This article was contributed by Tom Beck of Portfolio Wealth Global.
The Federal Reserve’s Chairman is actually thinking about THE NEXT CRISIS. Jerome Powell is waving the WHITE FLAG and he is basically admitting that the Federal Reserve doesn’t know how their interest rate policy will impact INFLATION NUMBERS, so it wants to find new tools to handle the next downturn since it won’t be able to RAISE RATES beforehand.
Put differently, the world’s leading central banker is ADMITTING DEFEAT, saying that the bank can’t hike rates, so it must use UNCONVENTIONAL tools when the next recession calls it into action.
The boom and bust cycle, which defined the past 100 years of central banking, IS OVER.
Please don’t take this lightly; sit for an hour and think about the fact that there will NEVER BE a normal cycle again.
The Treasury bond is never going to DELIVER POSITIVE YIELD ever again!
What is the FAIR PRICE of gold, silver, stocks and real estate, if bonds never again BEAT INFLATION in your lifetime?
Only three out of every one hundred bonds generate a 5% return in today’s world. Just three decades ago, three of four bonds did that!
Negative-yielding debt is again ON THE RISE; there’s a clear trend and I can hear the drums – that is, if cash and bonds never DELIVER YIELD to retirees again, and gold is worth at least 50% more. And if gold is worth $3,000, even at 60:1, silver is worth FIFTY BUCKS.
This is an amazing 23yr chart, which shows that the dollar had BROKEN THROUGH support and could see a 25% drop in the present business cycle (2020-2027).
Have you TRULY GRASPED this?
Cash will cost you a -20% RETURN, so imagine the rush into HARD ASSETS.
This is a very different crisis than in 2009 and we believe that most investors have still NOT COMPREHENDED this reality and applied it to their calculations – herein lies our opportunity.
Money-market accounts are currently LOADED WITH CASH.
There’s $5tn sitting in them – more than ever before – and Portfolio Wealth Global believes that smart money is figuring out that we’ve entered a new monetary phenomenon and that putting money into gold now is SUPER-SAVVY of them.
The dollar is the measuring stick for everything the global commerce machine buys or sells.
In 2009, when gold enjoyed reflation and rallied from $850 to $1,921, it was at the end of an 11yr BEAR MARKET for the dollar.
This time around, reflation is happening with a dollar BEAR MARKET just getting started!