➡ Gregory Menorino highlights a liquidity crisis as large commercial banks resort to borrowing more cash from the Federal Reserve due to a zero reserve system. Smaller institutions are overlooked in favor of larger ones, suggesting a move to consolidate power. Despite the surprisingly large debt levels, more debt is needed to maintain a perpetual deficit, advising investment in hard assets. Furthermore, he notes that high inflation will persist, as admitted by the European Central Bank, and is critical of the Federal Reserve’s inaccurate projections. He concludes by stating that interest rates may soon be cut, affecting market behavior, and small businesses suffer from inflation.
➡ The speaker encourages viewers to like and share the video, highlighting its importance in increasing visibility, and anticipates answering viewers’ questions during the live session at 05:00 p.m. Eastern Daylight Time.

Okay, everybody, here we go. It’s me, Gregory Menorino. Thursday, September 14, 2023. And this is my pre market report. Before I even get to a whole bunch of other things I want to speak with you about, I want to cover this. Back in March, the commercial banks, the big banks, started to borrow more cash from the Federal Reserve through what is called their discount window. Why do banks do this? Because there is a liquidity problem.

Does this sound familiar to you? Something you and I have spoken about for years. The system, again operates in a vacuum, a perpetual deficit. Now, because banks do have, or should I say have a zero reserve system, they need liquidity. They need cash. Where are they getting it from? Directly from the Federal Reserve. These major banks have a main line to the Federal Reserve. Now, as I said, back in March, the major institutions started borrowing more cash from the Fed.

Then it seemed to wane off a little bit. But now these same institutions are going back to the Federal Reserve saying, hey, you know what? We need more liquidity, people. This is something you and I, again, have covered since forever. Liquidity is drying up, and it’s only going to get worse from here. Again, think about what I’m about to tell you. Even though the world is flooded beyond belief in debt and it’s going to get a lot worse from here, there’s not enough of it.

I know how crazy that sounds, but the system again must function in a perpetual, ever increasing deficit. This is why the debt continues to balloon and balloon and balloon. If that doesn’t tell you that, you should be looking towards other assets, for example, hard assets, physical gold and silver and platinum and palladium. And looking at commodities overall, I don’t know what to tell you. The system is so twisted.

So based on something that doesn’t even exist, it’s just created out of nothing. Oh, with that, let me clarify something. Yesterday, when I was explaining to you how cash is just created out of nothing, the moment you apply for a loan or swipe your credit card, that cash just magically appears. I also explained to you that whenever you borrow cash, the reason why, let’s say, a person with a poor credit score has to pay a higher rate than a person with a good credit score is because every one of these loans of cash, which is magically created out of nothing, has an insurance policy connected to it, so nobody ends up losing money.

Now, I had said this was a collateralized debt obligation. I made a mistake. It’s a credit default swap. Credit default swap. And this is kind of a common theme throughout the entire financial industry. Anyway, I wanted to clarify that real quick. So what’s the story here? What’s going on? It goes back to what you and I have discussed friday night. How long? Now the banks are in trouble.

The major commercial banks are in trouble, and they’re going to be consolidating. They’re consolidating power. We’re going to see more failures moving forward. There’s no doubt about it. But right now, the major institutions actually, there’s another part to this I want to cover real quick. The major institutions are now looking for a new lifeline from the Fed going to the Fed discount window called the discount window to borrow cash for zero.

The reason why it’s called a discount window, I guess, is because it cost them nothing. Now, here’s a little caveat to this whole thing. The smaller institutions, they’re being shunned. They’re not allowed to borrow like the big commercial banks are. Again, what is this all about consolidating the system, getting fewer players here. And I think this is something you and I have been well aware of. All right? Now, looking over at this market, stock futures are higher today despite the fact that the European Central Bank just made a big announcement.

The big announcement from the European Central Bank was that imagine my shock about what I’m going to tell you here. Inflation is going to be higher than forecast for longer. So here we go. Excuse me. The European Central Bank seems to throw a little more truth out there than the Federal Reserve. The Federal Reserve will never say they will never say something like that. The European Central Bank at least let’s give them credit where credit’s due is admitting something that you and I already know, that inflation will be higher for longer outpacing their forecast.

I mean the Federal Reserve. Let’s talk about the Federal Reserve. They’ve been wrong every single time with regard to their projections or they project this or they project that. It’s been wrong 100% of the time. Do you think that’s by accident? You see, you and I, we obviously are either one much smarter than the Federal Reserve economists are, or we understand the lies. Okay, this is all a lie.

Quite obviously, the Federal Reserve understands as well. The European Central Bank is now admitting that inflation is going to continue higher for longer. But what the European Central Bank or any central bank is not going to tell you is this is going to persist and it’s going to get worse moving forward. Look, we’re in a full blown liquidity cris, okay? Again, understanding the situation, what banks are doing right now, realizing the system operates in a constant, perpetual vacuum.

The debt must be compounded exponentially moving forward. So what do you want to do about it? I think you already know. Now, with regard to the market, as I said, stock futures are higher this morning. Ten year yield remaining stable. The relative strength of the dollar is higher this morning. The Manorino market risk indicator remaining in a very high risk zone. We’re not extreme yet, but very high risk zone.

Cryptocurrencies are catching a bid. Gold and silver under a little bit of pressure. WTI crude oil is now near $90 a barrel. Imagine my shock. You must be completely shocked. And Brent crude has now crossed above 92. We’re obviously going much higher. I wanted to bring this up, too. So most of you know who Jeffrey Gunlock is. He’s a multibillionaire manager, hedge fund manager. This guy is saying, I hate this.

Okay? But I’m going to just tell you what he’s saying. The Fed will be forced to cut rates in early 2024. The reason why he’s saying this again is the bad economic news doesn’t stop round after round after round after round after round of it. And the market seems to be believing that. Again, the market is doing one of two lovely things here. Number one, it believes that the bad economic news is in fact, going to force the Fed to cut rates earlier than later or sooner than later.

And that’s kind of where Jeffrey Gunlock is going here. Or the market is pricing in war. War is bullish for the stock market. Now, this is something else I want to bring to your attention. The Federal Reserve does all these little studies here and there. They want to know the effect of their policy. So the Federal Reserve Small Business Study. Are you ready for this? Persistent inflation is a headwind for us small businesses can I please get no, I mean, honestly, do they think we’re that really? Do we need a Federal Reserve study to tell us that surging inflation, which has nowhere to go but higher, is pressuring small business here? It’s supposed to do that.

That’s what it’s designed to do. And they’re cutting off credit to small businesses to fulfill the corporate agenda. People, you know this already. How is it let me ask you, why is it that we don’t need a study to know? It’s so freaking in our face. Obvious. You make this stuff up again. Make it up for yourself. You can’t do it. No one can possibly do this anyway, people, this stuff drives me out of my freaking mind.

It really, really does. Anyway, so here we go. And I want you to think about what we have been discussing a lot as of late. The problems in the financial system, the banking system, the fact that liquidity is drying up, more banks now looking to the Fed for a lifeline. Meanwhile, they’re cutting off the smaller banks. I wonder why that’s? Oh, maybe it’s because they want to consolidate power.

Duh. Yeah, I think that’s exactly what it is here. And this irrational market again, the market can remain irrational for a really long period of time. And despite the fact that yesterday, out of their own mouth, they’re admitting inflation continues to rise and will do so, the market actually is okay with this right now. Okay. Again, the market is either pricing in cuts, as Jeffrey Gunlock is soon, or you let me know what you think about all this stuff here, but I could probably only imagine.

I will read the comments. People, please think about these things that I talk about with you every day and what action that you need to take for yourself. All right? We got each other. That’s all we have. We got each other’s backs, and that’s just so important. All right, that’s pretty much it for now. Again, if you got anything out of this video, please give it a thumbs up.

Those thumbs up are so valuable. Like I said, it allows the video to be seen, and it gets it out there. And please share this stuff. All right, I’ll see all of you live, 400 and 05:00 p. m. . Eastern Daylight Time, and have some some questions ready for me, as always. All right, I’ll see you then. Bye. .