VRA Weekly Update: J Powell & The Bond Market Vigilantes. Beginning of the Big Bubble.

Good Thursday morning all. We begin this morning with a tip of the cap to the Fed’s J Powell. Not only did the Fed nail their written FOMC comments (no rate hikes through 2023) but Powell followed it up with a strong presser, rarely going off-script. More of this please. But we must also remind investors that the Fed does not lead on the direction of rates…the markets lead and the Fed follows. 

Bond yields continue to creep higher, with the 10 yr up again this AM to 1.73%, a new post CV insanity high. 

I remember well the last time the bond market vigilantes (BMV’s) showed up. It was early on in Bill Clintons presidency as Clinton attempted to increase budget spending, but the bond market wasn’t having it.

Yields began to spike sharply higher, sending a clear message to Clinton to back off deficit spending. Clinton famously asked “WTF are these bond market vigilantes” with his hatchet man James Carville saying “when I come back I want to come back as the bond market”.

Who are these bond market vigilantes? They are, without question, central bankers and the money/banking cartel. This is cartel #1, of the 7 cartels so famously exposed and written about by my good friend G Edward Griffin of “The Creature From Jekyll Island” fame. At my events, where Ed spoke more than 20 times over an 8 year period (2005–2013), Ed did an entire 1 hour presentation on the 7 Cartels and how they run the world. When we talk about our “planners” this is who we’re referring to. And yes, we fully intend to have Ed back with us for our VRA Conferences, beginning a bit later in the year.

Bottom line: If central banks (BMV’s) want Biden to back off of spending and tax increases, we’ll know it because 10 yr yields will REALLY start to spike. Should we get past a 2% 10 yr yield, on velocity, then Biden will be forced to pay attention. Frankly, I doubt we’ll cross that bridge. After all, Byden is in office because of our planners. If Byden were to get a mind of his own, he’d be green screened out of office quicker than we can say “President Harris”.

If the bond market vigilantes are in fact returning (highly doubtful in my view), we’ll know it because rates will continue to spike higher and the Fed will have limited options to stop rates from doing just that. 

Here at the VRA we’ll concede that the 10 yr might hit 2%…its 1.73% this AM…but we remain big believers that gravity will keep US rates lower for longer.

And no, inflation is not 2%. Low levels of inflation, which is best defined as currency inflation, remain one of the biggest fibs that economists have foisted on the public by the banking cartel. Folks, there’s a reason the US dollar has lost 97% of its value since the Fed was created in 1913, then picking up one more currency debasement when Nixon took the US off of the gold standard in 1971. That reason? Unending and unlimited printing of fiat currency. No…inflation is not running near 2%. Not. Even. Close.

DYK that the Fed employs more than 1000 economists? And while they aren’t forced to disclose these vast conflicts of interest, what I can assure you of is that most every economist you see on TV is in fact employed by the Fed, in one nature or another (big grants, most commonly). In the event you wondered why you’ve never heard an economist bash the Fed on TV, now you know why. “Money, money, money…m.o.n.e.y.”

Probably just a coincidence…

VRA Market Update

Big reversal higher in the markets yesterday as the Fed minutes were released. Especially in nasdaq. We see this as a significant tell. Dips should be bought. We’ll get that chance again this morning as Nasdaq futures are -220 while Dow futures are flat. 

Markets never move in a straight line, up or down, but what is most important is that we remember that we have entered a new bull market of size and scope, both in the US and abroad. 

The global economy is flush with fiat money, inflation is rising (early inflation is highly bullish with the return of pricing power). Higher early cycle interest rates have the same impact. Broadly bullish. We are now in the markets sweet spot. This is when accelerating momentum “forces” markets higher. 

This is the beginning of the “Big Bubble”. Funded in large part by the “Big Bribe”…the PSYOP of all PSYOPS. But this move higher is real, as is the global economic recovery.

AND commodities are “working” and should continue to work. Oil, copper, gold, silver, base metals, etc…that’s roughly 50% of the vra portfolio. This is our time to crush Mr Market. Everyone reading this should know how strongly I feel about the exact environment we are in today.

We will make fortunes in VRA 10 Baggers going forward. Each month, continue to use dollar cost averaging in our top names. Make sure and login to your VRA Portfolio each week to ensure you are positioned properly. 

My biggest concern? It’s Team Biden. Not a close second. We saw troubling news yesterday as the UAW informed workers that Ford is moving a major project worth $900 million to Mexico.

The Dow is up 150….Nasdaq down 150 points. We remain bullish but short term a bit overbought. 

I’ll leave you with some interesting work from Bespoke Research;

“In the 16 prior years that the S&P has been up 5–10% YTD through 3/15, the index has seen rest-of-year gains 15 times for an average gain of 14.8%.”

Big time bullish stats right there for the remainder of the year.

Until next time, thanks again for reading…

Kip

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