Tag: Adams/North

America Will Surrender to the Inflating Monster!

Adams has two special seminars coming up in Adelaide and Newcastle on 13 July 2022 and 20 July 2022 if anyone is interested.

Adelaide: https://www.eventbrite.com.au/e/370494909247

Newcastle: https://www.eventbrite.com.au/e/371265634507

In the past few shows, Adams and North have documented that several governments and central banks have already surrendered to the inflation monster – including the Bank of Japan, the ECB and the Bank of England.

Adams noted that it was a matter of time until US Federal Reserve surrenders as well – despite their tough talk of fighting inflation and tightening monetary policy. If we cast our mind back over the past two years and we see a Fed Chairman either who has been lying or has no idea what he is doing.

The US now finds itself officially in recession (which will be confirmed in the coming weeks) with the prospect of raging inflation (no peak in sight). The US Federal Reserve is expected to tighten monetary policy into a recession – a prospect now seen since 1974.

The fight to combat inflation in 2022 is a greater task than 1974 and the US Federal Reserve has less wiggle room because the current debt bubble.

Go to the Walk The World Universe at https://walktheworld.com.au/

Sydney’s Debt Sheep Are Scrambling Like Rats

With the RBA now tightening interest rates, what is critical to understand when the RBA will officially surrender to inflation is to look at forward leading indicators.

When it comes to the property market, Adams and North think there are three indicators which need to be paid close attention to, which are:

  • Consumer Confidence;
  • New property starts (something which Adams and North will come back to); and
  • Property listings.

Today, Adams and North are going to focus on residential property listings for Sydney and the surrounding regional suburbs using data from SQM Research. Property listing data is a better forward leading indicator than credit, because vendors list their properties on the market before buyers and borrowers purchase property.

We should note in a previous show, Adams indicated that the three areas of the property which are likely to crack first are:

  • New housing estates;
  • Commercial property; and
  • Residential investor property.

Go to the Walk The World Universe at https://walktheworld.com.au/

Imminent Crisis Approaching by the Hour

In the past 3 days since our last IOTP episode, events in the market are moving extremely quite rapidly. Especially in the bond market, bond yields have been increasing 0.3% to 0.5% per day which was threatening the global debt bubble.

In the past few days, we saw liquidity risks events manifesting and rising credit risks which has spooked many investors. This occurred in both the developed and developing world – such as Turkey which was this week credit default swap rates reach a 19 year high. Much of these moves were in anticipation of the US Federal Reserve’s FOMC which happened in the past 8 hours. In response to rising inflation and inflation expectations data, the FOMC increased interest rates by 0.75% the largest one meeting increase since 1994.

The FOMC has also foreshadowed that interest rates will rise by another 0.5% to 0.75% in July 2022 and that its QT program will continue as previously announced. Today’s actions of the US Federal Reserve and their expected actions going forward are likely to continue to raise credit and liquidity risks both within the USA as well as globally.

If continued unabated – the liquidity or credit crisis will eventuate very quickly.

Go to the Walk The World Universe at https://walktheworld.com.au/

Emergency Alert! The System is quickly breaking

On Friday, the exposing of the monstrous lie that inflation has peaked was a game changer. The reaction in the markets was a swift and fundamental economic and financial market relationships altered. US Inflation for May 2021 came in at 1% for the month vs expectations of 0.7% or 8.6% vs expectations of 8.3%.

CPI came in at 0.6% for the month vs expectations of 0.5% or 6.0% versus expectations of 5.9%. Over the weekend, there is a lot of more chatter that inflation is going to continue going higher – including on mainstream financial channels such as CNBC – over the coming months.

This has put immediate pressure on the US Federal Reserve who meets on Tuesday-Wednesday US time to be more aggressive in rising rates. This could include by raising rates by 75 or 100 basis points. It is important to note that quantitative tightening is expected to commence this week.

The exposing of the monstrous lie that inflation has peaked has now resulted in a breakdown of the financial system. All three risks inflation risk, credit risk and liquidity risk are now all coming into play. There will be more pressure on central banks to deal with inflation risk – if they do, this rises credit and liquidity risks – which can easily result in markets freezing and economic agents (households, corporations, banks and government) defaulting on debt.

A material credit and liquidity risk event can easily plunge the financial system into a new financial crisis. Any attempt to prevent this will lead to soaring stagflation – with a major crash in the share market and cryptocurrencies. The timetable for the pivot (which Adams is anticipating) has just dramatically quickened. All eyes on what the FOMC does on Wednesday, US time.

Go to the Walk The World Universe at https://walktheworld.com.au/

No Mercy for the Debt Sheep sent to the Slaughter

Yesterday, the RBA raised its official cash rate by 0.5% to now sit at 0.85%. This increase was above market expectations and was the RBA has signalled that more rate rises are coming. This is particularly so given that the RBA has signalled that inflation is expected to go higher, not lower in the coming months.

Adams and North in the past two months have been warning that rates will go up, however, the key question is now how much pain is the RBA willing to inflict before it becomes too much and they need to stop. This is the 64 million question which no one is able to forecast – including the RBA board. The RBA Board signalled that the one areas that they remain unsure are households and what impact will rising interest rates have on consumption.

However, one of the most critical points that has emerged from the mainstream media coverage is that many people don’t accept the level of mortgage and rental stress outlined in the DFA dataset set. North suggests that mortgage stress is at 43% which would signify a major economic problem – however, the banks and market economists suggest that Australian households are in a strong position to handle these jobs.

As Adams and North mentioned in the last show – there will be a certain percentage of Australian households who will be sacrificed and they will go to the wall. There will be no compassion to these particular households. Especially those who have purchased in during 2022 and who likely took a variable mortgage – these are the sheep that will go to the slaughter. Go to the Walk The World Universe at https://walktheworld.com.au/

The Coming Hyperinflation of Australian Property

The most important set of economic questions facing the Australian people is inflation, interest rates and mortgage/financial stress. The recent release of the Consumer Price Index by the Australian Bureau of Statistics at officially 5.1% and the subsequent raising of interest rates by the RBA is now the main conversation which many Australian families are having. With only one interest rate there is already a sea change in the sentiment in both the property market, shares and cryptocurrencies. Many Australians with significant debts are now quite nervous about what does the future hold. Analyst Martin North and Economist John Adams discuss…. Go to the Walk The World Universe at https://walktheworld.com.au/

Adams Prevails in the Silver Sex Scandal

In early 2021, Adams and North covered in a few episodes a series of problems with unallocated and pool allocated silver and that such products are little understood by retail investors.

During the course of March and April 2021, Adams was active on social media and YouTube calling out the problems with unallocated and pool allocated products. Adams’ criticism moved beyond Perth Mint and targeted other companies such as Kitco Metals Inc. – Canada’s largest bullion dealership.

In late April 2021 (a year ago), Kitco through their Sydney based lawyers Dentons – sent a Cease and Desist notice and thus a legal battle ensued. This show brings the audience up to date with this because this was a hot topic last year and some members of the audience contributed to a legal defence fund that he had set up.

Go to the Walk The World Universe at https://walktheworld.com.au/

Poor Australians fooled by Parliament’s Trickery

Following from our last show about the age pension and the fact that Australians cannot assume some inherent right or entitlement to it, some of the IOTP audience attempted to push back by harking back to a policy from the 1940s called the National Welfare Fund.

We did not discuss the National Welfare Fund in the previous show, but it is worth exploring because some Australians are of the view that money for the age pension and other social security payments from the National Welfare Fund and not consolidated revenue.

But now, Economist John Adams and Analyst Martin North seeks to clear up the confusion by explaining what was the National Welfare Fund and what happened to it. Go to the Walk The World Universe at https://walktheworld.com.au/