E-Mail 'Economics & Investing For Preppers' To A Friend

7 Comments

1. 1) I’m not very informed on investing but the news stories comparing the recent drop to 2007 are full of cr*p. The yield curve inverted toward the end of 2006 — indicating that the smart money saw the US economy turning to cr*p with a recession coming within a year (subprime crisis?) — and hence the smart money was heading into long term US Treasury bonds. Best refuge in a depression.

   2) Today, in contrast the spread between the 10 year and 2 year Treasuries has been increasing — from 0.55 percent a month or so ago to around 0.77 percent today. I.e, the 10 year is higher than the 2 year. Suggesting the smart money sees an expansion or at least stability.

2. Had a call with my forester recently. Timber prices are continuing to hold at a relatively high level.

3. “Re “Let’s not kid ourselves, folks. Behind the scenes our Nation is ruled by bankers, not by politicians or statesmen”

   My concern is that we will be ruled by the foreigners who have loaned us $6 trillion in just 8 years — $3 Trillion of which were buying the federal governments Treasuries (i.e, IOUs)

   If we are treading water after borrowing and spending that much, then what happens if the spigot is turned off? Or worse, if the money starts going out with the tide. What happens to a country that experiences capital flight ain’t pretty — just look at Argentina in 2001.

   Yeah — I know. Washington thinks it can just print more money. See what happens when the baby boomers see the resulting inflation turning their IRAs, pension funds and Social Security “accounts” into toilet paper. Better yet, check to see what Weimar hyperinflation and Barmat financial scandal did to Hitler’s approval rating.

4. Sooner or later, we will wake up and realize, the endless note printing has created a massive inflationary bubble. It’s classic – too many notes chasing too few goods!

   In this case it is the banks with all the cash and they are dumping it into their only choices – stocks and bonds.

   The losers are the suckers thinking the markets are an investment, while the pros knows it’s a trade. AT

5. We have had 10 years of inflation since everyone pulled out their money on 07/08. Unfortunately I can’t calculate the current rise in the market adjusted for inflation, my brain isn’t that big. So I can’t say what is a bubble or not. But for he first time in a long time, my friends in manufacturing are busy as h***, and that’s a god thing.

   In the past we have had congress print our money, banks print our money, other banks (fed reserve) tell the treasury to print our money, and our money limited by gold, then silver. All had their issues.

   Being diversified in skills, and in investments is the best way to adapt to whatever comes.

6. The bankers resent Trump for beating them a few years back but they will not turn on him unless he threatens their ability to make money. They are bankers after all. Rates going too high too fast would create government instability since the government simply cannot pay the higher rates. Banks favor stability, until it is time to sheer the sheep.

   Amen to being diversified in skills and in investments.

7. If CNBC & Wells Fargo tell me there’s “NO bull market in commodities,” than it’s time to go long in nothing BUT commodities!!!

Comments are closed.