Stock Market Wealth
Become A Wealth Machine
NO GOING BACK: Deep Negative Yields – GOLD WILL EXPLODE!
The Federal Reserve is Repeating its WORLD WAR II Strategy
I want to make sure that you FULLY UNDERSTAND how outrageous this is: the last time it was implemented was during wartime, and not just any old war, but the big one – WW2.
When the U.S. economy was GRAPPLED WITH the threat of a Japanese invasion and the country’s efforts focused on what was going on in Europe, the central bank CONTROLLED the yield curve in an effort to make sure Treasury yields weren’t SPIKING and you can see what happened below:
Courtesy: Voima, Bloomberg
As you can see, when the Federal Reserve implemented this type of tactic, interest rates WENT DEEPLY NEGATIVE.
In 2020 alone, Washington’s expenses WILL DWARF its income by $4,000,000,000,000. That’s not A TYPO. The deficit is now an OPEN SECRET.
Just to give this context, the deficit COMES OUT to around 14% of GDP this year, which will further SPEED UP the period of time when the public and the political class BEGIN DEBATING the national debt and whether or not it is costing more than it is ALLOWING – pros versus cons.
In other words, there’s a number, and no one knows what that number is since economists HAVE BEEN SCREAMING to stop the spending party for decades, which is just TOO BIG, even for the American economy.
93% Of Investors Generate Annual Returns, Which Barely Beat Inflation.
Wealth Education and Investment Principles Are Hidden From Public Database On Purpose!
Build The Knowledge Base To Set Yourself Up For A Wealthy Retirement and Leverage The Relationships We Are Forming With Proven Small-Cap Management Teams To Hit Grand-Slams!
When the Federal Reserve LAST FEARED rising rates would bring the economy down to its knees in 1942, it implemented this strategy of yield curve control.
Under the Bretton Woods Agreement, every ounce of gold was priced at $35 (since 1944) while the world assumed that the reserves held by Washington would be sufficient to keep this convertibility in check.
As you can see above, IT COULDN’T and inflation soared both in the 1942 through to 1943 (before the dollar was pegged) and after in 1947 and 1948. Gold SURGED!
While the media is busy CONVINCING THE PUBLIC that there’s an imminent 2nd wave underway because it serves in furthering some BULLSHIT AGENDA, the real threat lies in not CAREFULLY UNDERPINNING the risks of allowing Jerome Powell to make judgment calls based on the knowledge the bank has.
What this chart SCREAMS is that there is no GETTING BACK to it yet.
Yields are signaling that whatever we have entered on a global scale, but PARTICULARLY IN THE U.S., is something new.
If we are somehow able to avoid having either AN INFLATION SHOCK or a FULL-ON SOCIAL REVOLT, the only other possibility is a CURRENCY RESET.
It is NOT FARFETCHED to contemplate the idea of gold going above $2,000/ounce between now and the elections or the first few months after it, which may result in REAL PROBLEMS coming to surface.
As you can see, because testing IS RAMPING UP, the media will FRIGHTEN the viewers, but the truth is that the FACTS are overwhelming the nonsense.
Let’s solve the economics of this while we practice the necessary hygienic requirements, but DON’T FALL PREY to intimidation.
The data is clear: this is not A HEALTH CRISIS that demands any DRACONIAN MEASURES or loss of liberty!
Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!
Protect Yourself Now, By Building A Fully-Hedged Financial Fortress!
We are not brokers, investment or financial advisers, and you should not rely on the information herein as investment advice. If you are seeking personal investment advice, please contact a qualified and registered broker, investment adviser or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Please do your own research before investing, including reading the companies’ SEC filings, press releases, and risk disclosures. Information contained in this profile was provided by the company, extracted from SEC filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it.
Please read our full disclaimer at WealthResearchGroup.com/disclaimer
- FINDING YIELD IN A BARREN MARKET: Marc Faber’s Outside-the-Box Ideas for Investors Wary of Stocks and BondsThere’s $10 trillion sitting in negative-yielding bonds in the world today, and stock indices are …