Creak! Pop! The Yen, Banking Stress & Housing

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Originally published at: Creak! Pop! The Yen, Banking Stress & Housing – Peak Prosperity

In this week’s Finance U, Paul Kiker and I discuss the many creaking and popping sounds emanating from the global financial system.

In Japan, $100 billion of interventions only managed to keep the Yen from breaching the 160 barrier for a short while. Man, $100 billion sure doesn’t go as far as it used to!

Meanwhile, the US equity markets are unhinged from reality, floating along on a sea of liquidity dumped on them back in November 2023. How much longer can they ignore the manifold signs of a slowing economy and the risk of a global war?

It’s hard to say, but everybody should have a plan, just in case.

Meanwhile, the struggles are real for median-income households as home prices skyrocket, rents explode higher, and inflation at the grocery store and for insurance products are much worse than advertised.

Add it all up and making financial decisions today is a difficult proposition.

But one thing stands out as a near certainty – the Fed will be “forced” to return to buying government debt before the year is out. This next round of Quantitative Easing (or QE) will ignite the next round of even more serious inflation.

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Chris, as you know QE lights a fire under the S&P 500. So, if and when the Fed starts another round of QE does this mean that - generally speaking - the S&P will be a “buy” again? Even at these ridiculously high valuations?

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One form the next QE could take is bailing out the SIPC, and the FDIC. They bailed out Silicon Valley Bank account holders even if their accounts were over 250k. Since the top 10% own 86% of equities, and the SIPC only has 3 billion in assets, I could see the money printer being fired up for them.

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Here’s a guy on X/Twitter who was on the Walmart website looking at his account activity. He found a 2022 order he made for 45 grocery items back then that cost him $126.67. He saw the “Reorder All” button and clicked on it to see how much that exact same order would cost today. $414.39 today in 2024!!
https://x.com/CitizenFreePres/status/1806330087991656874

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Canada does not need to build a single home to solve the housing crisis.
Our birth rate is below replacement.
The only reason why we would need to increase housing stock is due to population growth - and that growth is being caused by mass migration.

“Build more homes” = perpetuating the status quo and it benefits developers.

The only stuff being built is crappy condos that feel like prisons and suburban sprawl. The condos get bought by investors. Both housing arrangements have no future.

The solution is to freeze all migration beyond temporary farm workers and later have it cut to the rate required just to just maintain population. There is no need for growth beyond propping up a unsustainable monetary system including the pyramid scheme pension system → the solution is monetary reform, not migration.
We also need only very controlled immigration, not migration!

Canada has a large land mass, but much of it is too cold to want to live in and too far from good water sources like great lakes.

Just to note - the best thing we can do for the environment is not build more stuff- not develop, leave the land alone, especially the farmland we need to feed ourselves.

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Dang that’s crazy, anyway another couple grand spent on food and precious metals

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I’m thinking Biden’s performance will help the banking crisis along.

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Unless the market discounts the pernicious effects of inflation?

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Actually just saw video in past couple of days(can’t remember who…) that guy was talking about data from the past that shows after easing stocks go down significantly for like up to 8 or do months on average- leg affect… Oh I think it was Matthew Pipenberg…?

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What are you buying food wise?? PM-same here… I’m working all weekends now to gather more cash to buy more Pm…

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And there you have it. It’s over for Biden and replacement was the plan for quite a while.

There were many recent media nudges for the population to get used to the idea of replacement. This is why this debate was so early. They needed the population see his obvious decline and then reenforce it on the mainstream media.

The question for me is how long ago was this the plan?

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I watched only maybe first 15 minutes of the debate… Couldn’t bare waste any more time then that… It was too painful and sad… I was wondering before what they’ll do to him to make him be able to get going for 90 minutes and they did somewhat ok job but even that he looked incredibly bad and weak but I have to admit T looked LOT weaker and not as sharp as last time… What caught my attention in that short time we’re moderators… Both with TDS IN past few years kept it somehow professional… No screaming, no interrupting, no talk over… It didn’t feel right… Like they’re mind is in peace… Do they know what we don’t know…? Just thinking…

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15 minute cities

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They both started out with obscure “Helps”, but as time went on, they stopped helping. One of the first examples, was Dana not allowing Trump to do his rebuttal, but instead choosing to distract him by answering another question. Another example, Jake seeing Biden melting down in a question, thanking President Biden. I’d bet he was no where near his time limit.

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It’s important to remember that this is all the retail level. “They” will continue to march forward regardless of politics. History teaches us that the same plans continue every four years even if you have a new talking heading saying it. More power, more money, more control for several small groups. Less power, less money, less freedom for us. It’s not going to matter who they put in, the outcome will be the same.

Just like @thc0655 reminds us frequently, the Hunger Games is one of many fantastic analogies for the world that we live in.

I think some of gotten beyond money. It might be time for me to take it to the next level and read the books.

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Anything from cheap bulk items I can store with mylar bags and desiccant to pricier things like freeze dried food. Just be wary of what brands you choose. I personally like nutristore, mountain house, and peak refuel.

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It was planned when the DNC anointed Biden as the 2020 candidate, in spite of the obvious popularity of other candidates. It so hard to control greedy politicians these days that you need to grab one with mental defects as your puppet.
A lot of us are thinking this is a deliberate effort to demoralize the population to the point that they finally understand they have no voice.
A friend sent me this on non-duopoly candidates. RFK is at 50.

He ends with the question of whether Americans want to vote out of fear or hope.

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I just finished watching this interview of Steve Keen by Nate Hagens for the 3rd time. With the exception of a very few like Steve here, Luke Gromen, Dr. Chris not very many grasp the fundamentals of the role of energy in industrial output & so calculations such as GDP are seriously flawed from the get go. This explains so much of how entities such as the BLS consistently get things so wrong. Mr. Keen can rattle off his calculations, cracks me up, I’m with Nate here - hold on, slow down, let’s break this point down - lot’s of detail but easy to come to the conclusions Keen presents. Such an important topic and Keen brings up a point that I like to emphasize, we have been kicking the can now for at least 5 decades, so much time wasted in maintaining the status quo, dead in the water as far as innovation goes!

One of the comments that is spot on imo "This is a story of how self-serving rationale, rather than truly objective analysis, creeped and seeped into what we now call neoliberal economics. Human beings themselves became merely an “input” - rather than the focus - of human endeavor. The collective well-being of the whole human “enterprise” has been relegated to the interests of the monied few. Greed overwhelms common sense, justice, and fair play. We have created the source of our own demise by ignoring the lessons we were all taught in our schools and churches. Welcome to the 21st Century!

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