2022 & Repo Crisis


QUESTION:  Mr. Armstrong I Hope your health is holding up with all the viruses. My first question is Feb 13 the Fed printing money increased by 13 billion however it is buying short term debt as in 1-day debt how long can they keep this up it is a fake stimulative of the stock market right?

The second question Do you still see something happening to Trump in 2021 ?

Thank you

S

ANSWER: The year 2022 looks to be more of an issue for the president. I do hope Trump is there for 2021, because I fear a career politician will not understand the Repo and Monetary Crisis. They will do whatever the Deep State instructs them to do. The Repo Crisis is in no way similar to people’s understanding of the crisis. I am not concerned about the amount of money. They are going to be forced to be the market-maker in Repo permanently.

Secretary of State Pompeo Meets With UN Secretary General Guterres


Any attempt by the ICC to enforce a warrant against any U.S. citizens must be fought by all means necessary

Joseph A. Klein, CFP United Nations Columnist imageRe Posted from The Canada Free Press By  —— Bio and ArchivesMarch 7, 2020

Secretary of State Pompeo Meets With UN Secretary General GuterresSecretary of State Michael R. Pompeo met on March 6th with United Nations Secretary General Antonio Guterres at UN headquarters in New York. The offices of the spokespersons for both the State Department and the Secretary General issued their own readouts of the meeting. One would think from reading them that the readouts were reporting on two different meetings.

The UN readout portrayed the meeting as a kumbaya moment. “The Secretary-General expressed appreciation for the continued engagement of the United States in the United Nation,” the UN statement said. It ticked off as topics of discussion “a range of situations around the world, including Afghanistan, Syria, Yemen, the Sahel and the questions related to the implementation of the host country agreement.” The reference to the host country agreement implementation may have alluded to a dispute over the denial or delay of visas issued by the U.S. to UN diplomats from certain countries, principally Russia and Iran, seeking to attend UN meetings in New York. However, the statement completely sidestepped the substance of the issue. Nothing was even hinted regarding any other differences between the United States and the United Nations.

The State Department readout did not hold back, however. Half of the readout was devoted to the UN’s highly biased pro-Palestinian decision to release its blacklist of companies doing business with Israeli firms operating in disputed areas of the West Bank and East Jerusalem, which includes several U.S. companies. It said that Secretary Pompeo “reiterated his outrage at the decision by UN High Commissioner for Human Rights Michelle Bachelet to publish a database of companies operating in Israeli-controlled territories.” The U.S. statement added that Secretary Pompeo “made clear that the United States will continue to engage UN officials and member states on this matter, will not tolerate the reckless mistreatment of U.S. companies, and will respond to actions harmful to our business community.”

The true agenda of the BDS, with which the UN is complicit, is the total destruction of the Jewish State of Israel and its full takeover by Palestinian militants

As usual, the UN Secretary General tried to paper over significant objections to the UN’s moral failures with diplomatic niceties. Secretary Pompeo, representing the UN’s biggest financial contributor by far, was not willing to be a part of such play-acting. What Bachelet did, with the Secretary General’s evident concurrence, blatantly undermines real human rights. The UN blacklist promotes the agenda of the anti-Semitic Boycott, Divestment and Sanctions (BDS) movement, which discriminatorily singles out the Jewish State for economic punishment because of its “settlements” activities. Turkey, which illegally occupied Northern Cyprus in 1974, has since sent thousands of Turkish settlers and occupation troops to Northern Cyprus, without a whimper of objection by UN officials. Ironically, the livelihoods of Palestinians and their families will be jeopardized if Palestinians working for the affected businesses lose their jobs as a result of the boycott encouraged by the UN’s blacklist.

The true agenda of the BDS, with which the UN is complicit, is the total destruction of the Jewish State of Israel and its full takeover by Palestinian militants. “No Palestinian, rational Palestinian, not a sell-out Palestinian, will ever accept a Jewish state in Palestine,” said Omar Barghouti, BDS’s co-founder. The truth is that the BDS movement and its offshoot at the United Nations are a throwback to the Nazi boycott of Jewish businesses.

Thus, the Trump administration correctly objects to the use of the American taxpayer-funded UN bureaucracy to promulgate a blacklist intended to intimidate U.S. businesses and others into complying with the BDS boycott. Secretary General Guterres should heed the message that Secretary Pompeo delivered to him during their face-to-face meeting on Friday or face the financial consequences from further cuts in U.S. contributions to the UN’s bloated budget.

We do not know for sure what was said during the meeting regarding implementation of the Agreement between the United Nations and the United States of America regarding the Headquarters of the United Nations – the so-called host country agreement.  However, Secretary General Guterres has expressed concerns in the past over failures or delays by the Trump administration in issuing visas to foreign government officials seeking entry to the United States to attend UN meetings as well as the imposition of travel restrictions.

Hopefully, Secretary of State Pompeo made it clear to Secretary General Guterres that the International Criminal Court (ICC) Prosecutor Fatou Bensouda and her investigatory staff will not be welcome to the United States as long as they pursue their vendetta against American officials, soldiers, and intelligence agents for perfectly lawful actions taken against terrorists in Afghanistan.

A panel of judges from the ICC’s Appeals Chamber has just reversed an earlier ruling by an ICC panel of judges, which had blocked a probe into possible war crimes and crimes against humanity in Afghanistan. The Appeals Chamber judges decided unanimously on Thursday to allow the ICC prosecutor to investigate possible crimes on Afghan territory since May 2003 and other alleged crimes linked to the situation there since July 2002. The United States is not a party to the ICC Rome Statute and, moreover, has its own robust system of justice that the ICC has no valid jurisdiction to supplant or override.

The U.S. has already revoked ICC Prosecutor Bensouda’s entry visa to the United States

The ICC prosecutor called the decision “an important day for the cause of justice in the situation of Afghanistan, for the Court, and for international criminal justice more broadly.” To the contrary, the decision was, in Secretary Pompeo’s words, a “breathtaking action by an unaccountable political institution, masquerading as a legal body.” He added, “It is all the more reckless for this ruling to come just days after the United States signed a historic peace deal on Afghanistan, which is the best chance for peace in a generation. We’re going to take all the appropriate actions to ensure that American citizens are not hauled before this political body to settle political vendettas.”

The Trump administration can start by following through on Secretary Pompeo’s warning last year that the U.S. would deny or revoke visas for International Criminal Court staff. The U.S. has already revoked ICC Prosecutor Bensouda’s entry visa to the United States. She should continue to be barred entry, along with her investigators. They also must be barred from interviewing any past or present U.S. officials, soldiers or other government personnel anywhere in the world. Any attempt by the ICC to enforce a warrant against any U.S. citizens must be fought by all means necessary.

The European Bank Scandal Nobody Talks About


Last October, the European Union’s (EU) top court ruled in favor of Polish consumers who took out mortgages in Swiss Francs, allowing them to ask Polish courts to convert the loans into the local zloty currency in a blow for lenders. Back in October 2019, the Court of Justice of the European Union, based in Luxembourg, gave a judgment in favor of Polish victims of unfair mortgage agreements crafted by the banks. The bankers created mortgage loans in Swiss francs to be reimbursed in Polish zloty claiming that the currency was very stable and it was, therefore, a good deal. When the Swiss franc peg broke on January 15, 2015, mortgages throughout Europe were sent into turmoil for the bankers had been selling their mortgages linked to the Swiss franc.

The banks involved in crafting mortgages linked to the Swiss franc were Santander, BCP, BNP Paribas, and Commerzbank, as well as Poland’s biggest lenders PKO BP and Getin Noble Bank. Crafting such complex structures for the consumer is not something that will hold up very well in Europe moving forward.

Fed Cuts Rate on Schedule!


The Federal Reserve is in full panic mode. The Federal Reserve cut interest rates Tuesday in a rare emergency meeting, responding aggressively to the growing threat the coronavirus poses to the economy and markets. The Fed lowered its key federal fund rates by half a percentage point to a range of 1% to 1.25%, the central bank said in a statement.

We warned over the weekend that Socrates had pinpointed this week and then the week of March 23 for actions by the Fed. The Fed is between a rock and a hard place. It had to act in response to the collapse in economic data for the 1st quarter, but at the same time, rates are rising in the real world due to perceived credit risks. This means that the Repo Crisis will get worse and the Fed will have to become the permanent market-maker to maintain short-term rates at these levels.

The steep cut of 50 bp was an emergency half-percentage point rate cut on Tuesday in an effort to protect U.S. economic growth from the impact of the coronavirus outbreak. However, the production lines are already declining. The Fed is looking at how the press has whipped this up into a global panic. But as we can see, volatility will rise further at the end of the month and we should expect this to manifest in a serious escalation of the Repo Crisis as early as May/June

Federal Reserve Chair Jerome Powell Statement and Press Conference Following 50 Point Fed Drop…


Earlier this morning the Federal Reserve (Fed) announced a .50 drop in their lending rate in response to the potential for economic impacts from the coronavirus.  Following the rate cut Federal Reserve Chair Jerome Powell delivered a statement and held a press conference.  [Video Below]

Why Goldbugs Get Crushed


QUESTION: This is what infuriates those that like gold. All of the shorting. Why? No other sector looks like this. So how is it that gold miners are restricted but no other sector sees shorting to the extent that restrictions are in place??? Gold is $1600 and these stocks traded double this price in 2008 with gold at $800. You ask why “goldbugs” are so angry, this is your answer.

S

ANSWER: For decades, I have watched “The Club” rally the metals and then crash them because the goldbugs treat it as a religion rather than a market. Every rally is touted as, here we go, the world will crash and only gold will survive. The Club uses that sentiment against them all the time for they know it is easy money. When they step back and look at the metals as markets, then they will win. Many other markets have made long-term profits but they are always demonized by the goldbugs. Why? I believe that some of the people promoting gold are the very ones involved in selling it to them. Everything has a cycle. It goes up and goes down. These chants from the goldbugs are not realistic and they cost countless people their life savings as they get sucked in by people who act like used car salesmen.

Short sale restriction is a rule that came out in 2010 and it’s also referred to as the alternate uptick rule, which means that you can only short a stock on an uptick. You will note that there is no such thing as a long buy restriction where you can’t buy a stock as it’s going up.

Inevitably, the goldbugs blame shorts. That is NEVER the case in any crash. The real cause is that you have exhausted the buying. When you run out of buyers, that is when markets become vulnerable. The smart do not short, they sell to take profits. That starts the decline and the hated short-player is blamed but never found.

The short selling rule came in only because of shorting Lehman Brothers. When the shorts turned on Goldman Sachs, they pulled the strings. But those were shorts looking at reality, not speculative. There has NEVER been a discovered mythical short position that causes the entire market to collapse.

I have stated countless times that gold will rally ONLY when the general public perceives there is a crisis with the government. Forget deficits, quantitative easing, and fiat currency. They will never convince the average person to take gold seriously. When you begin to look at the market without emotions and trade them up and down, then you will see the light.