A fren asked when I think the stock market will crash and here is my reply. First some background and then my answer.
Background:
January is the estimated time when the Federal Reserve - Reverse Repo Market runs out.
https://fred.stlouisfed.org/series/RRPONTSYD/
That is what is being used to fund the governments insane spending, because when the government borrows money, they have to sell a US Treasury Bond backing that money. The US Treasury trades their Bonds for the cash parked in the Reverse Repo Market.
In the just 3 weeks the govt has borrowed $550 Billion+
https://twitter.com/WallStreetSilv/status/1712217005992939952
The Reverse Repo Market has drained 100 Billion almost every week for a month except the 3rd week of October. The Reverse Repo is being used to immediately buy Treasury Bonds and keep the interest rates of them (yields) from shooting up further.
Japan who owns $1 Trillion of US Treasury Bonds is also on deaths door. Historically when Yen-to-Dollar is 150/$ then the Bank of Japan intervenes and sells some US Bonds to raise value of yen against the dollar. That's happened a couple of times this month.
When Reverse Repo runs out, Treasury Bonds are going to shoot through the roof. This will be the 2nd big crash.
My Answer:
What do I think will happen? Short answer: 2 crashes in stock market then devaluing dollar then CBDC then freedom.
1st dip will be big enough most Boomers will think that was the crash and put all their money back in the stock market. I expect it around end of October - November before Thanksgiving from the way things are going but it may happen later. Boomers and older are important because they own about 70% of US Wealth and getting their wealth is the ultimate goal.
https://www.marketingcharts.com/demographics-and-audiences/youth-and-gen-x-75103
Govt will ramp up borrowing like crazy causing Treasury Bonds to crash in value and their interest rates to shoot up, possibly above the federal reserve base interest rate. Boomer money not in stock markets will go into Treasury Bonds. They will falsely think they are a safe haven as they've been trained to think.
Banks go insolvent from decreased Treasury Bonds value and are unable to back up deposits. They go bankrupt selling anything they own to cover any costs they can, causing more supply of Treasury Bonds on market dumping price lower and yields higher. Govt keeps borrowing and spending.
Reverse Repo runs out of money. Treasury bonds must be sold on the open market where nobody wants to buy. Values drop at insane levels and their interest rates shoot through the roof.
This will be the 2nd big crash that wipes out the rest of stock market and retirement money. Along with the Derivatives (estatimated $Trillion - 4 Quadrillion value), the Futures Market and even the paper gold/paper silver. I expect this to happen January-February but i am likely wrong on the exact timing here. This is the big boy to worry about. Physical cash will be very valuable at this point and it'll be the time to go spend your cash you have left. Any electronic cash will be gone and you'll be unable to access it.
Gold and silver will spike up overnight and maybe a bit for crypto but it won't hit its peak yet.
Then the govt will keep borrowing but nobody will buy Treasury bonds. No worries, the Federal Reserve has a fix for that from a paper that came out in Jackson Hole, WI this summer
Presenting the Fed's Perfect Plan for U.S. Dollar Oblivion | BestEvidence
https://www.youtube.com/watch?v=W0u5h579ZeU
https://www.kansascityfed.org/Jackson%20Hole/documents/9726/JH_Paper_Duffie.pdf
In this paper, the Federal Reserve and Govt solves the problem of having no Treasury Bond Buyers on the market. Currently the Federal Reserve can only buy Treasury Bonds that have already been sold from the US Treasury. This paper suggests to do away with that and have the Federal Reserve directly buy Bonds from the US Treasury. This will double inflation increase as the Federal Reserve will have to print money to buy the Treasury Bonds and more money is printed for the US Treasury once the bonds are sold.
There will now be no incentive for the govt not to borrow to oblivion and the physical dollars will quickly become worthless so you'd better get rid of your cash by then. Gold/silver, Crypto, Bullets, Food, Resources.
People will have to come together and do whatever they can for each other to survive this mess. Crypto will shoot up in use at this time because of instant transaction, long distance payments, and exact pricing. This will eventually take over by the peoples choice.
Govt buildings will be burning, urban city dwellers starving, and the pain will be so bad that people beg for a CBDC to stop from starving. That is the Cabal's bet and they will issue a CBDC at this time.
The foil to their plan will be gold/silver and ultimately crypto because the Cabal/Central Bankers have less of their hands in crypto than gold/silver (central banks have been massively buying precious metals) and its more usable over long distances. They won't be able to control people conducting their own business and they will fail dramatically. I think the military will step in when people have made the choice and decide against Central Banks and their CBDCs.
This is my best guess at the moment. I am likely wrong somewhere especially on the timeline, but as the govt actions play out over time, they become more predictable.
What do you all think?
1st crash stocks, gold/silver, and crypto (possibly cars too) will drop in value. Its just a dip in the market and not the big one though I expect it'll look bad. Paper silver and Paper gold may flood the market at this time to devalue gold and silver further so it'll be cheap!
2nd crash everything will fall in value (even real estate minus farmland);except precious metals and possibly crypto will shoot up. Physical cash will become extremely valuable then because electronic payment systems won't work. You want to have already bought your gold/silver and bullets before the 2nd Crash.
Don't spend all your cash before 2nd crash, spend it before the Federal Reserve starts buying Treasury Bonds directly from the Treasury (soon after the 2nd crash). Food and resources will still be available for a short period and will be relatively cheaper. Repossed cars will be really cheap but I bet oil/gas will be crazy expensive.
After Federal Reserve starts buying Treasury Bonds directly, crypto will shoot up fast. Precious metals will go up to but not the same pace.
When Federal Reserve enacts CBDCs it will live for a period at the same time with dollars but dollars will pay an extra fee every time they are used so any extra dollars left over will be quickly gone. People will be really pissed. CBDCs will be used to create forced negative interest rates. Dollars will have a premium for staying anonymous and that extra difference in the negative interest rate from 0. It was all lined out in a previous paper I'll find and upload tomorrow.
Another reason precious metals and other hard assets counter-intuitively DROP in price at the start of a crash is that people need to sell assets to cover margin calls, higher interest rates on variable-rate debts, and so on. Those assets go back UP in price -- and then some -- but initially the panic selling tanks the price.
EXACTLY! ☝️
There won't be any cbdc where I live. It's illegal. Gold, silver, lead and food. Plus a good plan.
They made it illegal in the US if I'm not mistaken but not illegal to test and research the CBDC being made by the Federal Reserve.
The only way they can get the people to accept it is make conditions so bad they get the people to beg for it. Hence why they allowed it to be "outlawed" without much of a fight and why I think they will implement a similar plan to what I wrote.
Do you think I should keep a minimum amount in checking just to pay bills and take the rest out in cash?
That's what I'm doing.
Thank you!
Silver and gold might dip, but if there is none available to buy. The stocks will quickly be bought up. Mail will probably not run.
Venezuela in early 2000s had by far the highest % stock market increase anywhere in the world.
It was due to hyperinflating their currency. People who kept their money in stocks throughout the whole period saw their real value decrease by 19% even though the stocks "increased by record % high".
Same thing happened in Argentina.