Trump Nominates Gold Bug to Fed Board; Gold Snaps Dicks Off to the Upside

This is the moment those filthy gold insects have been waiting for — one of their own seizing the Federal Reserve and slapping America back to sober with the gold standard. Trump has nominated Judy Shelton to the Fed board, someone who penned the blasphemous booked titled “Money Meltdown”. And I quote: “Central bankers, and their defenders, have proven less than omniscient.”

Her recent WSJ Oped:

Since President Trump announced his intention to nominate Herman Cain and Stephen Moore to serve on the Federal Reserve’s board of governors, mainstream commentators have made a point of dismissing anyone sympathetic to a gold standard as crankish or unqualified.

But it is wholly legitimate, and entirely prudent, to question the infallibility of the Federal Reserve in calibrating the money supply to the needs of the economy. No other government institution had more influence over the creation of money and credit in the lead-up to the devastating 2008 global meltdown. And the Fed’s response to the meltdown may have exacerbated the damage by lowering the incentive for banks to fund private-sector growth.

What began as an emergency decision in the wake of the financial crisis to pay interest to commercial banks on excess reserves has become the Fed’s main mechanism for conducting monetary policy. To raise interest rates, the Fed increases the rate it pays banks to keep their $1.5 trillion in excess reserves—eight times what is required—parked in accounts at Federal Reserve district banks. Rewarding banks for holding excess reserves in sterile depository accounts at the Fed rather than making loans to the public does not help create business or spur job creation.

Meanwhile, for all the talk of a “rules-based” system for international trade, there are no rules when it comes to ensuring a level monetary playing field. The classical gold standard established an international benchmark for currency values, consistent with free-trade principles. Today’s arrangements permit governments to manipulate their currencies to gain an export advantage.

Money is meant to serve as a reliable unit of account and store of value across borders and through time. It’s entirely reasonable to ask whether this might be better assured by linking the supply of money and credit to gold or some other reference point as opposed to relying on the judgment of a dozen or so monetary officials meeting eight times a year to set interest rates. A linked system could allow currency convertibility by individuals (as under a gold standard) or foreign central banks (as under Bretton Woods). Either way, it could redress inflationary pressures.

Here’s Dr. Shelton discussing treasury debt instrument with a gold convertibility feature — aka FUCKING GOLD STANDARD. Holy fucking shit. Watch that clip I linked.

Gold is on the cusp of a massive breakout. It’s gonna happen this year, believe me.

Look at me.

I am an expert in crypto-currencies. You will never find someone more versed than me in crypto. After thorough and intense analysis, I’ve come to the conclusion that BTC has bottomed from its recent sell off and is now poised, poised mind you, to get back to 20,000.

If this shit doesn’t happen, mark my words, I will saw off both my fucking arms on live television. To play this, I bought a popular crypto related stock. Do the math and solve the fucking puzzle.

I just kicked out SLCA, a stock that I thought would make me coin yesterday, for a 5% loss. I’m fucking done with oil until fall. And I bought another gold miner today — because that shit is about to fly off the handle.

Trust me, I am a foremost expert in the metals markets and know more about gold in my little finger than your entire brain.

With love,

Go fuck yourselves.

Listen to me.

Inflation is soon to run rampant in America and missiles flying everywhere. You won’t be able to dodge the damned things — just get bombed the fuck out. You might as well come to grips with the fact that I was right, once again, and you were wrong.

Old man value stocks is where it’s at. You don’t need to do rezearch or ask friend or your fuckhead financial advisors about it either. Trust me, I am a Doctor.

Value stocks, fuckers.

I’ve been long TR for a long time and I have a bunch of other shit in my portfolio. Just look for low growth, high divvy stocks that are up today, with big market caps, and allocate. You hear me you fucking faggots? ALLOCATE.

Sure, you can have some growth sprinkled in there and make a great big fucking fuss about it too. But at the end of the day, as much as it pains you to admit it — you haven’t a fucking clue what you’re doing.

I AM RIGHT AND YOU ARE WRONG, ONCE AGAIN.

I bet you thought this economic expansion would fail following the 2008 crisis. Most people back then were convinced the fucking world was about to implode and now here we are, sitting fat and sturdy at the top of the mountain — pissing down on the world.

Longest economic expansion ever, faggots. Take that losers.

The U.S. is officially in its longest expansion, breaking the record of 120 months of economic growth from March 1991 to March 2001, according to the National Bureau of Economic Research.

Starting in June of 2009, this record-setting run saw GDP growing cumulatively by 25%, far slower than previous expansions.

While the unemployment rate has dropped to 3.6% in May, the lowest since 1969, job growth has been relatively slower than during other post-war recoveries.

This generation will be known for economic growth, brought on by the invention of the internet. Everything else about this era will fade away — but that’ll stick. Five hundred years from now they’ll teach kids about the early years of the internet and how it produced unmatched economic growth, with ever even mentioning Dr. Benjamin Bernanke and the Federal Reserve jimmy-rigging shit through money creation and low interest rates. History is written by the victors.

Happy Tuesday, fucked faces.

UPDATE: Betsy Ross and her stupid flag were racists!

The Governor of Arizona has ordered the state to rescind financial incentives for Nike in Arizona following the company’s decision to pull its upcoming Betsy Ross Flag sneaker after intervention from Colin Kaepernick $NKE pic.twitter.com/ykJOEOUlsY

— Squawk Box (@SquawkCNBC) July 2, 2019

This was a classic bear trap day. They threw out some divergences, made some shit go lower, made some other shit that wasn’t supposed to go lower go higher — and BAM! a fresh crop of bearish fucktards were born.

I’m thoroughly convinced that this part of the simulation is based purely on random fun. Some Wizard of Oz character behind the curtain at Goldman fucking with prices just to ensnare some people and ruin them for sport. It’s easy to get caught up in your own shit and think ‘oh, shit, I was put on this earth because I am special and all I have to do is work real hard and I’ll get rich too.’

WRONG. Take it from someone who’s made and lost fortunes — it doesn’t work that way. If you’re reading this trying to figure out the tape — you’re a scrap guy — someone trying to eat scraps and crumbs, trying to make it. The fastest way to not make it is to think you’re better than everyone else. The easiest way to make it is spending less, saving more, and investing for the long haul. Sounds easy — right? Try getting married, having kids, and getting lured into big ass homes and cars. Next thing you know your burn rate is thru the roof and you’re scratching your balls wondering how you just blew a million dollars on groceries the past decade.

I can teach you this shit for free — but you have to show an interest. By free, I mean $59 per mo with an Exodus subscription. The fuck you think makes the site run — dirt and good will?

iBankCoin is a fucking institution. I started this place with a bunch of people and I’m the only one left. Everyone left me but you — the unwashed reader. I don’t get along with people and it’s better this way.

If you want to learn a little bit about my past fortunes made and lost — I wrote about it so cop the books. Trust me, I can write screenplays out of all the shit I’ve seen. I’m on page 350 of 700 of a new book I’m writing now about the 2008 financial crisis — showcasing my blogs here and the comments section. You might not realize it now, but the shit we’ve done here, you and I both, is important. We’re documenting these events in real time — giving live reactions to the shit out there. I realize the comments section isn’t active here anymore — but that’s because everyone is talking in Exodus. Before we had an active chat room in Exodus — people would comment more on the free site. (I’m not fucking linking to the premium service each time. It auto links programmatically).

Fuck, I forgot what this blog was supposed to be about.

I bought two stocks into the bell. My gut feeling is markets will crash HIGHER tomorrow — fucking all of you Zerohedgers into never-ending glory holes.

After closing out most of my losers, I’ve done nothing but shit post inside the Pelican Room and make myself eggs. The breadth is bad. The action in gold and bonds — horrible. Bitcoin — trash. This whole set up is horrendous.

So how come I’m not shorting here?

Good question.

Maybe it’s because I don’t like being beaten to a bloody pulp by shorting stocks into faux weakness. That’s right — this smells like a set up, a trap. Inside of dicking around with intra-day shenanigans, I’ll likely just opt for an end of day buying spree.

Don’t you get it? This is how they get you — throwing out mixed signals in an attempt to lure you back in. Don’t fall for that shit.

Since I no longer post my picks on the free site (sorry about that), I’ll let you know later on if I had the balls to step up and take a swing at this again — without getting into specifics.

Great fucking day for everyone but me. I woke up to a nightmare on several trading fronts. I’ll summarize this clusterfuck with my pnl for some closed out car accidents.

(MARA -17%)
(RIOT -9.5%)
(MGI -10%)
(REAL -13%)

BOOM and BAM! That’s what you call a wooden baseball bat to the head. I’m only fortunate it wasn’t an aluminum bat. How lucky of me.

This didn’t all roll lower today to that degree, but plunged below my stops and here I am licking my wounds like a god damned idiot. I should’ve known this was going to happen, seeing that I was just bragging like a motherfucker last week about how invincible I was — up 33 on my last 40 trades. Well, chalk up another 4 losers. I sold them because why the fuck not? I’m not going to hold onto losers and I might as well close them out in the beginning of the month in order to give myself a clean slate.

I’m too afraid to buy now, so I’ll likely place a trade or two near the close.

Today is the day I make changes to the Quant, which is a monthly occurrence, but also change the Bubble Basket and the GARP portfolio. The Bubble Basket is a managed portfolio of the most overvalued stocks in America — broken down cleanly by my methods and diversified amongst all sectors. They’re supposed to be dangerous stocks — but they tend to do best in bull markets.

YTD the Bubble Basket is +41%

The GAPR is the Quant, but only the value aspect of it. No hedges or protection — just alpha.

YTD the GAPR is +23%.

My Quant was switched around today and plenty of changes were made. I sold my bonds and doubled up on gold and we’re 100% in value stocks now. Bear in mind, this is totally a mechanical process, so none of my real time opinions here are relevant.

Last month the Quant rose by another 3.5%.

Here are the returns YTD — by month.

Jan: +6.6%
Feb: +7.2%
March: +2.6%
April: -0.2%
May: +0.6%
June: +3.5%

Granted, it has been a very easy year to make money in the market. But the Quant keeps me honest and regimented. I feel a certain sense of normalcy by keeping it going, knowing the methods have been tried and tested and they work. The stated goal here, naturally, is to beat the SPY. But the bigger plan here is to find a repeatable process from which I can package and deliver to my kids and say “you want to know how to invest your money? Here you go.”

A best ideas approach is too esoteric and entails an artistic approach that is not repeatable. Indexing is fucking boring. In my opinion, this is the only way to structure a long term portfolio and feel confident that you’re actually working towards something meaningful.

I have a meeting now. If you have any questions, Exodus member of not, feel free to fire away in the comments.

I did warn you about something milling in the bushes ahead of the Trump-Xi meeting. Not only that, Trump met with the retard from N. Korea — who is essentially a proxy for China. All of this means for higher stock prices and the complete and total decapitation of the shorts.

The shorts will be killed on the opening tick during tomorrows trade.

Trump said the meeting went as well as it could have, noting: “We are right back on track.” Chinese state-run news outlet Xinhua said the two leaders agreed to “to restart trade consultations between their countries on the basis of equality and mutual respect.”

Trump added the U.S. will ease restrictions on American companies from selling products to Huawei, a giant telecommunications company from China. The U.S. barred companies from selling to Huawei in May, citing national security concerns. The U.S. president also said China would “buy farm product.”

Reversing the Huawei ban could boost chipmaker shares like Skyworks Solutions, Qorvo and Micron Technology, all of which have revenue exposure to Huawei. Skyworks and Micron were both down at least 10% for 2019 through Friday’s close. Qorvo was down 16.9% year to date.

Investors anxiously awaited the meeting between Trump and Xi as they looked for clues on whether the world’s largest economies would resume trade negotiations or if the conflict would be prolonged.

You’d be dumb to bet against this sojourn into depravity. I believe June was the best June since 1938. How can you short stocks when all there is is upside surprises?

That being said, gold is getting hammered too — down 1%. This is reflation 101 and the top performing stocks will be tech, biotech and new IPOs. Got it? Tech, biotech, and new ipos. This means you flip the script on all of that shit you bought two weeks ago, get aggressive, and trust in the future of SAAS again — you fucking faggots.

Having a reliable platform is the most important first step in trading. The tools given to most, and I mean most, professional full priced brokerage firms are complete shit. I used to work at a big bank in NYC and their platform was a fucking joke. When I went indy and had my own shoppe, the clearing agent providing the OSJ will laughable tech. I was embarrassed to show clients the shit I was working with.

Now that I’m like you, an unwashed independent trader, I try them all. I happen to like Motif Investment (I don’t make any money from this fucking plug), but others like TD, Schwaab or Trade. Some homeless men I know trade from Robinhood. The millennials like Robinhood too — what a fucking farce.

How is the platform — be honest? I have no idea.

Some of my friends “trade” at Goldman Sachs. Those guys can fuck themselves.

Most professionals I know also pair a data platform with their trading, using Reuters, Bloomberg, or Factset.

There’s a shit load of stuff out there and I’d be interested in hearing about some website or service that’s under the radar that helps you trade too.

I’ll be out tomorrow during the day, escaping the house due to my aggressive attempts to sell the damned place, and I’m also heading to the beach. So I’ll let this post simmer a while.