If you enjoy making money, you may want to open this email….
Have you ever held a beach ball underwater?
What happens when you let go of it?
It EXPLODES upwards, right?
But before that moment, it’s energy is suppressed…
Just waiting under the surface…
I caged beast….
It takes a lot of effort and force and manipulation to hold that beach ball under there, right?
THAT is EXACTLY what is happening right now, at a global scale, and the reason you need to read this letter and share it with 999 of your closest friends.
(fair warning, I’m not going to get into the nitty gritty details, I’ve done that previously in this letter -> LINK , going to try to stick to an analogy that will actually make sense for you!)
The beach ball = the bond market.
The bond market is a $200 Trillion (Conservatively) beach ball, which is being held underwater primarily by the United States Federal Reserve, and their amazing invention, the money printer.
Now, in order to get this analogy right, we need to RETHINK the BEACH BALL.
Picture this….
A giant swimming pool, in an arena, half full of water.
There’s a giant beach ball inside the pool, massive.
On the side of the pool is a robot.
It has a HUGE robot arm. And its only job is to force that beach ball underneath the water.
So that’s what it does!!
But this is key… as it does this, what happens to the height of the WATER????
It goes up, right?
The beach ball takes up SPACE in the water, so the water RISES.
Let’s say that the water = ASSET PRICES.
Assets = Stocks, Bitcoin, Housing, Small Businesses, etc.
Still with me? That’s exactly what happened this year and last year during Covid.
The government PRINTED MONEY.
They suppressed the bond market (remember it’s worth $200 Trillion and is represented by the beach ball).
And the WATER (asset prices) rose in conjunction with it.
That’s why we had
A stock market at all time highs during a pandemic
Bitcoin at all time highs during a pandemic
Housing prices at all time highs during a pandemic
(For those who want to get technical with it, SUPPRESSING the bond market just means that the INTEREST YIELDS on things like the 10Y note have been going down down down down…)
Now here’s the thing.
Here’s where it gets crazy.
I believe we’ve reached a breaking point.
The water has gone all the way up to the top of the pool….
It is lapping over the sides, leaking into the stadium…..
Naturally, the beach ball is RISING slightly (because there isn’t as much water in the pool).
STICK WITH THE ANALOGY I SWEAR IT MAKES SENSE.
If you have been watching the markets the past few weeks you’ve seen the exact same headlines over and over and OVER again….
“Explainer: Why rising rates are unsettling Wall Street” - AP News
“Stocks waver as bond yields rise…” The Wall Street Journal
“Powell needs a stock selloff to act on bond yields” - Bloomberg
It’s everywhere.
Anytime you hear the words “Bond Yield” or “Rising Rates” or “10Y Treasury Yield” just think of this beachball analogy.
The reason rates are RISING right now (the Beach Ball) is because the Bond Market has been held underwater for too long.
It is fighting back.
That money WANTS to go somewhere else.
I mean, honestly why shouldn’t it?
Would YOU want to earn 1% interest on your money when inflation is closer to 10-20%?
Of course you wouldn’t.
And neither would any of these people in the bond market.
So, they are selling them.
And when they sell them, the rates HAVE to go up to try to encourage people to stay.
That’s why the market is barely up today EVEN when we passed a $1.9 TRILLION DOLLAR STIMULUS!
It’s crazy!
Typically if that had happened over the weekend markets would be ROARING right now.
Absolutely BONKERS that they are not.
What that tells me is simple.
The market is literally SCREAMING that it wants YIELD CURVE CONTROL.
It’s saying, in no uncertain terms, “if you don’t shove this beach ball back underwater we are NOT going to cooperate.”
And that’s the thing, the only way to shove it back underwater is to go crazy.
The first robot isn’t enough.
They need another, much larger robot.
This robot is gigantic, and made of Teflon.
It comes in and on the side of it is a “guarantee”.
It says, “I will NEVER, ever, EVER, EVER let the beach ball rise.”
That’s what Yield Curve Control is.
It is the government stepping in and saying, “We will NEVER let interest rates go up. We are CAPPING them at x %.”
By doing that they are COMMITTING to printing READ: AS MUCH MONEY AS NECESSARY to make sure that assets are pumped up, stocks and everything else GOES UP.
It really is as simple as that.
In a country and World where the economy is judged by ONE FACTOR, and ONE FACTOR ONLY (the stock market) the Gov simply can’t afford to let it slip.
(They also LITERALLY can’t afford to let the interest rate rise or else they won’t be able to pay the INTEREST on their own DEBT, lol)
So, what I’m telling you is that they LITERALLY have no choice.
Yield curve control is incoming, and Yield Curve Control = ROCKET FUEL FOR ALL ASSETS.
I know I just talked about Beachballs and Robots and you may be thinking “WTF is Yield Curve Control” but honestly you don’t need to know all the details because it gets really really hairy and technical….
YOU CAN JUST FEEL IT IN THE AIR.
$1,900,000,000,000.000 YES THAT’S 1.9 TRILLION barely affected the markets today…
That’s absolutely ridiculous.
That’s because there’s a $200 trillion dollar beach ball being shoved down into a pool, starting to rise, and breaking everything.
The only way to fix it is to bring in the other robot and shove that water up, over the edge, up over the walls of the stadium, and out the freaking top.
REMINDER: THE WATER = ASSETS.
The rich will get richer.
Those that hold assets will see those assets explode in value.
And the bottom 90% will get screwed.
I’m sending this email as a warning shot.
If you don’t know what YCC is, you should do your research, or read my other letters.
If you do, or you can FEEL the beach ball analogy simply like I can, you need to get your money OUT OF CASH and into ASSETS.
Honestly anything ELSE is better than holding cash in a bank account right now.
This year is going to be WILD, and one of the biggest WEALTH TRANSFERS in the HISTORY OF THE WORLD.
I simply want you to be on the right side of that transfer.
I hope this made sense.
Let me know in the comments.
Subscribe, for heavens sake.
I gave out my asset PRICE PREDICTIONS to SUBSCRIBERS ONLY on FRIDAY, and you may have missed it….
You can read it for free for 30 days…
Kale
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