27 Comments

Conservative Americans have no representation in any material way and its a mistake to think the big banks are our allies.

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I don't believe big banks are our allies, but they, like ourselves want to keep their livelihoods intact and not in deference to the WEF scum. IMHO

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Tom Luongo has interesting theories. I follow a lot of channels (not MSM) to get as many ideas as possible then I’ll make my own opinions. I listening Tom’s agreements almost for 2 years. He is even more brutal behind pay wall. Anyway, I think he was the 1st one arguing that Powell and Dimon are on the same team. It didn’t make any sense when JPow start raising rates and then Dimon went to Davos and told Bloomberg on live TV - wake up, the oil will be here for about 50 years or so.

Most of Tom’s thoughts make sense, worth to consider to watch.

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Oct 21, 2023
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I'm not sure that Powell sees his job as promoting full employment for the work forces at big banks. I AM sure that JPMorgan is making money hand over fist.

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I wonder if the NY boys are wary about how CBDCs would affect commercial banking. How would capital be raised? How would markets operate? Who would determine distribution.

Seems like a rehash of the Roundheads against the Cavaliers, parliamentarians vs the crown.

CBDCs represent ‘digital feudalism’ (great term and a lot is written on the topic) whereas capital represents freedom of capital flow.

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You are right. Retail CBDCs would DESTROY commercial banking. There should be absolutely no question about how the NY boys feel about that idea.

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It's one of the reasons I think they definitely have a dog in this fight. They absolutely can't count on the RINOs to protect their interests. Their interests are probably more reconcilable with those of the Jordan wing--but it's clearly in the minority.

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The "Fed and the NY boys" will save the day! Please give it a rest, Tom. You're just trying to jam facts into your big theory.

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You can boil what Luongo has been saying for a long time into this: The Fed and the NY Boys have a dog in this fight--this fight being, who runs Capitol Hill. Fact: The big NY banks are big political donors. Correction: huge political donors. Fact: Political donors of that size don't make contributions without expecting something in return.

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Never paid much attention to TL *until* (going back to the Spring) he put forth his proposition that certain NY banks + The Fed were going to war against EU. Other than his constant shilling for Au, I find the man has some worthy ideas. If nothing else, he has shown that there are a lot of moving parts in this game.

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It's also a fact that disagreements about war are very much at the heart of the divisions within the GOP. Dimon is on record as opposed to more war, Yellen is cheerleading two or more wars.

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“Disagreements about war are very much at the heart of the divisions” within families too. Returning from a family event in CA, even the lotus eaters are feeling the heat - outright panic I would say. Well-off, two cars (German natürlich!), sprawling home with pool and old-growth palm trees, private schools costing tens of thousands per month, LV handbags…anyway, this person could not pick up the bill for a bowl of cereal - make that 2 bowls! - when I casually but graciously offered to take him and family out for drinks on their next trip to Paris, he insisted we would split the cost of the drinks! $32 in porridge we’re talking! So while not exactly war, the “Dimon/Yellen” clash is operating on even the interpersonal, family level.

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People like that are certainly not ready for a real war against a peer or superior military power allied with the people who send us most of our stuff. Perhaps that's why Sachs was telling Nap that opinion (recall the CBS polls I cited) really is swinging against war. Sachs would know what the elite are thinking.

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I agree with all you say about the political realities behind the big banks and their donations. My point is a broader one: the Fed's rates policy might tame inflation and sock it to whoever challenges the big NY banks, but it will also destroy the economy. And even the big NY banks need some kind of healthy economic landscape to survive. A moribund economy means no-one taking out loans or paying them back. In short, the Fed and the NY banks can be as cunning as Tom believes them to be, but at the end of the day it will probably be of little account.

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Mortgage rates just surpassed 8%. Expect another Fed increase.

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Luongo’s TOE explains alot. Interest rate hikes have very little to do with inflation and everything to with destroying the WEF euro commies and restoring our troubled economy which is getting hollowed out by artificially low rates. The same ultra low rates have enabled grossly high govt spending. Pain yes but time to get out of this globalist mess.

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Agreed that the interest rate hikes don't have much to do with inflation - inflation is still rising. However, higher interest rates also bring massive problems of their own to an economy that is built on sands. As for reining in higher government spending, where do you see evidence of that, Ned? The debt is growing exponentially and they are writing out cheques for Israel as we speak.

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But who thinks Powell and the NY Boys don't know that about higher rates. Powell knows it very well and that's why he told Congress that he wasn't obliged to help with their deficits. The spending is on Congress, not Powell (well, he was snookered bad during Covid and probably learned from that). Interest rates aren't all that high--BUT FOR the deficit spending at unprecedented levels. Luongo's argument is that Powell is trying to face Congress down.

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As an unaccountable bureaucrat I can affirm that spending is tightening up in my house. It's just a little bit, but enough to cause serious headaches.

Government spending is a colossal ship, and the interest rates are a small rudder. It will take time to turn, hopefully not so much that the colossus can simply wait for Powell to go away.

But then, even if Powell goes away, the NY Boys are plainly activated now. Who knows what other cards they might have to play.

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Oct 20, 2023
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Good point, Castelletto. I think he may not be a Davos guy, but a guy who knows who butters his bread and it's big banks donors.

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I don't know if McCarthy is a Davos guy (I'll take your word for it about having heard Luongo say that) but he is most definitely a Uniparty RINO guy who might as well be a Democrat (much like Paul Ryan).

Luongo has wondered which power brokers backed Gaetz against McCarthy and his RINO friends. How many possibilities are there? If that support was from the NY boys (and I don't think Luongo has stated this but may have implied it) then we can also say that the NY boys don't like the RINO contingent as a whole. If we still end up with a RINO Speaker (a la McCarthy and Ryan) the RINOs will have been exposed for what they are and will likely be primaried. Gaetz stated that was his goal in taking out McCarthy to begin with.

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Yes, would it be better to say McCarthy is pwned by the big banks? Was looking through old Luongo posts, and boy, he hits the nail on the head, most recently:

https://tomluongo.me/2023/09/23/approaching-the-bond-yield-event-horizon/

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Normalizing the yield curve. It’s almost there. The 10 year briefly went over 5 this week. Another half a percent to go. Problem is that I believe the long end of the curve is is just getting started. I could see it easily doubling if the fiscal insanity in congress continues. When it all implodes, we can all own nothing and build back better. Ha. Ha. Great.

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Oct 21, 2023Edited
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Huh! Well, it's a big, BIG private club and we ain't in it.

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