Stocks Fall As Inflation Rises Bonds and Mortgage Rates Jump | The Economic Ninja

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Summary

➡ The Economic Ninja discusses the current economic situation in America, focusing on the bond and stock markets. It highlights the recent inflation report, which shows a higher than expected increase, negatively affecting the stock market and investors. The article also mentions the drop in Nvidia’s stock value and the potential impact of rising inflation on mortgages. Lastly, it criticizes President Biden’s promises of student debt relief, calling them empty and politically motivated.
➡ The speaker discusses the potential cancellation of student loan debt, which he believes is unlikely due to the financial strain it would put on the government. He also talks about the current state of the market, noting a broad sell-off in stocks and cryptocurrencies, and a rise in the value of the US dollar against the yen. He warns that if Japan, a large holder of US bonds, continues to see its currency fall against the dollar, it may start selling off its US assets, which could have serious implications for the US economy. The speaker encourages listeners to reduce their debt and invest in assets like gold, silver, and cryptocurrencies to protect themselves from potential economic downturns.
➡ When a company’s stock price drops but they keep their dividend the same, the return on investment for those who buy the stock can increase a lot. During a downturn, it’s smart to buy stocks from big, stable companies that are still doing well. Also, it’s predicted that mortgage rates could go up to 20%, which could lead to a real estate market crash. After a government bond default, it might be a good time to buy bonds because their value could increase significantly once things settle down.

Transcript

Hello, everybody. Economic NInja here. I hope you’re doing well. The one thing that is not doing well is the bond market, I guess the stock market and where America is economically. We’re going to go over today’s news. We’re going to talk about the inflation report that just jumped. This is spelling not good news at all for the stock market or stock investors. It’s something we’ve been warning about.

We’re going to go through it. We’re also going to talk about Nvidia. Nvidia is down 10%. It’s in the correction territory. And people need to remember or understand that Nvidia was one of those stocks that couldn’t go down. People were diving into it, going up, up, up. And now we’re in correction territory. And remember these massive, massive market cap stocks, only a handful of them are up, are holding up the entire value of the stock market right now.

I want people to understand how very serious this is. This is just like what we saw in the run up to the. com bust where a handful of stocks were really holding up, or one sector, the entire market, and all this irrational exuberance that was going on in the markets. Now, first we’re going to start with this consumer price index. Consumer prices rose 3. 5% from a year ago in March, more than expected.

And that is the theme, the general theme that we are seeing lately when it comes to economists, people that went to a fancy Ivy League school that couldn’t figure out their way out of a paper bag, we are seeing them be consistently wrong. Yet the nation wants to see the Federal Reserve lower rates. I’ve said this before, I’ll say it again. The Fed only lowers rates in two instances, 99% of the time.

It’s when things are going very bad. And it doesn’t matter how low of rates they drop the rates to, you’re not going to be able to get a loan because by then lending institutions have tightened up their lending and your credit score is more than likely messed up. That is how this works the other way. And it’s happened four times since 1972. The Federal Reserve likes to play the political game because they are scared to death if they get the wrong person in the White House.

They may revoke their charter, they may out them as to what they really are, a private bank, just like John F. Kennedy did and Reagan started to. They play a political game and they’ll drop rates just a little bit before election to say that everything’s going so well that they can go ahead and take less interest from the people of America. Type one if you think that’s exactly what banks want to do.

Type two if you think no. Federal Reserve. And banks love taking money from us and so they want to charge us higher rates. Most people don’t understand this. All right, so now as again, once again, the whole world’s waiting for that monetary heroin. They want the Federal Reserve to lower rates, right? But that only happens when things get really bad. We see inflation tick up again unexpectedly. Now the Federal Reserve has said, Jerome Powell specifically said we are data dependent and this data is not going to cause the Federal Reserve to lower rates.

Says here the consumer price index accelerated at a faster than expected pace in March, pushing inflation higher and likely dashing hopes that the Federal Reserve will be able to cut interest rates anytime soon. Think about what this is going to do to mortgages. We’re going to talk about that in a second. The CPI, a broad measure of goods and services across the economy, rose 0. 4% for the month, putting the twelve month inflation rate at 3.

5%, or 0. 3 percentage points higher than in February. The Labor Department’s Bureau of Labor Statistics reported in February. I’m sorry, this, today they reported it, economists surveyed by Dow Jones had been looking for a 0. 3% gain and a 3. 4% year over year level, excluding the vol, now remember, they’re excluding the volatile food and energy components. Let me ask you this. Thank you so much for the star, Daniel, for the coffee money.

I am in embassy suites drinking the included coffee today. Now think about this. Everyone, you are seeing them take volatile food and energy components out of this number. That means if you add in volatile food and energy, which are the two things all of us want and need, right? We need to eat and we need to light our homes and run our cars so we can go to work and make money to spend all that money on food.

All right? The government doesn’t want you knowing that inflation is way worse. As a matter of fact, food and energy is way past this 3. 5%. Okay? So the government is in a sense, in a sense lying to you because type four, if you agree with this, they’re lying to you because they don’t want you to know that their policies have absolutely failed the american people. All right? So we’re seeing this rise higher and higher.

Now, it says here energy rose 1. 1% after climbing 2. 3% in February, while shelter costs, which make up about one third of the weighting in the CPI, were higher by 0. 4%. On the month and up 5. 7% from a year ago. Now, food prices increased just 0. 1% on the month and were up 2. 2% on the year over year basis. I absolutely 100% do not believe those numbers.

There is no way you can tell me when I go to the grocery store and I look at a pound of beef and see how much it has gone up or eggs or milk or any of the staples that we need to survive, minusing all the fancy packaging, how they, you know, blow air into a bag of potato chips to make it look bigger. My point being is it food has gone up way more.

And I believe after this crash is known by the masses, we are going to see all of that be ousted. All right, now let’s, now, that’s just the inflation report. Let’s jump back and let’s look at some of the markets and how they’re reacting now. Right now, as of the recording of this, the Dow Jones is off 432 points or a little over 1%. The S and P is down almost 1%.

Nasdaq down 1%. The Russell 2000 is down 2. 3%. This is where it gets really interesting and dangerous. The bond market right now. Just click the wrong button. The bond market right now, the ten year bond, which is a very important measure of the health of the real estate market, is up 0. 139 percentage point, or sorry, points, which brings it to 4. 5%. It says this is directly influenced by these reports that come out.

Okay, so this means mortgage rates are jumping right now as we speak. Mortgage rates and the ten year bond have been marching higher in the last, let’s say, two to three weeks. This is going to put an insane strain on the real estate market nationwide. Now, we’ve already seen nationwide average home price and median home price come down between six and 8% already. I know it’s not in the news.

I know it sounds crazy. People like Dave Ramsey say he’s super smart and he’s smarter than all of us. He’s been doing all this for long. It’s actually a lie. That’s actually not the truth. You are being lied to. Ever since I started preparing the nation for this real estate crash, it is playing out exactly in the cycle like I taught in those lessons. Now, what comes next? Well, an even further strain on the economy.

But look at what President Biden is doing to try and trick people. He is salting the nation right now with the stimulus money in all kinds of different ways. His latest stimulus. Let me type this in really quick and google this because the numbers are absolutely staggering. So Biden student debt relief. All right, so let’s do this. Let’s look at the news, the latest news, and talk about this, because I think this is very important.

This is one day ago out of Business Insider. Student loan borrowers could benefit from Biden’s new debt cancellation plan as early as this fall. Here’s what you need to know, again, as early as this fall. So more than likely, this won’t happen until after the election. Okay, so these are empty promises to the american people. It says right here, he said in a direct tweet on X, I said I wouldn’t go back down from using every tool at our disposal to get student loan borrowers the relief they need.

That’s why today we’re announcing new plans that, if implemented, could cancel student debts for millions of people. Okay, these are straight out lies. Please understand this type five. If you understand and agree that these are lies. He is making empty promises. He is writing checks his butt can’t cash 100%. This is a political move. And what he is stating is that to everybody that works in blue collar worker jobs, your managers, the people that run the companies that have those fancy degrees they went and got in debt for, they make more than you.

They can get it wiped away. All of you that are working your butts off at the lower level positions, you’re good. But think about this. If he was to cancel, just like he says directly in his tweet, I’m not making this crap up. Oh, there goes my light. Here’s his tweet right here, right? And it’s some fancy little deal. He says that’s why today we’re announcing new plans that if implemented, because he knows, just like you and I know, that it’s got to go through the Senate and through the House and all that stuff, it’s going to cancel student loan debt for millions of people.

There’s no way. We don’t have that much money. As a matter of fact, another thing it’s very important for people to understand. Every time this idiot, and I just say idiot in, like, an insulting way, the guy that has cocaine in his White House, he cancels debt that is actually set up as an asset on our government books because it’s income coming in. Right. With interest. So he’s actually getting rid of one of the only assets in the government’s coffers, the way to bring in money.

He’s canceling it. It’s like the president coming out saying, we’re not going to do tax anymore. Okay, so this is absolutely, absolutely crazy. Tim, thank you so much for the super chat. So this is very, very important. This is probably why some of these videos don’t get shared out, because the truth hurts. Alright, so now we’ve seen treasury yields jump out. Let’s go back into the markets because this is a very important day.

You get to see how the market reacts when they don’t get there. Monetary heroin, right to the vein. That’s lower interest rates. Okay, so we’re seeing everything selling off today. We’re seeing stock sell off. This is an interesting day. This is a good day to go over. We’re seeing crypto sell off very lightly. We are seeing gold. And while silver’s up, silver’s awesome. Don’t think that there’s not a pullback coming.

Silver has been on an absolute terror lately. Hash, Silver, you own any? But gold’s pulled back just a couple of bucks. Right? So you’re seeing a broad sell off and investors moving into cash today. Okay. I’ll bet you if I type in the USD index, I’m pretty sure we’re going to see it’s going to be strong today. And the reason why, and I’m doing this live is because not zero futures.

Where’s. Give me my USD price. Guys, what is it? Where. How far? We should be up really nicely today. We go to forex. Euros down. USD’s all right. Whoo. The yen just keeps falling. The USD to yen right now is 152, surpassing that crucial 150 point euro. So us stronger right now. All right, sweet. So my point being is this is one of those days that you get to see what happens when the market pukes.

Now, this is a slow puke. This is a light puke. This is like baby puke for those, you know. Thank you so much, Nate, for the super chat. And that’s the whole point is really, Nate says thank you for opening up our eyes. You know, I used to pray about this when I started this channel, and I still do every once in a while that people’s eyes are open to the reality.

And you don’t have to believe in God to understand this, the reality of the markets and what’s happening. And right now, the real estate market is tanking. We are well underway. And news like this about the inflation data coming out is so important. Now, here’s something else that should scare the piss out of people, and I say scare the piss out of people in the way that it makes you do something or makes you act us dollar sourced the highest versus yen since mid 1990 after inflation data.

Now, most people don’t remember this, but in the mid 1990s, Japan was out crushing it. Until they weren’t. Japan’s economy fell apart. Japan had a massive presence in the state of Hawaii. When that economy collapsed, Japan pulled out of Hawaii, actually creating a mini depression in real estate prices in Hawaii in the late nineties. The reason why I know this is because I tried buying some property and misses ninja didn’t want me to buy some because we were so busy in California buying and selling real estate.

Thanks, Mike. Mike Abraham. Mike works for a massive radio channel actually, and so he’s. I’ve known him for a little while. He’s great. So my point being is that when Japan pulled out of Hawaii, created a little mini depression in the real estate market. Well, the reason why this news is so important is that Japan, one of our largest holder of bonds, has stated that if their currency keeps falling to the US dollar, they’re going to have to sell our dollars and our treasury bonds when this happens.

Now, they already are. Lightly. And the reason why I can say this, they’re not selling, they’re buying less. Right. They’re not there at the bond counter asking for more bonds. Right. If they were, that would keep bond prices down. But the bond, the ten year bond is skyrocketing right now. Okay. We’re going to see 5% bond, ten year bond rates, I believe this year. Don’t trade on that advice.

You’d be nuts. I’m just a dude with bro hawk and a dream. But when they become net sellers of our bonds, then we’re screwed. Now, when I say we’re, I actually am not including you and me because we have been preparing. We have been doing what countries like China have been doing, and Russia and even the ECB, to some extent. We’ve been buying gold, we’re buying silver, we bought some crypto.

We’ve gotten out of debt, or we’re getting out of debt. Guys, how many people since watching this channel, I’m just curious. Say I have in the comment section, if you have gotten completely out of debt or you have severely cut your debt down since watching this channel. And I don’t say that because this isn’t about me. This is about us. This is about we. We know this is coming.

We want to take advantage of this. We will not let the bankers enjoy this crash. And bankers enjoy crashes. That’s what most people don’t understand. They think that, well, why would the bank do this on purpose, because if the economy crashes, that’s less money for them. You don’t understand when you own everything, the printing supply of money, and you can just make money out of thin air. This is another thing I want to show you, that you want to know how to become a billionaire.

Most billionaires are billionaires because they printed money in the form of. They started a business and took it public to the stock exchange. They printed their own shares, they made a successful business, and then they sold that business to you through your pension funds or through individual stock purchases, and they became billionaires. That is how most billionaires become billionaires. They sell you worthless stock. Now, when I say worthless, I mean let’s think.

Let’s talk this through. Is Nvidia stock a stock that pays dividends? I actually don’t know that. I don’t own any Nvidia stock. I’m pretty sure it doesn’t. The reason why I say that is because most stocks do not pay dividends. That’s sort of a thing of the past. See, like the roaring twenties, our stock market has become 100% speculation. It’s you’re speculating. You are gambling. If the price is going up here, this is something none of you know about.

But I’m actually in Texas right now about to start filming. We’re setting up a set right now. We got all kinds of lighting and stuff. We’re setting up a set on how to become a successful cryptocurrency trader. It’s something I’ve done for a long time. I’ve never really talked about it. I’ve been out of it since the channel made a lot of money in the late teens, and I’m bringing it back.

And so I’m teaching people how to do that. But it’s not just making the successful trade, it’s what to do with that money afterwards. Because most people are gamblers, and that’s why they’re in this in the first place. And they have to learn how to pull those profits and how to have trading convictions. They don’t know any of that stuff. But that’s what the stock market is. You know, at least with cryptocurrency, you can get dividends in the form of staking rewards of, like, Ethereum at 4% a year right now, plus the knowledge of knowing that that token right is being destroyed over time because it’s a deflationary code.

But in the stocks, it’s straight up gambling until we go into the blue chips that are paying dividends and get ready. Because what another thing most people don’t know. I’m just going to go ahead and tell you all the tricks of the trade, right. Dividends during a collapse, and we’re going to use the late two, the 2008 era dividends, by and large, didn’t change a ton with the blue chips companies that were not affected by the recession, that were still making sales, by and large, they didn’t drop their dividend.

So what happened was, as their stock was pulled down, brought down by market indexes, right, by the general fear of the population, then what happened was they turned around. And since the dividend didn’t lower the percentage of return, your annual return, when you got your dividend check based on how much you were able to buy the stock for went up exponentially. Okay, so two things I’m going to be doing during this downturn, I’ll be reporting on it, and we’re all going to be crushing it, honestly, is we’re going to be buying those stocks where the dividends, those big, solid blue chip companies that are still needed, they’re still selling, they’re still up and running, right? We’re going to be buying those.

And our rate of return per year, the dividend based on the price of the stock is going to be unbelievable. Another thing we’re going to be doing is we’re going to be timing the bond market. We’re going to be talking a lot about the bond market as mortgage rates. And remember, I’ve said this about two years ago. Two years ago I said, you’re going to see over 20% mortgage rates in this cycle.

I know that sounds crazy, but we’re following the late seventies, early eighties to a t. And to think that a mortgage can’t go to 20% again, I know that sounds crazy. And now you see my thesis for why the real estate market’s going to crash and it already has begun to every one of my students, and I’m not selling the course right now. I’m telling you are killing it because they’re seeing things completely different.

Some of them are still buying homes, but they’re buying them a lot smarter, putting less money down and cash flowing more because they’re not speculating. They’re going into different markets, right? Not just the market right in front of them. Okay. So the other thing that we’re going to be doing is we’re going to be buying bonds after a government default. And I know that sounds crazy, but there is a day, mark my words, and I do these special videos because by the time this is not live.

Most people will never seen this phrase, but I do this on purpose. You will see the government defaults on certain bonds. It will be heinous. Rates are going to go through the roof, but then there’s a clearing out, and then I’m going to be diving into the bond market. I know it sounds crazy, but then I’m going to be buying bonds at a specific point when it’s safe to do so, when they’ve picked up the rubble.

And then rates are going to go down and that bond portfolio will explode in price, in value. Sorry. Hope you got something out of this ninja. Went a little long. The economic ninja is out. .

See more of The Economic Ninja on their Public Channel and the MPN The Economic Ninja channel.

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