IT HAS BEGUN! THIS IS WHAT JUST HAPPENED AND WHAT WILL NOW HAPPEN AS A RESULT! | Gregory Mannarino
Summary
Transcript
It’s okay, everybody. Here we go. It’s me, Gregory Mannarino. Pre market report on this Thursday, March 21, 2024. People, the stage is set and it begins. What am I talking about? The Swiss National bank is now the first central bank to cut rates. What does this mean in the grander scheme of things that what you and I have been talking about now for many, many months. It’s just been absolutely validated.
There are many people out here who do not believe or did not believe that central banks were going to cut rates. Even some YouTubers out here with huge channels have said it ain’t going to happen. Well, I’m sorry to say, but they’re all wrong. They’ve all been proven wrong right here and right now. And here’s just another example of you and I being light years ahead of the curve.
So let’s put this together. This was a surprise, by the way. No one expected this, not even me. I honestly expected cuts to start in June, beginning with the European Central bank and the Federal Reserve. But now we have the Swiss National bank here. Kind know shocking in some ways because no one saw this coming. I mean, honestly, no one that I know of saw this coming. I didn’t see it coming.
But look, this just fits right into the matrix of what you and I have been studying and talking about for the longest time. What does central banks want to do? What is their goal, number one exactly? To continue to inflate. And this just gives them another avenue to do that. So what we can expect here, and this is a lock, and I mean lock, the European Central bank and the Fed will cut in June.
I’ve been saying more than likely. More than likely. More than likely. Now what has happened now assures beyond a shadow of a doubt that we are going to get cuts and it’s going to be interesting to see how this dynamic plays out. Let me put a little light on that. Now that the market knows for sure that this is going to happen, if you recall, there was a pretty big back and forth kind of mechanism here.
Half the market didn’t believe this was going to happen. Half the market believed it was going to happen back and forth here. And this was driving bond yields higher, driving a pretty significant sell off in the debt market. We were watching that ten year yield higher. It wasn’t puzzling to me, but I thought it was interesting because in my view it was a lock anyway, that this was going to happen because we understand the mechanism here.
Central banks must inflate, especially on the back of what’s happening here. We have the Federal Reserve here scaling back dramatically their repo operation. You know what? This is where the Federal Reserve is passing vast amounts of cash back and forth between institutions overnight in an effort to trick the system into thinking it’s more liquid. At the same time, we’re seeing war expand very rapidly. There’s no coincidence there, in case you were wondering.
All right? Now, again, they needed another avenue, or they need yet another avenue to inflate, and this is what gives them a green light to do so. Again, central banks have no magical power, people. They’re not like any kind of godlike figures, believe me on that one. Okay? So when they say we’re going to cut rates, they have to create the cash out of nothing in vast amounts and get into the market and buy the debt.
This allows them to inflate. This process is also massively inflationary. But you see, you’re not supposed to know that. Again, it’s crazy. It’s utterly shocking. Anyway, so this is tremendous news that we got today with the Swiss National bank here being the first major central bank to cut rates and the other ones must follow. There’s just no doubt about it. Now, let’s talk a little. Let’s look at this on another level, okay? You always have to think a little bit differently here when you see these things kind of unfolding.
So the market’s going to start pricing in rate cuts. What does that mean? Okay, I would expect to see the ten year yield drop now. And it already is the ten year yield this morning, 4. 23, down from over 4. 3 just like two days ago. Okay. I believe this trend is now going to continue on the back of what the market is going to have to now start pricing.
And now what that means is once we get a cut here in the United States, European Central bank is going to follow in lockstep. We may see a sell the news moment in the market. Now, it doesn’t mean this is going to collapse or anything, because the market is counting on oceans, oceans of easy money being pumped into the system again, massively inflationary. You all know that. But this is kind of like, it’s almost astonishing in a way, because again, I didn’t see this coming, and I tried to stay ahead of the curve on all this stuff.
I did not believe we were going to see any central bank cut rates here. But this surprise rate cut is a signal to the market. It’s a signal to the market. Don’t worry, more easy money is coming. I mean, what happened yesterday, a trifecta of record highs for the market on the back of just the hint that came out of the mouth of the puke thing. Creature vomitous mass Jay Powell that rate cuts were, in fact still on the table and would more than likely be coming this year.
Record highs across the board. DOW s P Nasdaq the disconnect between the economy and the market is going to get even more dramatic here. The economy is dead and buried, the consumer dead and buried. I’ll tell you something else that’s kind of interesting. So our illustrious, beautiful man of our president, he’s just so beautiful. I just love looking at him. Is forgiving another $5. 8 billion in student loans for 78,000 people.
This sounds great on paper, but what this actually does and what it’s meant to do is devalue the degrees here so these people throughout their lives will make less money. Again, lots of things sound good on paper until you sit back and think about it, not everyone gets a trophy, people. But again, in this kind of an environment, I guess that’s what happens here as we devolve into some other kind of yet to be defined situation.
But again, this is not really great news for those. I’m happy I had to pay for my degrees. Sure, I worked my butt off for years, many years, to pay off my degrees. But you know what? My degrees kept their value because of that. I earned it. I paid for it, paid for them, and I earned really good money because of that. Now, these people, because they’re devaluing their degrees or being devalued, are guaranteed to earn less money for the rest of their lives, which is really what it’s all about.
Get the people to struggle. And that’s unfortunately part of the two tier society that is developing. And personally, I think personally, people should be looking at getting into a trade as opposed to most likely a worthless college degree, unless they go on and on and on to a doctorate. And even then, with this devaluing of the degrees that people are earning for free, I guess now it’s not a good setup for these people, unfortunately.
But what else would you expect in this kind of an environment? So, people, look, what’s the premise behind this video? The stage is set. The stage is set. And rate cuts are a lock 100%. They’re going to start in June here in the United States. Don’t make no mistake about it. But let’s see how the market responds. Now. Again, this is getting priced in. It may turn out to be a sell the news moment.
And then we’re going to buy because more easy money is going to be pumped into this market than you can possibly imagine, and all that’s going to do is create greater price distortions. Now, when we get closer to the presidential selection, okay, if things continue the way they seem to be, we’re going to need to get out of here, all right, for a little bit, but we’ll talk more about that when we get closer, all right? I promise to do my best to keep you ahead of the curve.
I did miss this one. No one saw this one coming. I didn’t see it coming either. Although you and I have been talking about rate cuts for the longest time. Oh, Greg, you’re wrong. You’re wrong. You’re leading your people down the wrong pathway. Like I said, even some YouTubers out here, people who I respect, have been saying they ain’t going to happen, but they have been proven wrong yet again.
It has begun. It started. And this is just going to create a whole new set of dynamics that you and I have to look at. But again, we got this covered. I don’t care what they do. I don’t care what they do. We will have a counter strategy against it. Just count on it. All right, real quick. Stock futures are higher this morning. Gold and silver catching a bed, a bid.
Cryptocurrencies catching a bid. Again, more easy money. What would you expect? What would you expect when things like this happen? I don’t know, man. I just don’t know what to say. Because again, it’s exactly what you and I would have expected. Although this thing here was kind of unexpected. But if you really think about it, in the grand scheme of things, if we know what these central banks want to do, I mean, is it any real surprise? I don’t think so.
Because in the grand scheme of things, just wait till you see what happens here. Insanely inflating debt and deficits here, devaluation of the currencies on an epic scale, much more inflation, quite obviously. But that presents opportunity, opportunity for me, for my lions, for my friends out here. And I don’t know about you, but I’m freaking loving this. All right, I will see all of you. No, actually, hold on a minute.
Big news, people. I will not see you later today. I will not. Please tell people about this. I will not be doing a post market wrap up today. I apologize for this, but can’t do it, all right, it’s going to be impossible for me. So no live pre market. Post the post market wrap up today. No post market wrap up today. I will see you in the morning.
All right. With that said, take care of yourselves. Take care of each other. See you then. Bye. .
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