I’m not going to burden you, or myself, with fact checks as we all read the same daily missives from the Mainstream Media.
I’ve decided to alter, hard as it may be, my habitual focus on minute by minute attention to breaking news items and price changes regarding the domestic and global economies. My reluctance to step back and view the forest has done more harm to my thinking than I care to admit.
So let’s look at the forest, and forget about the trees:
-Excessive liquidity via trillions of dollars in QE has been futile in creating economic growth.
-QE is a recipe for eventual hyperinflation.
-Equity markets are in the process of rolling over. Look at ALMOST any stock and you’ll find a rounding top pattern.
-China/Russia have been buying and hoarding gold, hand over fist.
-China/Russia are promoting their own currencies in international trade, leading to the eventual demise of the U.S. Dollar.
-Derivative markets have exploded to over $1 quadrillion.
-Banks, pension funds, hedge funds, etc. have all been accumulating high risk assets in search of yield.
-Most Western nations have accrued massive amounts of debt, mathematically impossible to pay off.
-The November elections in the U.S., no matter who wins, will lead to massive infrastructure and defense spending (not to mention ever increasing entitlements).
-Negative interest rates are not only draining pensioners’ source of livelihood, but contributing to the demise of pension funds themselves.
-As a sidebar, negative interest rates are slowly creating an atmosphere of social discontent with the prospect of banning currency. Now people are forced to pay banks to keep their deposits, and pay governments to purchase their bonds. This can erupt into violent protest among the public, as keeping cash under the mattress (the best investment available to the common man at the moment) will no longer be an option.
-We are as the cusp of slowly losing our Constitutional rights. Our forefathers fight in 1776 to preserve our liberties will have been for naught.
-Criminal charges against the financial community, for fiscal improprieties and lack of adherence to their fiduciary responsibilities, are nowhere to be found. Simply look at the recent Well Fargo debacle where the executive responsible for the massive fraud Carrie Tolstedt) gets released, yet is accommodated with a $125 million parting bonus!
-We are at war with every part of the globe. If that’s not the beginning of WW3, I don’t know what is.
-We are fighting alternative religious sects (read Muslims), alternative nationalities (read Latinos), alternative skin colors (Blacks and Asians), and last but not least…..our Allies in trade and commerce throughout the world.
I find that all these points (and there are many more) to be an irreversible movement toward the bowels of Hell. Let the Fed raise rates or let them lower rates. It really doesn’t matter. There is no turning back.
Markets are no longer free, but manipulated and controlled to such an extent that all your economic education can be tossed out the window. It no longer applies.
On a positive note………………the Nasdaq hit a new all time high!
CIGA Wolfgang Rech