By Ross Powell, Contributor USDR
As this article is being written, the Dow appears ready to cross the 20,000 threshold extending the streak of record breaking highs that have been made since the election of Donald Trump. Led by the financials, a handful of companies are responsible for the majority of the gains in this index. The past month and a half has seen equity valuations stretched into nosebleed territory, a rapid rise in the relative value of the dollar, an incessant beatdown of precious metals, and the capitulation of many investors who have been bearish on stocks.
We are living in unprecedented and disorderly times. Historical relationships between asset classes no longer hold. Bubbles continue on expanding despite concrete dynamics that should – and under normal circumstances would – facilitate a return to fair market value. Despite the recent spike in interest rates, the record number of Americans not in the labor force, and the ongoing exponential increase of debt at all levels, we still see equity prices marching higher.
The standard dynamics and tools that have been used to force stocks up in recent years are still at work: derivatives to smash volatility, market breakages where sell orders appear to vanish, headline reading risk-on momentum algorithms, and of course the Plunge Protection Team, the Exchange Stabilization Fund, and the Federal Reserve. For those of us who understand the structure behind the current regime that viciously suppresses precious metals and seems to invariably boost all other asset classes, watching this price action can be frustrating.
The current system cannot and will not be maintained. The global debt cannot be paid back. The derivative bomb is still primed. The financial institutions and central banks are still insolvent. The petrodollar is still vulnerable. The Ponzi scheme will end because it must. However, despite these certainties we must acknowledge that we don’t know how the next inevitable transition of the global monetary system will play out.
We could see bankruptcies chain across the globe and bring the credit cycle to a standstill similar to the 2008 financial crisis except orders of magnitude worse. We could see a hyperinflationary crack up boom where fiat currencies are obliterated to their intrinsic value of zero. We could see deflation, inflation, or stagflation. We may even have to invent new terminology to describe an unprecedented economic and financial phenomenon. Some are discussing the seemingly paradoxical situation where stocks, interest rates, precious metals, cryptocurrencies, and the dollar all skyrocket. The potential of superinflation, where everything is exploding together, tells us that we have to be prepared even for unprecedented scenarios.
We may even see several of these widely diverse scenarios in sequence, and because the outcomes will depend upon so many factors we must look for solutions that will allow us to sleep at night no matter how and when things play out. Survival 401k provides powerful tools for those interested in reducing their exposure to the current, expiring financial system and shifting their resources into tangible assets. A basic retirement account will not allow you to invest in physical precious metals, land, or firearms, but if you are interested in exchanging debt-backed paper currency for real money and hard assets then give Survival 401k a call right now to get the process started.
What goes up must come down is a truism that we are all familiar with. However, even when dealing with inevitabilities we have to be tactical. Equity valuations are historically stretched. Economic fundamentals are still weak despite the wailings and cheerleading of the obsolete financial press. Irrational exuberance is running wild again. Yet, because they are artifacts of manipulation, these displacements can continue even farther before they either collapse or simply vanish.
A plethora of accessible evidence exists that demonstrates that we don’t have properly functioning markets. The concepts of efficient markets and fair value are so foreign to today’s manipulation regime that they are relics preserved only in economics and finance textbooks. Trading desks that the general public can’t see use currency that is either provided by off-book programs or conjured out of thin air in order to maintain asset prices where they need to be so that narratives can be perpetuated in the name of preserving national security.
In a fair game, what goes up must come down. In this game, what goes up beyond all reason may not come back down in a reasonable time frame even though it should. In this confusing and even perturbing environment, it all boils down to one question: what should we do?
Since we know that the game is rigged, the best thing to do is get your core savings and resources out of the game. Take possession of physical silver and gold. Take as much as possible without compromising your operating capital you’re your ability to pay bills out of the bank. Take advantage of new technologies like Goldmoney and Bitcoin. The goal is the elimination of as much third party and systemic risk as you can. When you give your money to the bank you have legally loaned it to them. It no longer belongs to you. In a credit crunch you won’t get what you think is yours because legally speaking it isn’t yours.
Regardless of the scenarios that will play out in the near, medium, and long term, we have a responsibility to ourselves and to our families to make the decision to get on the right side of the inevitable monetary transition that is taking place even now. Take advantage of the latest plunge in precious metals to exchange dollars for something with actual intrinsic value. If you’re not sure how, then call Survival 401k and get your questions answered. Do what it takes. Do it now. We don’t know what 2017 will hold, but some harrowing options are on the table.
Whatever asset prices say, ultimately it is our knowledge, our skills, our adaptability, our sturdiness, our resilience, and our freedom that must go up. Nothing else is acceptable.
Ross Powell is the Founder of Survival 401k, LLC. He graduated from the University of Texas and is a veteran Naval Officer. Ross worked in banking and finance for almost 30 years including some of the largest banks and insurance companies in the country. His intimate knowledge of the inner workings of financial institutions helps him direct clients into Solo 401k products to take control of their retirement funds and escape the pitfalls many see in modern Wall Street centric retirement portfolios. He can be reached through http://survival401k.com/.