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Interest Rates Will Become a Thing of the Past in this Century

Guest Piece by Tom Beck, Senior Editor of Portfolio Wealth Global

It’s true: the U.S. economy is on a roll. Companies are performing very well thanks to low interest rates and because America is still NUMBER-ONE in so many aspects, with technology chief among them.

Trump’s economic policies have brought jobs back, and there’s not a shadow of a doubt that his corporate tax cuts sparked a market boom, but the government CANNOT keep on acting as if deficits don’t matter.

Today, I want to show why central banks around the world are experiencing what I call “PEAK INFLUENCE” and how they stand to have a smaller impact on policy in the 21st century before eventually hanging their jerseys and retiring.

Take a look at this:


Courtesy: Zerohedge.com

A 700-year trend of DECLINING interest rates is very clear. The more our global economy becomes transparent and the risks become evident, the less risk a lender assumes. As a result, we even see loans being made at NEGATIVE rates.

What does President Trump want? Being a daredevil and a pioneer throughout his life, he wants the FED to acknowledge that the Treasury should also issue interest-free debt like Germany, Japan, France, Italy, the Netherlands, Spain, and others are implementing.

Let it sink in: interest rates will become a thing of the past in this century.

The role of fiscal policy, the one that government is in charge of, is much GREATER.

You want to have a man or woman who understands that they hold the magic wand. If the federal deficit can’t reach a sustainable trajectory with ZERO-percent interest rates and in a growth period, what else IS THERE?

Government will have a much more central part in shaping a country’s path than the central bank will. A nation’s economic strategy will be FUNDAMENTAL to its success.

For over 250 years, capitalism, free enterprise, and competition have led the barren North American continent to global supremacy.

This coming election will challenge the resolve of voters to be swayed by socialism, subsidized healthcare, and debt write-offs, but the cost will be GRAVE.

Courtesy: U.S. Global Investors

Gold prices have gone up by 20% since April of last year when the Bank of International Settlements in Basel, Switzerland changed gold into a TIER-1 asset.

Most people don’t understand the importance of it, but what it means is that gold is among the only reserves that banks can’t hold and value at 100% of the open-market price.

In other words, the CENTRAL BANK OF CENTRAL BANKS just told you that they consider precious metals as being the safest assets to hold.

Bigger than that, they’ve also indirectly told the markets that they’re ready to pay up to DOUBLE for their gold compared to before because Tier-3 assets, like gold used to be, were marked down by 50%.

What gold has done since 1971 has been incredible. Back then, had you bought one Eagle coin, you’d part with $35. Today, a bullion dealer would pay you close to $1,550 for that same coin. Had you had put $35 back then in your safe and taken them out in 2020, you’d be shocked to learn that those $35 buy a SIXTH of what they used to.

In other words, $35 in 1971 are $222 in 2020. This is an important data set, because it means that the price of gold has outperformed the rate of inflation!

Where gold stands out DRAMATICALLY is that it has fully retained its monetary role, in the eyes of the world’s largest money managers.

Governments, central banks and large funds already understand its significance, especially when it comes to hedging disruptions in geopolitics, in surprise inflation spikes or in debasement of fiat currencies.

They also understand that serves as a SUPERIOR asset, inversely correlated to their NET-LONG exposure to stocks.

Who owns most of the assets, globally?

The global pie of equity is divided amongst the world’s richest individuals, owning a colossal amount of stocks, real estate and businesses interests, but it is also owned by pension funds, which manage YOUR money.

Baby Boomers, the world over, have a vested interest in seeing stock prices rise, as well as bond prices, because their net worth is reliant upon them.

Therefore, unlike hedge funds and family offices, governments and central banks, which do diversify into gold, most of baby boomers, own NONE.

A downturn is much more risky for the average person, therefore, than to the sophisticated investor.

In case of a market shock, the big players will have gold, as a hedge, while your pension fund or your 401K plan, may not.

If you have IMMEDIATE needs for liquidity, then, as many boomers will, they may sell at a discount, out of stress and pressure.

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The Economy is Booming, but Troubling Signs Loom

Guest Piece by Lior Gantz of FutureMoneyTrends

In the past few days, markets have been SPIRALING upwards. In fact, the average person feels GREAT about the economy, about his workplace, about his portfolio and about American dominance.

This happens to coincide with the most overbought stock market conditions in history.

As you know, as long as central banks keep lowering interest rates, there’s no reason to assume that stocks will crash in a major way or go sideways. Investors have ZERO alternatives, compared with the power of American businesses that are growing at a pace of 6%-8% a year, and pay dividends on top of it.

In the short term, though, Wall Street is SELLING and it will continue taking profits, so we might need to wait 3-4 more weeks for sentiment to turn bearish, before getting aggressive again.

Just look at the bullishness of Main Street America:

Courtesy: Zerohedge.com

Fundamentally, America’s economy is truly BOOMING. Many millions, though, still have NO CHANCE of joining the prosperous landscape, but advancements have been noticeable in the past three years.

For example, the bottom 50% of wage-earners have seen a 47% increase in compensation. That’s more than what the top 1% have enjoyed during the Trump era.

Many families have risen back to middle class status and many others no longer need food stamps.

Of the 60,000 factories that were either closed or outsourced in the past 20-30 years, 12,000 new ones are operating on U.S. soil and many more are planned or are getting built.

The USMCA, which replaced NAFTA (that cost America 25% of its manufacturing labor force), is forecasted to create 100K new high-paying jobs.

And, so, the problem is CLEAR AS DAY: Trump’s tax cuts, deregulation, trade negotiation, new legislation and aggressive initiatives are working for the private sector and unleashing the free enterprise system, but the DEFICITS are just STUPIDLY increasing.

You can see this disaster by checking out the debt/GDP ratio:

Courtesy: Zerohedge.com

In his State of the Union Address, Trump specifically mentioned that Washington will not default on its Social Security promises. What this means is that the government will have to RESORT to other measures to fund its ATOMIC national debt, going forward.

So, while 50 million Americans watched Trump’s speech and his approval ratings hit all-time highs, Wall Street is cashing out for a bit.

The big players did the same thing in February ‘17, January ‘18 and February ‘19. Computer Traded Algorithms and large funds move the markets; if you’re bullish, you are playing with fire.

Another sign that the mom-and-pop investors have gone BERSERK is this:

Courtesy: Zerohedge.com

Many “EXPERTS” have gone bankrupt or have caused other investors to LOSE FORTUNES, by pounding the table that TSLA should be shorted.

Jim Rogers offered up the best advice on shorting manias: markets stay irrational more than you can stay solvent. In other words, he has warned investors that fundamentals don’t matter in times of manias.

This isn’t the only sign of trouble. On Tuesday, I issued a trading warning on gold and it crashed just minutes later.

I still analyze gold’s sentiment as TOO-BULLISH:

Courtesy: Zerohedge.com

The S&P 500 companies are currently reporting earnings and seven out of ten are BEATING expectations. It seems like the economy is better than most believe it is, which is the reason that companies that focus on consumers are BREAKING RECORDS.

We’ve capitalized on this and will continue to cover this topic.

In his SOTU address, Trump also highlighted healthcare and the need to have a healthy country, full of educated citizens.

That’s a huge opportunity – millennials are the most health-driven generation in America’s history!

 

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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Has the Fed Created a Stock Market Bubble?

There you have it; the World Economic Forum is meeting in Davos and all the billionaire investors and hedge fund managers are talking about is the fact that the Federal Reserve is behind the MARKET’S PARABOLIC surge.

The commentary coming out of there is textbook Wealth Research Group material. I want to show you today why the real question you must be asking yourself is whether you’re a LONG-TERM investor, viewing the world like Warren Buffett does, or if you’re a trader, viewing it like billionaire investor Paul Tudor Jones.

The reason I say this is because if you’re an investor, your options are truly limited, few and far between and offer little in the way of extraordinary compounding opportunities, at the moment.

Buffett isn’t sitting on $128B in cash because he has liquidated his portfolio; a long-term investor will NEVER sell equities or ownership stakes in great businesses, bought at good prices, simply because markets are due for a big shakeout.

The way he accumulated this cash position was simply by shying away from making new allocations, whenever profits came in and piled on. I’ve done something similar and now I’ve stuffed the equivalent of 40% of my stock portfolio into the brokerage account as cash.

For every $3 that is invested, $2 is on the sidelines, as liquid cash.

The difference between Berkshire Hathaway’s famed mega-billionaire investor and myself is that I’m also diversifying out of long-term dividend plays and into precious metals, private lending, small-cap stocks and real estate.

The reason is that NO ONE has any idea for how long the Federal Reserve and the other top central banks will continue to POUR trillions of dollars in liquidity into markets.

Courtesy: Zerohedge.com

As you can see, the smart money’s holdings represent a HUGE paradox. On the one hand, they are certain the markets are in a bubble, GROSSLY overpriced, compared with fundamentals. On the other hand, as David Tepper, the billionaire hedge fund mogul and owner of the Carolina Panthers says: “I like riding horses, when they’re running.”

The lesson is clear: IF there’s a bubble – BUT there’s also enough time to jump off the train and not take part of the collision – then 2020 is a time to make SENSATIONAL returns.

In the chart above, you can see that highly experienced investors are betting that the FED will not let the economy contract, if they can help it. They will intervene in the Repurchase Operations (Repo), pump liquidity via QE4 and let inflation run hot, if the consumer gets stronger.

Officially and unequivocally, we are investing in a U.S. stock market that is overly bullish, where investors are buying stocks out of a lack of alternatives, where profits signal that corporations can’t extract more earnings (for the time being), and where leverage is already at a record.

The billionaires’ bet is that there is still a 30%-40% return to be made before the peak is reached. Therefore, you need to be asking yourself if you are IN OR OUT and how much you will be risking.

Take a look at this beautiful chart:

Courtesy: Zerohedge.com

The uptrend is CERTAINLY in place!

As you can see, in 2011, the last mania for gold, the price was 2.3 times above the trend-line support. To replicate that, the price will have to reach $2,750/ounce.

There’s so much more TORQUE to this move and the Davos billionaires are UNUSUALLY bullish. Ray Dalio’s firm leads the bull camp, with Paul Tudor Jones, Guggenheim Fund LONG silver, David Einhorn and Stanley Druckenmiller, among the gold crowd.

The CHIEF reason that they’re now forecasting a breakout into the $1,800’s and above is that they BELIEVE central banks have been cornered into never tightening again.

After the 2013 tantrum and the December 2018 one-month bear market, the verdict is out: Jerome Powell has WEASELED OUT of his promise to normalize rates, and from here on, all the FED can really do is hope the markets don’t become bent out of shape again, forcing more drastic measures.

The FED is like a chef, who’s already poured too much SALT into the soup. Instead of admitting the error, throwing it away and starting anew, he continues experimenting with the recipe, assuring a RECALL.

Courtesy: Zerohedge.com

I have so much more to publish this coming Tuesday on the matter, so I want to present two more important charts that prove that stocks are now, same as other assets, a way to be allocated into anything that isn’t cash.

For one, look at the crashing confidence levels of consumers regarding the economy and the jobs market; this is not LOOKING GOOD.

In an economy that is 69%-based on services and consumerism, this is unacceptable.

But it’s not only that; the DISPARITY between valuations and what corporations are worth is HUGE.

Truly, central banks have distorted pricing mechanisms and everyone is in the BLAST RADIUS.

 

 

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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Tom Beck: Time to Diversify Investments and Trim Positions

Guest piece from Tom Beck of Portfolio Wealth Global

The FIRST chart I’m about to show you, if you spend 15 minutes dissecting it, will lead you to understand that unless there’s a MAGIC FORMULA to continue making superior returns, we are NEAR a market event that is akin to being thrown off a raging bull.

Bank of America tracks 20 metrics, going back decades, which show whether or not stocks are expensive and overvalued.

At this point, only ONE of the twenty is not screaming BUBBLE, while a total of nineteen, or 95% of measures, are SHOUTING to beware.

Take a close look:

Courtesy: Zerohedge.com

Some of these metrics go back to the 1950s, so we’re looking at valuations from the time of the gold standard, the cold war, the Vietnam War, the oil shock, the 1990s bubble, the 2000s real estate nightmare and anything in between; this is INSANITY!

What the bulls continue saying is that the jobs market is still healthy and that there’s no incentive to be invested in commodities, since tech is where the growth is.

While that may be true, the VALUATIONS have reached such disproportion that you’re simply asking for it, if you’re not managing risk by diversifying and trimming down positions.


Courtesy: Zerohedge.com

It’s clear to see that there’s a PROBLEM with the bullish stance, then. After years of upward momentum in the employment numbers, we’re seeing the seeds of a hiring slowdown, which don’t signal the end, but forewarn that it is CLOSE BY.

Job openings plummeted by the biggest number since The Financial Crisis and just had their worst year since 2008.

The thing is that the RICH simply have an INCREDIBLE amount of wealth to deploy. As a whole, they don’t know what to do with it. The financial recovery, fueled by easy money policy, has allowed the wealthy to accumulate so much money that even after they have put all the money they’re willing to risk in the markets to work, they STILL have billions to send in the way of bond funds!

Courtesy: Zerohedge.com

While the average person is gasping for air, trying to find comfort in the fact that he even has a steady job and is able to provide for his family, the wealthy are clueless as to how to make their excess funds work for them.

That disparity will reach a boiling point in a slowdown, where the rich continue to flock to vacation spots and go out to fancy dinners and buy exotic cars, while the majority are out on the street.

If you want to point the finger, send your complaints to 33 Liberty St, New York, NY 10045, United States, where the Federal Reserve is scheming away.

Courtesy: Zerohedge.com

We are under the impression that the Federal Reserve will NOT be tightening their interest rate policy, nor shrinking their balance sheet in a material way EVER AGAIN!

The world’s financial system simply cannot withstand a recession; it has become dependent on central banks and never-ending credit. It is in a DANGEROUS position.

It reminds me of the movie Speed, with Keanu Reeves and Sandra Bullock, where the bus had to stay over 50 MPH for the bomb not to explode.

That’s the way things are right now. You can’t slow down the bus, but you also can’t unload the passengers, since this is not a Hollywood action flick; it’s real life.

 

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Lior Gantz: Stocks are Over-Bought, Time to Hedge With Commodities

Guest Piece by Lior Gantz of Future Money Trends

Every two or three weeks, I see another article published on how Warren Buffett’s holding company, Berkshire Hathaway, is underperforming the S&P 500 and how his cash pile of over $128B is a giant waste – since it could be making his shareholders a fortune, had it been invested in this late-stage bubble surge.

While that’s temporarily true, it is also important to remember that Buffett isn’t a stock investor; he is a business owner who seeks to own portions of businesses, purchasing their equity when the rate of compounding could be uniquely high, holding them forever, not for short periods of time.

For that to occur, for a company that grows at 8%-10% over time and yields a 2%-3% dividend, to compound at a rate of 16%-19% (TWICE as fast as the S&P 500), you have to PAY a fair price or BELOW that. This is what Warren Buffett has succeeded at locating in his 60-yr career – a company that, on average, compounds at 12% will only return 16%-19%, if they buy it CHEAP.

Right now, that’s simply not possible to do. While it is true that if one buys more of the S&P 500 index today, he is almost guaranteed to make money over time and will certainly be able to generate an above-inflation return over a period of 10-15 years, he could also WAIT and make much more.

Sitting on cash isn’t popular or profitable, but if you have REASON TO BELIEVE that stocks are due for a 20%-50% downside crash, Dot.Com-bubble-burst-style or 2008-style, there’s a LEGITIMATE reason to be cashed-up.

Buffett isn’t the only billionaire or the only serially-successful, illuminated investor that is CAUTIONING the average person to stay clear of stocks at the moment. Howard Marks, who wrote the best investment book I’ve ever read, is also publicly warning about the expensive markets.

Here are a number of the charts and data points that they’re watching:

Courtesy: Zerohedge.com

For one, if this analog continues to mirror the 1999-2000 period, in 3-4 months the markets will PEAK, followed by a MORE THAN 50% crash.

The S&P 500 index is currently trading at the highest gap above its 200-DMA since January 2018, right before it underwent a 10% correction. The S&P 500 is now also running on fumes, since for 2 months and 10 days, it hadn’t SUFFERED a -1% daily loss. This very much resembles the 2018 era, right before the -19.2% bloodbath, when that -1% daily loss streak lasted nearly four months.

Not only is the S&P 500 historically OVERBOUGHT, expensive and risky as hell; the NASDAQ is looking like a perfect bubble about to pop!

Take a look: the Relative Strength Index is as ALARMING as it was right before the Dot.Com burst and before the 2016 and 2018 corrections:

Courtesy: Zerohedge.com

The index isn’t comprised of penny tech stocks like back then, but the logic of putting new money into the index right now is, in my book, ALMOST non-existent. The risk/reward setup is totally biased against you.

If this is the case, and if all hedge funds, pension funds and self-managed accounts can see the writing on the wall, why are investors still LONG as they’ve ever been?

Before I get to answering that, notice how COMPLACENT buyers are, on top of being greedy – the VIX is sitting at all-time lows:

Courtesy: Zerohedge.com

The answer is that they’re POSITIVELY CONVINCED that the Federal Reserve, the European Central Bank and the Bank of Japan, as well as the People’s Bank of China, will do ANYTHING – absolutely ANYTHING – to avoid a recession. In fact, the first Wall Street billionaire has officially stated that the FED might even cut rates to ZERO.

This is not a gold bug that has been predicting doom and gloom for 40 years in a row, like a broken clock, and advising to build shelters in the hills; it’s a mainstream investor who is educated with the history and likelihood of such policies.

As I see it, interest rates under the dollar reserve currency system are NEVER going up again!

If we live in a world where bonds don’t generate any interest, then stocks become much more valuable, automatically; this is their main allure. This is the reason that sellers aren’t taking profits – where would they go for returns?

Courtesy: Zerohedge.com

The FED is already STIMULATING in irregular amounts and frequency in the past few months. In essence, it is acting as though it is fighting off a recession, but I remind you that U.S. unemployment rates are at half-century lows, the consumer is enjoying low debt burden and taxes have been cut. Logically, the central bank shouldn’t be embarking on stimulus plans in 2020, but it is.

All I can say is that stocks might be a DEATHTRAP; that is, traditional indices like the S&P 500, NASDAQ and Dow Jones are seriously ON THE PRECIPICE of something ominous.

In all such previous moments, in 2000 and in 2008, the commodities sector was the biggest winner of the HEDGING strategies that smart money implemented.

Courtesy: Zerohedge.com

Bitcoin is already having its BEST START to a calendar year and palladium, the 4th precious metal, is going PARABOLIC as well.

Bottom line, this is the most overbought market in history, which is in this shape – not due to strong fundamentals, but SOLELY thanks to the assumption that central banks will be PERFORMING MIRACLES to keep this from deflating.

It’s your call on how to address these facts and how to make money in a world that has clearly lost all risk aversion. In my case, I will continue to hedge by owning the HIGHEST-QUALITY resource stocks, which have already DOUBLED for us since June 2019.

Expect a very important alert from us this week.

 

That is all.

 

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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GUEST PIECE: Lior Gantz Sees Dollar Bear Market In 2020

Guest Piece by Lior Gantz of WealthResearchGroup.com:

The price of gold has hit an all-time high in Euros and a 40-yr high in Japanese Yen. Gold started climbing in December 2015 (four years and one month ago) and is now up 55%, since then. During this time, (1) the FED was tightening, (2) inflation was low, (3) the stock market SOARED, (4) the dollar was hitting ALL-TIME highs and other commodities didn’t participate in a rally.

In other words, gold’s price gains a few days ago from $1,053 to $1,610 is extremely weird, to put it mildly. In the 1970s, when gold quadrupled by a factor of 24, from $35 to $850, inflation was soaring. In the 2000s, when it rose from $250 to $1,915, interest rates were slashed, China boomed, oil went from $10/barrel to over $150 and the U.S. markets traded sideways for 8 years.

This current bull market is unique. Many seasoned billionaires are indicating that this current environment is totally confusing to them. Ray Dalio, for example, the pioneer of Risk Parity, suffered his 1st full-year loss in 19 years. In 28 years, Dalio has only lost money for investors in four calendar years. What’s even odder is that the S&P 500 has just closed on its best year since 2013.

As individual investors, we are freed from the nuisance of performing on a quarterly basis or an annual basis. We look at markets in increments of 5-10 years and allow investments to mature. Ideally, our active income generated from our main career compounds fast, so that we can add new funds to our portfolios every single month.

I stick with these 16 Life-Principles to experience a BLOWOUT year!

Courtesy: Zerohedge.com

As you can see above, through organic trends, such as demographics and productivity, as well as through the successful economic measures of the Trump administration, the U.S. economy has reached an exceptional point. Historically, this happens before recessions and before market peaks and wage growth is higher than unemployment rates.

As you can see, this is predictive of yield curve steepening, which is the most reliable recessionary indicator that economists use.

The Dow Jones eclipsed 29,000 points this past week for the 1st time ever. About 55% of Americans, or 181 million citizens, have ZERO exposure to stocks. To them, this means that others are getting wealthier, but the way for them to own equities is getting more distanced. At $27/hour – the average worker compensation across all industries – you’d have to work over 1,000 hours to own one point of the Dow Jones Industrial Average.

Nearly half of the workforce earns roughly $30K/annum, so you can see how most families find it IMPOSSIBLE to create the secondary wealth engine called passive income stream.

2020 started good for stocks. When the initial trading week begins this way, the S&P 500 finishes up on 82 out of every 100 years. On top of that, the average return is over 13%.

Like I said, this looks to be another year of generous market returns, BUT with a dollar bear market attached to it!

Courtesy: Zerohedge.com

In a few days, China and the U.S. will officially sign the Phase 1 deal. To my knowledge, we were the FIRST to draw the correlation between the dollar bear market and the trade deal.

As we see it, The European Central Bank and the Bank of Japan will EASE far less than the FED will in 2020, so the dollar will continue to head down. In fact, on a technical analysis basis, its 50-DMA just did a Death Cross.

This, of course, is good for commodities and the valuation of mining stocks.

Lastly, I want to make sure you understand that while more price gains are highly likely to come this year, the stock market is TRULY expensive:

Courtesy: Zerohedge.com

As you can see, when this ratio reaches a PEAK, both in 1971, 2000 and today (most likely), gold prices go UP, UP AND AWAY.

Gold has been one of the best investments of the past 19 years, up more than 600%.

After its best year since 2010, this could be a PIVOTAL time for it to gain double digits, which will result in $1,700/ounce at some point during 2020.

Open post

Some Political Predictions for 2020 – A Year of WINNING

Today’s Campaign Update
(Because The Campaign Never Ends)

As 2019 comes to an end, several aspects of the political situation in the United States and globally are becoming clear. – After a very eventful year during which the Democrat/Media/Deep State Axis of Disinformation threw everything they could think of at President Donald Trump, he is now emerging as the United States emerged in the wake of the destruction of the Soviet Union, as the only real political superpower remaining.

The Democrats, meanwhile, are in a shambles. The impeachment scam run by San Fran Nan, Bugeyes Schiff and Jabba the Nadler has had the unintended consequence actually strengthening President Trump’s polling numbers to the point that he now holds leads over every major Democrat candidate in 3 of the 4 most recently-released polls, and has a double digit lead in the key states of Michigan, Pennsylvania and Wisconsin.  With the Republicans able to control the process for a Senate trial, this polling dynamic promises to only get worse in the coming weeks.

Meanwhile, their Party’s presidential field is scaring the public to death. Joe Biden is a doddering, bumbling shell of a human being who is desperately trying to avoid being prosecuted for looting the Ukraine with his ne’er-do-well son before he can win the Democrat Party’s nomination; The Commie is so bankrupt of any idea that does not involve stealing and wasting Other People’s Money that he has had to enlist the help of congress’s most notorious nitwit, AOC, to keep his campaign going; Fauxcahontas has seen her campaign stagnate under the weight of too many bald-faced lies about her personal life; Preacher Pete peaked in July at 8% in the polls and lacks the appeal to move any higher than that; Nanny Bloomberg has managed to secure just 5% support with his $150 million ad campaign spend, and the rest of the field is too insignificant to waste words on.

Put simply, the Democrats enter 2020 desperately in need of a new candidate, some dynamic, truly appealing, vibrant new national figure who could excite their demented voter base and give them some shred of hope of mounting a competitive effort against the incumbent President next Fall. But the only thing they have waiting in the wings for the right opening to step into the fray is the Pantsuit Princess, the Coughing Crook, the Fainting Felon, the Grasping Grifter, the Cackling Crank.  You know her as Hillary Rodham Clinton. Not a good look, Democrats. America has already been there and done that, twice. Are you really going to let her go for the presidential loser hat trick?

All of that and so much more points us to a fascinating 2020 to come. Here are some predictions on how it will all play out:

  • Pelosi will relent on her failed, idiotic tactic of withholding the articles of impeachment and transmit them to the Senate shortly after congress reconvenes on January 7. At the same time, she will authorize her carnival freak show committee chairs to institute the impeachment process permanently, so they can mount yet another new scam later in the year;
  • The Senate trial will last barely a week, as 51 Republicans and one Democrat – Joe Manchin – will vote to acquit President Trump following the presentation of the case by the House Managers. RINO senators Mutt Romney and Lisa Murkowski will vote “present”;
  • Communists across the globe will become incredibly excited when The Commie ekes out narrow wins in both the Iowa Caucus and New Hampshire primary, with Preacher Pete Buttigieg running a close second in both states;
  • The Commie/Preacher Pete boomlet will quickly run aground, however, on the shoals of the African American vote in South Carolina and the Hispanic vote in Nevada, which will carry Quid Pro Joe to closer-than-expected wins in those next two contests on February 29;
  • Super Tuesday on March 3 will flush the deadwood out of the Democrat primary system. Bloomberg will see his strategy of skipping the first four contests come a crapper, as his spend of $300 million by then will gain him no better than 5th place finishes in any state. Biden will win both California and Texas, the big prizes of the day, along with several other states, but his small margins of victory will prevent him from piling up a big delegate lead. Warren will win Massachusetts, Sanders will prevail in his home state of Vermont and neighboring New Hampshire and Maine, keeping both senators in the race. Buttigieg will win no state on Super Tuesday, but will fight on as the only remaining protected “miniority” candidate as Cory Booker, Andrew Yang and Tulsi Gabbard finally give up their ghosts of a campaign;
  • Bloomberg will also remain in the race and keep spending tons of money in anti-Trump ads because, in case you haven’t figured this out yet, he’s not really running for the office, but as a proxy for the Democrat National Committee, which is flat, dead broke;
  • At some point in the Spring, the Democrat/Media/Deep State Axis of Disinformation will create a new fake “scandal” out of whole cloth and mount yet another impeachment effort, complete with more rounds of Soviet-style hearings led by Commissars Schiff and Jabba. They will vote out new articles of impeachment during the week of the Republican National Convention in late August. This is as predictable as the sun rising in the East;
  • Also in the Spring, shortly after the Democrats have begun their next impeachment scam, the public arrests and perp walks coming out of the investigation by U.S. Attorney John Durham and Attorney General William Barr will commence. Those arrests will take place simultaneously, and involve most, but not all, of the major figures who led the DOJ/CIA/FBI Spygate operation and Coup Cabal. The corrupt news media will use the occasion will do its furious best to smear the reputations of Barr and Durham and any other prosecutor who becomes enlisted in the operation, because hey, that’s what our corrupt news media does;
  • Shortly after the arrests have taken place, Barr and Durham will hold a joint press conference during which they will let it be known that these arrests are a beginning, not an end, and that Durham and his team are still building cases targeting other, possibly higher officials in the Obama Administration. A few days later, Barack and Michelle Obama and Bill and Hillary Clinton will be seen walking the beaches in non-extradition treaty countries;
  • Predictably, the system of awarding delegates proportionally rather than winner-take-all will ensure that no candidate will enter the July Democrat National Convention with the majority of delegates needed to secure the nomination on the first ballot. But Biden will win on the second ballot, when the “Super Delegates” get to vote, due to the myth of his “electability.” Biden will choose Buttigieg as his running mate in order to add “diversity” to the Democrat ticket;
  • In kicking off his acceptance speech, Biden will say that “It’s fantastic to be here in the great state of Wyoming!” The convention is being held in Milwaukee, Wisconsin. His campaign will go downhill from there;
  • The Commie, angry that the Party has once again rejected his Marxist siren song, will announce he is running as an “independent,” and will choose AOC as his running mate despite the fact that she is five years too young to serve as Vice President, a fact that AOC and the Twitter Outrage Mob will denounce as a relic of “white male supremacy”;
  • The Democrat/Media/Deep State Axis of Disinformation’s latest impeachment sham will backfire once again, adding another 4% of the popular vote to the President’s support base;
  • Despite massive Democrat voter fraud efforts that inflate Biden’s vote total by 2 to 4 million votes, President Trump will win 52% of the popular vote in the November election to Biden’s 40%. The Sanders/Ocasio-Cortez independent ticket will come in with just 5%, which is about the percentage of Democrat voters who make up the Twitter Outrage Mob;
  • Much of Trump’s margin of victory – which will include a whopping 370 electoral votes – will be due to the fact the he will receive 20% of the African American vote and almost 40% of Hispanic votes. He will also become the first Republican in modern times to pull a majority of he Jewish vote, as Jewish folks become increasingly aware of the fact that all of these attacks on their people are taking place in cities that have been run by Democrats for decades. The corrupt media will continue to call the President a “racist” and an “anti-Semite” despite those results;
  • Biden and all other Democrats will refuse to accept the results of the election, attributing their latest failure to mythical “voter suppression” efforts by Trump and the Republicans. They will beef up George Soros’s funding of Antifa and other radical leftwing riot crews. The resulting mass riots in major, Democrat-run cities will make those seen following the 2016 election look like a day in the park;
  • The Democrat mayors will blame the riots and looting and carnage on President Trump.

Some things are just too predictable.

Happy New Year!

That is all.

 

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.

Open post

Here’s Why Pelosi is Making Impeachment Permanent

Today’s Campaign Update
(Because The Campaign Never Ends)

Tired of all this WINNING yet? Not a chance.  – All major U.S. market indexes once again attained all-time record high closes on Monday. It was the ninth straight record trading day on the NASDAQ, its longest such streak since 1998. As we approach the end of 2019, the Trump economy has now taken all of the Democrat/media recession promoters, folded them collectively up into a massive wad of smelly BS, and tossed them into the garbage dump of history. It’s a wonderful thing for America.

Tired of all this WINNING yet? Part II. – The stock markets weren’t the only area in which Americans were WINNING bigly on Monday. The leaders in China finally signaled capitulation to the reality of President Trump holding all the real leverage in the trade negotiations between the worlds two largest economies yesterday, announcing a massive reduction in tariffs on U.S. imports into their country:

China will lower tariffs on products ranging from frozen pork and avocado to some types of semiconductors next year as Beijing looks to boost imports amid a slowing economy and a trade war with the United States.

Next year, China will implement temporary import tariffs, which are lower than the most-favored-nation tariffs, on more than 850 products, the finance ministry said on Monday. By comparison, 706 products were taxed at temporary rates in 2019.

The tariff changes were made to “increase imports of products facing a relative domestic shortage, or foreign speciality goods for everyday consumption,” the ministry said in a statement on its website.

This, friends, is WINNING, and it is only going to get better in 2020. Heck, it will likely only get better before 2019 is over – after all, we have a whole week to go.

Why is Pelosi making impeachment a permanent process? – After I posted yesterday afternoon’s update detailing the Democrats’ latest move to make impeaching President Donald Trump a permanent feature of their rule in the House of Representatives, several readers sent messages asking why she and Schiff and Nadler would do this? What purpose does it serve?

Well, there are several reason why San Fran Nan’s traveling congressional freak show is going down this road – let’s lay them out in bullet point form:

  • First and foremost, the Democrats have nothing else. This is all they got, and they know it. They have no real policy agenda heading into the 2020 elections other than promoting the Green New Scam and Venezuela-style socialism, and those are unpopular policy proposals that they must pursue under the radar.
  • Second, because they can. There is no honest media establishment working to inform the American people of the truly subversive nature of what they are doing, and thus, no negative consequences politically from going down this despicable road.
  • Third, because they can never admit that the 2016 presidential election was legitimate. Think about it: They and their corrupt media toadies have spent three entire years now promoting first the Trump/Russia myth and then the Trump/Ukraine myth in their frenzied effort to overturn the results of that election. If they were to stop now, it would be an admission that the entire pretense that enabled them to attain their House majority in the 2018 election was a false one.
  • Fourth, because pursuing permanent impeachment supports their new narrative in which they are already making the case that the 2020 presidential election will be illegitimate. Having a President win re-election while “under investigation” is key to that narrative.
  • Fifth, because they know that Ruth Bader Ginsburg is in terrible health, making it very likely there will be an opening on the Supreme Court at some point next year. Making impeachment permanent enables them to argue that President Trump can’t fill that seat while he’s under “suspicion.”

I suspect it is possible that Ginsburg, who is 85 and has survived several bouts with lung and pancreatic cancer, or liberal justice Stephen Breyer, who is 81, may have even informed Pelosi and others that she or he plans to retire at the end of the current Supreme Court session, which would help to explain the urgency behind the Democrats’ efforts to keep impeachment alive.

Now, if you are thinking that none of the reasons listed above are legitimate reasons for the constitutional abomination Pelosi is perpetrating on our society, I agree. But we have to remember that everything Pelosi, Schumer or any Democrat leader does has a single goal in mind: The acquisition and maintenance of political power. That’s it.

Considerations such as what might be best for the country never enters the minds of these demented and depraved people. Once you realize that reality and accept it, everything they do makes perfect, if evil, sense.

That is all.

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.

Open post

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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