Ignorance May Be Bliss But It Can Also Be Expensive!

I’ve been pointing out the need and reasons for an extended stock market correction all year long and I’ve warned that a failure to get one will lend itself to the potential for a more sudden and precipitous stock market collapse. Some are looking at current stock market volatility feeling that adjustments are being made and everything is soon to settle down, but nothing could be further from the truth. Today’s headlines are blaming the current fallout on China trade concerns, a flattening yield curve, and an end to the tax break euphoria. All of these and many excuses not listed are nothing more than symptoms of a very sick and overly-manipulated economy.

President Trump came out this week with both barrels blazing as he attacked the Federal Reserve for still wanting to increase interest rates. It is interesting to note that President Trump was livid during the election campaign, with the previous administration’s lackadaisical approach to interest rate increases. He pounded on the podium during the campaign and demanded that we pursue a rapid course away from near-zero interest rates. That’s exactly what the Fed has done under his administration and now they’re being ridiculed for it, by the demander. Like I said when it started, ramifications caused by the implementation of overly late and overly aggressive interest rate increases are going to wreak havoc on the economy. Increased interest rates have a direct and immediate effect on business growth, yields, and the national debt, just to name a few.

Interest rates need to be much higher globally, in order to be able to take appropriate action against rising signs of inflation, but it’s not just the Fed. It is literally a global conspiracy of more than a hundred central banks, forcing global citizens to live in a very “unreal” world of easy money. President Trump called the Fed “the greatest threat to the American economy,” but the American economy does not operate in a vacuum. As the premier global reserve currency, the dollar and American economy that goes with it must be accountable to and for all global economies, as well as the banks that run them. But giving more power to central banks should be the last consideration. Central bank operators have insulated themselves from liability to such a degree, that it’s borderline criminal.

Money you put in the bank is no longer yours. Interest you’re paid by banks doesn’t even keep pace with inflation. But be late on a payment and you’ll get billed, fined, and reported to credit agencies. That’s all automatic. If it was the bank’s mistake, they’ll take care of it in their own time, maybe. But you are absolutely not a priority. The bottom line is that there is not a single banking procedure in place for the purpose of client benefit. Everything, let me repeat that, everything a bank does is exclusively for its own benefit. As we’ve seen when things go wrong, clients and taxpayers get the bill, while banks and their executives walk away free and clear, with no harm and no foul. Could that happen at your job? I didn’t think so. Meanwhile central banks are badmouthing gold and silver, yet they’re by far the greatest buyers. Is their nay-saying to benefit you? I didn’t think so…