Think Like a Globalist, says Our Market Guru
May 11, 2017
Over the past few years, I have made a number of accurate predictions with respect to the global asset markets and economy. The advantage I have over others is that I understand the conspiracy for world government and how the globalists have worked to gain control of the global economy and financial system. I refer to this "guiding principal" when making financial and personal decisions, and have been able to stay focused and objective, while keeping my confirmation bias in check.
With my "Guiding Principal" (above) in mind, I offer my thoughts with respect to some of the major asset classes.
GLOBAL EQUITIES
I read the following two articles from Zero Hedge:
"Mystery" Central Bank Buyer Revealed, Goes On Q1 Buying Spree
http://www.zerohedge.com/news/2017-05-06/mystery-central-bank-buyer-revealed-goes-q1-buying-spree
Bank Of Japan "Bought The Dip" Over Half The Time In The Last 4 Years
http://www.zerohedge.com/news/2017-05-05/bank-japan-bought-dip-over-half-time-last-4-years
Zero Hedge concluded that while they doubted the central bank stock buying will be investigated with stocks at all-time highs, the central banks are foolish and will eventually be blamed for creating the biggest asset bubble the world has ever seen.
My conclusion differs, because my guiding principal says that the owners of the central banks know exactly what they are doing. They are essentially using printed money to buy up all the assets of the world. They are taking advantage of the deflationary forces of over- indebtedness, to minimize the inflation caused by their asset buying spree. The globalists knew that the fiat currency end-game would provide them with an auspicious time to commence their asset purchases. I guess that the globalists should control most of the world's assets by the time WW III comes around sometime next decade.
The compromised patriot shills like
Alex Jones work with the globalists to deceive and scare the crap out
of their listeners, so the central banks can continue to work their
magic. They are buying sovereign debt, stocks, corporate debt, and
our mortgages. This is not nationalization; this is the world's
largest-ever leveraged buyout. The US Treasury nationalized GM and
Fannie Mae after the last globalist-planned stock market collapse. In
contrast, the central banks are privately owned. They are buying up
the world's assets for their owners. This is a big distinction. It
is all being carried out under our noses while the alt-media screams
of collapse.
Bottom line: As long as a large percentage of the population are not participating in the stock market and the central banks are gobbling up global equities and corporate debt, stocks will continue to levitate and move higher.
REAL ESTATE
I came across a real estate "expert" on Twitter. Here is his link:
https://twitter.com/MrMarkHanson
Mr. Hanson research conflates with Zero Hedge, Alex Jones, and the rest of the alt-right shills, and proclaims real estate is already collapsing. He illustrates with all sorts of data and studies. Unfortunately, his confirmation bias precludes him from ever seeing anything different. He will quote how rent roles on one and two bedroom luxury apartment buildings are falling and that the party is over. For instance, Mr. Hanson shows data to indicate how rents are down about 7-8% in Washington DC luxury apartments.
As a licensed Realtor in Fairfax County, Virginia, I was confused as to how he obtained his data, because it did not match with what I was seeing. I even corresponded with him about it, but did not receive a satisfactory answer. Around the DC Beltway, the real estate market here is performing normally, and in some measures can be considered a very fair deal. The median household incomes of Loudon and Fairfax Counties are the first and second highest in the nation, according to the Census Bureau's American Community Survey (https://en.wikipedia.org/wiki/List_of_highest-income_counties_in_the_United_States) and houses are priced about 50% lower than in the bay area of California.
So, a $500,000 mid-range home is not that expensive when incomes are considered. Rents are up about 3-4% year over year, and prices are creeping up mid-single digits. Moreover, we are still about 5-10% below last decade's top - even with a good local economy. Many condos are still selling for 50% of peak values. But these "experts" with their confirmation biases cherry pick data to conform to their preconceived conclusions - and their followers eat it up and sit on the sidelines for years waiting for a lower entry point. They miss out on all that rental income and amortization.
Bottom line: Real estate in many areas is doing just fine. Rents are not out of line with historic norms, and a conservatively managed portfolio of rental properties can be a winner in the intermediate to long-term. Before investing, just crunch some numbers. I can determine capitalization rates and Internal Rates of Return in a couple minutes and so can you. I would not manage properties in places like LA, San Francisco, Toronto, Miami, etc., as prices there are too high when analyzed by these traditional measures. So, if you wish to invest in rental properties, just do your homework and invest in stable areas. These areas comprise 70% of the country's markets. Even areas in Washington DC have pockets of places for new investors to get going. Think independently and act accordingly. Real estate is still a great way to create real wealth.
CURRENCIES
The US dollar will continue to remain supreme. The US has the best performing and most stable large economy. In the US, fiscal and monetary policies are determined on the same level. Trillions of foreign debts are denominated in US dollars. Some estimates show that half of all physical US dollars are held overseas. Every US dollar ever printed is still legal tender; there have been no currency recalls. As you can see, no other currency can claim these distinctions.
One more thought; the United States is now one of the world's largest oil producers. The world needs the US dollar to buy our oil. The whole irony is that the silly talk of the US petrodollar has actually been dollar supportive.
Bottom line: I have been a US dollar proponent for a few years now, and have written about it in my previous articles. Nothing will change over the next year or two. The dollar may eventually collapse - not from weakness, but from strength. Do not bet against it.
GOLD AND BITCOINS
One should own gold as an asset shield. An owner of physical gold essentially removes that percentage of his wealth from the system. Gold should not be viewed as an "insurance policy" for collapse or as an inflation hedge, since it has performed poorly and counterintuitively in times of economic and market stress. Recently there has been a new competitor to gold - cryptocurrencies like Bitcoin. I have come across two articles that illustrate this point:
Bitcoin hits a record high, but can it rival gold as a safe haven?
http://www.cnbc.com/2017/01/04/can-bitcoin-replace-gold-as-the-new-safe-haven.html
MIT Professor believes Bitcoin or other crypto-currencies could save financial system
http://www.thedailyeconomist.com/2017/04/mit-professor-believes-bitcoin-or-other.html
I do not have any true answers about the actual origin of these virtual currencies, but I make three observations.
Bitcoin serves the globalists well in their war on gold
Central banks and large money center banks around the globe are developing block chain technologies and virtual currencies of their own.
These virtual currencies are receiving a great amount of mainstream and alt-right media coverage.
My guess is that any new global currency will possess many of the characteristics of digital currencies such as Bitcoin. Thus, I have to conclude that on some level these currencies were developed by the "Deep State." In theory, these types of currencies with their technologies provide governments with efficient means to tax and trace users.
If I wanted to discreetly own an asset it would be gold and not Bitcoin. The IRS has already forced a Bitcoin exchange to divulge information. Moreover, if the SEC allows the formation of Bitcoin ETFs to proceed, Bitcoin owners must have to concede that reporting requirements of some form may eventually be on the horizon.
Bottom line: Continue to slowly accumulate gold as you earn income, but do not listen to the promises and predictions of GATA, and King World News. Do not speculate in gold, as most will lose. I see gold rising over time, but the cryptocurrencies have begun to diminish its attractiveness. However, gold is more liquid than most believe it to be, and one can buy or sell it quickly. I do not recommend silver, as the elites own gold. They do not own silver.
THE BRIC CHALLENGE to USD
I know that the dollar haters have been hyping the rumors about the creation of a gold back yuan and a BRIC-nation cooperative payment system. This system would transition bilateral trade away from the US dollar and would emphasize their individual currencies plus gold. I have been following this topic for a while. I remember reading this stuff 12 years ago, but nothing ever seems to come to fruition. The problem with China and the BRIC nations is that their credit markets lack the sophistication and liquidity to conduct trade in an efficient matter. Plus their currencies have to be centrally managed to help control volatility. This is a large negative with respect to the yuan. If China decided to convert their currency to some sort of gold backing their economy would crumble, as their internal debt burden would instantly become too great. I have to believe that China is only saying this to try to strengthen their anemic currency. China cannot just switch from centrally planned fiat to gold backing. There would not be enough yuan to service outstanding debts. Even if China announced they now have 10,000 tons of gold in reserves, this does not mean the yuan has gold backing.
The problem with Russia is that it has relatively small and illiquid financial markets, and the size of bilateral trade between Russia and China is only about 10-12% the size of the trade between the US and China. Moreover, at current gold prices there is not enough gold to transact bilateral trade. If I were an exporter in a BRIC nation would I want to deal with Rupees, Reals, or Rubles? The answer is the same as 12 years ago - no.
CONCLUSION
Most in the alt-media community have a hard-to-break confirmation bias. There is little difference between them and the viewers of CNN or FOX. Each group is a slave to their confirmation bias. The patriots are in the worst shape, because they continue to believe collapse is just around the corner and have not participated in the asset inflation of the past six to seven years. The sun is shining and they are not out there making hay.
The global rulers have real time access to all the internet traffic data and know with great precision what each of us are doing most of the day. We may think we know our adversary, but they know us much better. They control all the media and have built a totally false reality for most people. The all-seeing eye has not overlooked the alt-right and patriot media. We need to think for ourselves.
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Also by Thomas Beecham
Cabalist Deception Invades the Markets
Gold- Confiscation of Middle Class Wealth?
Makow--- No Relief in Sight for Gold
Michael Hudson - Greed, debt and the inevitable housing crisis
First Comment from Dan -
Beecham's right. It's not really complicated. It's remained hidden in plain sight because the the central banks are 'the system'. Investors can't imagine what to do without them or how to get rid of them. I think that's the psychological basis for the ongoing phenomenon if suspension of disbelief.
"The owners of the central banks know exactly what they are doing. They are essentially using printed money to buy up all the assets of the world. They are taking advantage of the deflationary forces of over- indebtedness, to minimize the inflation caused by their asset buying spree. The globalists knew that the fiat currency end-game would provide them with an auspicious time to commence their asset purchases."
Commenter Gary asked you to run an update from Beecham ".....say every 2 months?"
I think 2 WEEKS will be better. Every week would be even better. There are now so many irons in the fire on the world stage that massive economic 'events' are a certainty this year.
Lisa said (May 12, 2017):
The uglies own all the gold as they stole it from every nation. Regular people cant afford to buy-in anyway. Regular people need to buy LOTS of ammo, water storage, and food. Most people have been losing their homes for a very long time now. A safe place, food, water, and ammo is what we need to concentrate on. The uglies will always beat us at the gold game.