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Donald Takes a Bow: Gold Stands Ready!

[Note: We have found the work of Lior Gantz from WealthResearchGroup.com to be excellent and interesting, so we’re sharing his articles with you. Hope you enjoy them and find them useful.]

In two weeks, we hand over the keys to this decade to the history books and put 3,650 days in the basement to collect dust, and embark upon a new one. The U.S. administration and the Chinese government have announced that the 18-month long negotiations, which included tariffs and plenty of shenanigans, are not in vain; there’s a deal getting struck.

Many are debating how meaningful this deal really is, how much contribution and productivity it will add and if it is more of a PR stunt to boost confidence and make Trump look better in the eyes of voters than it is a juicy agreement, filled with substance.

Here’s what we know, for a fact: the U.S. is a country that works in a way that generates TREMENDOUS wealth and equity, BUT traps it and delivers it into the hands of the few.

The biggest takeaways from this decade are as follows: the central bank’s policies are ROCKET FUEL for stocks, the government is not INTERESTED in making any difficult austerity measures or budget cuts to balance the budget, the baby boomer generation is DUMPING stocks for bonds, an increasing number of Americans will continue to join the poor, while others become millionaires and the middle-class VAPORIZES, and millennials have their work cut out for them.

Compared with the national debt, the total wealth of households is staggering. In other words, the government could (in theory) close the national debt, if it was to tax/confiscate wealth and deal with the problem head-on. I personally don’t see that as a real threat.

 

Courtesy: Zerohedge.com

The deflationists, the promotors of the “Demographic Cliff” that theorizes that the baby boomers’ liquidation of stocks should have caused the deepest bear market in history were proven wrong – they didn’t factor in the ability of corporations to buy back shares.

In the past 40 years, through 4 decades of both Republican and Democratic presidents, with interest rates ranging from nearly 18% to 0%, and with wars happening all over the globe, stocks have FLOURISHED.

Corporations are worth investing in, but what has transpired in the process is that the VALUE moved from the level of the worker to the level of the decision-making management.

In other words, corporations have become true wealth generators, on a consistent basis, but the profits don’t trickle to most of the employees.

 

Courtesy: U.S. Global Investors

In the developed world, but especially in the U.S., the 21st century has been brutal for those that don’t keep pace with what’s going on. As a country, they’re growing slowly at 2%-3%, but that is the AVERAGE. Most people are not in the middle, but are at the polar extremes of this 2% world. The S&P 500 has delivered a 15%/year gain in the past decade and real estate prices have gone parabolic as well.

On the flip side, half of the workforce earns $30K/year, so the majority of the taxpayers are not happy campers.

Look at poverty rates and trends; to me, it seems that each SLOWDOWN will create more PERMANENTLY poor families. Said differently, once you’re poor, you will remain that way.

Courtesy: Zerohedge.com

In his presidency, Donald Trump has mastered the strategy that boosts corporate returns, but now he has given investors assurance and confidence to ease their concerns, add risk to their portfolios and EMBRACE growth.

This, as we see it, might be the end of the global strength trade for the dollar, especially since it coincided with Brexit, which adds to the certainty in Europe, now that everyone knows where everything stands.

Now, with all this good news behind us, investors need to look closely at their portfolio and figure out if inflation doesn’t pose a sudden risk.

As we see it, dollar weakness and low rates are back. In other words, the 2009-2011 era is upon us and reflation will do wonders for resource stocks!

 

 

Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.

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4 thoughts on “Donald Takes a Bow: Gold Stands Ready!

  1. 0bfd66d529a55807
  2. henryandstuff - December 16, 2019

    No way wealth can be created as fast as idiots can breed. Stop feeding the idiots.

  3. Gregg - December 16, 2019

    Maybe someone can clarify something for me and clear up my ignorance regarding this article:

    “Many are debating how meaningful this [China] deal really is… if it is more of a PR stunt to boost confidence and make Trump look better in the eyes of voters than it is a juicy agreement, filled with substance.”

    Trump has shown that he makes deals only to benefit the US, unlike every other modern president who made deals just to make deals, if the USA gets screwed, all the better. Trump has walked away from BAD deals.

    “Here’s what we know, for a fact: the U.S. is a country that works in a way that generates TREMENDOUS wealth and equity, BUT traps it and delivers it into the hands of the few.”

    At least the US (unlike most of the third world) generates TREMENDOUS wealth…, but traps it? Where? Sure the rich get richer, when things are going well, but show me another country where the population has a better standard of living? Even our poorest do better than the vast majority of the world’s population.

    How exactly is the US trapping wealth? We give our wealth in one way or the other to virtually every other country in the world who doesn’t outright hate us, and even then, if there is an earthquake…
    Delivers it to the hands of the few? I don’t pretend to be an “expert” on economics, but I know if the “evil and oft vilified rich” are taxed to “fairness” we will be in a 1929 depression. I never got a job from a poor person.

    To continue:

    Many people I know are against much, if not all of the “central banks, (the FED) and their manipulative monetary policy. Trump is the ONLY president I remember who is attacking and trying to change the FED’s economy/money manipulation. We see the FED as nonelected dictators whose word is final with no consequences to them (just like judges) for bad decisions which affect the lives of millions, ESPECIALLY THE MIDDLE CLASS!

    The middle class is being VAPORIZED. Trump’s tax break, and trade deals are bringing the producing (non-government) middle class back, revitalizing it, and expanding it. Under the Bush I, Clinton, Bush II and especially Obama, the middles class was being VAPORIZED with stagnant wages for much of this century. Many jobs are “entry level jobs” that in, and of, themselves are “dead end” jobs. True, but like the minimum wage, they are not meant to be careers, but stepping-stones to getting work experience and advancement for people who work to learn, improve, and ADVANCE.

    “The millennials have their work cut out for them.” Name me a generation who hasn’t had their work cut out for them. Talk to the depression generation, the WWII generation, I think they had “their work cut out for them”. Many millennials are still living off their parents, few have served in the military; the only victimhood they can legitimately claim is that they are victims of our miserable politicalized educational system (with outrageous and onerous government controlled college debt) and our PC culture. The millennials just need to grow up.

    “Compared with the national debt, the total wealth of households is staggering. In other words, the government could (in theory) close the national debt, if it was to tax/confiscate wealth and deal with the problem head-on. I personally don’t see that as a real threat.”

    Really, you don’t see wealth confiscation to deal with the problem head on a real threat? Ever hear of Senators Elizabeth Warren, or Bernie Sanders?

    Fact: (I forget the actual numbers) the top 1% of the wage earners pay close to 40% percent of collected taxes; the top 10% pay well over half; the bottom 50% pay something like 2% of the taxes collected. Furthermore, it has been well documented that confiscating all of the wealth of the people making/having over a million dollars would run the government for much less than a year. This would literally kill the goose that lays the golden egg, and the whole economy!
    I agree that I don’t see it being a real threat for two reasons: Sanders or Warren have no chance of getting elected, and if someone did become president and tried to enact those policies FOR ANY REASON, because it surely wouldn’t be to pay off our debt; it would be for Medicare for all, or the Green New Deal, or to pay everyone 1K per month, there would be a revolt and a full blown Civil War. That would really “cut out work for the Millennials”.

    Skipping a few paragraphs to keep the length reasonable:

    “This, as we see it, might be the end of the global strength trade for the dollar, especially since it coincided with Brexit, which adds to the certainty in Europe, now that everyone knows where everything stands.”

    Exactly what certainty is there in Europe? BREXIT hasn’t actually happened, we don’t know what the EU’s money managers are going to do, or how they will react as they begin to shed the productive (raped) countries of their coalition? Anyone who say they know the outcome with “certainty” and where things will “stand” is lying in my opinion.

    “Now, with all this good news behind us, investors need to look closely at their portfolio and figure out if inflation doesn’t pose a sudden risk.”

    What exactly was the “good news” that was conveyed being “behind us” in the article? Doesn’t any decent investor always consider the risk of inflation?

    According to the article: The millennials are in bad shape with no future to look forward to (no mention on whiter “Climate Change” or the economic collapse is going to kill them off first), the government will do nothing to get the debt under control and stop the FED’s Money Manipulation, the dollar is soon to be in the crapper, the economy of 2009-2011 is just around the corner and the middle class is going to be “vaporized”.

    In closing, I see the article as an academic exercise which offers no solutions and gives the impression that ultimately we are all doomed and that no government policy (economic or otherwise) will save us form catastrophe . In short it is depressing, and doesn’t seem very complementary of president Trump as if any of his predecessors had the “right” answers?

    Thanks Dave, I really got something positive out of that article.

    1. Jimmy MacAfee - December 17, 2019

      President Kennedy also threatened the Fed. Some believe that the Central Bank was pivotal in his assassination.

    2. John Nelson - December 17, 2019

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