The world economy is in a state of manipulation and instability. Here is my take on where we are heading!
The paper markets are very unstable, but the trading bots in today’s markets are looking for moves in the market like the YEN/USD and the VIX index. Every price point we see today is manipulated by the bankers to make it seem like we are okay. When these algorithms sees move in these indicators which can be manipulated by organizations like the FED, IMF and the ESF. There will be buying signals for the high frequency traders and that’s why we are seeing more all time highs. The HFT are just skimming the markets as they are doing billions of small transactions making money. These bots don’t care about fundamentals like the P/E ratio of stocks is calling for massive corrections. But let’s get back to the major issue that no one can fix and that is the ever increasing debt issue. Canada is the number one indebted country in the G7 and will need a continuous lower interest rate and more deficit spending by government and people to survive. The thing I’ve learned over the last year is that history repeats itself, but one should listen to the almighty central planners and their beliefs.
This is why so many people have failed to call corrections as they follow fundamentals which we really should, but central bankers think they are debt alchemists. They believe that the only way to do things is to get into more debt and higher inflation to put for the old debt and make it cheaper. This might work for a while until people are starting to see the loss in value of their investments as the debt issuance gets higher and the value of your loan to the government and the corporations you made is loosing value and not gaining value. In order to completely control the markets central bankers have now very few actions left, helicopter money as spending has stalled by their actions in the first place, negative interest rates and a cashless society as they can then control all money. It has gone so bad that legendary bond investor former head of PIMCO now at Janus Capital has moved a portion of investments into gold. People say that gold doesn’t yield, but it yields better than negative interest rates.
Check out my recent video on negative interest rates:
I’m talking about the SDR system the IMF’s special drawing rights which it uses today and are indenting countries around the world and many corrupt leaders take all the money for themselves. There are 100’s of examples on how corrupt the IMF is ex. Greece, Venezuela, Mozambique, Angola, Ukraine and others over just this decade. There are to more options as well a new digital currency system as mentioned in a cashless society it is actually in the works as we speak, look up the R3 Consortium a digital Blockchain based ledger controlled by the most powerful banks in the world and their head manipulator former VP of JPMorgan Blythe Masters she is famous for cornering commodity markets and manipulating them when she worked for JPMORGAN or a last outcome could be the historically used model when a currency failed and that is going back to gold and silver as a part of our monetary system.
Actually a friend of mine Anthem Hayek Blanchard son of the guy who made gold possible to own again in the 70’s is working on a blockchain 100% gold backed system. Now the answers for the problem is an old one. It is commodities, anything that we have made or that comes out of the earth has value the ever increasing prices is the devaluation of our paper/electronic money and the constant value of commodities. They always win over paper fiat. I can give 100’s of examples, but in simplicity I say food, water, land, gold and silver and other important commodities always win.
Land and some cash flowing RE is also good to have. And one last thing the governments wants us dependent on them and the end result is Venezuela or any other failed central planning attempt. It is all a trust game, when the trust is broken which it soon will it is game over for central banks and we can be winners. Experts that are talking about natural deflation is right, but they haven’t calculated in insane monetary policy. And I believe that will win and currencies will loose.
These thoughts are my on the current economy.
The Economic Truth