Global Central Banks have run out of 'ammunition'. Since March 2008,
Central Banks have cut interest rates 637 times and have purchased a
staggering $12.3 trillion dollars' worth of assets. There is not much more
that they can do, and currently, the next 'great crisis' is upon us.
The global economy and the global financial system will continue to weaken
before our very own eyes.
If we do experience a major "black swan event" that takes place,
it will cause the bottom of the stock markets around the world to fall out,
and this could happen at any given moment.
Chinese exports have seen their sharpest drop in almost seven years,
adding to concerns over the health of the worlds' second largest economy.
Exports have dropped sharply by 25.4% from the previous year, while imports
fell 13.8%. This weak data comes on the heels of Beijing registering their 'slowest economic growth
in 25 years'.
The February 2016 trade figures reflected, are likely to raise new fears
over China's struggles to maintain economic growth, while implementing
reforms and trying to shift towards more services and domestic spending.
China was considered 'the engine of global growth'.
The FED has been looking at the 'illusion of recovery', but not the real
deal. If this were real, we would not have 100 million adult Americans
without jobs. There are currently 46 million citizens on foods stamps as
compared to 18 million that were in 2000. Thirty-five percent of the
population is receiving some form of public assistance. For so many years,
Global Central Banks have been manipulating the financial marketplace with
their 'monetary voodoo'. They have convinced investors, around the world, to
invest trillions of dollars into equities; artificially inflating the 'equity
asset class'. By creating money out of 'thin air' and pumping it into the
financial system it devalues currencies and creates an artificial sense of a
true economic recovery which so far has not been realized.
A shock to the financial system and 'contracting economic growth' from
abroad will force the FED to delay further short interest rate increases and
furthermore, reverse their course. These 'academic pinheads' are so blinded
by their tinker toy "Keynesians Macro-Model" that they cannot see
the flashing red light warnings that are in front of them. Keynesian fiscal
policies, which postulate that spending more of taxpayer money, that it would
"stimulate" an 'economic rebound'. IT FAILED!
Last week, Chairwoman Dr. Yellen, was forced to wave 'a white flag'. The
FED overestimated the strength of the global markets and consequently, will
not be able to go ahead with its planned four short term interest rate hikes,
in 2016.
The diminishing
holdings of U.S. Debt by foreign governments is now a major issue that
the FED must confront IMMEDIATELY!
This growing situation is going to result in the FED resuming
'monetarizing public debt'. Dr. Yellen is now beginning to listen to the
advice of, her predecessor, Dr. Bernanke, and is now potentially embracing
negative interest rates.
Central Bankers Do Not Understand 'Booms and Busts':
Central Banks still do not understand the 'boom and bust cycles'. Falling
stock prices will shortly be in the news. Central Bankers still do not
understand 'deflation', whether they are 'Keynesians' or some other variant,
thereof.
The next 'bubble' that is yet to burst
Student financial debt is out of control. Over $1.3 trillion in student
debt is floating around in the current economic system. The majority of this
debt is a burden to younger Americans, who are entering into a job market
with incredibly low wages. Student financial loan delinquencies are rising
dramatically. Student debt is now the worst performing sector of loans in our
economy. This is yet another 'bubble' that is yet to burst. Momentum will
catch up and the delinquencies will be the first cracks in the dam.
We now must embrace our own prosperity, our financial freedom and peace of
mind in our daily lives. I accurately warned my past clients of the housing
bust, the credit crisis and the 'Great Recession' more than one and a half
years in advance.
It is now time to prepare for the inevitable. Gold has been used as money
for more than 3,500 years while it doubles as a currency and a store of
value. It has also proven to be a good hedge since the experiments with
unbacked fiat money which began in Europe and the USA, in the 18th century
have failed to store one's value or wealth.
Gold is the purest form of 'money' and the oldest and most durable. The
Gold Aurum Coin was already legal tender and the first coin to be ever used.
The oldest gold coins are derived from the seventh century BC.
Investors use gold as a
'store of value' in their IRA or simply
by holding physical bullion, which is explained in this gold investing guide.
Gold metal offers the appearance of capital appreciation compared to
devaluing currencies. Gold has always had favorable liquidity throughout
history and will become more liquid in the coming years are more of the world
turn to gold as a store of value, hedge on inflation, and insurance policy
incase the financial systems does actually implode one day.
