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POWELL IS EITHER DEAD WRONG OR A GENIUS!

This article was contributed by Portfolio Wealth Global. 

For months now, the theme has been that the economy is heating up.

If you free-search the term “Overheated Economy,” tons of articles, showing packed malls and fully-booked resorts appear.

The notion that bond yields are going to keep rising and that the FED must tighten soon is flawed in the eyes of FED Chair Powell.

If he’s wrong, the gloom-and-doom crowd believes inflation will get out of hand.

I want to show you Powell’s arguments that inflation will not rise above the 2.2%-2.4%, where the FED wants it to be for the next few years, and then I’ll show you where Powell could be wrong.

WHY DISINFLATION IS LIKELY

Disinflation doesn’t mean deflation. It means that inflationary expectations aren’t met.

It means that deficit spending and unsecured government debts are not going to cause a worst-case scenario, despite the in-your-face emotional rants of people who despise them.

Here’s why Powell believes disinflation (2.2%-2.4% long term) is more likely:

  1. Supply Chain Congestion: This is a big one. His reply is that any supply chain matters are fleeting and will be resolved. I agree. The capacity to manufacture in today’s world is nearly inexhaustible.
  2. Technological Boom: A crucial point is that breakthroughs in technology are making our lives much more affordable.

If I think about twenty years ago when people wanted to chat with a friend of theirs, while riding the bus, the SMS technology was expensive!

A text message used to cost a fortune. If I tried to live the same life I did twenty years ago, my life would be 50% cheaper than it is right now, so technology is driving prices down.

  1. Mature Economy: No robust economy with a long-standing currency system has ever suffered from crazy inflation.

It is true that all fiat currencies in history have gone to zero, but it’s also misleading since the population had ample time to exchange the old currency for the new one before the old expired into nothingness.

  1. Competitive Global Economy: In the 1970s, America was the clear dominator and no one else was even close. Today, the ability to produce and manufacture is uncanny and before companies raise prices, there better be a very good reason for it.
  2. Phillips Curve Theory Failed: In the last few years, we saw unemployment levels in the U.S. go down so much, yet inflation never became an issue. The jobs market was so tight that people were quitting left and right and companies still didn’t raise wages by that much, since they looked outside the U.S. for talent.

Courtesy: Zerohedge.com

Bonds have clearly been a horrible asset to hold in 2021, but with the 10-year bond dishing out 1.714%, as I write this, get inside the head of a pension fund manager, with billions to deploy and a mandate that he must hold government bonds.

He looks at the available supply of bonds and sees that in Europe, every government will borrow from you, but none of them will pay anywhere near what Washington will and some might even charge you interest!

Inflation might not become a pressing issue, so don’t bank your livelihood on hyperinflation.

Instead, take baby steps and do what’s right for you today, with the available information at your disposal, not with some theory that 51 years after we’ve gone on the fiat currency system, suddenly everyone will treat it like a house of cards.

It might not happen…

The post POWELL IS EITHER DEAD WRONG OR A GENIUS! first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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HUGE MOVES: GOT 2 MORE YEARS OF THIS!

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

I’m going to show you the MOST AMAZING chart I’ve ever seen. Since 1971, the moment when FIAT CURRENCIES were born again, gold and the CRB (which is the basket of commodities) have moved in tandem until 2008, when the 37yr correlation ENDED.

The chart is so clear on this matter. It was when the Great Recession began and the central banks birthed the new monetary reality we all live in that gold and other commodities SEPARATED WIDELY.

Look at the UNBELIEVABLE CHART below, since it points to the greatest opportunity in trading distressed assets the world has ever seen.

The more I look at it, the more THE POTENTIAL of it begins to talk to me:

Courtesy: Zerohedge.com, TheFelderRerport.com

The disappearance of inflation in EVERYDAY ITEMS, and its concentration within certain asset classes – among them stocks, real estate, and bonds – have left commodities FOR DEAD.

In March, April and May, we’d published two watch lists, containing just over 30 companies that are mostly S&P 500 components, coupled with proposed limit orders. This was THE FIRST, later came THE SECOND. The gains have been DOUBLE-DIGITS with any and all companies that dipped below the limit orders – a RARE ACHIEVEMENT. Between the 60% in SWK, 54% in LEG, and 52.4% with PNR, there have been IMPRESSIVE WINNERS.

With the S&P 500 delivering its BEST 100-DAY rally of all time, the MAIN SECRET was to stay in there and to even CAPITALIZE on the panic.

As you’ll see below, though it seems COUNTERINTUITIVE, the stock market, with very few exceptions, MARCHES UPWARDS after such times, with a 94.4% probability of seeing an average of a 9.4% return.

Those are pretty good odds, I’d say.

Courtesy: Zerohedge.com

There’s a GREAT TRUTH to be learned by what’s happening here; history is a GREAT TEACHER and it is telling you big moves are ACTUALLY CATALYSTS for additional rallies.

With everything that 2020 has handed us, I want to deliver a message to you.

These are very difficult times for so many people. In the western world, there have been VERY FEW HARDSHIPS the scope of Covid-19.

All over the world, there is suffering. We all want to help and contribute; some have the financial means to do it, while others do not.

We all have personalities, though. We all, poor or rich, young or old, male or female, have a personality. It is our BUSINESS CARD, the way we speak to the world. Though one might be poor, financially speaking, a wealthy character can take you anywhere!

Resist the temptations that come with this competitive world and accentuate your generosity, your gratitude, your will to be courteous, your empathy, and your patience towards everyone else, no matter what their belief system may be. Strive to be tolerant and to celebrate the truth, not your own opinions.

We have one planet and we can do SO MUCH BETTER with it.

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Bullish China Compliance created out of thin air Damage Dollar Economy FIAT CURRENCIES Fraud GLobal Government Headline News Intelwars Japan milestone money Ponzi Scheme Precious Metals price protect wealth regulatory scarcity store value ticking time bomb United States

RIGHT HOOK PUNCH: Shaky Market – DREAD WHAT’S COMING NEXT!

This article was contributed by Lior Gantz of The Wealth Research Group. 

This TICKING TIME BOMB cannot be defused any longer. While government and central banks are PUSHING THE LIMIT on what sort of debts and currency excesses the global economy can tolerate and withstand, every additional experiment is leading us closer to the BREAKING POINT.

Governments are telling us that, besides serving as a TRANSACTIONAL TOOL, you’d be a fool to store wealth in cash, plain and simple.

They’re ENCOURAGING you to be in real estate, bonds, stocks or in precious metals, but NOT TO BE in fiat currencies.

Not that they want us to all go out and spend, but they are absolutely INTENT ON delivering the message that fiat currencies are not EFFECTIVE at measuring one’s purchasing power.

Therefore, the Covid-19 response from government serves as a PIVOTAL MILESTONE.

Courtesy: U.S. Global Investors

The global economy is more INTERCONNECTED than at any other point in human history. Literally, if damage is sustained in the U.S., everybody feels it. The same goes for China and to a lesser extent with Japan.

Germany and other large markets are also DOMINANT ENOUGH to impact other regions; the planet is one vast economy in many ways.

As you can see above, no country has been LEFT UNSCATHED by Covid-19 and the more important question is which industry can LEAP IN FRONT first.

The way currency is created is so weird that my BIGGEST CONCLUSION is that no one can predict how it behaves.

There are just TOO MANY variables. In fact, in Forex trading, 93% of brokerage accounts show a NEGATIVE RETURN. It is simply a FOOL’S ERRAND to try to nail currency swings over time.

What’s certain, ABSOLUTELY CERTAIN, is that precious metals are superior stores of value for savings than fiat currencies.

Courtesy: Zerohedge.com

Buyers, as you can see by their bullish stance, have forgotten what INVESTING MEANS, in our opinion – they haven’t been this bullish since 1991!

How do you price a business? What determines the price of stocks and the S&P 500 or the NASDAQ 100, for that matter?

VARIABLES IN DETERMINING STOCK PRICES

When an individual or an institution is looking at risking a given amount of present purchasing power, the goal is to OWN an instrument (private/public business, land/house/warehouse, bond, commodity, etc…) that can APPRECIATE in value.

Many assets can APPRECIATE in value, but some do it more predictably and more consistently than others, which make them safer and, FOR THE MOST PART, more expensive, as a result.

Safety has a premium attached to it, which is the reason the best businesses are rarely priced at a large discount.

In other words, the first determinant of price is RISK. Next in line comes the variable of alternative choices. If there are many assets that can produce HIGH RETURNS, an abundance of them makes them cheaper. In other words, RARITY AND SCARCITY determine price.

Third and very important, is the MANDATORY DEMAND in an asset class. In the stock market, for example, we know that pension funds and sovereign wealth funds MUST BUY stocks, so it creates an ARTIFICIALLY-HIGH demand for them.

To summarize, risk, supply/demand, alternatives, and regulatory compliance are the big picture components. They derive prices for assets, globally.

Lastly, the SIZE OF A MARKET is critical. In the world’s largest markets, there are far more buyers/sellers and that helps to PROPERLY PRICE assets since they are liquid. Therefore, liquidity is the fifth Big Picture factor.

The above five are what I call LOGICALLY-DRIVEN variables, but they’re not the MOST POWERFUL ones; instead, there’s one GRANDDADDY of them all and it is called FEAR.

It distorts data and makes buyers/sellers act in a way that doesn’t MAKE SENSE.

Most people invest much more as a result of fear, or lack thereof (meaning greed) than with PURE DATA.

Right now, the data shows that the RISK posed to businesses due to uncertain industrial conditions is MASSIVE.

Therefore, we anticipate more DOWNSIDE-VOLATILITY.

The last time this occurred, we were ready and CAPITALIZED NICELY, using our watch list of blue-chip companies that we follow, provided with limit orders.

I’ve just created a NEW ONE, which you can access HERE.

With the PANIC to the healthcare system out of the way, companies are now busy understanding their clients in the NEW REALITY.

The process won’t be without friction, so anticipate some BACKFIRE. When that happens, look at THIS LIST.

EXCLUSIVE REPORTS, Featured In This Article and in Others, Which Are Considered ESSENTIAL READING:
1. Gold Investing – DOWNLOAD HERE!
2. Trump’s War with Mainstream Media – DOWNLOAD HERE!
3. Covid-19 Round2 Sell-Off Playbook – DOWNLOAD HERE!
4. Why The Dollar Is Dead – DOWNLOAD HERE!
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$35/OUNCE GOLD: Don’t Blink – Just Hit the MOTHER LODE!

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

On August 15th, 1971, President Nixon changed the MONETARY LANDSCAPE forever. For the first time in human history, following his televised announcement, the entire global economy shifted from currencies that are BACKED BY GOLD to ones backed by NOTHING BUT AIR!

It was so evident that gold WOULD SOAR that some investors made fortunes so large that they still LIVE OFF THEM today.

In JUST ONE DECADE, gold’s price rose from $35 to $850 per ounce, and that type of return has NEVER MATERIALIZED again in gold. In 2000, gold ended a 20-year bear market and SOARED AGAIN, but not by 2,400% because it couldn’t.

You can’t RECREATE the initial big bang of the universe, metaphorically speaking; it’s physically and mathematically IMPOSSIBLE to start anew.

It’s unfair to those of us who WEREN’T THERE in 1971 to capitalize on this. We never know how much we would have RISKED on gold and would have gained.

In 2009, the price of silver WENT BALLISTIC and climbed from around $9/ounce to eventually reclaim its 1980 all-time high of $49/ounce. A year before, in 2008, though, while the banking sector was in shambles, one of the failing banks supposedly had to sell its silver position, causing the price to go from $21 to $8 in NO TIME.

This was the precursor that birthed the opportunity position in silver as it WENT PARABOLIC.

Silver stocks didn’t just climb by double-digits, and not even by triple-digits. Many of them SHOT UP by QUADRUPLE-DIGITS in three years.

Warren Buffett is FAMOUS FOR hating on gold. He simply doesn’t get it, and while he is one of the best BUSINESS EVALUATORS ever, perhaps the greatest, he is a POOR DIVERSIFIER of funds out of stocks, which is why he has probably MISSED OUT on $100B or more just in the past 20 years alone.

Buffett always keeps plenty of cash around, but instead of SPREADING HIS LIQUID ASSETS between gold and silver, for example, he has kept it mostly in Treasury bonds.

Just since the year 2000, his dollar CASH PILE, money devoted to staying liquid and handy for use during market crashes and buying undervalued stocks, has lost much of its purchasing power while gold has JUMPED from $250/ounce to $1,750 TODAY.

That’s a 700% gain, and it is a TREMENDOUS loss for his shareholders, which could have heard about how the company’s pile of cash is GROWING RAPIDLY at each annual shareholder meeting, instead of getting excuses like that you can’t teach an old dog new tricks.

Buffett simply has not taken the time to UNDERSTAND THE FLAWS of fiat currencies. We can see this because his opinion on Bitcoin is that it is worthless, while the cryptocurrency has led to remarkable returns.

Contrary to his notions, we NOT ONLY take pride in being the FIRST NEWSLETTER to ever cover Bitcoin, to our knowledge, when its price was $13/coin, but we kept on covering it until late in 2017 when at $10,000/coin, we warned that this was a bubble and that PROFITS WERE TO BE TAKEN.

Throughout 2017, Wall Street tycoons blew off Bitcoin, most famously Jamie Dimon, CEO of JPMorgan Chase, who attacked the cryptocurrency.

Buffett has been wrong on it, Wall Street totally missed it from 2013 and onwards, and only in 2020 do we see people like Robert Kiyosaki and billionaire investor Paul Tudor Jones understanding the TRUE POTENTIAL.

The Federal Reserve is PUSHING AHEAD with aggressive ETF purchases and DEBT MONETIZATION on behalf of the Federal Government. June is going to be one of the most CENTRALLY-ASSISTED months in U.S. history. The deficit is getting out of hand and the S&P 500 is kissing 3,000 again.

The point is that in order to HEDGE these expensive bonds and stocks, investors MUST turn to gold.

EXCLUSIVE REPORTS, Featured In This Article and in Others, Which Are Considered ESSENTIAL READING:
1. Gold Investing – DOWNLOAD HERE!
2. Trump’s War with Mainstream Media – DOWNLOAD HERE!
3. Covid-19 Round2 Sell-Off Playbook – DOWNLOAD HERE!
4. Why The Dollar Is Dead – DOWNLOAD HERE!
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