Title: 3 Things That Will SINK the Economy - Robert Kiyosaki, James Rickards Source:
[None] URL Source:https://www.youtube.com/watch?v=QGvJHR-JBrQ&feature=emb_title Published:Dec 8, 2022 Author:Staff Post Date:2022-12-08 12:15:05 by Horse Keywords:None Views:4521 Comments:1
The supply chain is the economy. We developed supply chain science (Just in Time) 1989 to 2019. Pandemic, lockdowns, war in Ukraine. When Trump sanctioned China, the Chinese cancelled soybeans from US and bought them form Brazil. The sanctions cancelled freighters all over the world. THIS HURT SUPPLY CHANINS.
The next problem is FED balance sheet and dollar shortages. JPM buys bonds and parks them at the FED. Our money comes from commercial banks when they make loans. Velocity is low. Problem is that $9 trillion at the FED balance sheet does not go vary far when you have to support a quadrillion dollars in derivatives. Collateral for derivatives is often Treasury bonds. You need dollars to buy US Treasury bonds.
The dollar is strong because everyone needs dollars to buy Treasury bonds to prop up a quadrillion dollars in derivatives.
Reverse Repo is needed for re-hypotheccation where you use the same collateral for 50 different loans. 50 different banks use the same bond for collateral.
Rickards says this collapse can come as soon as this winter or early in 2023.
Inverted yield curve only makes sense when people expect something really bad will happen soon. We currently have an inverted yield curve.
higher interest rates are a lagging indicator. High interest rates start a recession.
Greenies want $10 gas so everyone will buy an electric car.