Reality Distortions - The SUM Report 1-13 | QPOL Issue #31
Reality Distortions - The SUM Report 1-13 | QPOL Issue #31
Market Pump-Fake Denial, SOFR Salvation, and how MSM distortions disinform society and culture.
The meeting at Davos happened this week and talks of Jerome Powell speaking about the Fed focusing on climate change made headlines. For the record, Powell did not go to Davos, however Jaime Dimon and others on what I call “team Fed” did. There’s a list of attendees floating around out there on the internet if you wanna go dig that up yourself. Assuming Powell will budge on this matter is stupid. Climate change is a globalist attack against the Fed just as the forced fiscal policy of Covid-19 was.
If it’s not climate change or a fake virus that brings the Fed to its knees to pivot, its war. This thread from Luongo paints the picture of what’s happening on the world stage.
The Fed pivots only if warmonger globalists drag the US into their war to fight via a false flag like every war in the past. It’s a race to bankrupt these deviants via raising rates by destroying the offshore dollar markets before they do something stupid. Not on Powell’s watch.
SOFR Salvation
What’s NOT stupid is the long awaited abandonment of LIBOR (June 30th 2023), and the full migration to SOFR. Yet, debt investors are losing millions by not reindexing their debt as their investments are being repriced. Why are they being repriced? Because SOFR is collateralized (based on US domestic market activity between US banks) instead of an arbitrary, central planner dictated interest rate (LIBOR). The market is determining which rate is more credible. This move is a reassertion of credibility and strength in the Fed and US markets, and part of Powell and the major commercial banks’ plan to achieve monetary independence from the Davos globalists.
Investors managing CLO (Collateralized Loan Obligations) contracts that are still indexed/tied to the globalist ball and chain rate that is LIBOR have until June 30 to make the transition to SOFR. People’s pensions (money that comes out of your paycheck every month that goes into your retirement), are all indexed to LIBOR. Because of the switch to SOFR, liquidity is leaving LIBOR as debt and contracts get reindexed to SOFR. Those who decide to ignore this and live in LIBOR denial will be in for an unpleasant surprise (AKA: lose a shit ton of money because they were too stubborn and arrogant in their globalist ways). Debt investors are already getting hosed. Don’t be like them…
With all this said, any popular/critically acclaimed investor/macro commentator who isn’t vocal about the move away from LIBOR is in denial or living under a rock. It’s disingenuous, and they can’t be taken seriously. Position yourself accordingly. It’s your fiduciary duty. The powers that be have a strategy to hedge this transition and that’s gold. The central banks have been binge buying gold for years. They know what’s coming and will leave investors in the dust, meaning the people that manage your money will, well, lose your money if they don’t position themselves appropriately.
You could of course hedge this all yourself buy Bitcoin at (despite the recent fakeout in the bull run which we’ll cover next) record low prices. However, I understand people are all in unique financial positions and the have their own strategies. If it not yet obvious, I don’t have any FINRA licenses, so all this is purely for entertainment and not financial advice.
Onward…
Choose Your Elite
Like choosing the elites at the Fed over Davos, Elon is one of those elites to support. When it comes to Elon forcing the banks the suffer “losses”, we need to consider what is really being lost (if anything). The fact is that the banks don’t give a shit about the “losses.” Why?! Because they own Twitter…
Whatever loss is at play, I’d imagine they knew what they were getting into when they decided to purchase Twitter, and so they plan on using that as a write off and probably invested in something else to counter that loss as a hedge.
Who was it that Elon was fighting so desperately against in the twitter buyout battle? It was the Deep state backed cancel culture commies. News flash, that’s not who the banks (Team Fed) is on the side of… Twitter is the information spigot of the world and is now under the control of at least the non-commie globalist sellouts. Twitter is the ultimate source of societal and cultural collateral. That collatereal is now in the hands of new shareholders: Elon and the banks. Whatever losses the banks realize is irrelevant. Why?
Twitter is priceless.
Sentiment, CPI, and other Monetary Distortions
Bitcoin surged as other assets did amongst a low CPI print this week. Bitcoiners were taking victory laps without realizing the markets are still desperate that the Fed pivots sooner than later, when in reality they’re in denial about Powell breaking the Fed Put. The truth is that US inflation came in unchanged. In December, the Consumer Price Index for All Urban Consumers decreased 0.1 percent, seasonally adjusted, and rose 6.5 percent over the last 12 months.
Ansel LIndner had noticed that CPI rising should mean (traditionally) that the dollar should decrease with it. Perhaps he’s testing the crowds and playing devil’s advocate. I did some searching and came to this conclusion…
Foreign money buying US assets & then adding back money to domestic circulation. Inflows from Asia, the ME, & Europe are huge. It’s the result of accumulating $ assets offshore, or having to convert their currencies into US dollar assets. Low CPI = sentiment & more opportunity.
Again, markets and sooth seers on twitter are in denial about Powell ending the Fed Put, and the market reaction will just be more reason for Powell to raise 50 bips to wake people up to reality. The fact is that the world hasn’t been living in reality, we’ve been blinded in a world of easy credit that’s clouding our judgment in every aspect of life. Powell’s policy goes much beyond monetary policy. It’s about resetting society and the culture by bankrupting the old money that fuels the corrosion of society. We have to remember what kind of world we want, and the one we live in and how to work within it to reach a better outcome. Libertarianism is great but doesn’t work so we need to act locally/be as ungovernable as possible while also voting for the elites that give us the sweetest deal (AKA non-cucked Republicans AND Democrats like Manchin/Fed). Hierarchies exist & you need order to handle rule of law. This is why choosing the side of the Fed is in the best interest for humanity.