Investors pay up to $60,000/yr. for the same advice we give regarding the U.S. dollar

Watching Global Flows Explains Why the Dollar Won’t Be Kept Down
A strong dollar begets higher USD-based asset prices, which begets a stronger USD

Note: As the defacto reserve currency, the U.S. dollar has been well-supported in the global currency market. Despite calls for its demise, for the past three years I have explained why the dollar will remain firm and that dollar-based assets would continue to outperform.

  • Overseas investors borrowing in U.S. dollars are effectively shorting the greenback. As long as the global credit markets remain tight, conditions favor a strong dollar.
  • Although the U.S. Fed has modified its policy course, dollar yield differentials vis-a-vis other  currencies are noteworthy. This provides a great opportunity for a profitable carry trade.
  • Moreover, this analyst’s explanation of the Chinese yuan’s limitations agree with our previous analysis.
  • Global investors are more confident parking cash on an unhedged basis in the USD. This creates dollar-based asset inflation. Domestic investors feel less of an urgency moving money outside the U.S.
  • Since late December when the Fed stepped into the process, global investors breathed a collective sigh of relief and the global markets have once again begin to turn around.
  • My concern is that these emerging market rallies may not be able to grow much higher. I have to conclude that the elites are telling all the front men (e.g. Trump, Schumer, Powell, Draghi, Jinping, etc.) to do what it takes to support asset prices. They are all marching to the same tune right now, which I find peculiar.

I wanted to pass along this Bloomberg article titled, Watching the Global Flows Explains Why the Dollar Won’t Be Kept Down, which explains the U.S. dollar’s resilience despite the U.S. Fed’s policy changes. Notice that the firm of the person interviewed charges up to $60,000 a year for its analysis on global monetary flows.

The dollar’s resilience after what some have categorized as the most dovish Federal Reserve turnaround in history comes as little surprise to Exante Data’s Jens Nordvig.

U.S. President Donald Trump may be looking to jawbone the greenback. But for Exante, it’s still all about the grab for yield, with rates on dollar-denominated assets remaining more attractive relative to the painfully low or negative ones found in Europe and Asia. The firm’s analysis of the holdings of global asset managers suggests that isn’t going to change anytime soon.

“People are using the dollar as the long in the carry trade, with European investors still having very little to buy at home that they can accumulate yield in,” said Nordvig, who launched Exante in 2016. “You can absolutely see this in the global fund flows we track. It really explains the dollar holding up in the face off this U-turn by the Fed.”

Watching the Global Flows Explains Why the Dollar Won’t Be Kept Down – Bloomberg, March 6th

If the global economy weakens, the trend is your friend
While I doubt any rally will be long-lasting, emerging market currencies have rallied off their lows (gratis Fed policy). The supporting forces of the dollar remain inatact and if the global economy continues to fade, this trend will reverse.

There are always trading opportunities in Chinese-yuan assets, but notice how this analyst approaches the yuan trade. They conclude that it is a special case currency. This is why the yuan has not been able to become a go-to currency reserve.

Another value of Exante for Verde is what Nordvig’s team and its indicators can tell them about the intricacies of foreign-exchange dynamics in China.

This is important because the yuan is a “heavily-intervened currency and China is a country where there are massive capital controls and a lot of opacity in terms of what is really happening”…

Watching the Global Flows Explains Why the Dollar Won’t Be Kept Down – Bloomberg, March 6th

If the Fed comes through on its promise to begin purchasing Treasuries again and starts to cut the Fed funds rate, I still look for the dollar to be well-supported. There are no other viable alternatives and any dovish Fed policy changes would be met with dovish policy changes at the ECB, BOJ, and PBOC.

While the emerging markets have begun to turn around, they are still a way from their former near-term highs. If the credit markets quiet down, we could see a further rally in emerging market assets.

My one final observation; I notice how all the political decision makers are beginning to all come together to support asset inflation. My concern is that the elites are telling all the front men (e.g. Trump, Schumer, Powell, Draghi, Jinping, etc.) to do what it takes to support asset prices. They are all marching to the same tune right now, which I find peculiar. We will keep our eyes open.

Home prices could be on the verge of heating up again

Lower mortgage rates could reignite home prices, especially in the lower half
Rentals still make sense in many areas

I receive several emails a week about real estate investing. I always recommend investors concentrate on working class rentals (the lower half of the market). With dropping mortgage rates, rising construction costs, supply restriction, and current Fed policy, I see demand far outstripping supply for years as home builders have essentially neglected the lower half of the market. Rising rents have kept cap rates in check and replacement costs far outstrip market value. Based on the new IRC changes, higher-end homes (those at the upper half of the market) will continue to struggle.

The alt-financial media like to point to the dropping new and existing home sales as signs of a market top, but I say this is mostly a symptom of a centrally managed market. Government policy and buyer subsidies have permanently repriced housing upward.

I came across this article a few minutes ago and wanted to pass it along to you. This CNBC article is titled, Home prices could be on the verge of heating up again. Notice that the article specifically mentions the starter home segment.

“The spike in mortgage interest rates last fall chilled buyer activity and led to a slowdown in home sales and price growth,” said Frank Nothaft, chief economist for CoreLogic. “Fixed-rate mortgage rates have dropped 0.6 percentage points since November 2018 and today are lower than they were a year ago. With interest rates at this level, we expect a solid homebuying season this spring.”

The average rate on the 30-year fixed mortgage rose above 5 percent at the start of November but then began sliding. It now sits around 4.5 percent, right around where it was a year ago, when price gains were in the 6 percent range annually.

So that could mean the end of the current price chill, as more buyers this spring compete for a still-slim supply of listings for sale. Inventories have started to rise nationwide, but mostly on the higher end of the market, which is not where the bulk of current demand is. The supply of entry-level homes for sale is still very, very low, as builders continue to focus on more expensive homes, given today’s high costs for land and labor.

Home prices could be on the verge of heating up again, according to CoreLogic – CNBC (March 5th)

Is the The alt-financial media accepting permanent repricing?

“[T]he wealth effect” has enriched the already rich at the expense of the young who didn’t get the opportunity to buy the assets the Fed has pushed to the moon at pre-bubble prices. That privilege was largely reserved for those who bought a decade or two ago, before the Fed made boosting asset prices the implicit goal of all its policies.

The Fed’s “Wealth Effect” Has Enriched the Haves at the Expense of the Young – Charles Hugh Smith (March 5th)

Mr. Smith is proclaiming that unless we bought our homes 10-20 years ago we are shut out. I bought six more rental homes near where I live between 2011-2016 when prices were in the toilet. I still own them. Guess what? If I had more cash, I would buy another immediately.

I recall all the Cassandra warnings during the first few years of this decade in the alt-financial media, pleading their audience to stay away from foreclosures, because of the clouds on title. It was one warning after another. The compromised alt-media, which financially disenfranchises their followers, worked like a charm. Why bother getting up from our computers when it’s hopeless?

Now, the same writers are blaming the Fed for all these potential buyers being shut out. I say these people need to look in the mirror. These gloom-and-doomers are to blame. Fear begets the clicks, but makes the people poorer.

Funny, I still find some value in a number of areas. The rent increases over the past decade have really placed a floor underneath rental values. I recall individuals like Mr. Smith telling readers to stay away early this decade, because of the clouds-on-title disinformation campaign in the alt-media. If you are interested in his writings you can wade through his ads and you can buy his books.

If this CNBC article is to be taken seriously, we are going to have plenty more alt-financial writers crying the blues and getting the clicks. These writers are always blaming others for their inaction.

Why are the experts in disbelief? We knew it all along

Note to reader: More investment professionals are slowly coming to the same conclusions we rendered three years ago. The central banks can never cease building their balance sheets through QE. Central bank officials may pretend to talk wind-down, like in the European Union, but they are either whistling past the graveyard or are outright disingenuous.

While QE may take a number of forms, depending on the nation and circumstances, the verdict was already rendered in 2009, when QE began. There is no longer enough organic investment demand to absorb the growing sovereign debt pile. As this pile grows, the central banks have made it clear they will make up for the difference. The central banks cannot backtrack now and will finish what they started. Barring a force majeure that saves the day for the central banks, the final outcome will be disastrous. But this day of reckoning may be a number of years into the future.

Here is another interesting observation; the central banks don’t seem as concerned about the growing asset bubbles like they once were. My worry is that they may help to engineer even larger bubbles to keep the system going until that force majeure. If this turns out to be true, we may see asset prices rise in value that would make today’s prices look like bargains.

Of course, the elites determined that the QE programs were the most expedient routes for them to consolidate the global wealth. All of the subterfuge and economic research behind it are just red herrings to keep people from understanding the truth.

Why is Mises.org so surprised? Are people that obtuse?

“The glory which is built upon a lie soon becomes a most unpleasant incumbrance. … How easy it is to make people believe a lie, and how hard it is to undo that work again!”

Mark Twain

I came across an article this afternoon from Mises.org titled, The Fed Is Moving to Take Even More Control of Debt Markets and Interest Rates, and wanted to quickly comment on the author’s astonishment that the Fed may begin to take over the entire yield curve.

The Fed’s overpowering impact on short-term as well as long-term market interest rates would be cemented. It may not even be an exaggeration to say that the Fed is about to become the “master of the yield curve.” Looking ahead, it seems that credit market yields will be influenced predominantly by what investors expect the Fed to do in the future — and to a much lesser degree by peoples’ expectations about future growth, fiscal deficits, inflation, and credit risk, to name a few.

The bond market would become chronically rigged. This spells trouble, for sure. For the market interest rate is of critical importance for bringing savings, investment and consumption into line. In a truly unhampered market, the market interest rate is determined freely by the supply of and demand for savings. This process makes sure that sufficient resources are at hand to realize all investment projects which are encouraged at the prevailing market interest rate – and the economy can prosper.

However, the Fed increasingly corrupts this process. It inadvertently suppresses short- and long-term interest rates to artificially low levels — levels that are lower than the interest rates determined in an unhampered market. As a consequence, savings decline, consumption rises, and investment expands. While this boosts economic activity in the short run, such a “boom” causes severe problems that will only surface later: a distortion of the economy’s production and employment structure.

The Fed Is Moving to Take Even More Control of Debt Markets and Interest Rates, Mises.org, Dr. Thorsten Polleit (Economics), March 4th

Three thoughts jump out when I read these types of articles;

  1. The observations of these knowledgeable individuals seem to point to one of astonishment and incredulity. They speak in the conditional tense, as if the Fed already doesn’t have full effective control of the yield curve and the asset pricing mechanism. Of course they do. The Fed will not just become the “master of the yield curve,” it already is lord of the manner. Why the coy disguises? I have to believe that on some level these learned people are in complete denial of the obvious.
  2. They often intimate that the central bank chiefs do not know what they are doing or are misguided. They think that people like Jerome Powell and Mario Draghi are open to reason.  I say these bank servants are only following their orders. These central bank front men need to confuse while the well-coordinated financial rape of humanity transpires. These front men probably don’t even know why they are doing what they are, but have orders from above to make it so.
  3. If anyone sat down with this author and explained the ideas we espouse, he would reject, out of hand, any notion that there are hidden agendas behind QE and the other programs.
Fear and denial go hand in hand

It’s this denial and disbelief that support the agenda. It is hidden in plain sight for all the world to see. Moreover, the collapse talk of people like Michael Snyder helps further the elite agenda to buy up the world with money that was conjured up to keep the nations from collapsing.

In the middle of the country, the big news is “the farm apocalypse”. Last week, we learned that farm debt has now jumped 30 percent since 2013…

“Farm debt has been rising more rapidly over the last five years, increasing by 30% since 2013 – up from $315 billion to $409 billion, according to USDA data, and up from $385 billion in just the last year – to levels seen in the 1980s,” Perdue said in his testimony to the House Agriculture Committee.

As a result of this giant mountain of debt, a ton of small and mid-size farms are going under. As I noted the other day, farm debt delinquencies have now reached the highest level that we have witnessed in 9 years.

Investors Brace For Impact As The Cancer That Is Ravaging “The Real Economy” Starts To Spread – Michael Snyder (March 4th)

Chaos provides a perfect opportunity to consolidate the wealth

I read these sobering statistics and think of the wonderful opportunity that is being established for the well-funded globalists and their corporations. I think of the upcoming land grab that will take place in the farm belt as these food manufacturers, wealthy investors, and banks consolidate their wealth and power while the goy give away their birthright for some debt contracts.

Before all this QE is over and the world goes to war the central banks will answer the calls of the Cassandras by hoisting assets like farmland on to their balance sheets. They will own it all. Meanwhile, well-educated PhD economists will scoff at any notion that this could have been done by design.

Manufactured financial crisis is promoted to scare the average person to the core and shake the tree of wealth. The elites will reap their rewards.

The Fed to begin adding US Treasuries back to the balance sheet

Note to reader: Zerohedge offers a timely article on the U.S. Fed’s change to its quantitative tightening (QT) schedule. While Zerohedge’s typical hyperbole is clearly present, the writer effectively demonstrates Goldman’s and BMO Capital Markets’s (Bank of Montreal’s) take on the end of QT and where they think things are going.

Rather than thinking the Fed made a mistake and was forced to backtrack, I believe the Fed tried to see how far it could tighten before the markets began to fold. We got the answer last December.

Gird your loins as this is very bullish for the asset markets. If at any point the markets and/or economy falters I would look to see even greater UST purchases than what this analysis contemplates. 

Zerohedge quantifies the Fed’s change of heart

I came across this Zerohedge article this morning titled, This Is The Way QT Ends: Here’s What Happens After The Fed Capitulates, and wanted to pass it along to you. (Sometimes Zerohedge has some timely content.)

Excess reserves continue to shrink as the economy expands (banks are more willing to lend). Notice that the Fed will soon begin to add a sizable amount of Treasuries to its balance sheet.
Balance sheet additions and subtractions

Notice that the total Fed balance sheet estimates will rise despite sharp drops to its holdings of mortgage-backed securities (MBS). If these trends prove accurate, BMO’s and Goldman’s analysts estimate the Fed will essentially double the amount of U.S. Treasuries on its balance sheet over the next several years. The logic behind the MBS unwind rests in the fact that the mortgage markets have stabilized.

As the supply of Treasuries increase, it will be incumbent of the Fed to absorb much of the new supply. By supporting the UST yield curve, the Fed will indirectly support the MBS market. By supporting the MBS market, the Fed helped keep the mortgage lenders and originators solvent. By supporting the UST market, the Fed works to keep the U.S. Government solvent.

Keep in mind that these balance sheet additions are estimates based on a relatively strong economic backdrop. I have to believe that at some point the Fed will increase their UST holdings more than expected. If the economy turns down again, the Fed will work to stabilize the asset markets and their clear choice will be enhanced open-market purchases of Treasuries.

Excess Reserves
The Fed will encourage a higher excess reserve buffer for banks to deposit at the Fed

During the crisis, the Federal Reserve initiated a second unprecedented policy: payment of interest on excess reserves [to member banks]. Before the 2008 crisis, the Federal Reserve paid interest only on required reserves, those minimum reserves that banks must hold to meet legal requirements. The Federal Reserve began paying interest on excess reserves on October 1, 2008, shortly after the first round of QE began. It has maintained this position since, providing a return more competitive than the rate for overnight lending.

The Federal Reserve is paying banks not to lend. This money could otherwise be loaned to entrepreneurs seeking to profit in the market. Banks have responded by holding over half of the monetary base as excess reserves at the Federal Reserve. Entrepreneurs, who would have received a loan absent this intervention, are no longer able to borrow from these banks.

The payment of interest on excess reserves has decreased the appetite of banks for risk. But as economic activity has begun to show sustained improvement, the Federal Reserve has treaded carefully to maintain a moderate level of inflation. Expectation of economic growth has led banks to draw down the level of their excess reserves and is now putting upward pressure on wages and prices. The Federal Reserve has responded by increasing the rate of interest paid on excess reserves to compete with high-yielding opportunities in the market.

Can The Fed Manage The Excess? – Seeking Alpha, James L. Caton

Excess Reserves have declined, but it is estimated the Fed will keep a higher baseline, so that the banks can continue to park cash at the Fed and collect interest. If we ever wondered why borrowing money from the banks has become more difficult over the past decade, we only have to look to the excess reserve mechanism at the Fed.

What this means worldwide
Central banks will buy whatever local currency-denominated debt is needed to keep rates low

Don’t listen to Jerome Powell say otherwise, Modern Monetary Theory is alive and well. Moreover, it is here to stay. Its latest versions have allowed the larger nations to remain in business. Any nation can borrow in its own currency, but problems arise if there is not enough demand for the local-currency denominated debt. The central banks have provided an answer. They will stand to buy whatever the market cannot absorb.

Thus, the ECB will buy the demand shortfall of euro sovereign debt. The Bank of England, the BOJ, and PBOC, and the Fed will all do the same.

As the economy continues to stabilize further with the Fed’s support, borrowing should become easier and asset values will continue to move north. It seems that the Fed wants to keep asset values rising. In fact, I think we will begin to see less contemplation of bubbles by the central banks as they seemed to have stopped caring about asset values. If this is true then we need to be prepared for the divides between the haves and the have-nots widen further. Those with the assets will grow wealthier; those without will grow poorer. Unfortunately, the vast majority of humanity has not partaken in the wealth gains. They are only spending more and the wealth is trickling up to tighter hands.

Practical advice on how to move forward in troubling times

This misguided concept of collapse has impoverished many truth seekers

I’ve seen the writing on the wall and I know that this country is going to collapse – by design. Do you have any guess as to when a collapse will happen? I keep reading 2025.

Can I get your feedback as to what you think the best course of action is to survive it? I’ve been thinking of buying property in a remote area – a place to grow our own food. Do you have any advice at all? Scripture is being fulfilled and I want to prepare. Should we pull our savings out of the bank? Is there any business that you think young people should get into to weather the coming storms?

I’d appreciate any advice.

Shan

These are common questions I get asked all the time. Before we address your concerns and formulate a plan of action, we need to lay out some important assumptions.

First of all, the U.S. dollar is NOT going to collapse
There is no replacement for the greenback

French President Emmanuel Macron said that the euro is not “a clear alternative” to the dollar thanks to the U.S. currency’s international “strengths.”

“Until now, we fail to make the euro as strong as the dollar,” Macron, speaking English, said in an interview with CNN broadcast on Sunday. “We made a great job during the past years but it’s not yet sufficient.”

Macron said the Chinese currency was a de facto alternative to the greenback, “not at the global level but for a certain region.”

Macron Says the Euro Is Not Yet an Alternative to U.S. Dollar – Bloomberg, November 11, 2018

Currently, there is absolutely no alternative to the U.S. dollar. As of right now, there is no other currency capable of overtaking the greenback. The yuan, euro, or the SDR in their present forms can never take over as a replacement to the dollar. The elites will never use gold as a global currency. Gold was given to us by God as a fair weights and measure. The technology underpinning bitcoin needs to advance for at least another 15 years.

Second, The owners of the central banks are in firm control

We have to accept that, as of now and even during the depths of last decade’s manufactured calamity, the owners of the central banks have been in firm control of this timeline. If you do not believe this then I cannot help you. If you are of the conviction that things are falling apart right now then there are plenty of outlets that can help you. I know that Zerohedge will provide plenty of evidence to the contrary.

Nevertheless, as we look out at the larger financial landscape of the global economy and monetary system we can contemplate a manufactured force majeure scenario. That will be war. It always has and it will once again.

Force majeure is a French term that literally means “greater force.” It is related to the concept of an act of God, an event for which no party can be held accountable, such as a hurricane or a tornado. Force majeure also encompasses human actions, however, such as armed conflict. Generally speaking, for events to constitute force majeure, they must be unforeseeable, external to the parties of the contract, and unavoidable (irresistible).

Force Majeure – Investopedia

I have been predicting that in order to promulgate any new monetary system (one without the U.S. dollar as the primary reserve) there needs to be a force majeure. While this current monetary system may seem untenable to most observers, it has been serving the elite well in their efforts to consolidate the global wealth. Why would they trash it now?

Third, the country has been collapsing for decades

The compromised alt-financial media is portraying the economic circumstances as dire and keep pounding the table that the economy is on the verge of collapse. The gold shills keep advising their customers to buy gold and silver and get their money out of the banks. But, they all have been saying this since the 1980’s and ’90’s.

But, the agenda to “collapse” Western civilization goes back generations. It is a well communicated plan and precedes the enactment of the Federal Reserve Act of 1913. In order to bring forth the new world order, the elites needed to sink the West into second world status, while lifting up the poorer nations. I see the objective as being mostly achieved at this point.

Collapse? The nation has already been in a slow motion economic collapse for decades. For a large percentage of the population, the economy has already collapsed. The middle class has been gutted, the family unit has been hollowed out. God has been removed from the equation. The U.S. is already a second-world nation. How we deal with these sobering truths will mean the difference between personal success and failure. Don’t get upset with the sad reality; move forward.

Fourth, 2025 is popular, but so were 1999, 2008, 2012, 2016….
Joel Skousen theorizes China and Russia should be ready to strike the West by 2025

The year 2025 has been a highly publicized year within conspiracy circles as being the year in which WW III begins. But so were 1963, 1988, 1999, 2008, 2012, and 2016. I think you get the picture. I remember diving under my elementary school desk during the mid-1970’s for the emergency air raid drills. These were based on the fears of a Russian nuclear missile attack. This fear goes back a long way and many people have lost their sanity and life savings waiting to be right.

I recall all the detailed mathematical analysis that supposedly proved the beginning of the tribulation period. The rapture was supposed to take place at the end of 2012, and when that didn’t happen, the “experts” pushed it out to 2016. Now, we have YouTube prophets saying 2028 is the end. Using simple math, one prophet in particular claims to know things that others through out history have missed.

Honestly, we will never really know the year or time of the great force majeure until it happens, but this may not occur for decades. If you are a student of Christian eschatology then you know Jesus said that no person knows the exact time, but the evidence is legion. There are a lot of signs and  there have been many for decades, but I guarantee it will get a lot worse before that fateful day.

The year 2025 has received a lot of attention, because Joel Skousen has been articulating that by mid-next decade, the Russians and Chinese will have advanced their military technology enough to be able to proactively strike the West (United States).

Mr. Skousen may be correct in his assumptions, but that does not mean the Russians and Chinese will execute a military or EMP attack on their manufactured adversary. Skousen is only saying that by around 2025, these two countries should be capable. Keep in mind that he was also claiming this in the late 1990s. If I were guessing as to when this monetary system would “collapse,” it would be sometime then or after. This means we still have at least another several years.

My advice for the next few years

First of all, we need to stop panicking about imminent collapse. Secondly, we need to read and research as much as possible. I would rather be stuck in downtown Baltimore with bullets whizzing by my head during WWIII and being well-versed to the truth than being a dumbed-down Infowars follower living on 40 acres in remote Southern Colorado.

Knowledge is very powerful. With this understanding we can move forward and plan for the future. With this insight, we can develop contingency plans, so we can respond to any uncertainty that may come our way.

With this in mind, here are some ideas that may help.

  • Money in the bank is safe. Why would the U.S. government confiscate bank accounts? This would mean they abolished the FDIC. It would mean unnecessary riots in the streets. It is easy for the Federal Reserve to extend any amount of credit that would be required to liquefy its member banks and prevent bank runs. There will be no hyperinflation. If the Fed was able to conjure up four trillion dollars to buy sovereign debt and the inflation indexes barely ticked up, printing a few hundred billion more as a buffer against bank insolvency is a lay up.
  • I would stay liquid and invested in income-producing assets. I would keep emergency funds in checking accounts with the rest of your liquidity in money market instruments and short-term treasuries.
  • Try to develop alternate income streams that are not dependent on employers and the government. Build a business that can grow with inflation. For me, the logical and easy choice was building a portfolio of rental properties. I can sometimes work long hours on my properties, but the fruits of all that work are channeled back to me. If I worked for a wage, all my labor would go to benefit others. Work smart. Benefit as much as you can from your labor. You will thank yourself when you get older as employers want nothing to do with older people.
  • Learn a skill that can be very useful in troubled times. I have become somewhat of an expert in carpentry and rehabbing. I know how structures are built and also possess a good understanding of residential plumbing and electrical systems. I have to believe these types of skill sets can be extremely valuable during any protracted emergency situation. There are a number of skill sets that will be valuable. Choose one that best suits your personality.
  • Get out of all personal debts, including owner-occupied mortgages. Pay all personal debts down first, from highest rate to lowest. This holds true even if you have a low interest-rate mortgage. Do you think a force majeure will excuse you from paying? Don’t count on it.
  • I continue to recommend rental real estate that cash flows for you and can easily be managed by you or a professional. Owning real estate or land in remote areas may sound logical, but the cost of carry can be very expensive. Taxes, insurance, potential liability costs, and maintenance expenses can all add up and be a financial drain to those who own land and homes in remote areas. I have come across a number of people with this mindset, but ended up selling these survival millstones.
  • Keep your gold holdings to no more than a few percent of your net worth.
  • If you are already invested in stocks, I see no reason to sell them.

Knowledge and discernment are ultimately the most powerful assets. Nobody knows what will happen, so try to tune out the Cassandras and move forward with a plan of action. Keep our lives as simple and debt-free as possible, so we can be afforded the luxury of the time needed to learn and research.

Blast from the past; Zerohedge outed as a propaganda outfit

Zerohedge is not so anti-establishment and is usually wrong

Daniel Ivandjiiski, 37, the Bulgarian-born former analyst long reputed to be behind the site [Zerohedge.com] worked for a hedge fund before being barred by the Financial Industry Regulatory Authority in 2008 for insider trading.

[Colin] Lokey, who said he wrote much of the site’s political content, claimed there was pressure to frame issues in a way he felt was disingenuous. “I tried to inject as much truth as I could into my posts, but there’s no room for it. “Russia=good. Obama=idiot. Bashar al-Assad=benevolent leader. John Kerry= dunce. Vladimir Putin=greatest leader in the history of statecraft,” Lokey wrote, describing his take on the website’s politics.

“I can’t be a 24-hour cheerleader for Hezbollah, Moscow, Tehran, Beijing, and Trump anymore. It’ s wrong. Period. I know it gets you views now, but it will kill your brand over the long run,” Lokey texted Ivandjiiski. “This isn’t a revolution. It’s a joke.”

Unmasking the Men Behind Zero Hedge, Wall Street’s Renegade Blog – Bloomberg, April 29, 2016

It does not take advanced analysis to determine that Zerohedge’s roots and platform can be questioned. The agenda is deeply anti-American, pro-Russian, and especially, pro-Trump.

Zerohedge readers get more frustrated… and poorer (by design?)

But the worst aspect of Zerohedge’s editorial content is that its financial advice has basically been flat-out wrong for a decade. I understand the desire to want to believe the gestalt of what Zerohedge professes. I know we would all like to see the Anglo-American establishment, which has usurped control of this nation and the western world, fail miserably. But reading articles and following personalities who spread anti-establishment propaganda will not make it so.

This desire can be so strong and toxic that most Zerohedge readers have lost a lot of money heeding the propaganda advice of its writers and wealthy owners.

When things finally turn down, what will happen to the Zerohedge readers who were held bondage to their biases and did not move forward during these asset cycle booms? These are the people who truly seek change, but were redirected into the poverty cattle pen. A broke opposition is an ineffectual one and I have to believe that on some level much of the alt-financial media, spearheaded by the likes of Zerohedge, were not developed organically.

The financial caste system is self-imposed
Outlets like Zerohedge can be as addictive as drugs to many of the readers

I often get asked about the psychology of poverty. Indeed, there is a financial caste system that has been constructed here in the United States and in the rest of the developed world. But hope lies from within; the caste system is only as strong as a person’s inability to reason and think outside the predetermined boxes that have been developed by the elites.

We may think the internet is a wonderful tool that informs and helps us make better financial decisions. But my observations beg to differ. The vast majority of humanity are now hopelessly hooked on social media and confirmation bias-reaffirming outlets. Most are now hopelessly engaged in self-defeating behaviors that these sources entertain. Reading Zerohedge is like taking any other drug and can be addictive like opioid pain killers. Moreover, the financial ramifications can be devastating. The advice of Zerohedge has been so poor that most of its readers have become bigger debt-slaves than the rest of us. Stop being a victim. In the new world order, everybody is a victim. Victims are powerless.

If we are to move forward and break free from the bonds of financial slavery we need to look in the mirror. We need to break free of hard-wired biases and predilections. We need to stop relying on bias-affirming news and information sources. We need to stop exclusively watching CNN, MSNBC, Fox, and Infowars. We need to stop reading slanted propaganda outlets like Zerohedge. We need to be more discerning about where we go to find news.

It is not difficult to gain wealth and financial freedom. We do not have to cheat, steal, and lie our way to prosperity. We only need to look in the mirror to comprehend that we hold the keys to success. To me, this is great news. We have more control over our lives than most realize.

This is not self-help advice, but rather an article that instructs its readers to stay as objective as possible. If we continually read pro-Trump or Putin articles on sites like Zerohedge, perhaps its time to stop taking the drug that these outlets offer and move on to somewhere else. Anyone who places his or her financial trust in these outlets will continue to bleed red ink and fall further behind. We may hate this financial system, but directing our attention to anti-establishment propaganda will only make us poorer.