Welcome to the future. Cash rains from the skies as central banks increase their money printing to never before seen levels. More interest rate reductions swell the never ending thirst for risk. Bubbles form in every direction, causing traditional valuation measures to be discounted entirely. And meanwhile millions remain out of work, lost, and hopeless. Welcome to the future.
In history there are times in which assets are overvalued and sometimes they become undervalued. Markets price according to supply and demand, to risk factors, to the desire for yield, and many other measures. Sometimes, we enter a period of mania where nothing really matters except for the psychology of the speculator. It’s no longer about portfolio strength or wealth acquisition, it’s about the attainment of maximum returns in the shortest period of time.
Risky behavior can be rewarded in good times. Entrepreneurs embark on a quest to provide a service or product to the market, they use their funds to come into the public and potentially turn a profit. If that company goes public on the stocks market, any potential losses can be shared among the investors. Today, we see that while companies may not actually generate enough revenue to pay all their bills and make ends meet, investors welcome the potential for this to continue, as long as they can sell before any devaluation of the asset.
The question remains, how exactly does the market work? If we are living in a risky, topsy-turvy, upside down world, and nothing makes sense, fundamentals don’t matter, and the constant fear of missing out, why is this all happening in the first place, and why would it ever change?
Central banks are the answer. Central banks are not necessarily new. The Fed was created in secret in 1913. The biggest, most influential names in finance were present, or through a representative in Jekyll Island, arriving separately, under the cover of darkness. They decided to create the Fed, get their friends in government to pass the Federal Reserve Act, and form a monopoly over the financial system. Today their existence has been pushed beyond the memory of investors, and citizens alike, and so they operate with independence as they love to call it.
The Federal Reserve has 2 very simple mandates: Price stability and full employment. Oddly, their activities actually make both worse. We have clear detail about their actions as it relates to price stability. The Fed prints money, injects it through various methods, using the Treasury in conjunction with those major financial institutions who were there in Jekyll Island, to keep the paper fiat fraud flowing. The next point is that their only real activities are printing money and lowering interest rates. Lowering interest rates is done by a method they call Open Market Operations. Each time they intervene, they are manipulating the markets, intentionally. They claim to be doing so for the benefit of the public. Lowering interest rates does not benefit employment whatsoever. Historically, the most growth has come in times where interest rates were higher. But the general public who use debt to finance their lifestyle have been able to use the low interest rates and keep up with the Jones’, or the Kardashians.
Today, currencies are not backed by anything. Nothing physical at all. No gold or silver. Just a promise from the government that it’s worth what it says on the note. In fact, the cash actually says “Federal Reserve Note” on it. They also included their own symbolism on their bills on the back, to put it in the face of the unsuspecting, distracted public. Without any restriction, without transparency, the central banks are able to devalue the currency you are forced to use as legal tender, on a daily basis.
As a result, we can expect this madness will continue, their grip will continue to strengthen, and the public will actually beg for more intervention. We have seen so many investments take place today with people after receiving their stimulus check. Tax dollars given to people who are supposedly in need, then deposited with Apple and Amazon. More money they say. Help the people they say. But look what happens. People in need get the crumbs and the mega corporations get everything. If people only understood the origins of these institutions, they would realize the real agenda of The Money GPS. To wake up the public to the entire financial system. Countless people working within it, just living their lives, paying their bills, making ends meet. But behind it all is a group of individuals who knowingly and admittedly take away from the average person every single day. That’s shameful and disgraceful.
Let’s get real. Money printing devalues the currency. That’s for sure. Despite their obvious lies, we know that price stability isn’t happening. We can measure it on our own terms to avoid their nonsense. So what do we do? The obvious factors here are that we need to take baby steps towards larger goals. First order of business is to be objective about your current situation. Write it all down, tell friends or family, do whatever it takes to acknowledge your current status. Measure everything. Ok, now you know where you’re at. Now, what exactly are you trying to attain? Wealth preservation? Wealth accumulation? Maximum appreciation? Financial freedom? Each of these goals are very different and may not necessarily involve the purchase of Amazon shares. Chasing the highest flying stocks may not be a wise choice for some. But those who wish for maximum appreciation may jump on and ride the wave.
The point here is that assets are important in any timeframe, but most importantly when the devaluation of currencies is outpacing the rise in wages. So if people want to keep up with inflation, they can’t rely on their wage because it will never rise at the same pace. So the accumulation of assets will hopefully offset that. Knowing where you are now, and where you want to go will then determine what assets you should be looking at and also how much of each and the other more minor details. Chasing what others are doing is senseless and foolish. Nothing good can come from following the herd, except of course if you desire becoming someone’s dinner.
I stand firm in my belief that people shouldn’t be taking specific advice from anyone. Especially free advice from online gurus who have no obligation to actually help you. The first step is acquiring the knowledge of the current situation in the markets, investments, and sectors you want to invest in. Understand the history too. And measure twice, cut once as they say.
The vast majority of the public has a belief that the central banks are on the side of the public. That they desire keeping the stock market afloat permanently and will do so. But of course, each and every crisis since the Great Depression has seen major intervention before, during, and after the crisis, at a historic level for that time. And every single time, we enter a period of euphoria, and eternal bliss. Occasionally though, something happens to change that. The South Sea Bubble, the Tulip Mania, the Dot Com boom, and the hundreds and hundreds of ups and downs over the years.
Investing is not a competition. It’s not one against another. It’s what you are trying to achieve. One definition of investing may be a garden, greenhouse, solar panels, and water harvesting. Your financial advisor may not agree, but certainly worth looking at. For others, it’s simply to have enough money to live off of while in retirement. Sadly, those in the financial media and others who are overly invested, leveraged, and lacking diversification will simply push whatever their advertisers are selling, or what investors are heavily invested in. It’s all about the money. Follow the money.
Know the story, study the history, invest with prudence, hedge your bets, because if there’s one thing that’s certain about the future, it’s that nothing is for certain.
— APPENDICES —
- The Money GPS: How To Get Out of An Economic Crisis. Action Steps To Excel, Prosper, and Prepare!
- The Money GPS: If You’re Dealing With Unemployment, Wage Cuts, or Crisis THIS Is What You Must Do
- The Money GPS: Who Controls the World? These Organizations, Institutions, and Families Run the Show
- The Money GPS: Rothschild and Rockefeller Team Up With the Vatican! Follow the Money…
- The Money GPS: The Broken Economy Leaving Millions Without A Job! Economic Crisis or Opportunity?
- The Money GPS: BIS Central Banker Admits EPIC Level Crisis Is the Most Likely Result of Global Mass QE
— FOOTNOTES —
Wake up to the suits and ties. They’re all lying to you. None are your friends. None wish to help you. Wolves in sheep clothing. More distractions than ever before. The magician always makes a spectacle to hide the trick.
We live in a fantasy land. More money flowing in than ever before, IPO frenzy, housing skyrocketing. Euphoria never end well. The higher it goes the worse it will be. Slow and steady growth is much safer. #money #investments #debt
IF THEY WILL FIGHT OVER PLAYSTATION…What would they do for food? #ps5 #PlayStation5 #playstation #ps5fight #walmart pic.twitter.com/hbimVKzeta
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The Money GPS is the most active, most informative channel in the financial world. Day after day, breaking down the data and making it easy to understand. This channel is not here to help build a portfolio, give stock picks, or financial advice. It’s simply data that is generally not found through conventional means.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.