Cash is king, and that cash could continue being US dollars.
The Federal Reserve has just implemented a jumbo 75 basis point rate hike. It was the highest rate hike since 1994 in an economy with a raft of data showing an accelerated slowdown in the world’s largest economy.
It is not just the direction of inflation that the Fed cannot get right. It is also the trajectory of the economy. To implement the highest rate hike in almost three decades when the economy is hanging off the cliff is to guarantee another economic and financial crisis.
“The Federal Reserve has just implemented a jumbo 75 basis point rate hike”
WEALTH TRAINING COMPANY
So cash is king, and a severe recession, and possibly a historic depression, could be dead ahead
“The economy is going to collapse,” said Wall Street veteran investor bitcoin bull Michael Novogratz.
Indeed, the Fed is behind the curve and is too late to revert to easy policy, thereby creating the bubble of everything. Now they are too late to tighten in an economy showing recessionary signs.
So Central bank monetary policy is intensifying the extent of the boom-bust cycles, which is the inverse of what they say on stage that their function is to maintain economic and financial stability.
It should be clear to anyone with a functioning brain and able to step out of the matrix that the Fed, a private banking cartel, primary function is to protect the interest of its member banks.
Bankers make fortunes with low-risk lending to monopolists who acquire distressed assets in an economic collapse at bargain prices. The monopolists then buy all their rivals and control output, thereby being able to extract monopoly profits.
“So Central bank monetary policy is intensifying the extent of the boom-bust cycles, which is the inverse of what they say on stage that their function is to maintain economic and financial stability”
WEALTH TRAINING COMPANY
Put simply, bankers love lending to monopolists and the governments because the likelihood of making bad loans is low. Governments can extract wealth through taxation and even confiscate property from the citizenry, and the monopolist can extract monopoly profits. Lending to Joe public is too risky.
That is why we are witnessing the Amazon effect and large public deficits, it is all policy-driven.
“Cash is king, where the bubble of everything turns into the crash of everything” – Wealth Training Company
Think about it. Who got the trillions of dollars of central bank stimulus in the global lockdowns, which we refer to as collectivization 2.0. The small family retailer was forced to close his business with no cheap credit available to him. Meanwhile, as the independent brick and mortar retailer went to the wall, Amazon gets all the cheap credit, robbed from millions of middle-class savers who get zero interest on their savings accounts. So the Amazon effect on the collectivization of small businesses, brick and mortar meltdown continues until a neo-feudal society is complete. We see a few oligopolies, a market shared by a small number of producers and sellers, a big state with overreaching governments, and a global class of serfs controlled by a social credit system.
Cash is king, where the bubble of everything turns into the crash of everything
Bonds are crashing, and so are stocks and cryptocurrencies. The next shoe to fall will be real estate. We could be at the very beginning of a real estate crash.
Cash is king when bargain hunting becomes the next game in town.
