Systemically Important Central Bank Shocks Markets with 50 bps Rate Cut

Another central bank moves up its rate cut plans, accelerating its rate reductions with a 50-bps cut. At the same time the IMF lowers growth projections and warns risks of more downside are rising. These two developments are related to the same thing. It's becoming clearer where this weakness is coming from and that's why the public sector is starting to become more aggressive.

Eurodollar University's Money & Macro Analysis

Bank of Canada October 2024 Monetary Policy Report

Bloomberg IMF Lowers Global Growth Forecast, Warns of Increasing Risks

IMF WEO October 2024 Policy Pivot, Rising Threats

[rebeccaartgallary]

these Fed rate cuts are really starting to mess with everything. I mean, sure, they were supposed to help, but now I’m feeling the pinch everywhere. My savings account is basically giving me nothing, and the stock market’s all over the place
Diversify… T bills, CDs, Gold, dividend stocks, Municipal bonds, Bitcoin, Real estate, etc assets speak when cash has no value

Jeff, Canada is REALLY not as it seems: They are actively importing over 1.5 million people every year with a population of only 40 million! This is having DISASTROUS effects on the employment rate. What we're seeing here is extreme unemployment among young adults and new grads higher than INDIA (>14%), which is causing our own birthrate to be decimated! (<1.25 births per woman). Canada's own government is subsidizing the wages of corporations who hire migrants using taxed income, to artificially deflate the value of Canadian wages. It's What Canada needs isn't rate cuts: What Canada needs is to stop lowering the real GDP and real GDP per capita by flooding the labor market with non-productive labor that is __causing__ inflation of prices when observed relative to value of wages. As a citizen living here all I can say is that anyone who wasn't born before 1985 is being annihilated economically!

[oscarcharliezulu]

I hate the click bait titles and hysterical analysis and yet here I am back listening. With a pinch of salt, but listening. Cos it’s thought provoking.

[brianwashere]

What they have in common is incompetence.

[wagashiohagi]

I wonder what happened to all the guys that were asking me if I was still Short TLT/Long TBT. It's been an absolute pleasure having all of you on the other side of the trade. Thanks Jeff!

[ColeEvyx]

I'm in Canada and I make what most would call a pretty decent income with a great job. However I can't even IMAGINE buying a home it's even worse here than in the USA. Food prices are astronomical. All utilities are through the roof to an unimaginable degree. I don't want to live in Canada anymore and the USA looks so much more promising. Yes in spite of the USA having significant issues-- but the USA is SO much better especially when it comes to salaries and incomes.

[shawn]

Canada is not systemically important. Canada is not even a real country. I live here so I should know.
They're also expected to cut another 50 in the meeting after this, which would be December 11.

[wagashiohagi]

@7:00 You can really tell that Jeff is over it. Not one single person signed up for his discounted nonsense and he is just beyond dejected.

[Namegoeshere-ophg]

I am not sure I agree bad disinflation exists. Why must we always bail out debtors?

[Sciscaaa]

A telling update from Poland (a large European economy tied to Germany): Real consumption fell by 3% yoy (expectations were a growth by 2%!), seasonally adjusted it fell by a whopping 6.7% mtm, which is being compared to early pandemic period and not 2023 or 2024. Industrial production was expect to grow by 0.3% yoy, instead it fell by that much. PPI fell by 6.3% yoy and 0.5% mtm. Constructions are down 9% yoy. Wage growth is below expectations and has been slowing down in recent months. Inflation is still at 4.9%. Unemployment grew by 0.5% yoy. The cause is collapsing export and weakness in Germany. Soft landing incoming, brace for impact...

[PsijicV]

Rates being cut but US bonds yield still raising.

[JSniderDebunkedgoldspansubstak]

Jeff "The World Isn't Ready to See how Bad my Portfolio has Performed" Snider. Debunked.

[hymansahak]

Canada is in big trouble economically. Their productivity rate has been falling for over a decade, inflation has wrecked the middle class, housing is 15X household gross income, and job losses with business bankruptcies are skyrocketing.

[blamemando]

The US economy is already in recession. Any rate cut will not ignite inflation. The banks will tighten even more, all consumer and corporate credit lending. This is the beginning of a deflationary period for your assets. Stocks markets will decline, and stock values disappear in a blink of the eye. Businesses will begin layoffs in earnest which will soon be reflected in the unemployment rate and unemployment claims, to further solidify the recession. In fact, when the FED cut rates in Sept, it will signify that the Titanic is going under, and it will suck everything down. Retail and housing sales will truly decline as consumer hold off their purchases. The inverted yield curve will then turn positive, but remember, certain assets like stocks and Crypto’s acts as a hedge. Long & short-term trading is generally safer, allowing investors to weather market volatility. I have managed to grow a nest egg of around 130k to a decent 532k in the space of a few months... I'm especially grateful to Milton Harper, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

[Johannes-vgbk]

Can you please try to discuss this with Lex Friedmann, Joe Rogan or J. Peterson or any other podcaster with a big audience? This, i.e. the silent depression and its implications for e.g. migration, are too important not to be more widely known/discussed. Thank you!

[Patriciabanks]

The Fed's talk of interest rate cut leaves me pondering what stocks to buy now and when do I sell? I'm unsure how to properly allocate my money to achieve an optimal portfolio in this present economy, my goal is $3m for retirement.

[GillerHeston]

With the Fed cutting interest rates by 50 bps, what do you think will happen to the stock market? My portfolio has performed exceptionally well this year, but I am concerned about the possibility of a market crash and losing my gains though but, it's all on a brighter and splurging side for Gold, should I look that way?

[raymond-iv]

With the Fed cutting interest rates by 50 bps, what do you think will happen to the stock market? My portfolio has performed exceptionally well this year, but I am concerned about the possibility of a market crash and losing my gains.

[francismarion]

A depression with hyperinflation. They should have raised rates to double digits after the last recession.

[ethanjesse]

Thank you Lord Jesus for the gift of life and blessings to me and my family $14, 120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️