Get Ready for $2.667 Trillion in Stimulus THIS MONTH

Hey There Income Hunters,

Janet Yellen would not be a good Texas hold’em poker player …

She just got appointed into the Treasury and she is already going ALL-IN.

On top of the Blue Wave $1.9 stimulus bill, JANYELL will have an extra $767 billion in the Treasury’s account by the end of this month to use as additional stimulus.

Check this out …

Now, the way this will be done is to lower Treasury borrowing of T-Bills and return maturing proceeds to the investors of those T-Bills …

The bulk of those investors are foreign-based and would deposit the money in US banks for safety via FDIC insurance and for portability through the markets …

The problem is, banks here don’t want to take on additional deposits because they are out of balance sheet capacity…


Deposits use up balance sheet bandwidth. After the financial crisis of 2008, the Dodd-Frank legislation forced banks to hold capital against their assets — so there is a limit to how much they can hold on balance sheets …

Now, we know that Yellen knows that. This means she would be forcing banks to negative rates …

I knew putting Yellen, the queen of the Helicopter drop, at the Treasury was a game changer.

However, I didn’t know she would move THIS fast …

These moves will have major ramifications in the markets — and WILL supercharge commodities …

A Rush to Sell Dollars

The interest of foreigners who hold investments in the US is to maintain operational liquidity in currencies other than their own …

However, they are very sensitive to avoiding exchange-related losses … and their dollar balances are the largest foreign exchange exposure they have.

With $5.29 trillion in bank deposits, there is significant room for the foreigners to reduce dollar investments …

If banks move to negative rates on deposits, it could trigger substantial selling of dollars … which would cause a rise for industrial raw materials and imported goods — with little exports to absorb the inflation.

Watch for a Dollar Breakdown

The sign to move big-time into gold and silver is when the dollar takes out the lows near 89-89.25 in DXY (see below) …

Foreign holders could be the sellers who cause the breakdown and that would be exactly what Yellen wants …

 

Bring It Home

As we move closer to dollar debasement, or in other words lowering the value of our currency, precious metals are the asset you want to own …

We are at an excellent level in GLD to put on a bullish trade (see below). The zone highlighted is a 30% correction from the top and buying here provides excellent risk reward parameters.

If the support zone is taken out, close the position. However, GLD could very likely begin a new move higher from here ..

 

The perfect storm of inflation and growth is near, friends.

Keep an eye out for new Power Income videos that will provide bite-sized insight on the Fed, Treasury and Wall Street and money flows …

I’ll make sure you have intel that gives you an edge in the market!

Live and Trade with Passion My Friends,

Griff

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