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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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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.

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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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Investors, Beware: Prepare For the Coming Decade

[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.]

Today, there is over $17T invested in bonds that guarantee a loss. Think of the madness: You invest $101 today and in 2030 you will receive back $100. While the rate of inflation has been around 1.5% and GDP growth has been 2%-2.5%, owning bonds hasn’t been a bad choice or a lousy decision.

Many bond investors own the bond because of its liquidity and due to the fact that they’ve been able to flip it, selling it to another institution for a profit, so the yield wasn’t a determining factor.

For example, when the U.S. government’s 10-yr bond yields 2.3% and you lend Washington $10,000, the return on the coupon is $230. If six months later, the newly-issued bond yields 1.8%, you’d have to lend the government $12,777, so investors flipping their previously-bought bonds from six months ago just made a stunning 27.77% return.

But who in their right mind bets on lower rates, when the world’s interest-rate policies are already this artificially low? Who can be so CERTAIN that rates won’t rise, that central banks will be able to continue on their path of suppressing inflation? WHO BUYS BONDS AT NEGATIVE RATES?

The level of madness, lunacy and criminality goes to another echelon when you learn that 97% of these government-issued bonds are actually owned by the CENTRAL BANKS and the institutions that facilitate fractional reserve banking in the first place!

President Trump may be calling on Powell via Twitter to lower rates to zero, because BOTH OF THEM are fully aware that in this decade (2020-2029) the compounded growth of the unfunded liabilities and the interest payments on the current national debt will become PUBLIC KNOWLEDGE and part of the debate. Thus far this has been swept under the rug, but the FED is already helping Washington prolong this economic expansion that is financed by ever-growing deficits.

The Federal Reserve is rudderless. It really has no idea what to do next, so it is coming up with all sorts of fantasy schemes, like “letting inflation run higher to make up for lost time” – this is STUPIDITY on the grandest scale.

I’ve never understood this imaginary, totally bizarre target of 2%, which is just a made-up figure that they HAVE NEVER been able to meet.

The Federal Reserve, along with all other central banks, is a financial mafia in $3,000 suits.

Their entire reason for existence is based on a false premise that bank runs won’t occur under their watch and that they know how to keep employment levels steady and inflation in check.

Nothing could be MORE absurd than those claims.

The dollar will continue to be King of Fiat, since the other currencies are now in banana republic mode. The Euro, Yen and Sterling are jokes.

So long as this boom in stocks prevails, we won’t see any inflationary mania, but distrust in institutions is back to WW2 levels. In America, the world’s biggest, most dominant and important market, DISUNITY is at a record high.

Every day, watching from afar, I am astounded at some of these notions brought up by AMATEUR politicians, who have ZERO real-world experience: outlawing billionaires, making healthcare 100% government-subsidized or making college 100% funded by taxpayers.

If there is a downturn in 2020, Trump will most likely lose the presidency to a Democrat. If that happens, the U.S. will begin to resemble Europe and have a quasi-socialistic regime. If Trump wins, he will cut taxes for the middle class and BALLOON the national debt, making the endgame much scarier.

The planet is operating in the wake of a global revolution that’s due to come. GDP growth is now a matter of debt, not productivity.

Gold may be underperforming stocks in 2019 and mining stocks may be underperforming for 3 years, but the paradigm shift will be so quick and the re-pricing so DRAMATIC that being early and looking like a fool for a while is a small price to pay in order to MAKE obscene, life-changing profits on the other side.

Don’t cover your ears. Don’t bury your head in the sand in these wild times we live in. Be a force to be reckoned with!

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Debt Carpet-Bombing: Deep State Won’t Surrender!

[Note: I have found the work of Lior Gantz from WealthResearchGroup.com to be excellent and thought-provoking, so we’re sharing this article with you. Enjoy!]

At the highest level of government and central banking reside individuals who have proven themselves to be very capable men and women. Decision-making at their stature affects the lives of hundreds of millions, and sometimes billions. Their ability to think clearly, trust the advice of their closest advisors, and maintain a balanced mind open to ideas has to be sharp as a tack.

In World War 2 – which came to an end on September 2nd, 1945, now 74 years past – the capability of military and political leaders to formulate plans was a determining factor in how things turned out.

The war was atrocious, so much so that many facts were kept secret from the general public. This strategy of “shielding” the masses from the consequences of actions is one of the most unfair injustices that the Deep State officials in every country commit toward their own citizens, and on the global population as a whole.

Concealing travesty MISSES the entire point of learning from mistakes and of growing up.

Lying, embarking on propaganda schemes and warping reality is a big part of how WW2 got started and was able to linger on and consume the entire world for six whole years of devastating fighting.

We don’t want to ever repeat those painful lessons. People need to know that they live in unprecedented times, economically, financially and politically, so that they can prepare in an accurate manner, not a delusional one, for what comes next.

Courtesy: Zerohedge.com

In the past seven years, some of the investment world’s most successful long-term fund managers have been saddled with defeat and poor performance.

The world has morphed into this new beast, which baffles billionaires from Buffett to Dalio, who have been underperforming the indices.

Unlike us, who have ridden the incredible surge in the price of Bitcoin, most billionaires dismissed it. In the very EARLY days of WW2, French reconnaissance planes flying over the border saw a vast number of German soldiers, tanks and supply, lined up for an attack and reported thus to their high commanders up the chain. The general refused to acknowledge this, based on what THEY BELIEVED they knew, instead of relying on precise intelligence.

In those early days of the war, the French army was much more intimidating than the German one, and had the general acted on this information, MOST LIKELY the German invasion of France would have never occurred. Perhaps a resolution or agreement would have been struck, since all the momentum would have been stopped dead in its tracks, right then and there.

NEVER shut your mind to change; the world is evolving and old information, unsubstantiated opinions and biased beliefs could be deadly for one’s progress.

Courtesy: Zerohedge.com

Despite propaganda to the contrary, banks are noticeably beginning to tighten the noose around businesses and consumers – just like they did in the late 1920s, at the end of the roaring decade, right before the Great Depression.

We hear a lot about doctored government reports, both from Washington and China, but not all news is fake or tampered with.

The U.S. does enjoy low unemployment rates, but what of it? Most of the people that are working have low-wage, dead-end careers; no one is reporting on that FACT.

Even with gold trading near 6-year highs, no one is reporting that, in terms of value proposition, both the physical metal and the mining stocks are close to their historical 2001 lows!

Courtesy: Zerohedge.com

And, most dire of all, I have seen almost no warnings concerning the fact that corporate profit margins are in free fall, a phenomenon that has preceded each and every recession for the past 70 years.

The central banks have been carpet-bombing the financial system with liquidity, via QE programs and balance sheet expansions of all sorts.

Just like a variety of experimental weaponry was used for the first time in WW2, so have many monetary tools been implemented without any statistics regarding their chances of generating a positive result.

Take a look at these UNDENIABLE patterns, repeated time and again:

Courtesy: Zerohedge.com

In war, soldiers have months of downtime, in anticipation of the enemy’s attack. They sit, knowing that the inevitable can become the imminent and they prepare.

Nothing is more important than being ready.

Don’t get played by the Deep State academic propaganda machine.

Do your own thinking. READ, network with quality individuals and build a financial fortress.

There isn’t ONE CASE, in all of history, of a government that has devised a way to enrich the population. But there are INNUMERABLE cases, each and every day, of people from all walks of life who have AWAKENED their capacity to generate value and become financially independent.

Be one of those shining stars.

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