Dylan

The Fed expanded the money supply by nearly $9 trillion under Powell. Inflation has averaged >4% per year over the past 6 years. Powell's explanation? It was nearly all due to rolling “supply shocks" over which the Fed has no control. The truth: this inflation was made in Washington as it always is - from too much government borrowing/spending and too much government creation of money.

Paul Tudor Jones says the US is more dependent on equity prices than ever, and explains what a 35% correction would trigger in the economy: "We're 252% of stock market cap to GDP. In 1929 we were 65%. In 1987 we got to ~85-90%. In 2000, 170%. If you think about the periodicity of significant bear markets. Since 1970, we get a mean reversion about every 10 years. Let's say mean revert to the past 25 or 30-year PE. That would be a 30, 35% decline. Well, 35% on 250% of GDP is 80, 90% of GDP. 10% of our tax revenues are capital gains, they go to zero. So you can see the budget deficit blowing up. You can see the bond market getting smoked. You can see this kind of negative self-reinforcing effect. In the stock market, we're over-equitized as a country. We have the highest individual equity weightings in the history of the country. And then the real problem is if you look at private equity in 2007-2008, that was about 7% of institutional portfolios. Now it's about 16% of the institutional portfolios. We're so much more illiquid than we were in 2008. The problem is that if you buy the S&P at this current valuation, the 10-year forward return is negative when you buy the S&P with a PE of 22. That's what history shows. So yes, the S&P is spectacular long-term, if you have a hundred-year view. But that's because that's an average of a hundred years, including times when the S&P 500 PE was 6, 7 and 8, or one third of what it is right now. Valuation matters a lot, and the stock market's really high and it's gonna be really hard to make money from here with any kind of long-term view."

DOJ releases more information about the U.S. soldier who won more than $400,000 by betting on Maduro's removal. Gannon Ken van Dyke could face up to 60 years in prison on all charges. Prosecutors are also seizing the money he won.

BREAKING: Person who won more than $400,000 by betting on Maduro's removal has been identified as a U.S. soldier who participated in the operation. The soldier has now been arrested, according to ABC News.