4/4/2020 Weekend Update – Finding investment opportunities during times of economic and societal transformation

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-Those who can interpret the logical structure of this monetary and financial system will be able to continually spot the most profitable investment opportunities, while avoiding the typical traps of the alt-financial media. The controlled alt-media have been proclaiming collapse since I started reading the genre in 2002.

Spotting investment opportunity depends on how we interpret reality


-All the nation-states are gradually moving to a system of centrally planned economies, run by the owners of the central banks.
-I often get asked how the owners of the private central banks gain control via QE. The more assets on the central bank balance sheets, the more this hidden cartel can control the economic spigots and the greater a stranglehold they can place on all economic sectors and governments.
-I estimate the Fed’s balance sheet will grow to about $10 trillion over the next 9 months and its owners will have fully turned all the nation-state governments into their golem.
Golem –  1: an artificial human being in Hebrew folklore endowed with life, 2: something or someone resembling a golem: such as
a: AUTOMATON
b: BLOCKHEAD
Profitable sectors over the next several years; The firms that benefit from war preparation spending and engineering. I also see the track-and-trace technology firms prospering. As global trade collapses and the U.S. effectively transforms into second-world status, many industries will exploit the collapsing U.S. cost structure to bring production back to the homeland. Most of the 20,000,000 who will be permanently unemployed will staff the growing domestic slave-labor supply chain.
-Patriot Acts discussed and how the formulation of the Patriot Acts and DHS included input from people like the former East German Stasi head, Markus Wolf. Many of the unemployed will find gainful employment tattling out on their fellow citizens and neighbors.
-Rental real estate will get hit hard as it’s estimated that 35% of all condo owners in the major cities experience negative cash flow. Many of these overstretched and naive landlords who invested later in the cycle, and those who thought Airbnb was a great and easy way to invest, will get hit hard. This is where we can exploit the asset value destruction over the next couple years.
Shale oil has a very viable future. The large multinationals will essentially control the entire industry once the smaller independent drillers go bankrupt. Once global supply shrinks to meet the drop in demand, prices will rise again. As we predicted, Sam Zell was wrong.
Storing cash: I wouldn’t be overly worried about keeping money in the bank. Most people look down on cash with contempt and don’t use it. The average person has been brainwashed by shows like Breaking Bad and conflate cash with drugs and crime, not freedom from an oppressive government. Now, most conflate it with the coronavirus. If the Fed can conjure up $557 billion in one week, I think it’s safe to assume it and the U.S. Treasury can fill the banks with the needed cash in any (imaginary) bank run.

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