Justin Mohr Show

The Federal Reserve has finally done what many have thought wouldn't happen…The Fed will begin shrinking its bloated, $4.5 Trillion balance sheet in October. This is the right thing to do but the question is can our economy handle it? No, our economy is addicted to this funny money so this move by the Federal Reserve is the pin inching closer and closer to the balloon. This tightening by the FED will lead to the exposure of this fake recovery. All of the malinvestment that has taken place in our economy for years now will be shown for what it is…unsustainable! The question is…why is Janet Yellen really doing this? Why does she seem so bold and fearless now? Let me connect a few dots for you and I believe I have the answer to this odd scenario we find ourselves in today.

President Trump worked out a debt ceiling deal with Democrats to push out the debt ceiling issue until December 8th. Trump is acting more and more like a democrat and the status quo of Washington D.C.! The swamp isn't going to be drained and size of government will not be cut either! This is not going to end well when our national debt passed $20 Trillion on September 8th! Protect your savings! The dollar isn't safe so act accordingly.

Hurricane Harvey is looking like it will be the costliest natural disaster to ever occur in the United States. This devastation has destroyed the lives of millions of people. The Keynesians view disasters as a good jobs program that can boost the economy and keep spending going. How ridiculous is this!? But this is really how these "economists" think and it's crazy that people can believe this garbage. Price gouging is seen as a negative but allowing prices to rise during disasters allows goods to flow to their most efficient uses. It's basic economics and the government shouldn't be interfering because they screw things up just like they always do!

Janet Yellen gave a speech in Jackson Hole Wyoming last week and she didn't address monetary policy at all! Many commentators were surprised by this and she focused mainly on regulations. She pointed out how the FED and congress responded correctly during the 2008 financial crisis by imposing more regulations on the financial sector. She says these regulations have made our economy more resilient than it was 10 years ago! The main point missed by all commentators out there is that she's doing this to set up the narrative that deregulation will be to blame for the next financial crisis! This will be the way to protect her legacy and the democrat party and it will leave all the blame on Donald Trump and the Republican Party! Everything is political my friends.

Household debt has hit a record high of $12.8 Trillion! This is the highest we have seen since the financial crisis bottomed in 2009. 30 day credit card delinquencies are on the rise standing at 6.2%. One year ago that same figure was 5.1%! 90 day credit card delinquencies are on the rise and this is a sign that the average consumer is being squeezed. The cracks in the very faulty U.S. economy are beginning to appear and this is not the recovery most people think that's taking place. $51 Billion worth of auto loans last quarter went to people with a credit score under 660. (this is considered subprime) Folks, crap is about to hit the proverbial fan and understanding what's coming next puts you leap years ahead of everyone else out there. Stay tuned.

Is bitcoin money? Keith Weiner discusses why gold is crucial in an economy and that bitcoin isn't money. Keith also discusses why the system if failing today. His view of why the system is failing is much different than the mainstream view. You don't want to miss this insightful interview with Keith Weiner!

Keith Weiner talks about money and what real money (gold) is. He argues that gold can't circulate without an interest rate so his big push is to give gold a yield. So to transition to a gold standard, Keith argues gold must have an interest rate first. Also, many confuse the terms of speculation vs. investment and Keith makes a clear distinction between these two terms and they're actually opposites. And should the average person invest in gold miners? All this and more answered! Don't miss Part 2 of this in depth discussion of money with Keith Weiner!

The crisis in Venezuela continues to get worse. On January 1st 2017, $1=$3,000 Bolivars, today $1=$8,000 bolivars. The inflation keeps getting worse and experts are now projecting over 2,000% inflation in 2018! The government keeps trying to seize more control to "fix" the economy. The insanity in Venezuela could easily be fixed if people only understood the government always makes matters worse and they never can help you! The free market and the private sector and embracing capitalism is the only way out!

Janet Yellen is taking back some comments she made back in London two weeks ago. Janet Yellen had said she really doesn't see another financial crisis happening in our lifetimes. Why would she say this? She says this because she sees that government regulations can protect us. Dodd-Frank was passed as a response to the housing crisis and she really thinks this will protect us. The only way she thinks we will have another crisis is if we repeal this regulations! Yes, she's already setting up the new narrative for the next crisis, DEREGULATION! Which of course that's the cause of the next crisis at all. Big government and the fed are to blame. They are always the ones that cause crisis after crisis but they will never see it.

The state of Illinois is on the verge of bankruptcy. $15 Billion in unpaid bills and no budget plan going on 3 years running. The state legislature in Illinois has worked out a budget deal that's suppose to pull the state back from the brink but it won't! The budget bill doesn't reform the pension problem in a meaningful way and it's the underfunding of state pensions that has largely led to this debt in Illinois. The future obligation to pensions in Illinois is $251 billion! The state legislature thinks raising $5 billion in taxes by increasing the state income tax by 32% is a good idea! When will these politicians learn?