➡ Gregory Minorino’s market report discusses a grim economic situation where credit card and loan defaults are rapidly increasing due to ongoing socio-economic pressures causing a rise in reliance on borrowing. He emphasizes that the market is misconstruing negative financial news as an indication that the Federal Reserve will introduce measures such as cutting rates, which he believes is unlikely. Furthermore, he presents his belief that the heightened economic pressures, home sales decrease, and rise in inflation are all parts of a larger plan to pressure the middle class.
➡ Despite poor economic news, the market continues to rise due to the expectation that the Federal Reserve will insert more money into it. However, the speaker believes this expectation is misguided and argues that the Federal Reserve, along with other central banks, is actually tightening credit and inflating prices to force struggle upon average citizens.

You.

Okay, everybody, here we go. It is me, Gregory Minorino. Thursday, August 31, 2023. This is my pre market report.

Okay, let’s let’s talk, you and me. We got a couple of, I think, very important pieces of information I want to talk about. But I want to put together for all of you phenomenon that is occurring right now and why, in my opinion, this market is getting it way wrong with regard to the Federal Reserve, what they’re about to do.

So let’s start off with this. With regard to the economic news, a couple of things are going on. Number one, credit card defaults continue to skyrocket. Not just that defaults across the board.

And you and I have been watching this, we’ve been talking about this for many, many months. Something we have expected to happen because again, look, there’s a terrible phenomenon occurring which you and I started to speak about a couple of years back when we realized, you and I, that this economy was in free fall, that there is a direct assault going on against the people of the middle class.

What did we say would happen? These people would borrow and borrow and borrow and borrow some more to maintain the illusion of a middle class existence. People are being pushed to the lower rung of society here. Neo feudal system absolutely in play right now.

So it’s unfortunately natural in this kind of an environment to see what we are seeing again. Loan defaults across the board, getting out of control, credit cards. And you remember what they did just a few months ago, offering you, me, and everybody else increases in their credit line without even applying for it. They knew what they were doing. This was done by design to get people to continue to borrow and swipe, because that’s what people do. Then again, cause them to struggle to pay those bills. They become slaves to the system. They become dependent on the system. And that is playing out exactly as you and I outlined it would. And I hate to see this, because these are real people we’re talking about, not just accounts, okay?

You watch the mainstream media, they’re talking about credit card defaults and loan defaults and repossessions of vehicles and everything else. But these are people, you have to understand what we’re talking about. And yes, I get it. People have done this to themselves because I always get that kind of comment. Well, Greg, these people are doing it to themselves. The sad thing is they don’t know any better. They don’t know any better. And they’re so desperate to maintain that illusion of the middle class existence. It’s so obvious. It was so obvious what they were going to do, and that’s what they are doing.

So that’s the first piece of information here. Credit card defaults and loan defaults across the board continuing to rise. Now lower income families are starting to get pinched as well.

Now, big food retailers are reporting that people, especially those in the lower rung, are cutting back on food purchases. This, again, you may laugh and say, oh, all these people need to lose weight anyway. It could happen to you too. So be very careful what you say here, okay?

Food inflation is getting out of control. Inflation overall continues to rise. And the stunning admission that we got out of the Federal Reserve, this was a report back in February that they knew. They knew back in February that we could be facing an inflationary nightmare. Their words, okay, so all the talk about transitory and temporary, it’s all fake. And now you and I knew that. But now we have an admission. But of course, no action will be taken at all. There’ll be no congressional committee to call the Federal Reserve to account because no one gets held to account anymore anyway.

So this is a phenomenon, I think, that’s going to get worse here. People having to cut back on food because they can’t pay their rent. They can’t pay other bills. They don’t want to end up homeless, okay? And although this is affecting primarily lower income families right now, there’s no doubt that those people prior members of the middle class, maybe even yourself, are going to end up in this same kind of a situation. I hope not. So just hold the negative comments about these kinds of things.

On the economic front, again, pending home sales are down 13.8% year over year. Does this sound to you like a booming economy?

Now let’s talk about another phenomenon that is occurring, and it’s right in our face and why, in my opinion, and I want to hear from you on this the stock market is in for a big shock, if you notice, it seems that the worse the economic news is, the higher the stock market goes. You ever take notice of that? Well, I think you have, especially if you have followed this blog.

This phenomenon occurs over and over again. The worse the economic news is, the higher the market goes. Now, the reason why this is happening now, if you have seen the last several trading days, yes, let’s put a couple of things into perspective because I know I’m going to get called out on this.

We’ve watched this stock market fall pretty much straight down for nearly a month now. We’re getting this rebound here. Now, I have spoken just yesterday, the day before. That how the market believes that more easy money is going to pour into the market, and that’s why you’re seeing the stock market rise.

But it goes beyond that. This is the real reason why we’re seeing this. So the continuing unrelenting bad economic news is not going to stop. Now, the market believes that because of all this bad economic news that the Fed is going to do more. The Fed is going to cut rates, especially because of what came out of China. China new stimulus program. They’re going to be cutting rates.

Now, the market ah oh. So we know what’s going to happen now. The Federal Reserve is going to follow suit. I don’t believe that’s going to happen.

What’s happening or what’s going on here is exactly what you and I expected to see again. People being made slaves to the system. Pressure on the middle class people again, this is just affecting right now, people in the lower income bracket, they’re cutting back on buying food. Loan defaults are skyrocketing. Real wages are falling off of a cliff pending home sales down 13.8% year over year. The pressure on the middle class will be maintained.

So what I’m trying to say is the market is getting this wrong again. Check my record, please. In the last decade, I have only been wrong about what the Fed would do three times, three times in ten years.

So I’m here to say that I think the market’s got this wrong. The market believes the Fed is going to start cutting rates sooner than later. The market believes the Fed’s going to pause raising rates for a long, extended period of time. I don’t believe that’s true. I think the Fed is going to continue the pressure on the middle class because they got them by the throat.

You have to understand, the Federal Reserve is the enemy, okay? We’re not each other’s enemies. They want you to believe that because you’re in the blue camp, you’re in the red camp. You have dark colored skin. You have light colored skin, whatever the hell you are. They want you to believe that we need to hate each other. No. That’s their plan. That’s what they have done. This is how the few have controlled the many since time immemorial, creating the illusion that we are each other’s enemies and we are not each other’s enemy. They are the enemy.

Now, the enemy here, they realize people here in the United States, especially around the world, I think they get it a little more so than here. But central banks are the freaking enemy, and they’re coming right after you. If you remember the middle class, you’re being exterminated.

Now, with that in mind, the Federal Reserve is well aware that their plan is working perfectly to pressure the middle class to foster a neo feudal system to enrich the rich. Period.

Now, with that said, they’re not going to stop. They already got the middle class by the throat. The stranglehold on the middle class is going to get worse and tighter, cutting off the air, the windpipe. That’s it. That’s what they’re going to do. That’s what they want to do.

And I believe sincerely again, you’re probably seeing this on the mainstream media now that this hurricane is kind of played out. Now they’re going back to what they were talking about last weekend, bombarding the airwaves with this new thing going around and how you need more of this and this here and hospitalizations are skyrocketing. And it’s going to get a lot worse. The fear campaign, they’re going to shut us down.

I think there’s an extremely high probability of this, and this would fulfill the end game of central banks to become the lenders and buyers of last resort.

So the phenomenon that you and I are seeing right now with the market rising stock futures,

[Blank line]As I am doing this, it’s 07:59 a.m. Eastern Daylight Time. Stock futures are higher. Market has put on some nice gains lately only because the bad economic news, which doesn’t stop, is to the market sending a signal that the Fed is going to pump more easy money into the market. I don’t think that’s true. The market’s probably going to still go up no matter what, anyway, because the Fed is going to do their incremental 25 basis points. 25 basis points, which is nothing. It’s a token like, oh, here we’re really trying to fix inflation. We’re trying to fix inflation.

No, we’re never meant to do that. And the only reason why the Fed has been raising rates along with the bank of England and the European Central Bank is to cut off credit to US. Small businesses, to destroy the consumer, to have people struggle to make ends meet, to have people struggle to buy food, to support their families. That’s what this is all about. It has nothing zero to do with controlling inflation. And we know that because the Federal Reserve admitted it, okay? They knew back in February that we could face an inflationary nightmare. And we are. We haven’t seen anything yet, people. You all know that.

So that’s the phenomenon. The worse the economic news is, the more giddy the market gets thinking the Fed is going to put more easy money into it. I believe the Fed is going to keep rates suppressed beyond any doubt, okay? They’re going to get in here, they’re going to buy more debt. Look at the ten year yield this morning. It came down 4.8 again. What does that do? Opens up a doorway for cash to make its way into the stock market. The market itself doesn’t need another dose of heroin to make it go higher. It just needs rates to remain suppressed. And that is going to happen.

But the market’s getting it wrong here. In my view, the market is getting it wrong. The market believes the Fed’s gonna start cutting rates sometimes. So it ain’t happening. It’s not happening because the Fed is winning. They got us by the freaking throat. And if you think just for a nanosecond, let’s go off that. Whatever freak they’re going to put behind the resolute desk is going to change, that probably get worse because the last guy was calling for negative rates and a weaker dollar, and a lot of you think he’s going to be the savior of the world and the economy. I think your faith is in the wrong place, but that’s just my take on it. Doesn’t matter who they put behind that resolute desk. Could be a farm animal, and things are going to stay the same anyway.

So, very important video. I’ve covered a lot with you today. I want to hear from you. Let’s see. Let’s see where this goes. People, again, you and I, we got this, and we can’t be beaten because we know that they are the enemy. We know what they want to do. We know what they’re being very successful in doing. This is a wipeout. This is an extermination. And they’re not going to stop.

All right, disco here. Loves you a lot. I’ll see you later for my live stream. Four five p. M. Eastern Daylight Time. Please have some questions ready for me, and we will cover them. Oh, just real quick. Cryptocurrencies are catching a bid right now. Gold and silver under a little pressure. Crude oil over $82 a barrel. Imagine my shock, imagine yours. No, you knew that was going to happen. The relative strength of the dollar is a little higher early on. We’ll see where that goes as well. Anyway, we’ll talk more later, and I’ll see you. Bye.