The US Dollar $ has Stage 4 Cancer
Nothing like kicking you in the face for an opener. What does Stage 4 cancer mean?
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Stage 0. This stage describes cancer in situ. In situ means "in place." Stage 0 cancers are still located in the place they started. They have not spread to nearby tissues. This stage of cancer is often curable. Surgery can usually remove the entire tumor.
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Stage I. This stage is usually a cancer that has not grown deeply into nearby tissues. It also has not spread to the lymph nodes or other parts of the body. It is often called early-stage cancer.
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Stage II and Stage III. In general, these 2 stages are cancers that have grown more deeply into nearby tissue. They may have also spread to lymph nodes but not to other parts of the body.
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Stage IV. This stage means that the cancer has spread to other organs or parts of the body. It may be also called advanced or metastatic cancer.
Now that you are armed with this knowledge ask yourself are we closer to the end or the beginning of the US $ cycle?
Jump in the DeLorean and we will go back in time:
- See back in '71 the US $ was removed Gold standard backing, all this started back then.
- How is this bad? Over 50+ year cycle when measured against gold, lost 98% of their value since 1971. Wait I thought Gold was just an ancient relic?
- Inflation in US was running rampant due to no gold standard and poor energy policies (some claim US reached Peak oil pumping, I call BS). I believe the US kowtowed to OPEC and became the Worlds Police force to protect the $.
Driving back to reality, central bankers having already printed $25T since 2007. I am wondering how long, will they continue to digitize/print liquidity and hence debase currencies to pay for their still unpayable debts. Anyone else surprised why I used 2007 and not a later date? Think policy change!
- Putting this into context more money has flowed into US Stock markets in past year than the previous 19-years combined (BoFA). The nets out to $1.1T rolling month inflows = biggest equity bubble ever created by the largest debtor nation in the history of the world. Does that sound like a stable foundation to you?
- I feel the Fed is painted into a corner and out of options. Nope no more room for rate cuts, the US doesn't want negative rates, just yet.
- Recall a slight taper is underway down from $120B to $105B a month - which is still higher than all the previous highs $85Bk and this taper leads to a rate hike? Recall they wanted to end all tapering by June - will they have to raise interest rates prior to ending the taper?
- Recall the last Taper Tantrum when the Feds tried to raise rates to 2% back in '18? How much larger is the bundle of cash sloshing around now then back then?
- In your heart of hearts do you believe the markets be able to support an increase of any magnitude?
What else shows serious trouble?
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The spread between 2-year and 10-year Treasuries is at 1% (normally its 2.25%) will this go to zero or go inverted? - recession alarm... or is something larger?
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The Ultra wealthy have seen their wealth grow exponentially as the middle and lower classes take the brunt of the beatings. One could equate this to the biggest wealth redistribution in history.
- Feds revised stated inflation target ranges is 2% - inflation is running 3-4%+ (many assume its higher than 6% using 1980's based measurements) while the US continues to play financial war against Turkey where their debt to GDP ratio is the lowest on this planet. Hmm
- Pension Funds rely on stable returns and Inflation eats all that for lunch. Good luck
- Rise in Crime and corruption? Crime seems to be running rampant in all cities and not just by street thugs and gangs, white collar crimes committed by business and politicians alike. Not to overlook the organized store looting by flash mobs, why is any of this allowed?
- Ignoring Rule of Law, what good are rules if they are not followed?
- Cities letting crime and drug abuse run rampant, causing the working class to flee making them cesspool's for those that remain.
- Lack of a countries baby birth rate shows civilization is on the decline. Will it mirror Japan or worse?
Is Amerika the next Greece?
- Will ALL the US banks be closed and the USPO (United States Postal Office) become banks for all? Basically a nationalization of the US Banking sector and the Treasury...not to mention the control factor. Can you say CBDC?
- Global Supply Chain is breaking or already broken?
- BDI - Baltic Dry Index is running toward the lower end of the spectrum - think key Global Supply Chain delivery mechanism
- Housing Market is now more expensive than it was prior to '08 bubble bursting, The US housing market just keeps getting worse for buyers. Prices haven't gone up this fast in at least 45 years. - alarm bells
- US Equity Markets have been very manic (huge swings +/-) over the past three weeks - alarm bells
- Global Entities - UN, IMF, World Bank and others are telling countries they can NOT utilize their own Natural Resources (Oil, Gas, Coal, Gold & Silver) how absurd? When will citizens wake up and realize what they have at their feet?
- Why is the CDC involved in any shape or form for property owners to collect Rent- alarm bells
How will your retirement and Investment accounts handle this beating?
- Bonds and Stocks will take a huge beating, then think about the stampede for egress in masse.
- Think your 'free stock trades broker' will remain online during this panic?
- Nope, if they can't handle the day-to-day spikes of the next hot Meme stock run you expect it to handle 10-20% burst of crash selling?
- Be realistic, hope is NOT a strategy.
- How would the markets take Russia invading Ukraine and China invading Taiwan concurrently? The US can't respond to both events at the same time...and Russia and China know it. Think how well this ends?
Fix the money fix the world
- Sound Money Is A Prerequisite To Peace, Prosperity, And Freedom.
- Which also draw large sums of foreign direct investments (FDI) Safe Money Adage - money flows to where it is treated best)
- Bitcoin and Cryptos are a Hedge Against The Irresponsibility Of Politicians And Central Bankers
- Better have a 3-legged stool of Precious Metals and Crypto's to beat this Tsunami coming our way.
Summary
The US Dollar $ has Stage 4 Cancer thus you must have insurance to cover yourself when the dollar does what it is destined to do. Am I the only one that feels America has slipped rapidly down the slippery slope that few have returned from? Sure everything occurs in cycles and I firmly believe we are very late in this cycle the corruption and cancer have spread far and wide. The solution will come from outside the current system!