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posted ago by CoolAsACucumber ago by CoolAsACucumber +144 / -2

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?