The financial system is sending out a major distress signal. While stocks hover near all-time highs, former Federal Reserve insider Danielle DiMartino Booth warns that a systemic liquidity crisis is already here, and it will force the Fed to abandon its inflation fight.
In this interview, the CEO of QI Research tells Kitco News’ Jeremy Szafron that the violent 5% sell-off in gold is a “repeat of March 2020″—a forced liquidation event signaling that the “dash for cash” has begun. She breaks down why “prime borrower” delinquencies are the new canary in the coal mine and explains how banks are using “extend and pretend” tactics to hide a brewing credit event she says will unleash “more cockroaches” into the public markets.
Is the Federal Reserve trapped? Booth lays out the final indicator that will prove the system has broken and the Fed has lost control.
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00:00 Market Contradictions
01:18 Danielle DiMartino Booth: Fading GDP, Watching Labor
02:26 Fed Flying Blind in Data Vacuum?
04:04 Bond Market Signals Recession
06:04 The Consumer is Cracking
07:33 ‘Extend and Pretend’ in the Credit Markets
08:30 Bank of England Validates Private Credit Warnings
14:27 The Fed Will Be ‘Forced’ to Halt QT
16:31 Gold’s Sell-Off: A ‘Repeat of March 2020’
19:50 What Could Prove the Bear Thesis Wrong?
21:00 The Final Signal a Credit Event Has Begun
Credit to : Kitco NEWS