The 2019 repo market crash, The Federal Reserve and Bernie Sanders – February 6, 2020, ,
One of the most difficult things I cover are Democrat rallies, they’re extremely boring and comical in this era of human development, however, it’s imperative as an investor that you don’t ignore Socialist influence in the market place, because as we all know, if you at the very least, socialists understood the market, then the investment community can formulate plan on how to meet the demands of socialist oligarchy.
Now, with Bernie Sanders, he’s really swallowed Marxist doctrines, he’s embraced 2 major ideals that would destroy any nation. Higher FEDERAL minimum wages and Unions. Barack Obama, who I argue was a Socialist didn’t raise the federal minimum wage while he was President, because Obama was interventionists, not a full-blown socialist, there are a lot of very educated Black Americans like Thomas Sowell, who can break down effects minimum wages have on the poor. In short, when you raise the barrier to entry, you get fewer participants.
If there’s a roller coaster with a height restriction, there will be people who are too short that can’t go on the ride. Minimum wages, make it harder to start a business, the minimum wage was actually created by Unions to prevent m=competition in the marketplace, in fact, there are several instances where White Racists used minimum wage laws to prevent black people from getting a job.
Bernie Sanders doesn’t only want a $15 dollar minimum wage, he also wants to give Unions more power, if you havent’ done so yet, consider watching the video below.
I bring this up, because, you have to price in Bernie Sanders a President and what would happen to the Repo Market if he were President. In easy to understand terms repo-market is the exchange of treasury bills for short term cash lending. An example I give you $100 in cash for 1% for a one day loan and exchange you give me your treasury bill as collateral. Well, the Repo market crash was basically the people with the U.S dollars refusing to accept the treasury bills at the normal rates and this was in large part because of the Federal Reserve printing less money. Watch the video below to learn more.
Basically, as an investor, you should see what’s going to happen in the event the wrong President takes the white house. This Repo-Market crash, in my opinion, is the perfect example of how smart the modern-day investor is. The problem is the public sectors, public sector liabilities is the straw that will break the camels back, the markets are ready to renegotiate debts and allow the world economy to deflate, what’s happening is the markets are waiting for an idiot who doesn’t comprehend what’s going on.
Bernie Sanders is clueless about the free market and do not count him out, Bernie Sanders can win the upcoming election. Now, I’m no Democrat, but Democrats aren’t stupid, most Democrats n the United States at least aren’t socialists, they may share Socialist ideas, but the average Democrat is more like a Fascist in the sense that they’d like to merge Government and the Private Sector. It’s one of the reasons why Democrats prefer to use the words racist to describe their Republican opposition because if people understood what Fascism was, the Democrat Party wouldn’t have a leg to stand on.
Now, unfortunately for the Democrat Party, Socialism has crept into their political mandates and many of the new Democrat supporters don’t see anything wrong with Socialism, now people like me can tell people that Free Market capitalism is a better model, but Socialism is easier to understand, ‘take from the rich and give to the poor’ so if you don’t read and study history or if maybe you simply have a different world view, you may fall for Socialism, unfortunately, neither the words Democracy or Socialism are in the U.S constitution and therefore, the market will be within its right to sideline money as Bernie Sanders makes decree after decree promising free stuff for the people who support him.
There really is no easy way to clean up, the stupidity of Bernie Sanders, he’s an embarrassment, people forget that Hilary Clinton started off as a Goldwater Girl. Barry Goldwater is basically the originator of the Libertarian movement, so don’t assume that corrupt Hilary Clinton, doesn’t understand Freemarket capitalism, this is why the Democrat Party establishment is doing whatever it can to prevent Bernie Sanders from being the face of the Party.
Do you know how hard it will be to clean up the economic disasters Bernie Sanders will cause to the U.S economy? Now, the worst part of a Bernie Sanders Presidency is the U.S dollar, the world doesn’t want to abandon the U.S dollar instead what lenders might do is ignore the Federal Reserve and simply base their loans on whatever they deem is an acceptable amount, now, this could trigger the Fed to print more money, but if the Repo market or the markets in general, feel as though the Federal Reserve is backing Bernie Sanders policies, this could trigger hyperinflation of the U.S dollar.
Now, what I personally think is Bernie Sanders is good for Gold, but he could also be good for deflating asset prices in manner I personally can’t call right now. Bernie Sanders if he or someone like him ever becomes U.S President will be a test for America. If Bernie Sanders becomes the Democrat nominee, prepare for the ride of a lifetime.
What is the repo market and why is Wall Street worried? | Yahoo Finance | Youtube
Yahoo Finance’s Brian Cheung breaks down what the repo market how it works.
Interesting times ahead!