Summers-End-Turning-Point-2022-Bob Davis Podcast 1068

Summers End Turning Point 2022

Firstly summers end is always a turning point. You might remember this one for a long time. Details in Summers-End-Turning-Point-2022-Bob Davis Podcast 1068.

Not Political

Secondly these are not political podcasts.

Economy

Certainly they have to do with the US and world economies.

However one of the chief mistakes of many analysts is their penchant for attaching economic problems to current political leaders.

Inflation Years In The Making

Most importantly the inflation nomads and people back home are dealing with was years in the making.

Major Slow Down Ahead?

In addition one of the biggest takeaways from this podcast is the increasing possibility for a major slow down and a shift from inflation to deflation.

Recession

For example Germany, China and technically the United States are already in recession.

Feeling The Pinch

And smaller economies and developing economies are also feeling the pinch.

The Cause? Not What You Think

While much has been made of the war in Ukraine or supply issues these are not the root cause of the inflation in the United States.

Gas and Food For Nomads

Above all we nomads feel the pain when it comes to gas and food prices.

Everything For everyone Else

And for the people in the and of bricks and sticks it’s just about everything else.

In Summers-End-Turning-Point-2022-Bob Davis Podcast 1068 I argue that the inflation we’re dealing with has been caused by years of near zero interest rates and something called quantitative easing.

Don’t Bet On A Pivot

In the same vein analysts keep saying the US Federal Reserve will ‘pivot’ soon.

95 Billion Every Month Bought For Years

To clarify Quantitative Easing has taken the form of the central bank buying 95 billion dollars worth of bonds EVERY MONTH.

Now Selling 95 Billion Every Month

More importantly Quantitative Tightening is the central bank selling off 95 billion dollars worth of bonds EVERY MONTH.

Moreover those bonds are ramping up to a full 95 billion EVERY MONTH in September.

That’s a lot of liquidity sucked out of the banking system.

Therefore listeners can see why I say Summers End is a Turning Point.

Meanwhile I emphasize EVERY MONTH here because I did not in Summers-End-Turning-Point-2022-Bob Davis Podcast 1068.

Summers-End-Turning-Point-2022-Bob Davis Podcast 1068

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Storm Clouds Gather Over The Bull Market-Podcast 665

We don’t see the storm building over the markets. Distractions. Shiny things that draw the eye and ear. A war of words between a North Korean dictator and the president. Kneeling football players and the Tweeter In Chief. Meanwhile, the long expansion in the markets may be about to end. A heads up for you on how and why in Storm Clouds Gather Over The Bull Market-Podcast 665.

Watch The Shiny Thing

We don’t look beyond the distractions in the media to see what they conceal. No amount of pointing and saying ‘look’ is going to change it. We have not had a serious market or financial crisis since 2008. Our economy has been on life support ever since. Now the DNR order has been signed. Find out why in Storm Clouds Gather Over The Bull Market-Podcast 665.

Market Shocks Have Political Consequences

Remember 2008? The market crashed. The banking system was going to seize up, they said. A republican administration suddenly bailed out the banks, insurance companies and big car companies. The shock changed politics. A new administration came in, in 2009. New banking regulations, more government spending and a very large stimulus package was passed by congress.

Hey! What Happened To The Punch Bowl?

The Federal Reserve, bank of last resort, began a program called Quantitative Easing in 2009. Over the next eight years the FED added trillions of dollars to its balance sheet as it ‘injected’ money into the US economy. QE one, two three and four indirectly supported the stock market through the purchase of hundreds of billions of dollars worth of securities. What happens when they take that away?

Pay Attention

So this is a simple heads up that it might be time to start paying attention. While we’re talking about things that don’t matter they are doing things that do. That storm roiling to the west, might be rolling in anytime. In Storm Clouds Gather Over The Bull Market-Podcast 665.

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