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Do You Really Think the Empire Will Sacrifice the Dollar to Further Enrich Billionaires?

This article was originally published by Charles Hugh Smith at Of Two Minds Blog. 

As for stock markets–the devil take the hindmost.

Let’s keep it simple: US dollar up, stocks down. US dollar down stocks up. Stocks up, billionaires get richer. Since that spot of bother in March 2020 when the US dollar (USD) soared and stocks cratered, the USD has been in a free-fall, boosting the wealth of America’s Robber Barons and various other skimmers, scammers, and other undeserving scoundrels.

Chief among the undeserving scoundrels feasting on the decline of the USD are global stock markets which have soared not because revenues and profits are soaring but because the USD has plummeted.

The Federal Reserve is widely worshiped as the Ultimate Power in the Universe, a kind of financial Death Star. The Fed has seen fit to crush the USD to further boost the wealth of billionaires and save global stock markets from their well-deserved ruin. Saving the world, ho-hum, just another day for the god-like Fed.

But something doesn’t quite add up here, for as the all-powerful Fed devalues the US dollar, it destroys the exorbitant privilege of America’s reserve currency. What’s the exorbitant privilege? Simply this: the owner of a reserve currency can create “money” (USD) out of thin air and trade it for autos, oil, semiconductors–real-world goods that were not created out of thin air. Rather, all these real-world goods required tremendous investment and significant costs to be produced and transported.

The exorbitant privilege is something for nothing–a remarkably good deal. And yet the universal expectation is the Fed is going to throw that privilege in the dumpster by pushing the USD into the ground, first by devaluing it relative other currencies and then by letting hyper-inflation destroy what’s left of its purchasing power.

It is not an exaggeration to say that the ability to create “money” out of thin air and trade it for real-world goods is the foundation of America’s global power, what I call the Imperial Project. The same can be said for the other reserve currencies, the euro and the yen. (Since China’s currency is pegged to the US dollar, it is not a true reserve currency; it is only a derivative of the USD.)

So let me get this straight: the Fed is consciously choosing to undermine and then lay waste to the foundation of American power–just to boost Robber Barons and zombie global stock markets? I don’t think so. That the Fed would pursue a suicidal destruction of the purchasing power of the dollar just to boost stock markets and billionaires–that beggars belief.

The Fed is not the Empire, it is the handmaiden of the Empire. The Fed’s dual mandate– for PR purposes, stable employment and prices–is actually balancing the conflicting demands of a global and domestic currency–Triffin’s Paradox writ large.

The inherent problem with a reserve currency is that it must meet global economic needs and domestic needs, and these are intrinsically in conflict. America’s billionaires and pension funds want the US stock market to loft higher on the back of a declining USD, but that diminishes the global purchasing power of the USD–a trend heading for economic ruin.

The Fed has had numerous reasons to weaken the dollar since March: a desperate need to “save” global stock markets from well-deserved collapse, and an equally desperate need to keep the dollar weak so global debtors with loans denominated in dollars can manage to service their trillions in USD-denominated debts.

But drawing a line extending this short-term necessity all the way to hyper-inflationary oblivion is a grave misreading of the Empire’s need for the exorbitant privilege of a strong dollar.

The Fed is about done with its “rescue” of billionaires and global markets and debtors. Against virtually all expectations of seers, pundits, gurus, etc. the USD is about to start serving the Empire in its foundational role. As for stock markets–the devil take the hindmost.

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PARTY’S OVER: LOCKDOWN DECEMBER!

This article was contributed by The Wealth Research Group. 

December has officially begun and this month is short because of the holidays, so politicians only have a few short days to fight over nothing, agree to disagree, screw over the little guy, and head back to their respective states to gossip about everything they didn’t get done this month. In short, this will get interesting!

Here are some important events to keep an eye out for:

A. 2021 budget: Congress must agree on a spending bill, often called “Omnibus,” since it condenses 12 different bills into one package.

If they can’t, one million jobs are at risk, because of a government shutdown. The street isn’t pricing in the probability of such an event, so any delays or last-minute rocking of the boat will not be taken with ease by traders.

Basically, this needs to be wrapped in a nice bow by the 11th, or we’re in trouble.

B. Stimulus Plan: Many programs, which have kept the piper from getting paid, expire this month. Yesterday, I spoke with a fund manager who is a top executive in one of the world’s largest real estate funds, one that I personally invest in. He straight up told me that landlords are paying bad tenants to leave, so that they can fill those vacancies with better-screened tenants, who have steady jobs or more savings.

We believe that Congress is too out of touch with the survival mentality and struggles of the average American family to understand the urgency of the eviction crisis. Some six million renters are behind and won’t be able to pay without rental relief. We anticipate a “kick the can down the road” approach, where the moratorium is extended to February, perhaps even March, instead of providing aid.

Secondly, we put the odds of a stimulus check getting passed in the month of December at less than 20%, according to today’s situation. Both parties have so much riding on the January 5th, 2021 Senate race in Georgia, that conceding now to the other party’s stimulus demands would show weakness to their base.

The HEROES Act is too large and the Skinny Bill is too conservative. This is why we don’t think a compromise is coming before the winner of Georgia emerges.

C. Covid-19 Restrictions: There’s been an interesting shift in how the government is “marketing” the best way to behave, going forward. Washington’s Task Force is realizing that the people just don’t listen to them, so they’re spinning the responsibility back to the individual level.

Dr. Fauci, and to a larger extent, Dr. Deborah Birx, are both acknowledging that with Thanksgiving and Christmas, families will congregate, so stopping that will be a futile waste of time.

The government is now telling each and every American something to the effect of: “You know what Coronavirus is. You pretty much know if you’re at risk or not, and you know family members who are to be kept from getting exposed, since they might die, so use your judgment, when living your life. We don’t want to enact stay-at-home orders, close schools, malls, and restaurants. We don’t want to announce lockdowns, curfews, or other restrictions, but if you can’t follow some basic rules, such as (1) wearing a mask, (2) washing hands frequently, and (3) keeping distant from others, whenever possible, we’ll be forced to, since hospitalizations and fatalities are rising sharply.”

This new approach is a twist since it puts the blame on society, not on the administration if they announce Covid-19 restrictions. It’s like a parent telling a child not to put his fingers near the fireplace, but the kid won’t listen. The parent lets the child get close enough to feel the heat, but stops him from getting burned badly.

I can’t stress this enough; I’m taking profits where it makes sense and waiting patiently. November was a record month for stocks; a pullback is so very imminent and unavoidable.

 

The post PARTY’S OVER: LOCKDOWN DECEMBER! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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$1,750 Gold: BLOODY RATED-R SCENARIO!

This article was contributed by Future Money Trends.

Bitcoin is on a tear right now because major institutional investors are entering the sector. It’s not a bubble, but its price is nowhere near being considered a bargain. We remember when our newsletter discussed both Bitcoin and Ethereum. It was early in 2017 and Bitcoin was $400 to $500 and ETH was $12!

Back then, it was an opportunity of a lifetime, as it was after the 85% implosion that came. Right now, it could go much higher because the sentiment is mind-blowingly bullish.

While Bitcoin is experiencing record inflows, gold has been suffering from record outflows!

Investors believe much higher rates are coming, which will end the environment of negative nominal rates. This is detrimental for gold and silver, but this script, in which the economy is about to greatly recover in 2021 without further stimulus or additional monetization of the national debt, is unrealistic.

In the near-term, the trend is clear: gold is hated!

Courtesy: Zerohedge.com

Money has exited gold at warp speed. Notice, though, that the catalyst for this sell-off is vaccination news, which is not the main driver for buying or selling gold. In other words, what just occurred revealed to the market what price discovery is projecting if we factor out COVID-19’s vaccination catalyst. Even if gold falls further, hitting $1,750 as technical analysis suggests, it’s still an incredibly profitable industry, with a global AISC (all-in sustaining cost) of $975/ounce and no major discoveries in years.

In other words, this shakeout actually highlights the profitability of mining companies and the scarcity of gold. If spot gold does fall below $1,800, we’d get interested in purchasing.

An important point to keep in mind is that most analysts and investors use either $1,450 or $1,500 as their value for gold when they judge any gold or silver mining stock for their portfolio.

Even before this sell-off, the market is convinced that $2,000 gold is not a long-term target, which is more evidence that gold is not in a bubble at all.

Courtesy: Zerohedge.com

Gold’s severe sell-off comes because the notion is that interest rates are headed much higher, towards where they were before COVID-19, which is an interesting proposition since we believe that Washington will soon be forced into creating a massive stimulus package that investors are adamant about not pricing in.

We believe that the consensus of the market is mistaken. We not only assess that the USD is in a bear market, but that central banks are impatient about the gridlock in Washington and will be charging forward aggressively in order to “buy time” for politicians.

Courtesy: U.S. Global Investors

The use of debt is so alarming that it makes us wonder how anyone could save any significant sum in a fiat currency when it’s clearly a vehicle for wealth destruction.

In 2009, when gold peaked on November 2nd at $1,196, the markets also disregarded the metal, explaining that the worst was behind us. It retreated to $1,081 and stayed below its all-time high of $1,196 back then until April 2010, only truly breaking out again in July 2010. Said differently, it traded downwards and sideways for eight months. If we plot the same pattern now, its peak was on August 5th, which means that we should expect it to hit $2,000 again around the end of January but only truly break out towards March 2021.

Between now and then, we will present a number of companies to study and research because unlike with general equities, now trading at their highest-ever valuations, there are sensible multiples and speculative ideas in the mining sector.

Furthermore, we are also going to feature a number of compelling securities we ascribe a 5x to 10x potential to that are already GENERATING both REVENUES and PROFITS.

The post ,750 Gold: BLOODY RATED-R SCENARIO! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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CAUGHT W/PANTS DOWN: Stocks Get DESTROYED!

This article was contributed by James Davis of Future Money Trends. 

The first few days of September were EXACTLY AS PREDICTED. We issued two separate alerts on the reasons why September will be horrible for the markets, and right out of the gate, investors got it HANDED TO THEM.

I don’t think it’s the end of it, either. The fact of the matter is that the VIX has gone up to its highest level in three months, which TELLS ME that profit-taking isn’t over.

Because of that, Future Money Trends is taking UNPRECEDENTED STEPS to add exceptional value to you:

  1. We’re creating our FIRST-EVER tech-focused watch list, which is a MUST-OWN sector. Some segments in tech are so disruptive that not having exposure to them is a CARDINAL SIN.

In order to achieve this, we’re masterminding with tech funds that we have a personal relationship with, and that’s going to be PUBLISHED in 7-10 days from now!

Our three WATCH LISTS we’ve published since the MARCH PANIC have returned high double-digits yields, so I want to stress which stocks are STILL BELOW our buy range. Here are the watch lists: ONE, TWO, and THREE.

As you can see, the gains have been JUST PERFECT. The number of companies that are still attractive to me has shrunk drastically, but there are still a few that are below the limit orders: Ciena, Cisco (close enough to its limit order), Spirit Aerosystems (not Spirit airlines), and there are four companies that are getting close: A.O. Smith (below $42), Resmed (below $160), Chubb (below $122), and TFI International (below $39 on NYSE).

Courtesy: Zerohedge.com

As you can see, insiders see the WRITING ON THE WALL and know that at these prices, they’d be NAÏVE NOT to take advantage of their options and stock compensation.

A vulnerable tech sector opens the door for the natural resource industry TO SHINE!

Therefore, for the first time in our company’s history, we’re publishing a resource portfolio comprised of 4 companies: a MEGA-CAP, a seasoned miner, a new IPO, and a speculative high-flyer. This is our ideal combination of companies.

Courtesy: Zerohedge.com

With China continuing to decelerate its TREASURY HOLDINGS and the dollar’s weakness in 2020 at the same time as gold and silver are the BEST PERFORMERS, resource stocks have done amazingly well for us.

Therefore, we embarked upon our GREATEST PROJECT in company history and came up with four company profiles that comprise this portfolio, which will eventually grow to between 10 and 15 stocks.

 

Get FULL ACCESS to the portfolio HERE!

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between now and November break free COVID-19 downsizing elections faked false Fear Federal Reserve free your mind Headline News Hoax Intelwars jobs market Lay-off LIES low unemployment Mainstream media Profits propaganda public scaring everyone Second wave Silver Stocks The Matrix the system. gold trace Track turbulent Vaccine victims Wall Street

MARKET CRASH IMMINENT: 2ND Imaginary Wave UPON US!

This article was contributed by Tom Beck with Portfolio Wealth Global. 

Get ready for the MOST TURBULENT period of your life. Between now and the November elections, you will be subjected to BLATANT LIES and to WORLD-CLASS BULLSHIT from every which way.

The office of president has never been so TARNISHED by the interests of the shadow government than it is today.

You are not going to believe how VICIOUS AND CRUEL the media will get in their attempt to influence the result.

Courtesy: Zerohedge.com, Deutsche Bank

The agenda should be VERY CLEAR to you: quarantine Main Street, vaccinate the populous, track with GPS more and more regular citizens (“for their own protection”), prop up Wall Street and get back to globalizing the workforce, weakening the American middle class, which is the wealthiest generation of non-elites to ever exist.

When America’s millionaires and billionaires own the equities, the reasoning behind many of the Federal Reserve’s programs becomes VERY CLEAR.

The next stage is SCARING EVERYONE that the 2nd wave is here. The way they’re attempting to do this is by RAMPING UP testing, which will reveal that tens of millions are infected and then use that as the excuse to close down again.

Notice who profits from shutdowns; the low-wage earners are the BIGGEST VICTIMS, while the Trump administration, which up until February could have bragged about the lowest unemployment rate ever, lost all grip on the jobs market, especially of minorities.

Courtesy: U.S. Global Investors

Obviously, with this as the BEST QUARTER in 22 years, you understand that there’s a PRIORITY PROBLEM in this country.

Companies are laying off employees, an act that has now been coined under a new term, “Right-Sizing,” which is a codeword for giving one person the workload of five – and shareholders are celebrating.

In the next few days, if states aren’t SERIOUSLY REALIZING how much hardship closing businesses back down will be for countless households, we will see BACKLASH AND REVOLT.

There is NO NEED for life to stop because of Covid-19. We can both continue functioning normally and protect the segments most at risk.

Don’t be pressured into thinking that you are the WEIRD ONE for wanting to get your life on track, while the virus keeps on spreading.

Courtesy: U.S. Global Investors

While the retail public and the pension funds GO BACK into buying the most expensive stock market in American history, Bank of America, Goldman Sachs, Ray Dalio, Paul Singer and central banks themselves, are BUYING GOLD and predicting that 12 months from now the price will be north of $2,500/ounce.

They’re hedging this unsustainable bubble.

Closing down bars, restaurants, and gyms, on top of other recreational areas, DOES NOT only depress the mindset of the country, but leads to riots, looting, militias forming, and FURTHER DIVISION.

We are entering a DARK PERIOD in which you’ll be tested as a person.

Don’t lower yourself to their level; STAND FOR what you believe in, even as personal liberty, free markets, and privacy laws will be portrayed as unpopular.

The media is SPINNING HISTORY, American heritage, and anything they can think of in their favor. It’s shameful and you need to RESIST IT.

We have no time for propaganda; we search for truth and facts.

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