Since June, when the Shanghai Index began its 40-percent collapse, equity markets worldwide have been bashed and battered. Concurrently, raw-material prices have tumbled to decade lows, developing world currencies have plunged to 2002 levels, and currencies of once prosperous resource-rich nations continue to decline…
In Volatile Markets, Is Wealth Preservation King?
In a King World News interview I spoke with the man who predicted the Swiss National Bank would experience staggering losses and that the Fed would also experience massive losses that will destabilize the global financial system! His company is the only one in the world offering a precious metals investment service outside the banking system, with direct ownership and full control by the investor. He has also become legendary for his predictions on QE, historic moves in currencies, and major global events.
Throughout this summer of volatility, the high anxiety overshadowing the markets was the fear the Federal Reserve, following its mid-September Open Market Committee meeting (FOMC), would announce an interest rate hike for the first time since 2006.
It is now generally accepted, however, that the Fed’s cheap money policy has done little to help the real economy, but instead created asset bubbles. This was a trend line we forecast long ago, and were prominently derided by the mainstream media for spreading “pessimism porn.”
In 2010, we wrote, “The rising equity markets were a world away from the reality of the streets, and not a legitimate indicator of recovery or the state of the economy.” We noted that the high flying markets “…were a reflection of the trillions of cheaply borrowed dollars that were being used to gamble.”
Since the US stock market bottomed in 2009, the value of American shares have increased by $17 trillion. And, the “Value of megadeals this year beats dotcom-boom record to reach $1.2 trillion,” Financial Times, 19 September 2015.
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