Hey There Income Hunter,
We didn’t even get a “dead-cat” bounce on Monday after last week’s meltdown.
You know, just a little short-lived recovery following a slide.
Nada.
It didn't help that bond prices are down and yields have risen on the weak economic reports we’ve been receiving.
The joke of the day yesterday was that the Federal Reserve turned its emergency meeting into a closed-door private policy engagement among Fed governors.
I can picture them playing cards and talking about their short positions in stocks – while sipping bourbon and cracking jokes.
Look, you don’t need to be a genius economist to know that when you raise rates and drain liquidity from the markets they will go down.
So they may as well go both ways and steal money on the way up and the way down.
It is so obvious to me that we are headed for a recession. (And I’m on record making that call.)
Now we have to watch the Fed tighten as they destroy what is left of a real economy.
Oh, well. All we can do is take advantage of easy money …
Today, I’ll share the sad data on the American consumer and what you should do now to protect yourself from the inevitable devaluation of your paper dollars.
Still 6-plus Hikes Priced in to the Market
The investment community is still hanging on to Jay Powell’s every word.
They want so badly to believe inflation will somehow go away and the reopening trade will put America back on top.
They hear 1.5% short rates and think, “Wow we can earn more on their savings. Plus, the Fed is telling us the labor market is really strong, so we will make even more.”
I have been around too long to have these pipe dreams …
And I can only go off past performances of an inept Fed.
Just Look at the Facts
Check out the drop in consumer sentiment and expectations:
Does that look like a consumer ready to spend?
Those are levels that in the past have triggered recession – and that was with much lower debt and without a pandemic.
Growth is now forecast by the Atlanta Fed to decline to under 1% in the first quarter of 2022.
By contrast, in Q4 2022, it reached over 6%!
Is the Fed really going to tighten into a recession?
I hate to say it, but yes it will.
Every decision these days is political, and the Biden administration needs a scapegoat.
What they fail to realize is this …
If you cannot create real growth, the more you print the less productivity each dollar creates.
That is how dollars get devalued.
Gold
Gold and silver are the only “real money” and they have held their value for thousands of years.
The precious metals never really fluctuate; they simply provide an alternative to paper currency.
So think of it this way:
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- Let’s say a couple wants to buy a $180,000 home, but they understand the Fed’s predicament, so they put all their money into gold. When the economy crashes, they plan to redeem the gold and buy their house.
- Once recession hits, the housing, stock and bond markets collapse, while gold and silver rally 100% against the dollar.
- Home prices drop 30% while stocks drop 60% versus gold … as the dollar devalues to almost nothing.
- Now, because gold is universal, all global investors start dumping their US dollars for gold.
- So, when the collapse is over, the home buyers – who started with 100 ounces of gold at $1,800, which is up 100% – now can exchange their gold back for $360,000.
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Plus, the $180,000 house they were going to buy is down 30% and can be bought for $126,000 now.
So, just by switching to gold they protected their wealth AND got a huge kicker as the dollar was devalued. They can now buy a house almost 3 times nicer – or maybe buy three houses.
That is the power of gold and silver, which are universally valued as real money.
Bring It Home
Don’t waste another second … Sell you bonds and stocks and buy gold.
The Fed will not get out of this debt death trap, but you can …
You can come out better than before by exchanging paper money for real money and waiting for other investors to realize what is really going on. Then they will follow your lead.
Let our government and the Fed destroy the American economy to reduce the debt that they created to begin with … but do not let them destroy your wealth.
Need help? Join my Power Income Trader program.
I will teach you how to stack trading profits for years to come via a diversified approach to purchasing alternative markets that will appreciate as the dollar depreciates.
Live and Trade With Passion My Friend,
Griff