| | While everyone debated the Jerome Powell investigation this morning, gold screamed up $100+ and silver exploded $6+. The metals saw what's coming before the headlines caught up. | They're not coming for Jerome Powell. They're sending a message to every Fed member about who's really in charge. | The administration simultaneously announced an investigation into Powell AND floated dropping credit card rates from 27% to 10%. The timing of this Jerome Powell investigation is ridiculous. The guy's got four months left. Let him retire quietly, right? Wrong. | I don't think it's about Jerome Powell. I think it's about sending a message to the other people that are on the Fed. | This is clearly about midterm elections. | They're gonna do anything, anything possible to ease up capital, they're gonna print, they're gonna have free flow with credit, they're gonna take interest rates down. | If your independent Fed is no longer independent, that kind of freaks me out. | But this may actually have the opposite effect - the Fed themselves may really pull back and give a big middle finger to the administration. | That 10% credit card rate proposal? Are you out of your mind? There's a reason some people should be charged like 30%, 40% - by the way, that's illegal. It's absolutely egregious interest rates, which I agree, it's egregious interest rates. | We're all adults, most of us, although I'm a man child, and if you have $10,000 of credit and you decide to use it, and they're gonna charge you 25% on that credit card, you might wanna not use it, huh? Control yourself. | No, of course not. | If I am the credit card company, I'm going to chop your credit in half. I'll give you 10% all day long, as long as you're never allowed to spend ever again. | Here's the kicker: How much credit exists outside traditional banking? When my house was being rebuilt and my insurance company didn't pay - I don't mind telling you this - I went to a small private bank. They're like, "No problem, we'll give you a loan. Doesn't even show up in your credit report." | I had to ask him, "How often is this done?" He goes, "Yeah, there could be like trillions of dollars out there that nobody would even know about - small, private financial institutions lending." | It's wild. And there's no way to police that either. They're not gonna be able to go through and say everybody must be at 10%. I know what the law is, but I also know how to circumnavigate it when you are a creditor. | Gold doesn't care about political theater. It cares about monetary debasement. The metals markets processed this faster than the talking heads: | Political Fed intimidation (destroying independence) Credit card rate caps (forcing artificial rates) Easy money policies (election-driven stimulus)
| The marketplace clearly doesn't give a damn about the credit card stuff. If you take a look at some of your major creditors, this isn't even that much of a precipitous drop. | It's a warning shot, but the market's not really taking it all that seriously. | But I also think about the major banks - there are things called credit default swaps. The implications here, if you started to chop interest rates and force them to chop interest rates, would be hideous for some of the banks. | The smart money already moved. Gold +$100. Silver +$6. They positioned for easy money before the easy money policies even got announced. | I think this investigation will backfire. I think it'll backfire in a big way. Things are gonna get really funky. | The metals markets? They figured it out first. | To your success, | Don Kaufman | P.S. The name of the game is now order flow. It's the only thing that matters. And at 2 pm et. Brandon Chapman is going live to share with you what he's seeing. Click here to join him. |
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