Is The Rate Drop A Good Thing?

Warren Buffett Preparing For A Crash, Energy Prices Go Negative, Gold Moves Higher And Silver Becomes More Attractive, 50 Point Drop Is Not Necessarily Good, & War With China On The Horizon?

The Daily Ninja 9/20/24

(9/20/2024)

  1. ๐Ÿฆ The FED's unprecedented interest rate hikes are expected to continue, potentially leading to a mini hyperinflation and severe monetary policy tightening, with rates possibly reaching 7-9% and mortgage rates hitting double digits or near 20%.

  2. ๐Ÿ’ฐ Wealthy investors strategically sell stocks without causing panic during uncertain times, while the middle class often focuses on tax losses, perpetuating a "loser mentality" that hinders financial growth.

  3. ๐Ÿ”ฎ If Kamala Harris wins the election, pro-Trump hedge fund manager John Paulson plans to shift investments from stocks to gold, anticipating market uncertainty and potential downturn due to Harris's policies.

  4. ๐Ÿ“‰ Warren Buffett is preparing for a possible market decline by increasing cash reserves and reducing stock holdings, including Apple, as he believes economic conditions may worsen.

  5. ๐Ÿšจ The FED's decision to lower interest rates by 50 basis points in August and September 2022, despite a seemingly strong economy, signals uncertainty and potential market volatility.

(9/18/2024)

  1. ๐Ÿ”Œ France experienced negative electricity prices in mid-2022, with rates as low as โ‚ฌ0.2225/MWh on the EPICs spot exchange due to poor demand, excess supply, and 70% nuclear power generation.

  2. ๐Ÿ’ก Zero or negative wholesale power prices have reached record highs in major European markets like Germany, France, and Spain due to soaring renewable energy generation and supply-demand mismatches.

  3. ๐Ÿ”‹ The increasing frequency of negative pricing scenarios in Europe is leading to slower investment, reduced capacity additions, and a greater need for energy storage investment.

  4. ๐Ÿ’ช The 2022 economic downturn may be unique in history, with a prepared group of people worldwide ready to charge forward and potentially dominate the next crisis.

  5. ๐Ÿš’ Courage, as defined by the Economic Ninja, involves facing fears for a greater purpose, exemplified by his personal experience as a firefighter overcoming a fear of heights.

(9/19/2024)

  1. ๐Ÿฅˆ Silver is poised for a significant price increase in 2024-2025, with the current gold-to-silver ratio of 84 suggesting it's undervalued compared to gold.

  2. ๐Ÿ”ฌ Silver has more patents and industrial applications than any other metal, with its unique electrical conductivity making it the standard for metal testing.

  3. ๐Ÿ“‰ A potential short-term sell-off in silver futures due to the Federal Reserve's 50-basis-point rate cut may create a buying opportunity for investors.

  4. ๐Ÿ’ฐ Prominent investor Eric Sprott is reportedly considering converting some gold holdings to silver, indicating strong bullish sentiment for the metal.

  5. ๐Ÿ“Š Silver has slightly outperformed gold this year, and its suppressed price combined with the low gold-to-silver ratio may present a significant investment opportunity.

(9/19/2024)

  1. ๐ŸŒŠ The discovery of a World War II ship in the South China Sea has heightened tensions between China and the Philippines, potentially drawing US intervention and escalating the dispute into a crisis.

  2. ๐Ÿ๏ธ The US is strategically rebuilding World War II-era airbases in the Pacific, including Tinian Island near Guam, to prepare for potential conflict with China, leveraging the region's proximity to Tokyo.

  3. ๐Ÿ›ฉ๏ธ US Marines are enhancing their aviation capabilities by reopening World War II-era airfields in the continental US and Pacific islands, such as Camp Davis, North Carolina and Pou.

  4. ๐ŸŒ The US is orchestrating a World War III scenario by coordinating forces with the European Union and Australia for exercises in the strategically crucial South China Sea.

  5. ๐Ÿ† American strategy involves simultaneously pressuring Russia and China, supplying Ukraine with munitions while attempting to determine which superpower will crack first under the strain.

(9/18/2024)

  1. ๐Ÿฆ The Federal Reserve's 50 basis point rate cut, instead of the expected 25, indicates a worse economic situation than previously thought, potentially leading to a market downturn.

  2. ๐Ÿ’ฐ The Fed, a private bank owned by a handful of banks, prints money and loans it at the highest sustainable interest rate, aiming to maximize profits while avoiding borrower defaults.

  3. ๐Ÿ“‰ Banks typically lower interest rates during economic downturns to stimulate lending, despite earning less interest, suggesting the aggressive rate cut signals serious economic concerns.

  4. ๐Ÿ•ต๏ธ Analysts will likely question the Fed's aggressive rate cut, potentially uncovering that economic conditions are worse than publicly acknowledged.

  5. ๐Ÿ”„ The Fed's actions may be an attempt to prolong economic pain for the American public, rather than addressing underlying issues directly.

Go out and crush it!

-Ninja Out

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