In today’s Issue:

  • Fed Governor Lisa “Cook the Books”
  • A serial killer at the Fed?
  • Trump’s Coup to avoid a Liz Truss moment

Yesterday’s politically incorrect commentary stirred the pot successfully. Not everyone is happy with my name for the new bull market. But lots of people wanted to know how to profit from the “Nuremburg Rally” too.

I suppose that is my job…

Evidence is growing ever stronger that I’m right about what’s going to happen. Even if my name for it is wholly inappropriate…

Trump’s latest battle with the Fed involves trying to fire Fed Governor Lisa Cook.

She’s a member of the committee that sets US monetary policy. And may have committed a form of mortgage fraud by claiming to live in two places at once. (A bit similar to what Deputy PM Angela Rayner is now accused of regarding council tax…)

Never mind what’s in the news about Cook though. Here’s what’s really going on…

A coup at the Fed

Think about it like a murder mystery. Don’t focus on the victim. You need to figure out who has the motive for this character assassination. And what that motive is.

First, let’s set the scene and introduce our cast of shady characters…

There is a committee which imposes monetary policy on the global reserve currency – the US dollar. It is called the Federal Open Market Committee (FOMC).

The FOMC single handedly makes a mockery of the idea that the US, or the world, is capitalist.

After all, money is half of every transaction. And the price and quantity of money is set by a central planning committee. Which equates to central economic planning of the sort that should’ve made Milton Friedman blush. It even reminds me of the National Board for Prices and Incomes.

Anyway, the FOMC imposes its central planning by way of voting.

Occasionally, voting members have different opinions on whether interest rates should go up, down or sideways. They might disagree about whether QE or QT is required.

Lately, that sort of dissent has been happening a lot. And not just at the US’ Federal Reserve.

Entire PhDs are probably being written about the emergence of dissenting votes at central banks that are used to unanimous decisions. After all, if central bankers disagree, doesn’t that expose they don’t know what they’re doing?

Economic policy by majority opinion?

As Joseph Stalin once explained, “Those who vote decide nothing. Those who count the vote decide everything.” In the FOMC’s case, those who choose the committee members who do voting decide everything.

Which would be President Trump. If and when current members’ terms are up, he gets to choose their replacement.

Or, if they resign or get fired…

That means, for each Fed Governor Trump can knock off, his control over the FOMC goes up.

This might sound conspiratorial. Something out of Soviet history. Nothing like the US Supreme Court, or anything…

Sure enough, earlier this month, a Fed Governor resigned early for no apparent reason. The Fed refused to comment on why. But the Governor had been voting for tight monetary policy…

Trump will replace her with a loyalist. Who will vote as commanded, no doubt. At least the stock market thinks so. It rallied when he was chosen.

Now there’s the case of Lisa Cook. Suddenly, she’s the second victim.

We’ve got a serial killer on the loose at the Fed!

Depending on how you do the maths, because the FOMC voting system is complex, getting rid of Cook and appointing her replacement would give Trump a majority on the FOMC.

And he knows it, reports CNBC:

“We’ll have a majority very shortly,” Trump said Tuesday afternoon. “So that’ll be great.” 

“Once we have a majority, housing is going to swing, and it’s going to be great,” he said. “People are paying too high an interest rate. That’s the only problem with us. We have to get the rates down a little bit.”

The president had been asked who he was considering as a replacement for Cook.

“Well, we have some very good people for that position, and I think we have some very good people we’re down to,” he said. “I think I maybe, in my own mind, have somebody that I like.”

He also once again hurled criticism Fed Chair Jerome Powell, who has repeatedly rebuffed Trump’s demands that he lower benchmark rates by multiple percentage points.

“Because of him and his high interest rates, the housing is less than it could be,” Trump said of Powell. “We’re going to get that straightened out very quickly.”

The point is this: Trump is conducting a coup at the Federal Reserve. Only the Fed Chair Jerome Powell remains in his way. He’ll be the final victim. And then Trump will have control.

In the meantime, it’s not entirely clear what replacing Cook would mean for US monetary policy. We’ve never really had a FOMC at odds with a Fed Chair before. Could monetary policy be hijacked by voting members? Could the FOMC impose rate cuts on its boss?

Either way, it’s now only a matter of time before Trump gets his interest rate cuts. A successful coup would only bring that forward by about nine months. Powell’s term is up in May anyway.

The result will be a stockmarket boom.

Yesterday, I explained why I’m calling it “The Nuremburg Rally”.

Tomorrow, we ponder the next big question: How best to profit from the Nuremburg Rally.

Until next time,


Nick Hubble
Editor at Large

P.S. Trump’s “Fed coup” is no accident — it’s the opening move in a plan to seize control of US monetary policy and trigger a new era of artificially cheap money. If he succeeds, the next bubble could make 2021 look tame. I’ve revealed one way to play the coming rally — not with stocks, ETFs or crypto, but with what I call the “AI Master Key.” It’s not what you think, and it could start moving as soon as 17 September. Learn everything you need to know here.