COVER YOUR EARS: Coming Decade — ECONOMIC APOCALYPSE NOW!

This is a critical update from one of the best financial commentators I know, a good friend of ours, Mr. Tom Beck, who runs PortfolioWealthGlobal.com and we’re excited to share this one with you!

Today, there is over $17T invested in bonds that guarantee a loss. Think of the madness: You invest $101 today and in 2030 you will receive back $100. While the rate of inflation has been around 1.5% and GDP growth has been 2%-2.5%, owning bonds hasn’t been a bad choice or a lousy decision.

Many bond investors own the bond because of its liquidity and due to the fact that they’ve been able to flip it, selling it to another institution for a profit, so the yield wasn’t a determining factor.

For example, when the U.S. government’s 10-yr bond yields 2.3% and you lend Washington $10,000, the return on the coupon is $230. If six months later, the newly-issued bond yields 1.8%, you’d have to lend the government $12,777, so investors flipping their previously-bought bonds from six months ago just made a stunning 27.77% return.

But who in their right mind bets on lower rates, when the world’s interest-rate policies are already this artificially low? Who can be so CERTAIN that rates won’t rise, that central banks will be able to continue on their path of suppressing inflation? WHO BUYS BONDS AT NEGATIVE RATES?

The level of madness, lunacy and criminality goes to another echelon when you learn that 97% of these government-issued bonds are actually owned by the CENTRAL BANKS and the institutions that facilitate fractional reserve banking in the first place!

President Trump may be calling on Powell via Twitter to lower rates to zero, because BOTH OF THEM are fully aware that in this decade (2020-2029) the compounded growth of the unfunded liabilities and the interest payments on the current national debt will become PUBLIC KNOWLEDGE and part of the debate. Thus far this has been swept under the rug, but the FED is already helping Washington prolong this economic expansion that is financed by ever-growing deficits.

The Federal Reserve is rudderless. It really has no idea what to do next, so it is coming up with all sorts of fantasy schemes, like “letting inflation run higher to make up for lost time” – this is STUPIDITY on the grandest scale.

I’ve never understood this imaginary, totally bizarre target of 2%, which is just a made-up figure that they HAVE NEVER been able to meet.

The Federal Reserve, along with all other central banks, is a financial mafia in $3,000 suits.

Their entire reason for existence is based on a false premise that bank runs won’t occur under their watch and that they know how to keep employment levels steady and inflation in check.

Nothing could be MORE absurd than those claims.

The dollar will continue to be King of Fiat, since the other currencies are now in banana republic mode. The Euro, Yen and Sterling are jokes.

So long as this boom in stocks prevails, we won’t see any inflationary mania, but distrust in institutions is back to WW2 levels. In America, the world’s biggest, most dominant and important market, DISUNITY is at a record high.

Every day, watching from afar, I am astounded at some of these notions brought up by AMATEUR politicians, who have ZERO real-world experience: outlawing billionaires, making healthcare 100% government-subsidized or making college 100% funded by taxpayers.

If there is a downturn in 2020, Trump will most likely lose the presidency to a Democrat. If that happens, the U.S. will begin to resemble Europe and have a quasi-socialistic regime. If Trump wins, he will cut taxes for the middle class and BALLOON the national debt, making the endgame much scarier.

The planet is operating in the wake of a global revolution that’s due to come. GDP growth is now a matter of debt, not productivity.

Gold may be underperforming stocks in 2019 and mining stocks may be underperforming for 3 years, but the paradigm shift will be so quick and the re-pricing so DRAMATIC that being early and looking like a fool for a while is a small price to pay in order to MAKE obscene, life-changing profits on the other side.

Don’t cover your ears. Don’t bury your head in the sand in these wild times we live in. Be a force to be reckoned with!

ActivistPost.com absolutely loves the articles, contributed by PortfolioWealthGlobal.com

Of all the investment and economic commentators we're tracking, this one is, by far, part of the top echelon.

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