Biden Administration in Panic Mode as This Just Crashed 50%

Steven Van Metre
1 Apr 202420:28

Summary

TLDRThe video discusses the Biden Administration's concerns over the US economy, particularly the impact of the Fed's rate decisions on economic growth. It highlights the recent ISM data, which, despite showing slight expansion in manufacturing, indicates underlying issues such as continuing job cuts and shrinking order backlogs. The video also explores the relationship between the US dollar, Fed policy, and manufacturing activity, suggesting that a strong dollar could potentially lead to rate cuts. Additionally, it features Power Metals Corp, a Canadian mining company with potential for significant stock growth, emphasizing the importance of conducting personal research before investing.

Takeaways

  • 📉 The Biden Administration is reportedly in a state of panic due to a significant economic indicator's decline.
  • 💹 The US economy faces potential devastation if the Federal Reserve does not cut interest rates as expected.
  • 🤔 There is uncertainty regarding whether President Biden can maintain his position before the upcoming elections if the economy does not improve.
  • 📈 The June Fed rate cut odds have dipped below 50% following strong ISM data, which is a setback for the Biden administration's plans.
  • 🏭 US manufacturing has slightly expanded but this comes after 16 consecutive months of contraction, signaling underlying issues.
  • 📊 New orders for manufacturers are critical and although there is a slight increase, employment figures suggest ongoing layoffs.
  • 🔄 The backlog of orders continues to contract, which may lead to further workforce reductions in the manufacturing sector.
  • 📈 Retailer inventories are high, but this does not necessarily indicate a healthy economy or demand.
  • 💼 The labor market is a key factor to watch, as continued claims rising may indicate a slowdown in manufacturing activity.
  • 🌐 Rising oil and raw material costs, along with increased transportation rates, are contributing to higher production costs for manufacturers.
  • 💲 The strength of the US dollar could potentially influence the Federal Reserve's decision on interest rates, offering a glimmer of hope for the Biden administration.

Q & A

  • What is the main concern for the Biden Administration mentioned in the transcript?

    -The main concern for the Biden Administration mentioned is the potential negative impact on the US economy due to the Fed rate cut odds dropping below 50% after strong ISM data, which could be problematic for their plans before the November elections.

  • How does the transcript suggest the market reacted to the June Fed rate cut odds dipping below 50%?

    -The transcript suggests that the market reacted by adjusting the fed easing expectations for the year, with swap contracts pricing in fewer than 65 basis points, indicating a reduced likelihood of multiple rate cuts before the elections.

  • What was the significance of the ISM manufacturing PMI for March according to the transcript?

    -The ISM manufacturing PMI for March was significant because it exceeded all estimates in the Bloomberg survey, leading to a market reaction where bond yields increased and the possibility of a Fed rate cut was questioned.

  • What does the transcript imply about the current state of the US manufacturing sector?

    -The transcript implies that the US manufacturing sector has been through a challenging period, with contraction for 16 consecutive months, and while there is a slight expansion indicated by the PMI of 50.3, there are concerns about the sustainability of this growth due to factors such as a backlog of orders contraction and employment issues.

  • How does the transcript connect the state of the US labor market to the performance of the manufacturing sector?

    -The transcript connects the US labor market to the manufacturing sector by suggesting that continued job cuts and a potential slowdown in new orders could be a result of a lack of demand and high labor costs, which could lead to a decline in manufacturing activity.

  • What is the potential implication of the bond market's reaction to the Fed's rate policy?

    -The bond market's reaction suggests that rates may stay higher for longer, which could indicate a belief that the Fed has not fully addressed the economic challenges and that the economy may not be as resilient as suggested by some data points.

  • What does the transcript suggest about the role of consumer spending in the US economy?

    -The transcript suggests that consumer spending plays a critical role in the US economy, with total compensation trends influencing manufacturing activity. If consumers do not have the money or access to credit, they will not spend, which can lead to a decline in new orders and manufacturing activity.

  • How does the transcript discuss the impact of rising costs on manufacturers and consumers?

    -The transcript discusses that rising costs, such as oil and raw material prices, along with increased transportation rates, have led to higher producer prices. However, it also notes that manufacturers raising their prices does not guarantee that consumers will be willing or able to pay more, which could lead to a decrease in demand.

  • What is the significance of the yield curve inversion mentioned in the transcript?

    -The yield curve inversion, where short-term interest rates are higher than long-term rates, is typically seen as a warning sign of an impending economic downturn or recession. The transcript suggests that this inversion is not yet over and that the manufacturing sector could face further challenges.

  • What hope does the transcript offer for a potential Fed rate cut?

    -The transcript suggests that a rising dollar could potentially lead to a slowdown in the US economy that might prompt the Fed to cut rates. This is seen as a potential hope for the Biden Administration and a factor that could provide some relief before the elections.

  • How does the transcript describe the potential impact of the discussed economic factors on the stock of Power Metals Corp?

    -The transcript describes Power Metals Corp as being well-positioned to take advantage of the North American battery initiative with high-grade lithium and cesium projects. It suggests that the stock could experience a significant increase in value due to market expectations and past performance.

Outlines

00:00

📉 Economic Concerns and Market Reactions

The paragraph discusses the Biden Administration's panic over a significant economic downturn, with a particular focus on how a 50% crash is affecting the US economy. The host, Steve Van Meter, highlights the administration's hope for rate cuts to stimulate the economy before the elections. The market reaction to the strong ISM data, which reduced the odds of a June Fed rate cut, is also detailed. The paragraph further explores the implications of the manufacturing PMI report and the potential misinterpretation of data by the market, emphasizing the ongoing challenges in the US economy despite signs of recovery.

05:00

📈 Retail Trends and Manufacturing Activity

This paragraph delves into the retail sector's inventory trends and their impact on manufacturing activity. It notes the slowdown in retailer order demands and the potential consequences for the manufacturing sector. The discussion includes the Philadelphia Fed General Business Activity Index and its relationship with retailer inventories. The paragraph also addresses the challenges faced by the economy due to the post-pandemic money circulation and the bond market's indication of higher rates for a longer period. The impact of personal income and spending data on the Fed's decision-making process is also highlighted.

10:01

💰 Rising Costs and Its Impact on the Economy

The paragraph focuses on the increasing costs due to higher oil and raw material prices, as well as transportation rates, and their effect on the economy. It examines the relationship between the prices paid index, treasury yields, and manufacturing sector performance. The paragraph suggests that the market's belief in higher rates may not align with the actual economic situation. It also discusses the banking sector's role in the economy, particularly how banks' tightening of lending standards affects demand and manufacturing activity. The potential for an economic crash and its implications for the Biden administration are also considered.

15:03

💸 The Role of the Dollar in Economic Stability

This paragraph explores the impact of the US dollar's strength on the economy and the potential for Fed rate cuts. It discusses how a rising dollar can lead to a decrease in US manufacturing activity due to a shift in demand to other countries. The paragraph also considers the possibility of the dollar's strength prompting the Fed to cut rates to stimulate the economy. The discussion includes the relationship between the dollar and Fed fund policy and the implications for the US economy leading up to the elections.

20:05

🚀 Investment Opportunities in Power Metals Corp

The final paragraph shifts focus to an investment opportunity with Power Metals Corp, a Canadian mining company. The host discusses the company's potential for growth, highlighting its exploration and development of cesium, lithium, and tantalum. The paragraph emphasizes the strategic location of the company's projects, experienced management team, and strong financial position. It also provides information on the company's stock performance and potential for a significant increase in value, encouraging viewers to conduct their own research before investing.

Mindmap

Keywords

💡White House panics

The phrase 'White House panics' refers to a state of alarm or distress within the U.S. administration, particularly in response to a crisis or significant challenge. In the context of the video, it suggests that the Biden administration is facing a critical situation that could potentially impact the U.S. economy and the upcoming elections. The video implies that the administration's concerns are related to economic indicators and the Federal Reserve's policies.

💡Biden Administration

The 'Biden Administration' refers to the executive branch of the United States government under the leadership of President Joe Biden. In the video, this administration is portrayed as being deeply concerned about the economic outlook and its potential effects on their political future, especially in relation to the upcoming elections.

💡Fed rate cut

A 'Fed rate cut' refers to the Federal Reserve's decision to lower its target interest rates, which can stimulate economic growth by making borrowing cheaper for consumers and businesses. In the video, the Biden Administration is said to be hoping for rate cuts to boost the economy, but the strong ISM data may make this less likely, as it suggests the economy is doing better than expected.

💡ISM data

The 'ISM data' refers to the Institute for Supply Management's manufacturing and services indexes, which are leading economic indicators that reflect the health of these sectors. In the video, the ISM manufacturing index exceeded expectations, indicating a stronger economy and reducing the likelihood of Fed rate cuts.

💡Manufacturing PMI

The 'Manufacturing PMI' (Purchasing Managers' Index) is a business indicator that tracks changes in business activity within the manufacturing sector. A PMI reading above 50 indicates growth, while a reading below 50 indicates a contraction. In the video, the Manufacturing PMI is used to analyze the state of the U.S. manufacturing sector and its potential impact on the broader economy.

💡Economic expansion

An 'economic expansion' refers to a period of increasing economic activity, typically characterized by growth in GDP, employment, and income. In the context of the video, the U.S. manufacturing sector's slight expansion is mentioned, but it is questioned whether this signals the beginning of a new, broader economic expansion or is just a temporary improvement.

💡Retailer inventories

Retailer inventories refer to the stock of goods held by retailers for sale to customers. These inventories are a key component of the supply chain and can influence production decisions by manufacturers. In the video, the level of retailer inventories is discussed as a potential indicator of future demand and its impact on manufacturing activity.

💡Backlog of orders

A 'backlog of orders' is the accumulation of purchase orders that a company has not yet fulfilled. It is an indicator of future business activity, as it represents the work that needs to be done to satisfy existing customer demand. In the video, the continued contraction of the backlog of orders is highlighted as a concern, as it could lead to reduced workforce and decreased manufacturing activity once the backlog is cleared.

💡Labor market

The 'labor market' refers to the collection of all labor services available for work, including the people who are employed, those who are unemployed but seeking work, and those who are not actively seeking employment. In the video, the health of the labor market is discussed as a critical factor for the overall economy, with a focus on employment levels and wage growth.

💡Yield curve

The 'yield curve' is a graphical representation of the interest rates of bonds across different maturities. It is used to analyze the health of an economy, with the shape of the curve providing insights into future economic conditions. A normal yield curve slopes upward, with longer-term bonds yielding more than shorter-term ones. An inverted yield curve, where short-term rates are higher than long-term rates, is often seen as a predictor of an economic recession.

💡Power Metals Corp

Power Metals Corp is a Canadian mining company that explores and develops resources such as cesium, lithium, and tantalum. In the video, the company is presented as a potential investment opportunity due to its strategic positioning and the growing demand for these metals in the context of the battery and technology industries.

Highlights

The Biden Administration is reportedly in a state of panic due to a significant economic indicator.

A key economic metric has dropped by 50%, raising concerns about its impact on the US economy.

There is speculation that President Biden may be able to maintain his position before the elections through certain economic strategies.

The Federal Reserve's decision not to cut rates has been identified as a problem for the Biden administration's economic plans.

ISM data indicates that the US manufacturing sector has slightly expanded, but this comes after 16 consecutive months of contraction.

New orders for manufacturers are critical and have shown a slight increase, but employment figures suggest ongoing job cuts.

Retailer inventories are near record highs, which may indicate a mismatch between inventory and consumer demand.

The backlog of orders continues to contract, which could lead to further workforce reductions in the manufacturing sector.

The labor market's resilience is being questioned as continued claims rise, potentially affecting manufacturing activity.

Total compensation trends suggest that consumers may not have the funds or access to credit to drive economic growth.

The banking sector's tightening of lending standards could further suppress demand and impact the manufacturing sector.

The yield curve inversion suggests that financial conditions are tightening, which is typically bad news for banks and the economy.

There is optimism in the manufacturing sector for the second and third quarters, but there are concerns that this may not materialize.

The rise of the US dollar could potentially lead to a slowdown in the US economy and possibly trigger a Fed rate cut.

Power Metals Corp, a Canadian mining company, is highlighted as having a potential for a significant stock price increase.

Power Metals Corp has a strategic location and is exploring high-grade lithium, cesium, and tantalum projects.

The company's stock has shown potential for rapid increases, with a historical pattern of price squeezes.

Investors are advised to conduct their own research before making any investment decisions regarding Power Metals Corp.

Transcripts

play00:00

the White House panics I'm your host

play00:03

Steve Van Meter and thanks for joining

play00:04

me today and our lead story The Biden

play00:07

Administration is in full panic mode is

play00:09

this just crashed by 50% we'll show you

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why this is so worrisome for the Biden

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Administration and how it will actually

play00:17

end up devastating the US economy but is

play00:21

there some hope that President Biden can

play00:23

hang on to before the elections we'll

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show you what that is plus we have a

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sponsor Today Show we'd like to welcome

play00:29

power medal Corp you can find them on

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the OTC under symbol

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pwrmf and on the tsxv under symbol pwm

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they're one of Canada's Premier mining

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companies and I'm going to show you an

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incredible chart setup that could

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squeeze this stock up by 32% in a matter

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of a day or two you don't want to miss

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this this an incredible setup stay tuned

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to the end of the show to see that or

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check out the pin comment or description

play00:55

for more information now let's H to

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Bloomberg where he picked today's story

play00:59

up with the had line the June Fed rate

play01:01

cut odds dip below 50% after strong ISM

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data and this is a huge problem for the

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Biden administration because they have

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been talking about how the economy needs

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rate Cuts this is a big victory if they

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can get to Fed to cut rates maybe two or

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three times before the November

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elections this would be huge for them

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but based on this data today well it

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takes off the table we'll show you what

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the market reaction here but this is not

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the news of Biden Administration wanted

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the problem is it's going to end up

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devastating the US economy but maybe

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maybe there's a little hope we'll show

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you what that is but let's continue on

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as the amount of fed easing priced into

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swap contracts for this year dropped to

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fewer than 65 basis points lesson fed

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policy makers themselves have forecast

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after the ISA manufacturing for March

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exceeded all estimates in the Bloomberg

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survey Economist a bom Market itself

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here in soon which the two to 30e yields

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Rose by at least 10 basis points on the

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day and actually extended that since

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this article was printed among their

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biggest daily increases this year as a

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market said wait a minute maybe we have

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this wrong maybe rates aren't high

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enough maybe they need to go back up

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maybe the FED nailed this soft landing

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and we are at a new normal and race that

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is highly unlikely but let's take a look

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at that ISM report and see what the

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market reacted to because here you can

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see the manufacturing PMI came in at

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50.3 now the way you read this is

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anything over 50 denotes an expansion

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over the prior month anything under 50

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is a contraction over the prior month so

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in this case at 50.3 what's it telling

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us is a US manufacturing centor only

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ever so slightly expanded over last

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month but that isn't the big deal it's

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because this happened after con

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Contracting for 16 consecutive months

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that's the issue and demand now remains

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at the early stages of the recovery

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which is what the mark Market believes

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would clear signs of improving

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conditions I'm going to show you why

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that that isn't the case at all and the

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Market's Mis reacting to the data here

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but what matters is everyone thinks that

play03:11

the US economy has now gotten through

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the worst part and that the beginning of

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this you know new expansion is starting

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and the evidences in the manufacturing

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sector when we dig into the data we'll

play03:22

find out that's not the case at all but

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let's take a look at the glance report

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here you can see that 50.3 number but as

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you drill down a little bit here's the

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real excitement is in new orders at

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51.4 now you may remember we talk about

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how new orders is absolutely critical

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that you need to see an increase in that

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so 51.4 you know we get an increase over

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last month would had a very slight

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contraction look at this employment

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though and things since where it stops

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to add up because the prior month it was

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45.9 now it's a 47 indicating that

play03:56

manufacturers are still cutting

play03:58

employees just slight

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but we dig deeper and customers are

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saying well they don't have enough

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inventory and that really doesn't make a

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lot of sense because retailer

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inventories are sitting near record

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highs what this may actually mean is

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they have the wrong inventory that is

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the problem but look at this the backlog

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of orders continues to contract this is

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something that of course the market

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isn't really paying attention to because

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at some point if you eat away through

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your backlogs and you don't have enough

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new orders to support your existing

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Workforce well then what happens is

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exactly what that report said is you

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continue to trim workers and that is

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dangerous let's talk about what's going

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on with the retailers here if we have

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retailer inventories now we don't have

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the ism data we're pulling this from the

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Fred databases from the St Louis fed but

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we do have the Philly fed General

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business activity index which is a pulse

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of the manufacturing sector and this is

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wonderful because the data goes back a

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very long ways now when we take retailer

play04:58

inventories we put that in red

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put it on a year-over-year rate of

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change and you'll notice it doesn't get

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Negative now until it reaches underneath

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that green line and right now retailer

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inventories are expanding just at a

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slower Pace the issue here is you notice

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that as retailer inventor start to come

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down on a year-over-year rate of change

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well so does of course General

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manufacturing activity and that's what's

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key here because we see retailers their

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order demands slow down at time when

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manufacturing here is starting again to

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give be indication that we've got some

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green shoots that we've gotten to the

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worst and the FED did indeed engineer

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The Impossible but did they well not

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quite as the ice report feeds into the

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narrative coming out of last week

play05:42

whereby the economy's resilience enables

play05:45

a fed to be patient and that's just it

play05:47

the FED did the fastest rate hiking

play05:50

cycle in history and they didn't break

play05:52

the economy well at least not yet

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because one of the challenges as will

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show you is the issue comes underneath

play05:58

is that there was a ton of money and

play06:00

from the pandemic still sosing around

play06:02

the economy we know that that go has

play06:04

gone away but not entirely but every

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month it passes a little more and a

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little more evaporates and yet the

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economy isn't growing fast enough to for

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what is to come and for the bond market

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that means rates are going to stay

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higher for longer that was a reaction of

play06:20

course in the bond market suggesting

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well the FED indeed has this right but

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really they don't and here you can see

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the general business activity index it's

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against Federal fund rate and what it

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shows us is in fact the FED should have

play06:33

already been cutting rates because many

play06:35

people look at the Consumer Price Index

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because the FED tells them to it says

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that inflation matters now the FED

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really cares about lending they really

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care about manufacturing they really

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care about the employment sector but

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this time they ignored it well and it

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appears based on the data that they got

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it right but remember we look at the

play06:53

Philly fed data and even though the ism

play06:55

was in contraction for 16 months

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straight we see that this popped up and

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verted so maybe this is a oneoff month

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it's part of a bigger Trend we'll find

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out but what's supporting the Market's

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view here as a Fed got it right it

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developments included a personal income

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and spending data for February that

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showed consumption remains rather strong

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while progress toward lower inflation is

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stalled out subsquently pal reiterated

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that the FED wants to be more confident

play07:21

inflation Trend before cutting rates

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which we know will indeed happen at some

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point and that strong labor market

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conditions means there's no urgency that

play07:29

is until of course the US Labor Market

play07:32

starts to unwind and that's what's

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critical in that ISM data it says hey

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look we are still slightly laying off

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people why is that because the backlog

play07:41

of orders continue to get worked down

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there's not going to be a lot of work

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left for these people we need new order

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growth to Surge in a huge huge way and

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one of the reasons this new order book

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is not going to continue going higher

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has everything to do with total

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compensation if consumers don't have the

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money and they don't have access to

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credit well they're not going to spend

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here we see it's average hourly earnings

play08:03

multiplied by average weekly hours of

play08:05

production of nonsupervisory employees

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that in red shown on a year-over-year

play08:09

rate of change again to the Philly fed

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General manufacturing diffusion index

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and what do we see where the red line

play08:16

goes manufacturing follows and it makes

play08:19

perfect sense now you do get some

play08:20

transitory pieces where while

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manufacturing activity surges and then

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it comes crashing down as of course

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consumers don't have the money to spend

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and you see now that the trend in total

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compensation is lower but everyone's

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starting to look ahead and say wait a

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minute maybe the second half this year

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everything comes out maybe these

play08:40

political Elites were right and we need

play08:42

to get ahead of this before we actually

play08:45

don't have the capacity to meet demand

play08:48

but look at this March employment data

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which is coming this Friday is expected

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to show the slowest pace of job creation

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in several month though the US

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unemployment rate remains at

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historically low levels under 4 % the

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reality is the labor Market's going to

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cause some problems here as well again

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we look at the current General activity

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index for the Philly fed the man pulse

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of the manufacturing sector there but

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let's look at the labor market now

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continued claims shown in red and what

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happens as continued claims rise it

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makes sense that manufacturing activity

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Falls and this is real simple because as

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people go on unemployment and

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particularly St employment not only do

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they have less money but they lose hope

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that the econom is going to turn around

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so they're spending declines that means

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new orders go down and when new orders

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fall eventually General manufacturing

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activity Falls what the market is

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suggesting here is that we plateaued

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that perhaps the cycle of rising

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continued claims is it it caps out

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around 1.8 million I don't think that's

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how it plays out I believe this number

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is going to go higher because what we

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need to see is it start to come down in

play09:53

a big way but a common theme among both

play09:57

surveys was that of soing prices is from

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zero hedge as S&P Global noted that

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higher oil and raw material cost plus

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increased Transportation rates

play10:05

reportedly added the cost Burns at the

play10:07

end of the first quarter now what was

play10:09

the driver behind that well we know that

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West Texas intermediate crude oil prices

play10:13

went up that caused gasoline prices to

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go up and that means producer prices in

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this case indeed go up and the impact of

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rising labor cost was mentioned as a

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factor of pushing up selling price at a

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number of Manufacturers but just because

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manufacturers raise their prices well

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doesn't mean consumers are going to pay

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for it at all but the market believes

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well they have the money let's take a

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look at this because when we talk about

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yields in prices paid there's a very

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strong relationship between these

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diffusion indices and of course what

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Market rates are on treasuries here we

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knowe we have the prices paid index here

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still at Philadelphia with the

play10:50

manufacturing sector against 10year

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treasury as shown in Red so you see

play10:55

slowdowns in the manufacturing sector

play10:57

match declines in treasury yields and

play11:00

this makes really perfect sense when you

play11:02

think about it because if demand's going

play11:04

down in a debt-based economy what does

play11:06

that tell you about rates it simply

play11:08

means they're too high and how do you

play11:10

spur of course people to go out and

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borrow money and finance well certainly

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not higher rates it's actually lower rat

play11:16

so the interest rates then tend to fall

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but notably this cycle No One Believes

play11:21

that here you can see prices paid

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continues to head down ISM saying well

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wait a minute not exactly how that's

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working but what the market believes is

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that not only are rates not high enough

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that they just are going to stay

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elevated for some time what's going to

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happen if indeed the bond market is

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right here at some level that these

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higher rates are really going to bite in

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demand and at some point maybe in the

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months to come we're going to see a huge

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crash in the economic data now this

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would be the worst case scenario for the

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Biden administration because we know

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that never have we seen a president

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running for a second term get reelected

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during recession that would be the the

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worst thing that could happen but will

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that something save this well I'll show

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you what that is here in a bit because

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again we talk about the probabilities

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that the market is right here and then

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indeed we are seeing what looks like

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that soft Landing or no Landing scenario

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play out as the economy emerges and we

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can see this in the banking sector if we

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look at the net percentage of domestic

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Banks tightening commercial industrial

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loans to firms of all sizes and these

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are the money creators in the economy

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again we're going to look at this

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against the general a diffusion index

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for the Philly fed again the

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manufacturing sector and when banks are

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on that tightening lending standards

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well demand goes down we see it happen

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in the manufacturing sector but what

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everyone's excited about is that maybe

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we're coming to the end of the cycle

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unless we're actually not and there's

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strong evidence that we're not there yet

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and we can see that indeed in the yield

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curve now this is where you take the

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10year and you subtra the subtract the

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two-year treasury Y and anytime it's

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under that hor Al black line shows an

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inversion well when you have inversions

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what follows that is yields come down

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now many people think well that's

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wonderful that's great news for the

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economy it's terrible news for the banks

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because it means financial conditions

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are tightening and now let's take a look

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at what happens with that Philly fed

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index to show us that indeed this cycle

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is not over yet because when the curve

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starts to steepen and rates fall what

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happens manufacturing sector falls off

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an absolute Cliff you see that happen

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over and over suggesting that we aren't

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out of the woods yet at all we need to

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see of course rates normalize and that

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doesn't happen until the FED brings

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short-term rates down enough that the

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curve gets un inverted they're not going

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to do that at least there's no immediate

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plans maybe as early as as the summer

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based on the ism data again this is

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dangerous news for the economy which

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tells us that what we're seeing in this

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datea this month is not an actual

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representation of where the US economy

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is headed and that is a problem and you

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see that in this hope and kind of in the

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data here these are some of the

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responses expecting to see orders and

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production pick up for the second

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quarter again everyone's buying into the

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second half narrative as suppliers are

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working with us to help drive cost down

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which will help improve the margin for

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the rest of the year there's another one

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demand remains soft but optimism is high

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that orders are well just on the horizon

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expectations are strong for that second

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quarter and continue to experience a

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softness in the industrial sector there

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is an optimism that order activity will

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increase in the late second quarter and

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how about this business activity is up

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but many manufacturers are anticipating

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Better Business in the second quarter

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and much better in the third quarter the

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is question here is what if that doesn't

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materialize and everybody is running on

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hope that they're just cranking out new

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orders and getting trying to fill up

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shelves and the chance that the economy

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turns around well that would be a huge

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huge problem but there there something

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that could stall at the manufacturing

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sector here in the US that could indeed

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give the Biden Administration some hope

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for some Fed rate cuts and yes it is

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it's called The Almighty dollar as Fed

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rate cut push back puts the Dollar on

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track for a quarterly gain now mind you

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when the market believes the FED is

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either going to keep rates up or perhaps

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even raise rates further which even

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though we see e economic activity

play15:20

picking up here in the ism data Highland

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likely would see the FED respond with

play15:25

higher rates but that tells Market

play15:27

participants because again they believe

play15:28

the correlated to Fed fed fund policy

play15:31

that means the dollars got to go up and

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hawkish remarks from the FED Governor

play15:35

Christopher Waller added the speculation

play15:37

and the central bank is in well no hurry

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to loosen policy and will lag others in

play15:42

pivoting to rate cuts that drove traders

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to pair bets that the FED will start

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easing in June and help Drive the Euro

play15:48

below $18 per dollar for the first time

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in a month and if you take a look at the

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federal funds rate against nominal

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dollar well you have virtually no

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relationship here even though everyone

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thinks there is one but what we do know

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is there are cases where a rising dollar

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does indeed get the FED to cut now the

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question may be why does that happen

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well let's take a look at the general

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activity index again coming back to the

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Philly fed and what happens when the

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dollar goes up other currencies that are

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tied to the dollar which is well

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virtually everything well they go down

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and that means of course people look to

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other places for manufacturing and

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demand so you see periods where the

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dollar is rising usually leavs to a

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decline in US manufacturing activity and

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so maybe the one hope that the Biden

play16:34

Administration has here that could ease

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some of their Panic well that would be a

play16:39

rising dollar so it's enough slowdown in

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the US economy where it gets the FED to

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cut hopefully before the elections the

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challenge I think I'd love to know what

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you think is that we're headed into

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recession by then but can you still make

play16:51

money before that yes you can because I

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think the stock in our sponsor Today

play16:56

Show power Metals Corp is going to make

play16:58

a massive 32% move here could be squeeze

play17:01

I'm going show you how they've done this

play17:02

before and how you can jump and this is

play17:04

going to be a quick one you can find

play17:05

them on the OTC and the symbol pwrmf and

play17:08

on the tsxv under symbol pwm everything

play17:12

in the pin comment and Link description

play17:15

below here you can see they're exploring

play17:17

delivering and developing cesium lithium

play17:19

and tantalum for power Metals again one

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of their Premier mining companies in

play17:24

Canada and this is an unprecedent

play17:26

opportunity as I'm about to show you

play17:28

their tier one jurisdiction for four

play17:31

projects is strategically located to

play17:33

rail hydrop power and infrastructure in

play17:35

Canada they've got high-grade lithium

play17:37

and cesium experienced board and

play17:39

management team here's the key 100%

play17:41

ownership strong financial position

play17:44

here's the best part robust retail

play17:46

holders so as we look at the stock I

play17:48

want to show you that this stock is

play17:49

reflective of what the market believes

play17:51

in this company and that is a big thing

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you can find them again on the otcqb

play17:57

under symol pwrmf on the TXV under pwm

play18:01

and here's the key part if you look at

play18:02

this directors management retail they

play18:04

only hold 30% of the stock meaning of

play18:07

course again the market is trading this

play18:09

as it expects and we look at this

play18:12

horsepower Metals with North American

play18:14

Focus they have their Flagship project

play18:17

case leg displays high-grade lithium at

play18:19

Main and East along with high-grade

play18:21

cesium and we see of course there's

play18:24

battery initiatives all over North

play18:26

America and of course power metals is

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positioned strategically to take

play18:31

advantage of that here you can see they

play18:33

mobilizes their drill rigs to case Lake

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for their winter 2024 drill program as

play18:38

we look at some of the recent press

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releases they've acquired new ground in

play18:42

the south of Hurst a successful drilling

play18:44

progresses at case Lake and here's one

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of the big ones that came out last year

play18:48

win some increases stake and power

play18:50

medals to 19.59% through acquisition of

play18:54

two strategic properties but now I want

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to show you what I think is a huge

play18:58

opportunity in their stock pull it up on

play19:00

your charts pwrmf txx V pwm Let's Take a

play19:05

look here at a 5year chart because what

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I want you to see we have the supply

play19:08

zones drawn in now what these what these

play19:11

are is where buyers and sellers are at

play19:13

so you see this lower one you notice

play19:14

where there's buyers at and what happens

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it usually makes very rapid moves to the

play19:18

next Zone which is way above here where

play19:20

the sellers are at but sometimes when

play19:22

the sellers get squeez a bit the stock

play19:24

can jump and we can go back and see case

play19:27

where popped up here and then got got

play19:28

squeezed higher pulled back got squeezed

play19:30

higher again it did it in this case it

play19:32

jumped here it has done it recently and

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now we're standing up again because at

play19:37

time of recording the stock was holding

play19:39

this zone mean setting up for a 32% move

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higher here you can see the daily CLE

play19:44

six it's holding this Zone last time

play19:46

that happened it jumped up here 32%

play19:49

higher in fact it went even beyond that

play19:51

which is setting up again an

play19:53

unprecedented opportunity in our sponsor

play19:56

Day show Power Metals again on the OTC

play19:58

under civil p wrmf and on the TX XV

play20:01

under symol pwm but as always with any

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company we feature on our show you're

play20:06

under no obligation to purchase their

play20:07

stock be sure to do your own research

play20:09

before placing any trades and with that

play20:11

I'm Steve Van berer thanks for watching

play20:13

thanks for being fans bye

play20:26

now

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Related Tags
Economic AnalysisBiden AdministrationMarket ReactionsUS EconomyFed Rate CutsInvestment OpportunitiesMining IndustryPower Metals CorpFinancial ForecastElection Impact