06.21.17 Andrew Gause and The Real World of Money, June 21, 2017 ONE

One Radio Network

$50 million spent on Georgia congressional special election. 5 special elections in 5 states and 5 Democratic losses. Can invest tax-free out of foundations. A large portion of many foundation assets is spent on administrative costs, which can be funneled off to benefit family. Converting an asset into a security creates fictitious instruments of dubious value. 6 million jobs in new energy. Urgently need electronic, computer, robotic technicians and engineers. We need to teach those skills. Amazon bought Whole Foods Market at $42/share and acquired 600 prime real estate properties. Amazon bought WFM for the supply chain, which it can capitalize on with vertical integration. Amazon now offering Prime Wardrobe. Invited Prime Customers have 7 days to return the “wardrobe” items for free and before being charged. Amazon has access to unlimited credit, so they can borrow the money to buy Whole Foods Market. The Federal Reserve has increased money supply 4 times in the last 10 years. Yet inflation is only 2%. It’s not just increasing supply that causes inflation. Seeing inflation in the stock market though. Fed said it will reduce balance sheet $30 billion a month in Treasuries, and up to $20 billion in MBS. Not selling, but not reinvesting the proceeds when they mature. Will the Fed really shrink the money supply? Over the last 12 months, according to the Fed H41 release, Fed has increased balance sheet by $11 billion of Treasury bonds and $24 billion MBS. The Fed doesn’t have the securities to sell that they are talking about. In the next 1-5 years, $581 million is maturing. Over the next 10 years, only $1.5 billion of MBS are maturing. Fed is using Reverse Repurchase Agreements to make it look like they’re selling bonds and MBS. The Fed has $175 billion less of their members’ money to work with than a year ago. The Fed is trying to get the banks to take on the Feds’ bonds so the Fed can show a lower balance sheet. Is trying to keep the bond market from collapsing. Capitalization of crypto currency is now at $130 billion, up from $30 billion last year.