MANNARINO: It Starts This Week...the Largest Currency Devaluation Cycle in History
A central bank cannot just “cut rates” without also causing the currency to lose purchasing power
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By Gregory Mannarino, TradersChoice.net
Here in the United States, mortgage rates have now dropped to a near two-year low.
But how is this even possible?
How? The Fed has yet to make its highly anticipated rate cut announcement.
(The “official” Fed rate cut announcement will be coming today.)
NO ANNOUNCEMENT NECESSARY.
Unannounced, the Fed, back in June, started a NEW AND EXPANSIVE quantitative easing cycle which has not only caused the benchmark U.S. 10-year yield to crater, but has also caused the ENTIRE YIELD CURVE TO UN-INVERT. (Unannounced YIELD CURVE CONTROL)
This unannounced QE cycle has also caused the U.S. dollar to freefall.
(A central bank cannot just “cut rates” without also causing the currency to lose purchasing power.)
So, you were kept unaware that the Fed had already begun a massive “easing” cycle back in June?
Well, how would you know? The mainstream media/not a single financial channel is talking about it. Not a whisper about it by Fox Business, CNBC, Reuters, Bloomberg, etc. However, the TRUTH is always hidden in plain sight despite the “look here do not look over there” propaganda and deception campaign against us.
Quantitative easing is THE NUMBER ONE TOOL which is used by a central bank to artificially suppress rates.
HERE’S HOW IT WORKS.
New “money” is first created right out of thin air, (obviously this new money creation is inflationary). Then, this new money/currency is then used to buy debt IN MASS. This mechanism, in effect since June, has caused bond yields to fall precipitously and rates have subsequently dropped.
WHAT IS ABOUT TO HAPPEN.
Today, the Federal Reserve will “officially announce” that it is cutting rates, doing so in concert with the European Central Bank, the Swiss National Bank, and the Bank of Canada.
In effect, the Fed is “giving itself permission” to inflate on a vast scale.
Understand that the NUMBER ONE WAY in which a central bank makes itself stronger, and therefore makes us weaker, is via their ability to inflate/create/and issue debt.
This mechanism not only creates nation slaves to its central bank, but also debt slaves on an individual/personal level. Henceforth not only why national debt is skyrocketing at a rate of ONE TRILLION DOLLARS on average every 3 months here in the U.S., but also why today individual citizens themselves are carrying their heaviest debt loads in history.
This mechanism creates MORE DEPENDENCY ON THEIR SYSTEM.
PAUSE: Why not a single question about this mechanism during the Presidential debate?
Is there a solution?
ABSOLUTELY! Yes, there is a solution, but you WILL NOT HEAR ABOUT IT.
The solution is simple. And it’s the POLAR OPPOSITE of what we are being sold, AGAIN, by both prospective U.S. Presidential selectees here in the U.S.