Don’t Be Distracted from Reality by the Overinflated US Stock Market

hall of mirrors

Don’t be distracted by the overinflated US stock market from reality. Due to so much attention being triangulated on the US China trade war in the mainstream financial news, events of much greater consequence have been ignored. I can think of three financial events of much greater import to 2020 than the overhyped and overinflated US stock market off the top of my head. For example, US Central Bankers are still pumping trillions of dollars into the US banking system every week via the overnight repo market as well as term US Treasury purchases, an event that has been happening since the end of September, but has been nearly completely ignored by the mainstream media, despite the enormous significance of this event that speaks volumes to the fragile nature of the entire US banking system. If you don’t understand why this is a massive deal, then click on the link in the aforementioned sentence to learn why it is of great concern and a sign that something is massively rotten in the global banking sector.

Furthermore, by artificially pumping the US stock market higher with fake news of trade deals between the US and China that are a mere illusion, an overinflated US stock market also diverts attention away from a US dollar that has tanked for the majority of this month. This news is of much greater import to the financial events that will happen in 2020 than an overinflated US stock market. In fact, if we look at the weekly USD chart below, we can see that the USD has once again descended to the bottom of its more than 2-year long narrow trading channel. Should the US dollar break below the bottom channel support line and the 200-weekly moving average, then trouble could hit the US dollar market very rapidly. If these events happen, then I think we would quickly challenge the point of no return for the US dollar.

US dollar ready to breakdown?

Finally, the overinflated US stock market has drawn attention from the solid performance of gold this year as priced in US dollars, not to mention its significantly greater performance in dozens of other global fiat currencies. When the US Central Bankers decided to leave the fed funds interest rate the same on 11 December, in the past, Central Bankers had used an unchanged fed funds interest rate as an opportunity to slam gold prices lower, using a narrative that a “robust” economy was the reason that interest rates remained the same and creating a risk-off narrative to manipulate gold prices lower. However, this time around, bankers were only temporarily able to lead prices lower on that announcement and not sustain a lower gold price and gold prices have since slowly risen and are actually at a higher USD price than before the announcement. This gold price behavior also should point to the reality of much greater stresses in the global banking system that exist that are being hidden and concealed from the public.

In conclusion, if you want to make the right choices for your financial future, don’t let the manufactured distractions distract you from reality.

J. Kim

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