A short note for my readers to consider when they make their next investments, as the Markets (Yahoo NYSE Chart from today) continue to move sideways.
With the US FED manning the printing presses to prop up the Over Night Repo Market along with US $ 6 Trillion printed to bail out the banks and large Corporations with US citizen Tax money (oh yeah they set aside 600 Billion for Small & Medium businesses, lol ) , expect the rest of the world (the other 50% of the world economy) to do the same. That's likely 12 Trillion in total printed/promised in the last few weeks.
For comparison purposes:
12,000,000,000,000 in NEW fiat Money Supply Growth Worldwide vs,
180,000,000,000 Crypto Market Cap. Valuation which is just 1.5% of the Newly minted Fiat World Money Supply...
(if you believe US govt. and FED numbers..)
So what is all this new US $ fiat money, supplied at very low interest rates really being used for in the US Market?
Well believe it or not, the FED is now buying not only equities (public stocks of large companies to help keep them afloat, especially big Pharma , which is 'licking its chops' hoping the whole world gets vaccinated..) and placing their value on their balance sheets, the FED is also buying bonds, even junk bonds. Yup, the Wizards of Finance at the FED have finally had their last kick at the can, punting it down the road, for other generations to pay, to stave off the real crash (At least until Jan 2021 imo).
We have been here before. In the crash of 1929, the money presses were turned on after that stock and bond market set of crashes to try and re-inflate the US Economy and, the end result was FOUR more brutal years of the worst economic Depression the world has ever seen. Sound Familiar?
The Big Bounce over the Cliff (for fiat, first US$ deflation and then rabid skyrocketing price inflation, demanding even more money printing , killing your buying power), given the current money printing is likely to keep the markets stumbling along until after the US 2020 elections as I have predicted earlier in a previous post. That re-inflation of the markets through massive US $ money printing 'Keynesian Style Madness' by the Fed manifests itself in the FED buying up stocks and bonds with money they create, out of thin air.
US 2020 Election Mile Stone - Trump or Biden? - What signs to look for in order to protect your current earned/speculated value
The US Elections are in the final quarter of 2020, so look for the peak Market "bounce" trajectory or arc (peak of the Market re-inflation) to occur in the 2021 New year, or in 9 months, and for the "Great Decline" of the Markets into this new Great Depression of '20 to inevitably persist for at least the next two to three years, at a minimum.
Which means the smart money is converting fiat to crypto, gold and silver now, keeping the rest in US $ Cash, which in my opinion is still a safe haven for the next six to eight months and not longer.
The Signs? I expect the price of the US$ and the Market action to get really volatile (Big swings up and down in price and value respectively) as we close in on the US Election day, driven by MSM 'stories' and vastly different Presidential Candidate policy proposals of what do next to re-boot the flagging economy, given the markets will keep trending the way they currently are, which is sideways (per the NYSE chart from Yahoo above, printed this date).
My prediction? As this fall 2020 "roller coaster ride" kicks in, much more of the 'herd' will start to jump into the crypto market to protect what little value they already have and, hopefully these same herd members and the smart early crypto investors will actually start accepting quality crypto for big private sales (Used Cars & Home Sales w/o brokers and lawyers are the big impact items) , so it's looking to me like the current price buy bargains in the crypto market will last to the end of August 2020, and then start to climb rapidly. Just beware of the non-performers, per my previous post. ;)
But hey, that's just my opinion and, hopefully it helps.
That's all for now, be safe
TK over and out
*****
