Im really going to screw with you today…especially if you read yesterdays missive.
This is the set up of the century. Its like OJ and the glove…oh wait.
Are rates range bound (heading to zero) or are they “going to the moon?”
Reddit boys don’t know what to think. They still can’t figure out why bitcoin continues to destroy everything and eat every asset in its path.
I prefer to believe that we will have interest rate shocks as disinflation continues forcing the Feds hand, to come in and starting buying bonds again.
In effect they will be driving up the price (buying bonds out of the free market away from you and I), which will drive down the rates.
Which in turn will continue to destroy your savings and stoke more inflation.
At this point you may be thinking, “how is that possible, isn’t that illegal?”
If so, you would be right, only in a moral sense though. Not in a wonky, professorial, elitist way though. In that case you would be dead wrong. HOW DARE YOU QUESTION THE DO-GOODERS!!!
They will do what is good for you and your safety and security. And you will like it.
I mean just look at everything around you and how that’s all turned out….
Like TSA, or lunch time carjackings, or train robberies littering the countryside of California, or needles and feces draping every inch of sidewalk in every progressive run city in the country, or how about the VA, or even election integrity, or how about the border, or….ok you get the point.
Maybe don’t look at those things. Lets just agree that the Feds have everything under control.
Honestly, we just need a coliseum built with free bread and wine and watch people kill each other so we can be distracted and let government solve our problems.
I don’t think any empire has tried that.
Oh I guess that’s kind of like shimmies, social media, cheap credit, corn syrup/high fructose and fantasy sports?
I digress…
This creates dollars out of thin air as the commercial banks are the primary dealers handling all of this in the background.
Is this the final straw, where countries and investors know the U.S. can’t sustain itself?
Ironically, the eurodollar futures market, and don’t worry if you don’t know what that means. I don’t even know if that was English. The “smart money” as the Wall Street suits say, is pricing in NEGATIVE rates in 12-24 months. I repeat NEGATIVE.
Rates will continue to rise until the markets really capsize and the Fed comes back in the rates back to zero (just like in the lockdowns.)
So we just went from rates going to the moon to rates going negative within 24 hours.
This is how confused the market is. When in doubt, always follow the smart money. And do NOT bet against the Fed. They are there for one sole purpose: steal the publics wealth through inflation.
Don’t believe me? Here is the dollar’s purchasing power since the Federal Resevre’s inception:
And here is the resulting wealth inequality:
Thats why my portfolio has about 30% cash (for deflation/higher rates) and the rest is inflationary by necessity. Meaning the other 70% is in a pretty equal mix of rental real estate, physical gold and silver, bitcoin, energy/commodity stocks.
I believe we will continue to have slowing velocity just like the last 10 years and that’s why the Fed MUST keep printing long term. The dollar IS debt. It must continue to devalue and be printed and lose purchasing power or it will implode.
Hence Raoul’s “chart of truth” and rates continuing their descent long term. We are in so much debt that we are trapped and rates can’t rise much or the house of cards comes down.
If it is beginning to feel like there’s no way out at all, then you would be absolutely correct.
Short term = volatility and rates up
Long term = inflation possibly hyperinflation
As Bob Proctor always said, what’s good is bad and what’s bad is good. Meaning there’s always opportunities and abundance in life. We just need to CHOOSE to see it. Yes, CHOOSE, it is a choice. I struggle with this everyday.
Stay strong,
Brandon
Ps. Tomorrow will be a breakdown of how and where to buy bitcoin and start “GTFO of the system.”
Also, I will soon breakdown more of my portfolio and how I have structured it to capture the volatility of rising and sinking rates and dummy-proof what I am doing.
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Author Brandon Gentile
