American
Debt Machine
When the Downturn Arrives!
When the next economic downturn arrives this could be the Mother of All Contractions resulting in a flat out
depression of epic proportions. No! I’m
not a doom and gloomer, but facts are facts, the U.S. has sailed the high seas of
massive overvaluation of stocks and bonds along with an echo bubble in real
estate. When this bubble finds its pin;
the bubble will not burst but explode[!], when that happens the elites will
become panic driven as their net worth and power slips through their fingers as
they move to more severe [Fascism/Socialism] extremes to diminish their losses.
The elites know a 50% hair cut is coming for
the U.S. stock market along with world markets possibility dropping the same
magnitude; however what is not tolerated is a total washout of 75%+ in one full
swoop [one down cycle]. This of course
would crater the junk bond market of biblical sized defaults along with a bevy of
high quality corporate bonds thought to be immune from such foolishness.
The Federal Reserve will be prompted into
action; when deflation strikes will not allow their grand moral hazard
experiment – [or correctly stated an effort to drive ownership into the hands
of the elites] – to become the next 1930’s; they will embark upon another round
of QE buying not just treasury securities but corporate bonds, common stocks
and possibly real estate. The Federal
government, not to be out done by the Federal Reserve, will fake missions to
Mars, add new HUD housing projects in every county seat and when that fails gin
up a world war to goose main street wages to stem the possibility of bond
defaults and corporate bankruptcies.
Federal involvement in the U.S. economy?
…You
haven’t seen nothing yet!
Distraction will be the name of the
game! One FAKE mass shooting after
another; when that game runs out of gas go back in time and do a redo of the Lindbergh
baby kidnapping scam. All to buy time
till the forces of inflation – stemming the tides of corporate failure – bail out
the elites all at the expense of the common man and women plus their families!
You’re Solution!
Do not play their game.
- If you are out of debt; stay out of debt.
- If you’re in debt get out of debt; as fast as possible.
- Kill off the student loans…ASAP!
- That is all debt including the house!
- Too much house sell and downsize to a smaller home; it is not the size of the home but the respect and love on a day by day basis makes all the difference.
- Two years plus savings in a combination of cash, gold, and silver coins along with freeze dried food equivalent of time [two years].
- Prepay on going bills out to two years. Such as electricity or gas payments.
- Build your second layer of defense. Add on additional cash, gold, and silver coins plus food storage.
- Then work through DYI’s four asset categories of stocks, long term bonds, gold, and cash. Moving heavily into undervalued assets; and/or reducing/abandoning overvalued classifications as you “duck and cover” from the upcoming economic calamity.
Kenneth E. Royer
Editor; Chief Cook and Bottle Washer
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