David Brady, CEO, and Co-Founder of Global Pro Traders discusses Fed Chair Powell’s recent statements, and argues that financial conditions have not tightened that much. Powell has said some real doozies recently, like the economy is strong, and the labor market is doing well. David says, “give me a break, the metrics around labor markets are startling wrong.” Bernanke has stated in the past, “When the data is bad, you have to lie” because it’s about maintaining confidence. The economy is not doing well, and neither is the labor market. The Fed statements are just justification for their policies.
We’re starting to see delinquencies and foreclosures that are likely to get considerably worse by next year. Housing and properties in parts of Canada have dropped forty percent.
The CPI metrics for the Fed is part of their narrative construction. They are going to “redefine” the CPI lower because it reduces the cost of government entitlements. Year over year, inflation will come down, and they are going to recalculate it even lower. If we get lower inflation, the Fed will have justification to pause.
He believes the DXY will head lower when this pop completes, once again near the recent highs. This will be the time to be buying gold and silver while many are throwing in the towel. The only way that doesn’t play out is if we break below 1750 support. There is no scenario where gold and silver don’t go up in the next few years.
He is concerned there could be nationalization or excess taxation of miners. If you’re able to get out, will you be able to find someplace safe to put your money? The markets are essentially rigged and managed by central banks. All the markets needed recently to go in the other direction was a catalyst. The Euro drop was the catalyst and caused the DXY to move higher, these are nearly perfectly correlated.
Time Stamp References: 0:00 – Introduction 0:36 – Financial Conditions 2:28 – Labor Contradictions 6:44 – Hikes & Latent Damage 10:15 – Redefining the CPI 14:43 – DXY & Gold Outlook 18:48 – Final Fed Endgame 23:27 – Mine Nationalization 25:35 – The Metals Reversal? 32:50 – Leading Indications 35:14 – Fed Still Matters 38:50 – Dedollarization 42:44 – The Fed Trifecta 48:06 – Entitlements 53:23 – Wifey Wrap Up