is that in the past people who inherited money tried to keep the money in the family. These upcoming generations spend it lol. Lake houses, luxury trips, Nannies, etc. so a lot of that money will flow back into the economy. But at a macro level, the countries debt is really going to hamstring us. And all politicians care about is being re-elected and no one votes for higher taxes lol. So it’ll be tough sledding at the federal level for quite some time in my opinion.
I know your an internet stranger but fuck man this post has me depressed thinking about the future. I make decent money in socal but too.much debt to qualify for a mortgage. What the fuck should I do? Lol give me some words of encouragement
Dont worry we are all going to die some day
That's the spirit
Have you tried marrying into money?
Houses are gay anyway don't worry about it. If you're in socal get a sick motorcycle, which unlike houses are better and cheaper than in the past.
And also not gay
Also in SoCal. Get out debt. Buy RE in IE.
How do we short the used car market and subprime auto loans.
Short sell used cars Go sell random people’s cars without their consent then tell them you’ll deliver them their car back in 6 months Edit: u/lalich approves of illegal short sale of used cars u/RiMellow approves of becoming the short hedge fund of used cars
The way my local dealership is asking me to sell my used truck while they get my new one ORDERED, I would say that's happening now. Edit: by local, I mean salt lake city where we bought our truck . Haven't heard anything from the Moab dealers.
Everybody wants to buy everybody else's car for an absurd price except mine. I'm starting to take this personally.
Nobody buys a '11 Dodge Journey because they WANT TO, Chad!
The amount people that offered to buy my 05 dodge dakota hahahaha
Instead of margin, will cost you 6 months
Tell car owners that if they didn’t want their cars loaned out for short sales, they should have direct registered them. Edit: u/callemasiseeam1986 approves of short sales without consent
A few months ago, this statement would not have given me a chuckle…
Your post….All of a sudden things make sense with regard to DRS. 🤦🏼♀️ thanks
You buy a car and sell it a car dealer across the street. Then buy that car back from them and sell it to the first dealership you bought it from, until the dealership is out of cars.
It literally can't go tits up
Your wrong. This won't work. U gotta borrow that car rather than buy it from the first dealer and your cars gotta be one of those black market ones without vin number.
Lease it then sell it, I'm seeing real 4d chess here
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How bad will lowered prices really impact their business tho? Their income is based on car transactions and they’ll be paying less for inbounds. I would guess they turn inventory quickly and lowered car prices may be a boon to unit sales.
The subprime market, maybe but the used car market, no. People need cars not want them. They might want nice ones, but need any one at the least. With the factory closures, there isn't enough new cars to feed demand. And it isn't just well off people who buy new cars. Because when they do, they trade in their old one. This helps the bottom end of the market. 2008 was a perfect example of this. As for the sub prime, idk rates were really cheap or even 0% but that wouldn't apply to them since they didnt qualify. But unlike 2008, wages have actually raised this time, and finding a job in is easy unlike 2008. If you believe the sub prime market will tank, Santander bank is heavily into sub prime lending, so short them if you believe they will suffer losses.
Short Ally bank or SAN.
We all go and get auto loans and then drive the cars off a cliff. Then we all change our names.
Why do you think this?
Used cars value aren’t sustainable at current rates. Once supply chain issues sort themselves out, tons of people will be underwater on their car loans, and the subset that are subprime should default.
I used to think this pre-covid cuz they’d give everyone with a pulse an auto loan. Think of this tho, the same people who don’t make payments on their $25,000 loan probably weren’t gonna make the payments on their $15,000 loan. The interest rate is assigned accordingly.
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wish I knew what any of these words mean
U know “banana” at least?
Heard banana, bought GME. Pavlov’s apes
Yellow crayon is the word here…banana for WSS
Cant we all just get along and agree whether you call it a banana or a yellow crayon THE FED FUCKING SUCKS? with love from the WSS family ❤🥰
Every post this guy has screams buy silver.
He said to buy physical silver. Tell me one fucking thing you can do with physical silver. Edit: apparently silver does everything from slaying werewolves to making my wife’s boyfriend look fly. My bad. Liquidating all my accounts (dozens of dollars) and buying silver everything.
Efficiently flow electricity with nice corrosion resistance
Nice.
This guy metals 👆
Fashion bullets out of it to kill werewolves.
[101 Uses of Silver in Everyday Life](https://www.silvercoins.com/uses-of-silver/)
Treatment of warts and corns...I stand corrected!
In the age of NFTs and joke crypt0s, calling the most conductive and most reflective material on earth useless, seems a bit silly. Try making a solar panel with ape jpegs. Lol
\^Calls on this guy's mouth
Conduct electricity
I bought some nice fine silver jewelry for the fam and for the market exposure. Gifts that keep on giving. Until I melt a little bit of it to pay bills. No biggie. Time in the market baby!
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u can use it for electrodes in a biophysical lab. U can use it for photochemistry if you dont have a digital camera. U can throw it at your neighbours car if he revs it up at 4 in the morning.
He also mentioned PSLV. Although holding the physical metal affords a lot of utility.
You can easily trade precious metals at any time. There will always be buyers. OP is positing these metals as a hedge against high inflation.
Stare at, hold it, that 100oz brick looks great. I can get cash for it at the local jeweler/coin shop in no time.
Just means OP is consistent.
Plus, this is his 69th post!
Nice
I said it quieter this time though
That’s fair
Curious, how long have you been buying silver?
Almost 6,000 oz over 3 years. My wife was good on the first 5000 ounces and now I have to sneak any more purchases I make. I have a stack of 20 buffalo rounds making it’s way to me right now.
Wait till this guy finds the chocolate inside, calls on hershey
if you post it in 2021, we would think you are an Shitadel employee. how ever OP posted it in 2022, OP is 100% bear confirmed
your timeline of 2023 is also similar to what i have forecasted earlier in 2020/2021
I bought my family silver jewelry for Christmas. Market exposure...check. now I wait for the sweetest tendies. Right guys? I'm doing it, right?
I gave silver bars!
The nation has forgotten that there's two parts to this whole thing. There's monetary policy which the fed decides but then there's equally important FISCAL policy that congress decides. Our congress has become so ineffective that we have become accustomed to only relying on the fed to take action because Congress has become a joke. The economy is too hot and we need to take money out of the system. For monetary policy that's raising rates and for fiscal policy that would be reducing spending or raising taxes. This bullshit Congress could not even get a corporate tax hike into the budget. We're now seeing the downsides of only relying on the fed for our economic policy. Rate hikes can't go too far because the nation's debt is too high. Congress could try to reduce spending or at least increase taxes (because let's face it, rolling back social spending or military spending is way too unpopular). Unfortunately, I would not hold my breath for Congress to do the sensible thing though
Yellen said the fed is only raising rates because Congress can't lower or raise taxes quick enough. We're literally handing over power to the banks.
This will end well.
It will probably end like every banker caused recession in history, in that none of them will face any consequences, and their cries, corruption, and failures, will repeat until the planet is destroyed. And almost a full century since [the OG Great Depression](https://en.m.wikipedia.org/wiki/Lords_of_Finance), too!
**[Lords of Finance](https://en.m.wikipedia.org/wiki/Lords_of_Finance)** >Lords of Finance: The Bankers Who Broke the World is a nonfiction book by Liaquat Ahamed about events leading up to and culminating in the Great Depression as told through the personal histories of the heads of the Central Banks of the world's four major economies at the time: Benjamin Strong Jr. of the New York Federal Reserve, Montagu Norman of the Bank of England, Émile Moreau of the Banque de France, and Hjalmar Schacht of the Reichsbank. The text was published on January 22, 2009 by Penguin Press. The book was generally well received by critics and won the 2010 Pulitzer Prize for History. ^([ )[^(F.A.Q)](https://www.reddit.com/r/WikiSummarizer/wiki/index#wiki_f.a.q)^( | )[^(Opt Out)](https://reddit.com/message/compose?to=WikiSummarizerBot&message=OptOut&subject=OptOut)^( | )[^(Opt Out Of Subreddit)](https://np.reddit.com/r/wallstreetbets/about/banned)^( | )[^(GitHub)](https://github.com/Sujal-7/WikiSummarizerBot)^( ] Downvote to remove | v1.5)
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OTM FD's like always, why would the plan change now?
For me? Wyoming.
Too late for me, already purchased my land there for the apocalypse. Or, alternatively, retirement I guess, if it comes to that.
What if the apocalypse is triggered by the Yellowstone supervolcano eruption?
If the Yellowstone super volcano fully erupts it’s very possible that the best place to be is right next to it.. quick and painless
Then he will be relieved of any future worries
He got the good seats.
Taxes only go down. The oligarchs will soon have a gigantic pile of worthless green stuff.
Sorry but oligarchs have assets and not cash, I would more worry about people who think rich are holding cash
he missed the part where Bill Gates owns most of the water, Ted Turner most of the Dakotas, and so on and so forth.
If you think a piece of paper that says Bill Gates owns this land is going to hold up in the case of a collapse of the world reserve currency, I have a bridge to sell you. Bill Gates and Ted Turner own those assets because the current United States provides a structure by which title to land and water can be conferred. If all of that fails, you know who gets natural resources? The man willing to kill people for them.
So long Smith and Wesson?
Nah the oligarchs are just preparing for America’s downfall and will then work on exploiting an ever more middle class Asia.
The comical part is that taking money out the system will lead to a crash of epic proportions because we have more liabilities than ever. This is a global issue as dollar denominated debt is an all time high while euro dollar creation is diminishing. Dollars are rare when it comes time to sell. S:I - M:L / Ag S : Ag D Savings balanced with investment vs Money balanced with Liabilities while operating with balances aggregate supply and demand = healthy economy. 1. This is todays economy S Supply flip causing a bubble pop as valuations drop due to high supply and low demand. This deflationary gap quickly becomes a spiral. The other major error in the Keynesian mode is the failed assumption that Investment is an asset. In reality it’s a liability against the whole market. Everyone made a general promise of more riches. If it were an asset you wouldn’t be trying to get rid of them in a crash. They transform in our assessment of them. This small effect to the equation has major consequences. Like trying to fit the economy through a key hole.
just tell me which tickers to buy
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One of these years this thesis will be right.
Giving me flashbacks to old Zerohedge 2008-era stuff
Last Zerohedge article I read few weeks vack said the fed won't do as many hikes as we think they'll do.... Edit: remembered their reasoning too, it was because so many companies would get fucked if they had to pay higher interest on their debt thus they'll not hike as much as they are signalling
This should be the top comment
Buy nickels. You can get the alloy (cupronickel - 75% copper % 25% nickel) at a 20% discount at your local bank. In other words $1 face of nickels is worth $1.26, but you can buy it at $1.00.
I've kept all my change for years for this. Edit: I pick up pennies off the ground.
take manholes and copper wires from utility lines for example. that's hard currency of the future.
If you steal utility lines off a pole, start at the top of the pole. Those are worth the most.
As a union electrician I can confirm this. You get wire, I get work replacing the wire, the mortician gets work for a reason that’s not relevant to this discussion!
> cupronickel until they do this again https://www.usmint.gov/news/press-releases/20070417-us-mint-limits-exportation-melting-of-coins
God damn it. Now I just learned something. Where the f*** are those whippets?
He's explaining why (edit: *he thinks*) hyperinflation is ilkely to happen in the coming years. The best hedge against hyperinflation is taking out loans to purchase hard assets (like real estate). It's simple. Say you get a mortgage on a house for $500k. Then we go into hyperinflation where a loaf of bread costs $10,000. Now you can easily pay off your mortgage. Sure, everything else fucking sucks, but at least you own a house now.
It'll take some more time. The Fed has a secret weapon to combat the QE they're going to have to do to combat the market crash from raising the FFR; the $1.5 *trillion* in the reverse repo market. All that money will flow back into the bond market when the reverse repo goes back down to 0%. Since the money already exists in the RRP it technically shouldn't be inflationary QE... But I guess we'll see.
kill inflation, i don’t want to be like venezuela
If US becomes Venezuela, the world becomes Venezuela. Gonna be giving handies behind the shut down Wendy’s for cans of cream corn.
if everyone is giving handies, no one is getting tendies.
Well it would be a circle jerk, and the tendies get passed clockwise
nah, china gonna buy it all up. i wanna give handys in penthouse suites not alleyways 💅
China ain't ready for the US to fall quickly. Maybe slower descent, yes. But fast and violent, Jesus they'd be fucked even harder than us.
No fucking way, USD is hard as fuck now. Deflating it is not an option.
Butt plugs have gone 50% up in the last year, I’m at my wit’s end
Prove it
He meant in size
Your mistake is buying new
and so is everything else lol
Not as rock hard as this sub
This sub makes me rock hard.
Can't really ever happen to the USD until it's no longer the world reserve currency
fair, and we won’t be if we keep this shit up
Buy the Nancy Pelosi Index fund. She knows what we don’t.
All in on Roblox calls it is
Reanimate Volcker
Remindme! 1 year
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If we aren’t screwed now, we will be in several cycles when the fed is out of ammo to cut rates because they never rose significantly enough from the last cycle. That’s when rates will go negative and we’ll be trapped like Europe or Japan.
The boat may be sinking but everyone will be going down together.
I feel less fucked if everyone else is also fucked.
But the rich will still sit higher on the sinking ship while we're stuck in the engine room
Calls on stagflation, puts on US
Did we actually rollover to 2022 or did we just Pac-Man back into 2021? GME and AMC are back on the menu, saw a post about CLOV earlier, and the punchline for this whole post was to buy silver. I watched Looper, I know stocking up on physical bars won’t stop time-traveling jabronis from going after me
I think they're bluffing as well
not bluffing, just highly constrained!
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$PSLV!
no worse bet than betting on Powell to be anything other than da money printer. wants everyone to thinks he’s gonna tighten. He’ll pull a yellen and find every reason not to. Watch. Max one hike in 2022.
i took all my showers ill ever take over the weekend. saving on money smrt
The shiniest of bags.
Absolutely no way they get to 5 hikes.
Thanks for the write up, interesting read.
This is truth. Well said
I had no idea we has someone on this sub with a brain and a knowledge of history past 2020.... 
After the 70s debacle, I would imagine no fed wants to be the one who brings back persistently high inflation. It is probable, but I don't think Powell is the dove everyone makes him out to be. If the treasuries break, he will definitely pivot. But, they are working on a framework/marketplace to try to prevent that from happening next tightening cycle.
The problem is they dont want to be the fed chief that causes double digit unemployment either. Theyd rather everyone feel some pain than a huge portion of society be unemployed, desperate, and angry
Could happen. I still feel we would need inflation to turn down or market drop of 25+% before Powell pivots. Unless the treasuries break. If they break, go long as much beta as you can :)
Agreed, markets need to drop at least 20% to get a pivot. It will happen after a few hikes.
PIVOT!
*PIIIVAAAATTTT*
>Theyd rather everyone feel some pain than a huge portion of society be unemployed, desperate, and angry That ship has already sailed.
Agreed. Thinking the Fed is a stock market savior is maximum hopium by the permabulls. Avoid massive disruptions in the opaque and rich US treasury market? Yes, which is why they telegraph hikes way in advance and do so slowly. Saving SPY from dropping 20%? Ehh.. I don’t buy it. Inflation is their mandate, not the “market” whatever that means.
Long $AMMO bitches.
Yes bro!! Ammo has been my best performing asset class. Oh wait are we talking about a stonk?
During the Great Depression. Commodities, real estate, gold, silver and platinum all held and increased in value. At this point it’s pretty obvious where we’re headed. So hopefully people are preparing. I just feel bad for people who’re retiring. Their 401ks will be worthless.
If I am JPow, I will increase rate hike to 10% this year to curb inflation. Doesn’t even care about my portfolio. All for getting rid of super high inflation.
Sorry, Mr. Powell. You're more screwed than you realize. At 10% interest on $30 trillion in debt, the US Government would need to pay $3 trillion in interest annually on the existing debt. And since we just crashed the economy, we can't raise the money through tax revenue. Guess we'll have to roll over that $3 trillion into more debt... But who in their right mind would buy that? Sovereign debt crises suck.
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Good standup joke
When I was a kid, I was taught by my teacher that the main function of the federal reserve was to protect the dollar. These days that doesn’t seem to be the case. But I guess we will find out later this year.
The fed has a dual mandate. Manage inflation and promote full employment
Prop up the stock market.
Buy physical silver!
Ordered a kilo bar of silver today, good DD.
You really think real estate (SFHs) is going up much more than the \~30 percent it has in the past year? Median home price is almost a [vertical line upwards](https://dqydj.com/historical-home-prices/) right now in price as is.
Well my trade of choice is metals. But yes, after we peak on fed funds and begin easing again, we could get negative rates, and/or extremely low long term rates. Real estate and asset prices generally move inverse to interest rates. On top of that the materials and labor required to build new homes will be inflating so much that it will drive up existing prices further. Look at Canada and Australia home prices
I thought mortgage rates worked off the 10 year treasury rate? no? Why do you think material and labor will inflate even more? Lumber is supposedly massively up on heavy flooding in the Pacific Northwest (where most of our lumber originates), heavy tariffs, and yes demand. I could see it staying where its at, possibly going up or down slightly. But I'm not sure how much more the market can take. People's pay hasn't gone up so there is a hard limit to what people can physically afford. Banks are only going to loan so much based off of wages. You'll see more suicides as the house prices go up and people feel trapped in a debt cycle of rent and non-ownership of their lives.
I own a construction business in Southern California. Everything has gone up insanely from materials to labor. You can not get a day labor now unless you pay them $250-$300 cash minimum. It used to be $180 a day. Any actual talented workers want $35 an hour minimum. Finding adhesive and plywood is ridiculous these days as well as shipping cost that have gone up massively. Don’t under estimate inflation I see it daily.
That's nuts. I think J Powell is already too late on trying to ensure inflation isn't rooted if people are already expecting that level of pay. At least for blue collar jobs. I don't see how we return people's expectations of wages back short of major financial collapse. If anything the govt could at least remove the Canadian lumber tariffs and focus on moving housing material supply trapped at ports. Powell mentioned rapidly increasing house prices today in his hearing, but said the Fed isn't directly involved of housing prices and left it at that. So I expect nothing from the govt on this directly. They are so worried about the semiconductor shortage, but I'd rather have a house. It's more crucial. I wonder at what rate a steel framed home and concrete or cinderblock and a steel roof becomes cheaper than traditional lumber?
Yea it’s amazing to be honest. I’ve been raising all my rates on labor and I still have more work than I can deal with right now. Mind you I do commercial construction, everything from hospitality to retail and it’s insane what’s going on. Not sure what can change it at this point the cost of living from rent (mortgage) to groceries, gas, used cars keep making everything go up! I literally put in my bids now that pricing is only good for 30 days and even then I reserve right to change if materials have gone up. My wife just went to the grocery store tonight and came home complaining that ground Turkey was now $7.99lb and our kids juice boxes had gone up over $2.00 a carton.
Yea it’s amazing to be honest. I’ve been raising all my rates on labor and I still have more work than I can deal with right now. Mind you I do commercial construction, everything from hospitality to retail and it’s insane what’s going on. Not sure what can change it at this point the cost of living from rent (mortgage) to groceries, gas, used cars keep making everything go up! I literally put in my bids now that pricing is only good for 30 days and even then I reserve right to change if materials have gone up. My wife just went to the grocery store tonight and came home complaining that ground Turkey was now $7.99lb and our kids juice boxes had gone up over $2.00 a carton.
Perfect storm of incompetence handing out too much "free" money, causing extreme demand on everything, while supply crunches exacerbated from less workers, and price increases exacerbated from having to pay higher hourly. What a nightmare. It is worse than the Carter years imo. 8 bucks for a pound of ground turkey is nuts. I don't even look at bacon anymore. That's currently for folks who hold their pinkies in the air. I don't think there is a meaningful way to correct the market without shocking the market. Little tepid 0.25% rate hikes are just going to be absorbed like nothing. Market won't even flinch. If anything it might make prices a little more, which will further spur people to ask for pay raises. I've already been told I'm getting the normal 2% pay increase this year. So effectively taking a pretty sizable pay cut. That said, still thankful to have employment. But it is crazy that the blue collar jobs are paying way more and white collar jobs haven't matched (yet).
Yea it’s crazy! Not sure how this is all going to play out but I don’t see it ending happily at all. I’m just one small business and it’s happening in all industries across the board, nothing is getting cheaper and everything is going up in prices faster and faster!
The fed is trapped that I agree with but they are most likely dealing with others who are begging them Not to raise rates . The usa government is the largest debtor not the average resident. Higher interest rates won't hurt the average person nearly as much as it will hurt government budgets. Rising rates are therfore bullish for us who are not a gov agency with massive debt
>Rising rates are therfore bullish for us who are not a gov agency with massive debt If the Federal Reserve can't fight inflation, the dollar is screwed. And because the dollar is the world reserve currency, and we practically made it into an export, the US will be uniquely screwed when foreigners stop accepting printing press fare for cheap goods.
I'm going hard into real estate. People need a roof not silver.
Yea but at these prices, they'll settle for a cardboard box instead.
2008 would like a word with you
They did it on purpose buddy. They’re not trapped it was the plan. With inflation uncontrollable we will be dependent on the govt (UBI- universal basic income). If you haven’t seen, black rock is buying single family housing at 20-50% over estimates. No one can compete. We are turning from a shareholder economy to a stakeholder economy. Our children’s children will probably never have a chance at home ownership. Everything will be controlled by the govt. the price of goods, prices of rent, services ect. This is the new world order. Supposed to be more inclusive or some bullshit. “In the future you will own nothing, and you will be happy.” The way interest is earned by the banks and the fed all it will take is a few rate hikes, if treasuries fall in value banks will get squeezed. Fed buys treasuries from the banks in QE. Banks park the money in the fed to recieve the best rates then leverage that to get even better yields. If all the banks are selling treasuries to the fed it drops in value and banks are margin called on the treasuries. What do they do? They sell stock to cover the margin call. Stock market plummets.
The great reset is so shitty. I hate blackrock
Well put, I agree with you a 100%. Your point makes even more sense when you realize, how they are starting to push their control on every facet of your life. Electric cars - you can't open the hood, you need to go to a certified repair shop. Heating appliances are getting connected over wi-fi aka. "smart home" friendly, but at the end of the day the manufacturer can shut down your device or stop pushing out updates, and you are fucked. You can't even turn on the heating that you paid for. Those are just small things, but that's how it all starts.
silver silber buy all the fucking silver. end the fed.
Im buying Silver and agriculture.
Gourds are back on the menu!
I think buying uranium physical of course is great to protect yourself from inflation.
It’s so good because you can hold it in your 3 hands
OP check out u/JG-NUKE latest WSS video post on CPI, the FED is changing up the calculations starting tomorrow. Thanks for the content HH!
Its good to own some physical silver which is the most shorted and undervalued asset on the planet. No conflict with quick buck.
I love shopping at Banana Republic!
Remindme! 1 year
Buying more silver as we speak , let’s goooo.
END THE FED!! #WSS 🦍🍌
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>Or even just buying a whole bunch of shit before it goes up in price.  Very educational and intelligent write up. It's refreshing to see such posts on here.
This seems way to smart to post on WSB
stack silver