Hey There Income Hunter,
Janet Yellen continues to pound the table about a soft US economic landing.
Look, when policy leaders are willing to lie to keep the economy afloat, that means things are much worse than they are letting on.
For example, Yelen pulled a similar move when she was the San Francisco Fed president …
As the US was heading into the 2008 housing crisis, she repeatedly said she didn’t see a problem.
Click here to see how Yellen is wrong again.
Yellen’s Similar Move During Housing Crisis
In March 2006, Yellen spoke via satellite to Australian economists saying that “overall the economy has shown considerable resilience.”
That was just a couple of months before home prices plunged.
Earlier this year on Good Morning America, Yellen said the US would not see recession with the lowest unemployment rate in 50 years …
I hate to point this out, but the US has entered recession every time the unemployment rate reaches lows. (It’s quite the lagging indicator.)
Like I constantly warn you …
Policy leaders will never tell you the truth.
They would rather deceive consumers so they can keep kicking the can down the road until something in the financial system breaks and forces them to shift policy.
Russian Oil Cuts May Force the Fed’s Hand
It looks like our leaders did not learn their lesson related to the damage caused by initial Russian sanctions. You may recall that those measures fractured what had been a united global economy – and largely served to help Russia!
Check out these announcements on Friday …
- US TO EXPAND SANCTIONS ON RUSSIAN METAL & MINING SECTOR – BBG, 2/24/23
- US HIKING TARIFF ON OVER 100 RUSSIA METALS, MINERALS, CHEMICALS – BBG, 2/24/23
- US TO TARGET FUTURE RUSSIAN ENERGY CAPABILITY – BBG, 2/24/23
In retaliation it appears Russia will cut Oil production by 25% in March.
That is a real warning sign for markets because higher oil prices will fuel higher inflation.
Higher inflation will accelerate the US and global debt crisis, yet the one country in the world that is not impacted by higher inflation is …
Russia – which is not even close to having a debt problem.
Higher inflation will put the US fiscal situation of soaring interest costs on government debt and low tax receipts due to a weakening economy into a desperate state.
And the only way out for the Fed will be to fire up the printing press to buy bonds and hold rates lower to avoid a debt crisis.
That will be ultra-bullish for energy-related commodities and precious metals.
So, keep a close eye on the iShares 25+ maturity Treasury Bond (Ticker: TLT) and the US Dollar Index (Ticker: DXY) this week.
Lower TLT prices and higher DXY prices will raise the pressure on the Fed further while sending equity prices lower.
Live and Trade With Passion My Friend,
Griff