With the constant news cycle, it can be difficult to truly understand what's going on. In this installment of U.S.M.R. Market Insights, Coy Wells dives into Jerome Powell's senate meeting, and how it affects you, as well as America's economy as a whole.
Are Banking Regulations Under Attack? – USMR Market Insights Video Transcript
Coy Wells: 00:00
Hello, my name's Coy Wells with U.S. Money Reserve's Market Insights. Today we're going to be talking about the Dodd Frank Act and we're going to be specifically talking about the meeting that Jerome Powell had yesterday with the Senate. The reason why this is important for those who understand what was happening yesterday and watched the news is, yesterday, Jerome Powell was accused of being a dodger, and the reason that's important to understand is because the Senate was questioning him specifically on the banking regulations that are taking place in the United States. Several months ago we talked about how the Trump administration and the Republicans were dismantling portions of the Dodd Frank Act. A portion of that Dodd Frank Act was the vocal rule. This was a portion of the Dodd Frank Act that prevented banks from being investment banks, taking our money and putting them in the stock market. Yesterday, Jerome Powell was talking about how the economy was flourishing and how jobs and the economy was getting better.
Coy Wells: 00:49
Yesterday, the Senate punched holes in just about every theory that Jerome Powell put forward. The reason for that is that the measurements and the tools that we use currently today are not the same rules that we've used in the past to be able to measure how healthy the financial system of the United States is today. The Senate yesterday challenged Jerome Powell on every single issue and Jerome Powell, just like Janet Yellen, was unable to answer the questions that were proposed by the Senate. More importantly is that as the questions were asked in regards to tariffs and taxation here in the United States, he was dodging those questions, meaning that he was not coming forward, providing the proper information for the American people to understand what was actually taking place. When you watched that new segment yesterday, or if you can go back and get clips of what was happening on the very bottom of the screen in big bold letters. It talked about how the US economy was improving according Jerome Powell. As a consumer, if you're flipping through the news stations, that's exactly what you're going to see. It's called reading above the fold. You're reading the most important information that is on the front of the screen, so it gives us the consumer the impression or the illusion that the economy is doing well, but yesterday the Senate had a very different story in regards to the economy and the banking system of the United States.
Coy Wells: 01:57
On top of that, CNBC news talked about how the economy of the United States, according to Timothy Geitner, Ben Bernanke and Henry Paulson all sit down at a round table yesterday and they stated that we are now out-forecasting the income that is coming into United States. That means the banks and the income that's coming into the United States and in to the financial institutions are not sufficing the demand or outflow of the bills that we have coming in. This is the same thing that puts the United States in a very precarious position in 1929 with the Great Depression and we've talked about those things as well in these interviews that you've been watching over the course of the past few months. The reason why this is important to understand, right now, is that you have a Senate that is concerned about the economy of the United States. We know for a fact that the Treasury Department of the United States with Steven Mnuchin, is concerned about the economy of the United States and now we have a Senate and now we have three former Fed chairman concerned about the economy of the United States and that we're not bringing enough income with the outsource flow of money that's coming in. This is a huge concern for anyone.
Coy Wells: 02:59
On top of this, we also have to understand that countries around the world that we're placing tariffs on are also placing tariffs on us. On top of that, prior to the tariffs and the taxation that took place in the beginning of the year, we're also seeing countries around the world start to dissolve the amount of Treasury Bonds that they're holding onto, and this is one of the only things that Jerome Powell did talk about yesterday, that the continuation of raising interest rates in the United States will happen. When we start raising interest rates inside the United States it causes a staggering economy. It means the cost of purchasing homes, student loans, cars, vehicles, credit cards, and etc. become more expensive. It means it slows down the economy. That means the economy over the next few years, the next few months will start shrinking. It will be more tight, and because it becomes more tight, it's going to be more difficult to get a loan. When that money's not flowing, remember, retail sales here in the United States account for about 68 percent of the GDP. These are the concerns that the senate and the other former Fed chairman have here in the United States. The income versus the outflow does not match, and that's a huge problem inside the United States.
Coy Wells: 04:04
Again, we're going to continue to encourage you to watch these segments so you understand what's taking place here in the United States, and again, A Day Without Silver is what we're recommending right now. Click on the link below or call the phone number on your screen there and we'll have a representative help you out to provide you additional information about what we talked about today as well as send you a free copy of the information that's sitting here. Thank for watching U.S. Money Reserve Market Insights.