JPMorgan Warns of a Planned Stock Market Crash! Prepare Now! - Great Video

Epic Economist

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The purpose of the Ft Detrick flu was total economic collapse so the Fed can become the owner/govt of the West, the Fourth Reich of the New World Order.

Just as JPM had explained before, the inversion at the front end of the yield curve has been one of the most prominent market indicators over the past two years. Since it first emerged in April 2018 between the 2 and 3-year forward points of the 1m OIS rate, it has been an important market signal that suggest that stock markets are concerned over the risk of a policy mistake, therefore, the downside risk for equity and risky markets.

With that said, economic analysts declare that “the lesson we can take from the past two years and from the previous cycles is that as long as the inversion at the front-end of the US yield curve persists, it may act to limit the upside to equity and risky markets and signals vulnerability to further negative shocks.”

For this reason, and as Panigirtzoglouo cautions, the re-emergence of that inversion last week is a warning sign. The spread between the 1 and 2-year forward points of the US OIS curve shown on graphic 2 isn’t negative enough to be worried about a coming correction just yet, but what it implies is that many market participants consider the association of fiscal and monetary accommodation already happening is not enough considering the size of the stock market crash, otherwise, the 1-to-2-year or 2-to 3-year forward spreads would be into positive territory.

Trillions spent in QE, FX swaps, corporate bond purchases, debt backstops, repos, and so on, are not enough anymore, which adds up, in view of a market that is habituated to whatever the Fed’s latest liquidity injection is fast enough to demand for more.

Moreover, JPM sustains that rate markets are flagging the need for further monetary and fiscal policy stimulus across DM economies. As result, if the Fed plays deaf to this latest extortion attempt by the market, and does not deliver an additional stimulus, the inversion at the front end could get even worse, “eventually becoming a more problematic signal for equity and risky markets going forward.”

That is why JPM affirms that the only thing that can push the stock market higher is another dramatic liquidity injection. Since JPM’s observation seems to be accurate, that leaves Powell with a two-faced problem: since the Fed chair has taken negative rates off the table for now, and it had announced today that Yield Curve Control isn’t a plan for the near future, Powell doesn’t have much choice other monetize debt liquidity in the financial system creating even more QE. 
However, the Fed’s current posture of shrinking QE will cause a lot of anger amongst the conservative political establishment. Meaning, just like in March when the Fed used the first pandemic-induced market crash to let loose unlimited QE, the Fed is likely to go for round 2 very soon and trigger either a new market crash or await for another sanitary-crisis-linked market selloff, that would be used as a convenient pretext for the next massive liquidity injection.
If it fails to do so, you can expect the dollar to take off, while markets foresee another imminent major dollar squeeze as the front-end inverts. Accordingly, it will boost the liquidity crash, with the  $1.6 trillion in Treasury issuance serving as a catalyst to the next market shock, which will be quickly reversed by the Fed by the expansion of the already unlimited QE on a very short notice.

On top of that, knowing that it is just a matter of time for the Fed’s QE expansion policy to start, the remaining question is “what happens after that”? Just as George Boubouras, head of research at hedge fund K2 Asset Management asked himself in May: “Can governments continue to borrow at such record levels? No. Central-bank support is key in the massive bond-buying we’ve seen for now. But if they blink then at some point, in the medium term, it will all likely unravel – with unforgiving consequences for some countries.”

Alternatively, this also implies that an end to the sanitary crisis is the worst possible thing that could happen to markets that are perversely accustomed to helicopter money and virtually unlimited handouts, because it takes a state of perpetual crisis to keep feeding them.

To summarize, a major crisis is coming in the next few months, and it will give the Fed the liberty it wants to do whatever it needs to prevent another stock market crash. Make no mistake, that will mark the beginning of the end for the current monetary regime, so don’t hope that officials, policymakers, and the establishment, in general, to allow the current health crisis to simply fade away. That is exactly what they ever wanted.

The Slow and Steady Theft of the middle class to ensure their NWO and Agenda 2030!

Epic if you’re not prepared by now, it might be too late!

I could feel it coming. I know that sounds weird but I started worrying about it in 2012 and it never really went away, just barely subsided until recently.

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