Alert! EXPECT MASS CURRENCY DEVALUATION. INCREASE YOUR EXPOSURE TO COMMODITIES. | Gregory Mannarino
Summary
Transcript
Okay, everybody, here we go. It’s me, Gregory Mannarino. Wednesday, May 8, 2024. Pre market report. A lot of stuff to cover. Ready with you. Let’s start off with this. As I am doing this video blog, trading doesn’t start for about 45 minutes. What we’re seeing right now appears to be a little bit of a fear trade. Why? Why are we seeing this? What am I talking about? The ten year yield is slightly higher than its close yesterday. A little movement into the perceived safety of the dollar here, a little bump higher in the relative strength of the dollar.
Stock futures are slightly lower. Pretty much everything is flat this morning. And there’s a reason for that. What am I talking about? We are about to get some important news or data on the economy and more specifically inflation. And it has the market kind of holding its breath right now. Over the next couple of days, we’re going to get this several pieces of information on inflation. Now look, I’m just going to let you in on a little secret here. Inflation is continuing to rise. I think we all know that. I’m laughing here with regard to the market, and I’ve told you this before, it’s a demented child in many ways.
It has to be constantly reminded over and over and over again that the Fed’s got the back of the market, which it does. Okay? Not only rest assured here that at least up until the presidential selection, the illusion of the market is going to be maintained. So in my view, no matter what data comes out, the Fed is going to keep rates suppressed. That’s going to open that doorway to make cash flow into the stock market. And again, it’s astonishing to me how people equate the stock market and the economy. Oh, market’s doing good. That means the economy is strong, people.
We haven’t had one single piece of good economic news in years, years. And the worse the economic news is, the higher the market’s going to go. Now with that, these inflation reports that we’re going to get here have the potential to move the market because all the market cares about is when is the easy money coming? When is the easy money coming? That’s really it. Nothing else matters here. There’s no fundamental factors at all that matter anymore. It’s an incredible situation here, I don’t think, in the history of my life, and I’ve been in this financial game for decades, okay? Have I ever seen anything like this before where there’s such an extreme disconnect between reality and non reality, and it’s all been fostered here by easy money, since the market meltdown of 2008, it’s not going to stop.
Not going to stop here. Not just that here. The phenomenon that I just told you all about. And please check this out for yourself. Go to the Federal Reserve’s own freaking website. They’re inflating. Over the last six months, the federal Reserve has been adding one, on average, $1 billion per day, just creating cash out of nothing. They’re doing this again in an environment where the economy is contracting. We were already seeing inflation pick up. This is the phenomenon of inflation is a very interesting one. And, you know, I’m going to show you something real quick. This is a chart here of the money velocity from today, or the rate at which cash is moving through the economy.
Okay? The reason why I circled that is you can see that the money, this was a historic low back here. This is around 2021, the historic low where the cat, the rate of cash through the economy was at a historic all time low. Now we’re seeing it pick up here. Now, this is not because the economy is improving. Generally, when you have a situation where you are seeing the economy boom, commerce trading across the globe is picking up, you would expect to see the rate at which cash moves to the economy move up. We’re not seeing that whatsoever.
We have a global economy contracting at its fastest pace ever. And then we’ve got this again, this phenomenon of money velocity picking up. What this is, is all of these extra bills that have been created in whatever form they exist, mostly digital here, now starting to chase the same, or in this case, a lesser amount of goods. And this is why we’re seeing inflation make sense to you, okay? This phenomenon here has the potential and eventually will explode. You have to understand how this works. Over the last several presidents here in the United States, let’s just talk about them.
But this is a global phenomenon. World leaders, they have been responsible, colluding with their central banks, to create this environment of interest rate suppression, currency destruction. And this has manifested itself in what we’re seeing now. All of these extra bills, in whatever form they’ve been created, takes a finite amount of time to make its way through the economy. When you have a situation, please pay attention to this, where the rate at which cash is moving through the economy is decreasing, decreasing, decreasing. Okay? It takes a longer period of time for all of these extra bills to make its way through the economy to start chasing the same, or again, in this case, a lesser amount of goods.
This makes sense to you. The last three presidents here, okay, have done more colluding with the Federal Reserve, and I mean, the last three presidents. Okay, I know a lot of you going to take exception to this, but look at what they’ve done. Take what the last three presidents here in the United States have done, including the current freak sitting behind the resolute desk, colluding with the Fed to create cash out of nothing here, keep rates suppressed, weaken the dollar here. We’ll talk more about that in just a second. This mechanism takes a long time to make its way through the economy, because again, the rate at which cash is moving through the economy is, was at a historic low recently.
Now we’re picking up, this phenomenon could take off like a rocket ship here. You know, I want to talk about something. This is a question that I got here. I’m not going to mention any names. And no questions are dumb. You have to understand that. A lot of people post things to me. Hey, Greg, you know, I have a question for you. Maybe it’s a dumb question. No questions are dumb. The only questions that are dumb are the ones that are not asked. So this person writes here, and they’re talking about, as we all know, okay, President Trump right now is talking about how the strong dollar is destroying the economy and he wants the dollar weaker.
So this is what this person had to say, again, not mention any names. Greg, if Trump wins, being that he’s calling for a weaker dollar, isn’t a weaker dollar good for the price of gold and silver? Absolutely, it’s good for the price of gold and silver. But it’s, but again, a weaker dollar isn’t just going to pinpoint gold or silver or commodities in general. Everything will cost more if the dollar is weaker. Think about what I’m saying here to those of you that are not understanding what’s happening here, okay? If the dollar is weaker, it takes more weaker dollars to buy anything, including gold, silver, commodities, stock, bread, milk, everything, all your bills will go up.
You understand? This is economics 101. So, no, this is not a dumb question. It’s a good question. And I think if you’re asking me this question here, a lot of other people are saying the same thing. Look, how do I see this another way? A weak currency is the last thing people need to see in this environment where inflation continues to surge, where you have central banks in a race to the bottom to devalue their currency. What you need to do here is continue to take the opposite side of that trade. It’s not going to stop.
Okay? If President Trump is selected and if he gets his wish for a weaker dollar, this is going to make your life much harder. It’s not going to change under the current idiot sitting behind the resolute desk. Either. You have to understand, okay, or anywhere else in the world, this should be a simple concept to understand a weak currency. Although again, for multinational corporations that are trading around the world here, it’s great for them. They’re going to make all kinds of profit here. But for the, we, the people of the world, when you hear a world leader saying that they want a weaker currency, you have to question as to what is going on here.
Is it a lot of people believe, oh, that’s because you want to bring manufacture. President Trump wants to bring manufacturing back here to the United States. Sure he does. But try competing with China. Ain’t happening. Okay? And we don’t make anything here. Do you know what it would take to turn the US economy around decades for us to start to make things again? Our trade deficit is ballooning because we’ve become an import nation. We don’t export anything. Believe it or not, our number one export product is energy. But that’s it. And, but anyway, look, I hope I’ve cleared this up.
You, yes, a weaker dollar is great for gold, silver, commodities, but again, it’s not just going to flow into those. Everything is going to go up for all of us here. And again, with regard to President Trump here, we know where he stands on the bond market. He wants low yields. In fact, he was calling for negative, negative yields. And this means that you would be paying the institutions to keep your cash there. This man understands what’s going on here. He did go to Wharton business School. Unless he’s getting, see now, I mean, I don’t know, what can I tell you? I believe more than, it’s more than that.
All these creatures here, they understand, look, they’re out for themselves. Some people are becoming exorbitantly rich off of this, and it’s sucking all of us dry, unfortunately. And in my opinion here, regardless of who they put behind the resolute desk, you need exposure to commodities, people. None more so than these. How can I say this another way? Silver to me, is again the most undervalued asset on the planet earth. Hoard this stuff. Gold as well, platinum, palladium. You really do need exposure to a broad basket of commodities. Speaking of that, Bloomberg, nice article here. Goldman Sachs raising their price target for copper.
And I’m not going to read through this whole thing here, but Goldman Sachs is saying basically that they moving forward by the end of this year. Where is it? Here. They’re expecting the year end price target for copper to be 12,000 a ton. And right now, we’re just a little bit below that. So that’s, that’s a pretty substantial game. But what does that mean? That’s on the back of currency devaluation. If Trump wins again, you can expect this to go even, even higher, and you can expect the cost of everything to go higher. So if you think, and again, trump the current creature sitting behind the resolute test, the creature before him, Obama, they’ve been responsible, colluding with the Federal Reserve to vastly inflate the debt.
And now we’re starting to see all of those extra bills that were created under these last three starting to creep higher. That money velocity issue could be profound and will be at one particular time. You have to understand, when you and I are betting against the debt and becoming our own central bank, it’s not because we’re expecting the price of gold and silver to rise here overnight, or commodities in general. We realize commodities are real things. We realize that we’re going to get an implosion in the debt market on a scale that people aren’t going to believe.
Rates are going to spike in an uncontrolled fashion like we are not going to believe. Putting massive amounts of pressure on the stock market around the stock markets around the world, and cash is just going to move. Move in a way, risk on meaning cash being thrust into stocks is going to come out and it’s going to look for places to go. It’s going to go into commodities. And of course, in my view, cryptocurrencies, collectible things, artwork, musical instruments, that’s where it’s going to go. That’s how it always works here. So I know a lot of you have to defend Trump.
Stop that for a moment and think about what’s going on here, okay? Disconnect yourself from the propaganda of red wing versus right wing. It’s all two wings of the same bird here, okay? Nobody’s going to help you here. You might think that’s going to happen. It ain’t going to happen, okay? Things are going to get a lot, lot worse, no matter who they put behind the words of the desk. Because again, who controls the economy? Who controls the monetary system, the financial markets? It’s the central banks. It’s not a president, it’s not a king, a queen or a monarch.
They want you to think that is, but that’s not the case at all. It’s central banks who are running the show people. I hope you got something out of this here. So anyway, just to summarize, a little fear in the market this morning, let’s see where that plays out again on economic news, which is going to be abysmal. Inflation data is what the market wants to hear about, and we’ll see how that plays out. The promise here of central banks with more easy money, maybe enough to keep this market buoyed throughout just the next few days here with regard to news on inflation, but we’ll see how that plays out.
I think you and I need to increase our exposure more so to commodities here. Currency devaluation, no matter who sits behind the resolute desk, whether it’s Trump or the current freak sitting behind there. Now, going to continue, maybe faster under some than others. Okay. What makes a central bank happier than anything else on the face of the earth is to hear a world leader talking about a weaker currency or lower bond yields or lower rates or even negative rates. That gets a central banker off, more so than anything else, because again, they realize they have a partner in their scheme here.
If in fact, President Trump’s wish comes true, he gets reselected here. We get a weaker dollar, we get suppressed yields here. The Federal Reserve will become more powerful than they are now. No three presidents in the history of the United States have done more to make the Federal Reserve stronger than the last three presidents, which includes President Trump. And the current thing. It creatures sitting behind the resolute as the man, you have to almost feel sorry for him because you can tell that there’s something going on there. And he’s senile, in my opinion. And this is exactly what they need, is a puppet.
That’s all they are to propagate whatever they want. Okay? Give them a script to read. And it’s just like the mainstream media. All right away, people. Look, that’s pretty much where we are. I covered a lot with you here. I hope you got something out of this video. So what should you take away? Commodities? Commodities again, is where you need to be. I don’t know another way to say this. I put out video after video after video about it, newsletter after newsletter after newsletter, better about it. Start to, if you’re new here, start to ponder why I am saying these things, why you need to position yourself right now for what’s eventually going to occur.
This thing is a time bomb, people. It’s starting to go off. And you can see that again by the tick up here with regard to the money velocity or the rate at which cash is moving through the economy. This will become out of control at one point, by design, believe me, this is not. They’re not by accident. Central banks are inflating, continue to inflate, and the more so they’re called on by world leaders to do so. Weaker dollar, weaker lower yields here, the stronger these institutions are going to become, and they’re wiping us out. They are the enemy.
We’re not each other’s enemy. They are the enemy. But people have no idea what’s happening to them. It’s the blame game we’re seeing. These prices rise because it’s the millennials fault, it’s the boomers fault. It’s not the fault of the central banks, especially not the Federal Reserve, who is the culprit behind this entire thing. All right, look, I’m gonna let y’all go. I will see all of you later. 04:05 p.m. Eastern for my live stream. People, ponder the things I’m talking about. Comment here. Love all of you. Until we see each other again, take care of yourselves and take care of each other..
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