Tom Lacovara-Stewart
by Ray Becker
I've known Tom Lacovara-Stewart since the early 1980's and he has invited me to write articles for RTR. For Tom, anything. I am Ex-Military and do a ton of research. As of late, my focus has been on the Economy. The Economy as we know it, is totally unsustainable. My mission is to quickly educate people of good conscience, about the ticking time bomb. The Mother of all Depressions. Read on...
I'm going to keep things as simple as I can so that anybody can read this and come away with a basic understanding of the Economy. Since we don't have the luxury of time, I will stay focused on the now and what can potentially happen. Take politics out; this is not about Trump or Left/Right, Republican/Democrat, etc. This is about stepping away and looking at the big picture without political bias.
I'll address Trump a little later.
There was the Dot Com Bubble and the Housing Bubble. These were not enough for the Fed so they have inflated The Debt Bubble. Some call it the Everything Bubble because all other aspects are related to Debt. You hear in the media that the National debt is 21 trillion. Not even close. When you factor in State and Local Debt, Bonds, Pensions, unfunded Social Security, unfunded Medicare, etc. the real number is hundreds of Trillions of dollars.
When you then factor in all of the Derivatives held by Central Banks, the number is Quadrillions or 1000 trillion. Take Deutsche Bank; they are leveraged about 50 to 1 or $50 Trillion in junk against 1 trillion in assets. The bottom line is that it's bad so let's move on....
The Fed, which by the way is NOT Federal or part of the Government is boxed in. They can print money like QE and the dollar will fall and we all lose purchasing power. They could raise the Target Rate...this is the interest rate that banks charge each other. This will make Debt more expensive. So let's look at the REAL indicator of Debt; Treasuries.
Government passes it's budget for the coming year. The Treasury prints Bonds in the amount of the spending. The Fed buys the Treasuries which funds Government spending. The Fed only pays for the paper and ink to print fiat currency. Nice, huh? So, the Treasuries are short term or Treasury Notes, medium term and long Term. The 10 year Bond is the one that is watched very closely.
When you buy a Bond, let's say a $100 bond and the yield is 10%. Let's assume it's a 10 year Term. The Yield is the interest the Government will pay you each year, which for this Bond is $10. When the term is up, you get your $100 back. Now, let's say investors get spooked and pull money out of the Stock Market and drive up the Bond price to $120. The Yield or the interest drops and therefore the Government can issue more debt.
Let's say the Bond drops to $80. The Yield goes up and the Government has to pay more interest. We just had a Yield Inversion which creates Debt Deflation. The Fed is scared to death of Debt Deflation. A great deal of money flew from the Equities Markets to safe haven like Treasuries. You would think this would drive the price up, but, major holders of our debt like China, Russia and India are dumping their Treasuries. This affects the Bond Market and thus the Yield.
Why not fly to Gold? This is the greatest scam. Investors buy Futures Contracts for Gold. This is paper Gold. What is to be revealed, once the economy implodes is that there is no physical Gold to back up the paper. The big banks are hording metals and suppressing the price until a certain time in the future. Here's how they do it: JP Morgan Chase calls Goldman Sachs and says they are dumping 1 million ounces of Silver on the Comex Exchange. Goldman Sachs will use Dealers to buy the Silver at a low price.
Let's touch on precious metals which is real money. In ancient times, it was well known that you could mine 10 ounces of silver for each ounce of Gold. The ratio was 10:1. Fast forward to the 1930's when FDR confiscated Gold from Americans and the ratio was about 30:1. Then Nixon took the dollar off the Gold standard and spending went nuts. In the meantime, we have a current ration of 85:1. 85 ounces to make one ounce of Gold. This is so critical for you to absorb.
If you're of the Prepper persuasion like me, you will do the following: Secure clean water, long term storable food, proper shelter whether you bug in or bug out, ammo, alternative energy, medicine and other hard assets. Then you're going to look at Gold and Silver. I'm no expert and I have no College Degree so I can only share what I think and what I do. I can't be responsible for what you do with the information.
Nobody can know when the Everything Bubble will burst and bring on the Ultimate Depression. It can happen in a few years, a few months or Monday; there's no way to predict it. As long as the world accepts Federal Reserve Notes and the Petro Dollar, there's no way to know. What I do believe is that you'll want to keep your cash at hand and you'll definitely want to stack Silver. Silver is going to rocket in price compared to Gold. The cash...let's cover cash
In the world, there is not as much cash as you may think. People and Governments along with banks are sitting on cash. When you borrow money, it is created from nothing. It is digital money deposited in your account. The bank only needs to hold 10% in reserve, so from a depositor who deposits a $1000 income tax refund check, the bank can loan $900. The bank charges fees for the account holders and charges interest on the money they loan out.
When the implosion happens, the dollar will go up and you will watch everything else drop like a rock. You'll pick up real estate or Stocks or other assets for pennies on the dollar. Then we'll see the dollar bubble pop...this is where the metals come in. Precious metals are wealth preservation. Redeemable in any currency, not just the dollar. Let's say China's Yuan is heading up and is backed in Gold. You may want to convert some of your Silver into a Gold backed currency.
The implosion will rock the big, Blue cities at first. Riots and looting and if you're living in a Blue City, they will come for you and your stuff. When the cities are exhausted, it'll be time to move out to the suburbs where the soccer mom's and groomed landscaping exist. I think you get the point. We left the Peoples Republik of New Jersey one year ago and we now live in the mountains. We're finally free. Free to shoot our guns or do whatever.
Sadly, many of you won't be able to get out in time. Many of you will suffer financial hardships the likes of which has never been seen in history. Many may die. Is this Doom and Gloom? Maybe, but here's the thing...If nothing happens, I've lost nothing. Everything that I have put away has value. Therefore, I have nothing to lose. My greatest motivation is the Oath I Swore to Defend...that Oath never expired and my biggest fear is watching good people perish for lack of knowledge.
Those of us who care have a gut and that gut can tell us that something is seriously wrong. Many have that feeling but have ignored it due to fear of confronting what must be done. This is denial and can be deadly. Think of the children or the elderly who can't take care of themselves. I will keep updating all of you in future, brief reports on the Economy. I'll tell you about VIX, BDI, ETF's, PMI, CPI and many other indicators. Together, we will learn what was never taught us.
President Trump...My family knows Mr. Trump very well. My little sister worked for him in Atlantic City. My father built some of the Casino's. Mr. Trump even sent flowers to my dad's Funeral. He is like that. I've seen him eating lunch with the Laborers. Mr. Trump is the guy who is best equipped to take us through an economic implosion. He is the King of Debt and the very best at renegotiating debt as well as Bankruptcy. Sadly, Mr. Trump is surrounded by Globalist types. Swamp dwellers. He's one of the smartest men on the planet. Cool and calculating. I just don't know how all of this will turn out.
Please continue your support of RTR and Tom. Tom is my little brother and I love him as such. I love all of you because you are here...you have a desire to learn. God Bless all of you and I wish you a Merry Christmas.
Ray Becker
No comments:
Post a Comment