It’s About to Get Explosive in the Markets
It’s About to Get Explosive in the Markets from Future Money Trends
The truth is coming out!
There is no fix for the next recession, and central banks are officially trapped.The manipulation of the economy by central banks is going to end badly no matter how hard they try to stop it.
The stock market is realistically a bubble at this point, though we do see the Dow going far higher than it is today.
Keep in mind that bubbles don’t burst from an uptrend, they implode from a vertical move higher, so don’t count out the Dow going to 35,000 just yet. In all honesty, that will probably happen between now and the end of 2020.
The Federal Reserve has already said that they intend to hold off on interest rate hikes until the end of this year after cutting the growth outlook for the United States.
All of this should be raising red flags, but the biggest warning is that central banks won’t be able to stop the carnage when the next big slowdown hits.
The Federal Reserve and other central banks across the globe are all too ready for the bubble-related financial crisis, and they have tools at their disposal.
They have the extreme tools of zero interest rate policy (ZIRP), negative interest rate policy (NIRP), unlimited credit lines, unlimited liquidity, the purchase of trillions of dollars of assets, etc.
But not one of these “solutions” to an economic crisis will do much, if anything, to solve the problem, and they will all add different issues that will need to be dealt with – in the form of more laws, regulations, and loss of overall freedom, of course.
An ironic and interesting thing happens when anyone depends on borrowing from the future (i.e., uses debt) to fund growth today. All that new debt no longer boosts growth, while the returns on additional debt diminish.
***American borrowers are already tapped out, so lenders can no longer find creditworthy people to lend to.
***Borrowers likely cannot afford to take on any more debt.
***Whatever credit is issued now is gambled on speculation that the current bubble created by debt will continue indefinitely. But that’s a bet that’s guaranteed to fail spectacularly, as every speculative credit bubble eventually implodes.
Global debt is at historic highs, meaning that when the bubble finally does burst, it will impact anyone who owes any amount of money. As the insane bubble deflates, borrowers will default in record numbers as revenues and profits plummet.
The counter-attacks by central planners will be to flood the system with all sorts of gimmicks, debt, and stimuli, but in the end, all roads lead to a debauching of our world reserve currency.
In their desperation to cling to their wealth and power (that they created), central banks have most likely set a combustion process in motion that they can’t stop. This may bring about even more horrifying consequences than the market troubles they sought to avert in the first place.
As the central banks flail in a trap of their own making, you have some time to at least make the credit bubble’s deflation have a minimal impact on your life. Pay down your debts by living on less than you make. Properly assessing your financial situation before a crisis can help you stave off the worst of a catastrophe.
The next crash will be a buying opportunity because just like gold, once the FED begins to print in desperation, EVERYTHING is going to go up in the most radical way. Not because assets will grow in value, but because we will be witnessing the end of a fiat currency era.
If there’s one thing we should have learned as a society, it’s that those who are prepared for the worst have a much better chance of making it through a crisis that will amount to nothing more than a minor inconvenience to them. That’s a far better prospect than taking on more debt and suffering through what will likely be an apocalyptic catastrophe of epic proportions.
Actions to consider taking:
- Own some physical gold; at least 10% of your net worth.
- SELL any assets you don’t want to own for the next 5 years.
- Tighten up and use savings to invest in safe cash-flowing assets.
- If you have a lot of equity in real estate, consider cashing out.
- Over-deliver for your employer or business clients. This is usually your core income, so make yourself essential.
- Diversify your investments, cash, gold, and real estate. Don’t ever be 100% in the U.S.!
- Review your spending today, look at the last 30 days, plug the leaks, cut waste, and focus on becoming financially-free.
The worst of times will be the best of times for the prepared.
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Consider taking a speculative position in American Pacific Gold.
Wealth Strategist, FutureMoneyTrends.com