CENTRAL BANK ADMITS THAT THEY WILL “BUY DEBT ON WHATEVER SCALE” TO HALT A CRASH (Uncut) 02-06-2025

SHOCKER! CENTRAL BANK ADMITS THAT THEY WILL “BUY DEBT ON WHATEVER SCALE” TO HALT A CRASH. Mannarino

Okay, everybody, here we go. It’s me, Gregory Manorino. Thursday, Thursday, February 6, 2025, pre-market report.

Let’s do this. Let’s start off with some economic news. Now, this will not be a surprise to you if you follow this blog, but maybe to some.

Anyway, so jobless claims rise, but there’s no sign of trouble brewing in the labor market. I love how they spin this stuff. The number of people who applied for unemployment benefits in early February increased, but remain at low levels.

All right, fantastic. Just real quick, in case you were wondering, this is not President Trump’s fault. This is the mummy man creature, Bidenstein, obviously.

So for those of you that are overly sensitive, all right, here we go. So that’s the story with, again, it doesn’t stop. The economic news is going to remain abysmal.

For as far as the eye can see, it’s going to get worse moving forward. I want to talk about the law of diminishing returns with you real quick as we move through some of this stuff that we need to cover. Most of you have heard of it.

It applies pretty much across the board, not just to productivity, which is really what it’s designed to look at, but it’s an interesting dynamic and we’re going to talk about that. So I want you to just bear with me a little bit. So let’s start with another nice, lovely piece of information here.

So the Bank of England restarts monetary easing, quantitative easing, cutting the key rate to 4.5%. Hold that thought. Here we go. There’s another headline for you.

So Bank of England trims interest rates amid weaker growth outlook. This applies, again, and I want you to keep this in mind, to the law of diminishing returns. Now, the Bank of England has signaled that more rate cuts are coming.

How surprised are we? Here’s another headline for you. Unexpectedly, Dubboch Bank of England, what they mean by that is, well, here we go, more rates are coming. Imagine our shock.

This is, again, a coordinated effort by central banks to artificially suppress rates, not allow the market to determine fair market value. Because of this mechanism, and you all know this already, but I’m just going to tell you again, with central banks in here, there can’t be a real market. We don’t have even the slightest resemblance of a real market.

When this kind of mechanism is in place, artificially suppress rates and on the back of that currency purchasing power destruction on an epic scale, and this is a wrecking ball for the economy, there’s no price discovery anymore with regard to any asset, period, across the board. So that’s kind of how that works here, and I think we’re pretty much on the same page. Now, I want you guys and girls to remember what the Bank of England here just unexpectedly is going to cut more rates moving forward.

Imagine how shocked we are. Of course, we’re not surprised. First of all, this rate cut by the Bank of England, this was widely expected, but what was not expected was the fact that they would come out and say, hey, don’t worry, we’re going to cut rates more so moving forward, just like Bulltard, you know, former Fed chief Bulltard when he was floated out to say, hey, don’t worry about it, we’re going to be cutting rates, and it’s going to play right into the law of diminishing returns with regard to all this in a moment.

So just, again, bear with me. So this is a statement by the Bank of England here, and this is recently, so the Bank of England will buy UK bonds at whatever scale necessary to halt the crash. So what we see, look, central banks are all doing this right now, they’re not allowing a market to work, okay? What’s going on here is they’re fostering the greatest wealth transfer that’s ever been seen in the history of the world being sucked right out of the middle class around the world.

Now, this mechanism here, and again, this is what every single central bank is going to be doing, obviously the Federal Reserve included, buying bonds at whatever scale necessary to keep rates suppressed, to leave that door open for cash to make its way into risk assets or let’s say the stock market. And we’ve seen quite a move with regard to the 10-year yield here in the United States. This is obviously the Federal Reserve, this is central banks working in concert, buying all the debt.

Don’t take my word for it, the Bank of England said they’re going to buy whatever they need to prevent a crash. This is the same boat. Again, we don’t get to choose the moment when this implodes.

Right now, all central banks are doing, and they are determined to do it, is hyper, hyper, hyper, hyper, hyper, hyper inflate the debt bubble. Why? Because when it bursts at a time of their choosing, when they stop buying all the debt here, the ferocity of the implosion in the debt market is going to be so great, it’s going to rock the very core of the earth. Credit freeze, liquidity crisis that we’re in, you all know that, being made monumentally worse by central banks collectively, I think we’re all on the same page.

Now, on the back of what’s happening here in the United States with regard to the benchmark 10-year yield, MMRI still dropped below 300. We’ll see where this goes. Bank of England, the Federal Reserve is determined to keep inflating the bubble in debt on a massive scale.

And of course, you know the mechanism, it just allows the market to float on oceans and oceans and oceans of debt. Now, with regard to that, I want to show you something. This is a chart basically that demonstrates for you the law of diminishing returns.

Now, this can be applied to anything. This is basically outlining production. Let me just explain this real quick.

Whenever, let’s say, for example, let’s say they want to increase production, a company wants to increase production. They make specific changes to whatever they got to do to increase production, allow increases in production. Well, as this progresses, you get an initial boost out of it.

Then it starts to level off here after that initial boost. And then it eventually kind of starts to run off. It’s run its course like everything else generally does.

Now, this can be kept going longer. We’re talking about productivity here. Let’s say a manufacturing plant, whatever it might be.

If in fact they start making more dramatic changes to at least attempt to keep productivity moving higher, this will work to a certain point. But again, the law of diminishing returns says eventually it won’t work anymore and you’ll end up in a negative situation. And that’s exactly what’s going on here with regard to stimulus by central banks and obviously artificially suppressed rates.

So when you hear, for example, the Bank of England here explaining to you that the economy isn’t doing so well, weaker growth, so on the back of that they’re going to cut rates again. So they’re doing the same kind of thing. They’re trying to expand or extend the lifespan, if you want to call it that, of this increase or leading to a case of diminishing returns here.

It can’t go on infinitely. There’s going to be a moment here where whatever they do won’t work. And that’s exactly what we’re seeing here.

The mechanism here of stimulating an economy is to prevent it from doing normal cycles. Economies and markets have normal cycles in them. We’re not allowed to have that anymore.

It has to all be going up, up, up, up. No normal cycles to the downside. So what gets implemented here is extraordinary measures by central banks to keep rates suppressed, to keep that cash flowing into risk assets.

And who benefits? Not you. Because again, in the case of the economy and in the case of the financial system, they have to kill the purchasing power of the currency more and more and more via artificially suppressed rates. But the law of diminishing returns applies.

You can’t take it away. It just kicks the can down the road just a little bit. But we all suffer.

We all pay for it. Does this make sense to you, what I’m saying here? So with regard to central banks cutting rates, the law of diminishing returns applies. They’re going to cut and cut and cut.

At one point, it’s going to turn negative. And again, it’s already turning negative because we’re paying for it. And we’re going to continue to pay dearly moving forward.

Does this sound about right to you, what I’m saying here, people? Or am I not making sense? I hope I am. Any kind of program implemented in an attempt to bring about exponential growth without any kind of a pullback or return will always fail because of the law of diminishing returns. And this applies across the board with regard to, again, people are, I mean, some people just don’t get it here.

They really want to see the Fed cut rates here, I guess because Donald Trump called, demanded that the Fed do it and they believe it’s the right thing. They believe that the Federal Reserve right now, obviously with other central banks are cutting rates. We know that central banks are the enemy, period, number one.

But I guess if Donald Trump says it’s the right thing to do, then that’s great. But we all know that’s not true here. We’re going to face around the world, central banks, not just the Bank of England, the Federal Reserve, other banks are going to cut rates moving forward in an effort to push off the negative effects, which we already have, regarding the law of diminishing returns.

It can’t go on in perpetuity. And they know that. Believe me, you and me, we know it.

They know it too. The mechanism here is to inflate a hyper bubble in debt, to allow it to implode on itself, to create a worldwide crisis on a scale that people have never seen before. It all comes down to liquidity.

It all comes down to an issue where we’re going to see a credit freeze, a locking up, a stopping of the flow of credit through the markets here. And then they’re going to tell you they have a solution for you. It’s always the same thing.

Problem, reaction, solution. You all know that, those of you that follow this blog. So anyway, on the back of, again, negative economic news, stock futures are higher.

Imagine our shock. I mean, you and I have nailed this to the wall. And they’re going to continue to do this again.

Markets are not allowed to have cycles. Economies are not allowed to have cycles. It must be higher, higher, higher, higher.

Don’t take my word for it. Look at the Bank of America. They’re telling you that they will do, they will buy any amount of debt on whatever scale necessary to halt a crash.

Fed’s doing the same thing here. And all this is doing, again, is vastly exacerbating the underlying problem. So what are you and I going to do about it, people? Look, man, we’ve been on the right track.

We’re going to continue to be on this track here. We’re going to bet against the system. The system is being wiped out by design.

The people are being wiped out by design. The people are being replaced. We’re moving to a dehumanized system.

I covered this yesterday in Zombie Farm, parts one and two, if you didn’t get to see it We’re not bringing back any jobs here. What’s going to happen is people are being replaced with AI. That’s exactly what’s going on.

You all know that. We’re going to see mass layoffs, mass layoffs moving forward as corporations are looking to get rid of you. They don’t want anyone that’s going to complain, that uses the bathroom, that needs breaks, that needs perks, that needs paid vacation.

They don’t want that. No, no, no, no, no. So you’re being phased out along with a lot of other things that are going on.

The current system is being phased out. They’re taking the whole system apart piece by piece. You know that.

Around the entire world. And they’re keeping you distracted with a whirlwind of things that are going on here right now in the United States, just in a mechanism to keep you deceived. Focus on this.

Focus on that. Don’t have a chance. Don’t even give people a chance to let it settle in so they can think about it.

No, no, no. Implement something else. Executive order, executive order, executive order, executive order.

Some of this stuff, absolutely great. Kudos to President Trump. Absolutely.

Some of it really is not so good. And again, you guys and girls aren’t even given a chance to absorb what’s happening because underneath it, this move towards dehumanizing the system here and replacing it all with some kind of artificial intelligence. This is in full effect.

And as I said, these corporations here, they’re looking to get rid of you. Again, don’t take my word for this. There’s already legislation in place now to get rid of your doctor, to get rid of your nurse, to allow them to diagnose and prescribe to you.

You don’t believe me? Look it up for yourself. Anyway, guys, look, I hope you understand what’s happening here with this law of diminishing returns here. You got central banks here trying to keep the mechanism going and diminishing returns are already here.

Period. The end. And we’re all paying for it and we’re going to pay a lot more moving forward with regard to currency purchasing power destruction.

Again, the economy is not being built back up. The economy is being deconstructed and will be reconstructed in a way that I don’t think you want. In fact, I would guarantee that and the bridge to the new system.

You know, let me bring one more thing to your attention. I wasn’t going to bring this up and I don’t want anyone to like have a fit about this. Again, look, they’re using Trump’s name here, but so don’t get overly sensitive about this.

So Trump is already paving the way for a new breed of crypto exchange traded funds. Now, this is obviously policies here bringing us into the new system here. So let me just read this to you.

President Donald Trump’s election is having several asset managers already filing for applications with regulars for a number of new exchange traded funds geared towards cryptocurrencies. Imagine this. Look, some people are going to love this.

Some people are going to benefit greatly from this. But those people that are not as sophisticated, they’re going to get hurt. They’re going to get hurt.

But that wouldn’t be Trump’s fault, quite obviously. I’m not trying to blow sunshine up his crack or anything else. I definitely hold the guy accountable.

We all need to hold our leaders accountable. But I don’t know. Is this something that you think we really need? I guess some people, I personally wish that Wall Street would have kept its ugly, disgusting hands off of cryptocurrencies here, allowed it to be kind of a way to circumvent the system.

We don’t need crypto exchange traded funds. Do you really think we need it? I’m a crypto investor. I have a significant investment in multiple cryptos, but I don’t think I need this.

Do you need this? Is this something we could just going to hurt people? There’s no doubt about it. Lastly, oil prices attempt to bounce off of the 2025 lows as Saudi Arabia raises crude prices. Oil futures ticked higher Thursday.

Imagine our shock here. Seeing a modest balance after Saudi Arabia’s state-owned petroleum company significantly raised the price of physical crude. Lovely.

If not physical crude, you mean crude that doesn’t exist? That’s not on the elemental chart? Obviously, we’re talking about a derivative here. Look, what do you want to take away from this, people? A lot of things. Commodity prices, you know where we’re going here.

Forget about just this one issue with crude oil. Commodities are priced in dollars. The dollar along with other world central bank issued notes are being systematically wiped out with regard to purchasing power, period.

Again, this is going to continue across the board and central banks are going to buy debt on whatever scale to prevent a crash. All they’re doing is exacerbating the underlying issue. You all know that.

Now, with regard to this here, I hope I’ve been clear on how this works. They could stimulate and they could cut from here to oblivion. Eventually, we’re going to run into a negative phase and we’re already paying the price for it here.

It really comes down to what I have been calling maximum saturation. The system is maxed out. But again, every effort imaginable and things you can’t even dream about yet is going to be implemented to foster the illusion of something while the people themselves obviously get destroyed, while the economy gets wiped out, while politicians, whoever they may exist on this planet are going to lie to you and deceive you and tell you to look here and look over there and don’t worry, your job is safe and everything’s fine.

We’re going to make everything great. It ain’t happening. I’m sorry to tell you that.

The entire world economy is in dire, dire shape because of, well, monetary policy issued by central banks, not presidents, kings, queens, dictators or monarchs. And the mechanism here is very simple. Artificially suppressed rates, currency purchasing power losses, a wrecking ball for people on an individual scale, and the economy.

Sure, weaker currency, a weaker dollar in this case, does help the multinational corporations profit. But how does that help you? By sucking your purchasing power, making you work harder and longer to make ends meet. Is that what you really want here? Is that what you voted for? Let me know.

All right. Love you all from the heart. Hope you got something out of this.

Let me know that as well. People, if I’ve earned your thumbs up, I’d appreciate that. Get this video out there, share it on your social networks, and I’ll see you later, 4 or 5 p.m. Eastern for the live stream.

All right. Bye.