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First Trump, Now Dudley! Next Up, Yellen!

by Andy Hoffman, Miles Franklin:

Given yesterday’s historic news, of Trump blind-siding the gold Cartel’s principal propaganda meme of the past 20 years – the “strong dollar policy” – by saying the “dollar’s too strong”; and thus, taking the “final currency war” thermonuclear; you probably thought I’d start with something gold-related.  I’m not, but I couldn’t resist showing you just how desperate the Cartel is to survive, “Cartel Heralding” goldseven times in the 24 hours since Trump’s “weak dollar policy” comments.  But have no worry, the fight is a decidedly losing one, like rats rushing to the top of a sinking ship!

To the contrary, I’m going to start with a story out of the UK.  No, not Theresa May betrayed her constituents, Alexis Tsipras-style, by ignoring the BrEXit referendum and putting the final BrExit decision to a Parliamentary vote.  Which, if it doesn’t pass – which I believe it will – may well catalyze a violent political revolution.  No, I want to focus on Pearson plc, the world’s largest education company, which lost 25% of its market cap after announcing last night that ,due to an “unprecedented decline in its North American business” – which had previously been expected to be “broadly stable”, 2017 earnings will be much lower than anticipated.

The first reason I bring this up is to demonstrate just how tapped out American consumers have become, despite what government book-cookers depict to be the third longest economic “recovery” in U.S. history.  You know, the one that has caused 95 million able-bodied Americans to give up looking for jobs; and countless millions, seduced by government (i.e. taxpayer) funded roach motel debt traps, to triple their unpayable, unpardonable student loans – in many cases, not to fund educational exploits, but basic living costs.  All in the supposed pursuit of worthless college degrees, in a secularly collapsing job market that will not get “better” if Trump enacts his ridiculous protectionist, but highly populist, trade policies – but worse.

Which brings me to something I have been shouting from the rooftops of for years, to the handful of people who will listen.  Which is, that the “college conspiracy” described in the National Inflation Association’s MUST WATCH 2011 documentary is real; and thus, the entire educational system as we know it is destined to shortly, and permanently, disappear – in the same dramatic fashion that Central bank managed monetary regimes will one day be replaced by decentralized crypto-currencies.

Fellow parents, be prepared for future generations to NOT attend college – or “university”; as instead, families will start saving their money, and find alternative means to prepare children for specifically-targeted careers.  Which in turn, will catalyze massive layoffs in the bloated “education industry”; prompting increasingly draconian socialistic policies, from increasingly populist politicians; and ultimately, exploding money printing to pay for it.  Which in turn, will accelerate the demise of history’s largest, most destructive fiat Ponzi scheme; and catalyze exploding Precious Metal demand, as billions seek to protect themselves from inflation; and ultimately, a complete mistrust of Central banks, yielding the rise of decentralized (i.e., NOT government issued or regulated) crypto-currencies.

And the same goes for Obamacare; which despite Trump’s ridiculous claim that he can “repeal and replace” it with something better – providing “insurance for all,” with superior care, lower premiums and deductibles, and lollipops and rainbows – will NOT be replaced, growing in lock step with the explosive growth of America’s elderly population.  Which in turn, will yield further socialism and money printing, per the vicious cycle described above.  This, and countless other such massive, accelerating financial issues are what America faces in 2017 (look at this morning’s horrific Target earnings outlook if you don’t believe me), with a loose cannon of a President intent on burning two bridges for every one he builds; amidst the worst global economy of our lifetimes; the highest-ever level of individual, corporate, municipal, and sovereign debt; the worst Western demographic trends ever; a collapsingPonzi scheme of a pension system; and a dying fiat Ponzi amidst its terminal, cancerous phase.  Which is why, in recent weeks, I have predicted 2017 will be an historic year for “money printing”; “draconian government actions”; and “monetary revolution.”

Which brings me to today’s extremely important topic – of how America’s financial “leadership” is closer than ever to taking the “nuclear option” of hyperinflation; and thus, why you MUST consider protecting your financial assets ASAP, before the increasingly narrow window of opportunity to do so closes.  To that end, I cannot emphasize enough how dire the ramifications of Trump’s comment that the dollar is “too strong”; as clearly, he intends to take the “final currency war” I first warned of four years ago to its deadly, hyperinflationary conclusion.

Followed by last night’s psychotic speech from the Fed’s second most powerful member – former Goldman Sachs “Chief Economist,” and current New York Fed President Bill Dudley – encouraginghistorically leveraged and underemployed Americans; in an environment of explosive cost-of-living increases; to cash out whatever remaining home equity they have, early 2000’s style.  In other words, the exact same behavior which caused the largest, most damaging real estate collapse in global history.  To wit, his soon-to-be-infamous quote, “whatever the timing, a return to a reasonable pattern of home equity extraction would be a positive development for retailers, and would provide a boost to economic growth.”

Which, given that interest rates have, until recent weeks, been sharply rising, is all but impossible – as said rate increases have annihilated mortgage re-financing activity, all the way back to 2008’s post-Lehman lows.  In other words, following in the hyper-inflationary steps of Trump (who personally has as much to lose from rising rates as anyone on the planet), Dudley not so subtly hinted the Fed must act more “dovishly,” if it wants to re-ignite said “reasonable pattern of home equity extraction.”

Throw in the fact that Fed governor Lael Brainerd – who last Fall purposely splashed cold water on the notion of a November rate hike – gave a speech yesterday, cautioning that the costs of Trump’s as yet undisclosed fiscal stimulus plans (which in my view, are not politically or economically viable) may be “significant”; and thus, that the current monetary back drop is “uncertain.”  In other words, like Dudley, walking back the Fed’s recent, faux hawkishness – feigned solely to “preserve credibility” that doesn’t exist – in preparation for re-joining the global money printing parade, in line with Trump’s hyper-populist statement about the dollar being “too strong.”

At this point, I’m not sure how much more obvious it can be that history’s largest, most destructive fiat Ponzi scheme is nearing its end – and that the political, economic, social, and monetary ramifications will be as severe, and far-reaching, as anything the world has experienced in generations.  To that end, there has NEVER been a more urgent time to protect your financial assets, with the only asset class proven to have done so throughout time.

Read More @ MilesFranklin.com

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1 comment to First Trump, Now Dudley! Next Up, Yellen!

  • Ed_B

    “… in many cases, not to fund educational exploits, but basic living costs.”

    Right. But never mind the millions of older Americans who used to be able to supplement their meager retirement income with CDs that paid 4-5% interest but who can no longer do that so are either investing in a highly over-extended stock market or spending their nest-eggs down on basic living expenses, all the while hoping that they expire before their money does. Thanks, Fed. Just what was needed. More largess for the spenders at the direct expense of the savers. 🙁

    “All in the supposed pursuit of worthless college degrees, in a secularly collapsing job market that will not get “better” if Trump enacts his ridiculous protectionist, but highly populist, trade policies – but worse.”

    Let us distinguish between REAL college degrees where people actually learn useful skills and FAKE ones where they learn next to nothing that is on any economic value to potential employers. Those who wish to work in technical areas MUST have a college degree or two at the minimum. This is not to say that those with less formal education cannot succeed. Some can but they will do it by main force, which is to say by studying and learning beyond their peers on their own. Having access to a good university library and on-line resources is of great help in this. As to the fake college degrees, well, they are primarily geared to the dilettantes among us who have wealthy families and / or trust funds that will cover their living costs and not to those who actually need to work to earn a living. Work is called that for a reason. And that reason is that it is difficult. For fun, we have hobbies that we enjoy but that in only very rare instances can anyone earn their living by doing these. Rather than train more students in these subjects, colleges and universities should be working with students and the local business / industrial employers to develop new graduates who actually have what these prospective employers need. Yeah, I know… shocking… but then, reality often is.

    “… And the same goes for Obamacare…”

    Obamunist Care is a train wreck that is leaving the tracks as we all watch it. It was designed to fail and it is doing so in rather spectacular fashion. It was created so that when, not if, it collapsed, all of the sheeple could be herded into a socialist single-payer system. The hard truth in all this is that there are only TWO ways to divide up a resource for which the demand exceeds the supply and that is either by price (capitalism) or by government fiat (socialism). If one has money, they will prefer the former because they want and can afford good care that they can get quickly. If one does not have money, then they prefer that others pay their bills in life, including their health care bills. Unfortunately, the latter never works for more than a short time because those who desire a free ride in life will always outnumber those who work to meet their own needs. Whether or not Trump & Co. can come up with a viable health plan remains to be seen but I, for one, am content to wait to see what they actually do and whether or not it actually works before I start complaining about it.

    “… home equity extraction…”

    Right. Harvest that equity. Sell your ownership while still keeping the house. Sure. This too is one of those stupid financial moves that a lot of people made in 2004-2007. And then the housing crap hit the fan and many of them lost “their” homes. Fact is, they SOLD their ownership to the point where they could not refinance or meet the payments. The banks then had little choice but to foreclose on those houses and try to recover as much of the loan money as they could. Mistakes were made by all in this. Government, the banks, AND the buyers all had a piece of this action so there was plenty of blame to go around.

    “At this point, I’m not sure how much more obvious it can be that history’s largest, most destructive fiat Ponzi scheme is nearing its end – and that the political, economic, social, and monetary ramifications will be as severe, and far-reaching, as anything the world has experienced in generations. To that end, there has NEVER been a more urgent time to protect your financial assets, with the only asset class proven to have done so throughout time.”

    I often think of the current fiat debt Ponzi scheme as a great beast that has mortally wounded itself and is in its death throes, thrashing about, clawing, biting, etc. Because of its large size, it is of considerable danger to anyone close enough to be hurt by all this thrashing around. It is up to each of us to stand well back so we won’t be financially injured by all this. But make no mistake: this system IS dying and the closer to death it gets, the more desperate and dangerous it will become. Keep a good chunk of your wealth in gold and silver. Keep it outside the fragile banking system. Keep a fair amount of US$ as physical cash as well. It will be good for a while and perhaps even longer than that unless the collapse many of us see coming is complete. There are many possible scenarios in this and no one knows which one or which combo of elements of several will actually occur. But being wary, nimble, and flexible will provide us with the best chance of coming through such a disaster with our families, finances, and future intact.

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