-If there are future collapses, it won’t because the owners of the central banks lost control. The collapses will be planned and they will control the entire process. Thus, we can make more viable investment and personal decisions.
–CBO Releases New Economic Projections and the numbers around the world are just mind blowing.
-The US government is already planning for a post-dollar world and is working with domestic firms to bring back important supply chain components. DOD Announces $77.3 Million in Defense Production Act Title III COVID-19 Actions
-I view platinum as a relatively attractive tangible asset, and would expect that its role as a store of wealth will encourage its hoarding.
-The transformation of humanity since 9/11 has so drastic that there is absolutely no way we can return. Mental health is becoming a huge growth area in healthcare and that’s because most people are slowly going insane. Of course, this was the intention.
-The globalists know that people are going to begin snapping more and more and their social media firms document every bit of humanity’s demise. Even many of the Christians who thought they’d be raptured out of this mess will be left to deal with it like everyone else.
-Just because many people are going to have a tough time handling what’s coming down the pipe, this doesn’t mean we have to be one of them. I think we have a good handle on how to move forward.
-The Synagogue of Satan is exploiting its monetary system for these final phases. I surmise that the end will come when 100% of GDP is on the asset balance sheet of the Federal Reserve. So that is a rough timeline that you and I have to go on.
-War will be used as an excuse for ridding us of the concept of the nation state. It will undo the current monetary system that has been vital for the elites to consolidate the global wealth. It will be jettisoned when they feel they have achieved their wealth targets. It is clear that they are burning the bridge behind them. War is the perfect reason for change.
-I believe they are now letting gold run on purpose and to allow the true colors of the condition of this monetary system to be revealed.
-The reasons the USD are falling have less to do with collapse and more with the central management of this global system.
-The US Fed was the primary central bank that needed to engage in the financial and monetary responses to the Coronavirus crisis. It needed to flood the world with dollars and engineer a collapse of the UST yield curve. –Pre-pandemic, the UST yield curve was much higher than those of the other developed nation states. This needed to change immediately and the Fed was successful in achieving its goals. It needed to weaken the currency as well.
-The USD has weakened and the yield spreads have collapsed as a result of the massive Fed intervention. These were the Fed’s initial objectives as part of the centrally managed global monetary system.
-Given that UST yield spreads as well as the Fed funds rate both collapsed and the USDX is still around 94 is testament to the systems resilience.
-The US economy is not performing any worse than the other economies. The US GDP growth forecasts over the next year place the US in the top half of the developed nations.
-The euro has risen against the USD as the ECB kept sovereign bond yields relatively stable over the past year. The ECB overnight lending rates have not dropped in response to the coronavirus pandemic. The Fed funds rate has been slashed to weaken the USD and help engineer the collapse of US bond yields.
-Based on past behavior, I am looking for the USDX to fall to its lower-end five-year trading range before the other central banks engage in bond buying with the intent to collapse their yield curves. This would imply German and Swiss 10-year bonds at -100 bps or lower.
-Beware of the gold shill by Zerohedge and GATA. If we employ their non-sequitur logic we won’t understand why gold is rising and will continue to make the wrong financial decisions. MSM is blaming souring American-Sino relations for gold’s increases, but that is just the next ongoing manufactured crisis of the banking globalists. The real cause: massively accommodative monetary policy. This policy will continue until the system’s terminus. We have perhaps a few more years until the Fed’s balance sheet approaches 100% of GDP.
-The ECB has plenty of room to add to their balance sheet as their economic growth looks to actually be weaker than the US forecasts.
-An analysis of how the large multinational corporations are best positioned to benefit from deficit spending. These firms are the most effective at extracting the wealth of the bottom 50% (up to bottom 90%) of the population. These are just normal functions of deficit spending and the QE environment.
-Think I’m wrong? Just look at the following two charts that show how the S&P 500 earnings have exploded since the early 80’s, when the massive deficit spending campaigns were initiated under the first Reagan regime.
-The largest corporations control the media and will always encourage deficit spending. All these liberal causes mean massive deficit spending.
–Ben Bernanke and Janet Yellen testified on Friday that robust fiscal action is needed. They authored an article on the Brookings Institute’s website. I suspect that COVID will drag on and accelerate in the winter months. This will necessitate at least 3 trillion in additional spending. All of which will trickle up to the balance sheets of the elites and their income-generating assets. The Fed can easily build their balance sheet to 100% of GDP. At that point we wlll need to address what will happen next.
-I analyze the mechanics of how this wealth extraction works in real time through the exothermic and endothermic phases of deficit spending programs.
-I am the only analyst who is explaining this in a way that encourages us to make the correct financial and personal decisions. The YouTube alt-media personalities with +100k followers are useful to the Synagogue of Satan elites, because these people provide the sheep with a release valve to vent their anger and frustration. Virtually all their followers are instructed to take antithetical actions for their well-being.
-These massive monetary and fiscal programs are “exothermic” in the short run. Unfortunately, they are “endothermic” in the longer run. The elites (and we) know this.
-Over the longer term, this massive stimulation eventually trickles up to the income-generating asset owners as profit. While those without the assets may spend much of this money, they are left to effectively service the resulting debt burden via their wage income. As such, the wage earner’s quality of life slowly deteriorates. The process is very slow, so the average person cannot make the connection.
-By definition, the more assets that investors and business owners hold, the wealthier they become from this deficit spending.
-I provide a thorough analysis with observations and data confirming our suspicions. This analysis is vital for making our long-term preparations.
-We must keep the true spiritual aspects of this system in mind, so we are not deceived by the propaganda promoted by its supporters nor deterred by those professing its demise and collapse.
-My outlook on inflation runs counter to the conventional. We can make more timely predictions.
-Look at the next chart. There is a high long-term positive correlation between lower levels of public debt as a percent of GDP and higher inflation. The higher the economic debt burden, the lower the long-term inflationary potential.
-Financial self-sovereignty is the key to overcoming.
-We can judge a person by their fruits. The founding fathers were not obsessed with centralized control. In fact, they eschewed a powerful centralized form of government and resisted a privatized central banking system. These people may have been Freemasons, but the Freemasons of 250 years ago were nothing like those of today. The ones today are obsessed with globalism and centralized power.
-A commentary on the formation of the United States with a warning for those who dislike the USA of today.
-The Bible is pro-nationalism, while Satan needs a centralized global government
-The technology for the end time system discussed in the Bible is already developed. The only hindrance is the people’s willingness to accept it. The people have overwhelmingly rejected the Bible and the gospel has been preached to the whole world.
-The private central banking cartel has already effectively formed the prototype global government. Through these QE-style programs, the private banking elite have turned the nation-state governments and international corporations into golem that are all thinking with one hive mind.
-The wealth consolidation needed for the elites to gain the power to carry out their final stages of this end time regime has yet to conclude. We need to move forward under this spiritually oppressive system, because it will get much worse for all of us.
-By becoming financially self-sovereign, we can more effectively overcome many of the obstacles that the globalists throw in our paths that force us to depend on them.
1) In your latest pod cast about Real Estate – you mentioned govt workers in northern Virginia making $100K and renting single family homes. WHO IN THEIR RIGHT MIND MAKES $100K AND STILL RENTS? Why aren’t these people BUYING their own homes?
My girlfriend lives in northern Michigan and for a $15K down payment you can get a 30-year mortgage. There are plenty of homeowners in Northern Michigan that have only part time dead-end cashier jobs that make the mortgage payments and OWN their own homes. Of course, you can still buy a home for$130K in Northern Michigan.
2) I am taking seriously the talk of the food supply reductions and food rationing coming to North America starting in 2024. Buying agricultural land to lease out to farmers is not for me and the regulations around farm leasing is best left to the professionals.
So, I have been considering LAND (a farm land REIT paying 3.9%) and their preferred shares, LANDP, paying 6.1%. I hate REITS but I think this may be the only way to play agriculture and the coming food reductions. Farm land values are supposed to skyrocket.
WHAT DO YOU THINK?
Here was my response:
Why would anyone making 100k rent?
Thanks for the email. Let me answer your questions.
1) Many people cannot properly manage money, and 100k is not all that much around here (DC area) anymore. Plus, many people do not want the responsibility of owning. I charge below-market rent, as my ongoing costs are traditionally less than other landlords. These tenants see the value, stick around, and cost me much less in repairs and such.
This is one important item to understand as an individual landlord; The tenants are only as good as the landlord. When I hear landlords complain about their tenants, I tell them to look in the mirror. My tenants are very important to me and I let them know, especially in actions.
In the DC area, it is virtually impossible for the average home buyer to purchase a SF house (non-condo) in the DC area with a 20% down payment of less than 75k. In NoVA that number is now well over 100k. In Suburban MD that number drops to as low as 80k. The average SF house price in Fairfax County is at least 600k. In the better parts of PG it is as much as 450k. But the economy is very good here, so the multiples of income required to buy is actually better than in most other prosperous cities. Just ask those living in San Francisco, Los Angeles, Toronto, Boston, or NYC what they think.
The average (not median) household income here is about 125k, and that takes into account the many renters looking for better work. For those who are college degree-holding SF homeowners, that household income number approaches 175k. It’s all relative.
2) I agree that there are going to be serious food problems in the future, but I don’t think the path will turn out as many in the alt-media believe. I think this year’s manufactured coronavirus crisis provided a perfect dry run for what to expect; the results of any crisis will be manufactured and manifested through the supply chain, so the farmers and ranchers will get the shaft, too.
If this is the case, it will be difficult to make money speculating in commodities. I do notice that the commodity complex is rising here, so there are some nascent warning flags within many individual commodity items. But I think that the forces in any economic collapse will be deflationary in nature, and this will affect the commodity complex in a manner similar to what transpired earlier this year.
I often get asked about the Gladstone Land Corporation REIT (Ticker: LAND), since it is marketed well. Here is the bottom line about speculating in land when you turn over your money to someone else to manage. They will always pay more for the land than you would if you researched and waited to spot a good opportunity close by in your area. The time to buy LAND would have been at its nadir during the manufactured coronavirus pandemic in March. LANDs price performance during that stretch should be a warning to its owners that during any protracted economic downturn, its asset value will suffer, and that its relatively higher yield would be in jeopardy. My concern is that LANDs price has run up too much here in response to FED policy.
Gladstone Land adds farmland to its portfolio
Jun. 8, 2020 8:50 AM ET|About: Gladstone Land Corporation (LAND)|
Gladstone Land (NASDAQ:LAND) acquires 590 gross acres of farmland consisting of 554 planted acres of mature pecan trees in Kern County, California, for ~$14.2M.
In connection with the acquisition, Gladstone Land also entered into a 15-year, triple-net leaseback agreement with the seller.
“The acquisition of this pecan orchard adds a new permanent crop type to our portfolio and should result in another good, long-term investment for us,” said David Gladstone, President and CEO of Gladstone Land.
If I were living in a rural area, I would take my money and purchase farm or ranch land and lease it out. In this case, LAND’s management leased it back to the seller. Over time you will make much more money than if you handed it over to someone, from which they make the most profit. Go to Gladstone’s website; you are paying for that large overhead. They hand back a small fraction of what you could make over time. I am always a fan of direct ownership. The benefits that accrue to the direct owner are what make it the better choice.
If I were looking to park money, I would rather buy XOM and get an 8% yield (though that yield may fall over time if oil prices stay suppressed). The dividend yields of PFE and WBA are over 4%, and T’s is about 7%, so I would rather own these stocks for yield and buy land directly.
I am an ambitious young man that views your website from time to time. I was wondering if you could give me the following real estate investing advice:
(1) All else created equal which has the best rate of return: single family homes , condos, apartment buildings, duplex/triplexes/quads, or commercial real estate. If a young man saved a fair some of money (say 300k for example) and could afford the down payment for any of them, which of the above would give him the best rate of return.
(2) In state vs out of state real estate investing. I live in a fairly expensive area, but in other states there are significantly cheaper deals than my local area. Do you think managing out of state real estate properties is difficult and is out of state estate investing worth it? If so, what parts of the country would you recommend real estate investors look for in order to get the best rates of return?
(3) What is your opinion on real estate investing companies? Are they worth it and if so what companies would you recommend?
-This podcast provides the listener with a thorough background to real estate investing basics. Topics include;
The advantages and disadvantages of investing in each type of property (Detached SFR, fee simple townhome, condo, mult-unit, commercial)
Does commercial investing make sense for people like us?
The important math basics behind determining what to pay for your properties. We can learn the methods that can help us determine the fair market values of houses, town-homes, multi-family, and condos, as well as any commercial property.
Which types of properties hold up better under difficult economic circumstances
Where to concentrate your efforts
My recommendations behind each form of ownership (REITS, LPs, self, LLCs)
Does crowd funding and such make sense?
Acquiring the necessary skills that sets the stage for your long-term success
The massive tax benefits that accrue with direct ownership, which are simply not available with other forms of ownership
How we go about choosing areas with which to look
How we deal with our circumstances if we live in high cost areas.
A major impediment to implementing the cashless society is: What will be done about the vice economy? For example, as I’m sure you are aware, governments and the oligarchs profit immensely off the drug trade. With a cashless society, how can the wholesale and street level drug trade be conducted? Will buyers be able to swipe their debit cards with their dealer?
One solution would be complete legalization of all drugs. Moreover, as the oligarchs and government also profit off of human trafficking, the illegal arms trade, underground gambling, and so on; all of these activities would also have to be legalized and regulated by TPTB.
All that would be a difficult sell even to the degenerate society we have today, wouldn’t it?
Maybe I’m missing something? Are there other ways the underground economy could be brought into this cashless system?
Moreover, wouldn’t cashless lead to an explosion in the barter economy?
Thank you so much for what you do.
Godspeed and God bless!
This reader brings up some interesting points. How do the governments bring all this illegal activity into the light?
How will people pay for their illegal drugs, wagers, and sex in a cashless society?
The illegal international drug trade is as important to maintaining the dollar status quo as the U.S. Fed’s IOER mechanism. Most of these dollars flow out of the U.S. and help to keep the greenback as the global currency.
Much of the Western hemisphere to a great extent has been effectively dollarized as this process has already spanned a few decades, and The Brady Bond program of the 1980s-90s comes to mind in this regard. The phony war on drugs was designed to consolidate the vertical integration of the drug trade and to help facilitate the offshoring of the industry and the dollar, so that the U.S. could better sterilize their currency printing. Notice how this fake war on drugs was conducted as the massive fiscal deficits began to accrue under the two Reagan regimes. Thank George Bush for that. Who says deficits don’t matter?
Ecuador and Panama use the dollar as their currency. Obtaining a mortgage in Brazil and other Latin American nations in their local currency is also difficult for many borrowers, with many just transacting in the USD.
Okay, with this as a background. What would happen if we went cashless? The answer is fairly straightforward here. Under the current monetary hierarchy, the elites are not ready to pull the plug on physical currency, and may never stop issuing physical currency. Though the technology has advanced to the point that we could go cashless, and essentially has gone cashless, the elites are not yet ready to transform the system completely. While the parallel cashless system is being phased in as the people accept it, this current system is key for facilitating the elite’s wealth consolidation, and there is still more consolidation to come. Though the drug trade is worth ten of billions a year, most transactions are small in nature, and in the U.S. this is intentionally overlooked for now.
When will this change? When and if the USD is no longer needed by the elites.
As we can see, the subscriber does answer his own question. I have to believe that as humanity becomes more depraved over time, once-taboo activities like drug consumption, illegal gambling, and prostitution will move out of the shadows and into the mainstream. Many of the laws regarding gambling have been modified and relaxed over the past decade as the internet has grown in its influence over the industry. There these activities can be taxed and made part of the economy. Concurrently, the media campaign to desensitize us rages on in this regard. I observe that prostitutes are now called sex workers, and marijuana dealers are now care givers. It is very effective in sanitizing previously immoral activities.
As for the meth and cocaine trade, I have to believe that as long as the USD is the global reserve currency, the international drug cartels (controlled by global intelligence) will flourish. Once we go totally cashless, we will only be able to satisfy our drug addictions with pharmaceuticals.
In the wake of the manufactured coronavirus pandemic and social unrest, the governments have spent over $9 trillion in stimulus spending so far to keep the economy on lockdown and the people at home. They promise to spend trillions more.
These benefit recipients are encouraged to engage in reckless behavior. These programs have increased moral hazard and laziness, while their lack of direct immediate costs to society have the economists, politicians, and citizens all planning for a future in which the government can continue to spend with little regard for any reprecussions, since they believe there aren’t any.
They listen to the central bankers and how they have promised to buy as much debt as possible, while keeping interest rates moving lower over time.
We have discussed for years that the central banks still have enormous amounts of space left on their balance sheets to keep things moving along.
Ben Bernanke says that the United States Fed can grow its balance sheet to 100% of GDP and beyond, and I agree. That means the U.S. Fed can effectively triple the size of its balance sheet, and I think it can even go much higher than that, depending on the amount of deflationary pressures caused by all this massive debt service.
By definition, these stimulus programs will continue to support asset prices while they contribute to the loss of long-term economic vitality and personal freedoms we once held dear.
These government programs help to consolidate their power and control over the population, and the people do not care. They seek government input into every aspect of their lives, especially when it suits them.
We need to plan our mental and financial lives accordingly. We will find it increasingly more difficult to convince people that there is no such thing as a free lunch. Instead of going insane, we need to stay out of personal debt and buy the assets that will benefit over time in a regime of falling interest rates and exploding debt issuance. Of course, all the sovereign debt will remain in force.
90% of the population will lose out in the long run, but they will never be able to make the connection. They have been indoctrinated properly to not understand how they can no longer control their spending habits. You and I can actually benefit at their expense.
Thanks for the blog post Chris. Interesting with the great reset. I guess with low interest rates, asset prices have nowhere to go but up.
Everyone I know is blowing all their money on cars, cellphone and their Starbucks lattes.
I’m still driving a 15-year old Acura that still runs great. Some people are clueless with their money. Financial illiteracy is alive and well up here.
Oh well, to each their own. Enjoy the summer, Chris.
V – Toronto
Try explaining to others how this privatized monetary system directly exploits and oppresses them. They do not want to know, yet it is the root cause of 95% of their problems. The owners of this central banking cartel have a lockdown monopoly on the media; educational system; financial markets; medical, technology, and war industries; as well as the banking system. It’s easy to buy off the world when they can print what ever amount is needed to accomplish the task.
The entire narrative is now controlled from cradle to grave, and explaining this to the unwashed 90% is an exercise in futility. Even the “top” economists cannot see what we see. So, we need to financially and mentally prepare for what is coming. For me and many of my subscribers, we will continue to come out ahead.
A “top” economist says the $4 trillion deficit isn’t the problem — it’s how we’re spending the money
“We’ve been indoctrinated by the constant refrain that the government should put its fiscal house in order,” Kelton explains. When they rage against the deficit, Kelton says trickle-downers who want to keep government as small as possible use “our understanding of our own personal finances” to convince us that government spending and the accrual of debt is “reckless and irresponsible.”
But Kelton says we need to frame federal spending and deficits differently than household balance sheets: “When we’re talking about the government’s finances, we could just as easily substitute the word ‘surplus’ every time we see the word ‘deficit’ and the sentence would still have meaning.”
Yes, you read that correctly. Up is down and two plus two equals five. In a world of ever-lower interest rates and its resulting lack of accountability, deficits mean surpluses. The elites and wealthy prefer deficit spending, because most of the money eventually trickles in as profit, while they stick the debt slave with the debt millstone. Landlords get higher rents and the large firms with things to sell see a bigger bottom line.
Okay, so where does this leave us? It leaves us in the driver’s seat. I envision a future where the government will hand out trillions in reparations for every victimized class, which will all come gratis the central banks. I have no opinion on the matter, only to tell you that you need to put your financial and mental houses in order. You need to buy assets that will benefit from the tens of trillions of dollars in new spending, while avoiding the ones that will lose out from the resulting deflationary red ink.
If you have followed my research and theories then I think you already know what you need to do.
If you think stocks, bonds, gold, and real estate are expensive now, just wait a few more years. For the vast sea of humanity, it will be brutal, but it doesn’t have to be for us.
Great to hear you back doing regular shows again. How are you and yours these days?
I had a question you might want to include in a future podcast, or answer directly:
– For those buying gold, what is the best way to know the gold is authentic? I don’t usually read Zerohedge, but I accidentally stumbled onto an article of his (that neo-Soviet Bulgarian intelligence operative known as Tyler Durden) where he shows a 10-ounce PAMP Suisse gold bar broken, revealing a hollow base of junk metal. The gold I bought recently has a PAMP “VeriScan” certificate attached to it. Is this enough to trust it’s authenticity?
-The whole precious metals industry complex is full of inherent conflicts of interest, and its recommendations are not based on determining the most profitable outcome for you.
-I am a huge long-term fan of gold ownership.
-Own physical gold for the right reasons. 1) The price follows monetary inflation over the long run, since it is the one true monetary metal. 2) It outperforms ALL other forms of gold investments. 3) It will be an asset outside the system. 4) Very little of it is devoted to industrial offtake, so it is much less susceptible to underlying economic circumstances
-Own the right types of gold. There are a number of types of physical gold that are much more susceptible to counterfeiting and adulterating.
-I only recommend one form of long-term gold ownership.
-Physical gold really has a 0% cost to own, if held discreetly. I do not recommend storing it long-term in any safety deposit boxes.
-GLD was the first gold ETF and began trading in 2004. The fund has an expense ratio of 0.4%. While this is not outrageous by any stretch, there are other gold ETFs with lower expense ratios. For example, the iShares Gold Trust has an expense ratio of 0.25%.
-Look at the chart below and ask yourself if longer-term exposure to gold miners is the best choice for gold investment. (GLD green/red, GDX magenta, GDXJ sky blue)
-The shareholders and managers of the miners are subscribers to ZeroHedge, GATA, KWN, and Goldseek, and they actually believe the disingenuous shilling and dollar collapse talk.
-The miners tend to overextend at the wrong time, while contracting at the most opportune times. Their stock price performances clearly reflect these poor choices.
-The gold shill sites promote anything that supports the price of gold. These people are not our friends, and the miners are big supporters of these outlets. Money managers will never recommend owning physical gold as that means less potential money for them to manage. In other words, do not try to get affirmation from others regarding your physical holdings; you won’t get it.
-Most dealers usually steer prospective new buyers into numismatics as they have high markups.