Financials Matter

"It's Not Just About Finance"

How the Empire Strikes Back

 

Around the world the USA is known as an economic powerhouse where you can still fulfill the American dream of prosperity.

We’re also known as the Empire of Chaos.

And the Empire of Chaos is painfully aware that the only way to slow down our surrender of the World Reserve Currency to China is by inflicting economic pain.

It’s an ongoing process but in the end it won’t be pretty.

It will, however, be a spectacle to behold.

Most people don’t understand how currencies alter the landscape of investing.  And it’s probably the biggest reason they get beat up in the markets.

So…YOU DON’T WANT TO MISS THIS NEXT POINT.

The world comes unglued ONLY with a dollar rally – not a decline.

A drop in the dollar would be cheered by governments who would then issue even more debt.

However, a dollar rally will accelerate the Sovereign Debt Crisis.

Emerging Market defaults are once again coming into the limelight.  Since 2008, the outstanding Emerging Market debt has increased over 60%.

 

A rising dollar is their worst nightmare.  They are economically in far worse shape today than they were in 2008.

As interest rates rise, they will blow their budget out and they do NOT have the economies to support the debt repayments (China is the exception).

 

The Emerging markets biggest problem is they’ve issued heaps of dollar-denominated debt to sell particularly to US pension funds seeking higher yield.

Too many buyers have been state-run pension funds…Ooops! (It’s another nail in their bankrupt coffins).

Make no mistake.  China will continue the build-out of its BRI (Belt Road Initiative) and Syria remains the lynch-pin for its completion.

(Are you connecting any dots yet?)

And before the BRI is complete you can expect Uncle Sam to tighten the screws by making the dollar rise to unimaginable heights.

Tighten your seatbelts and get ready for the opportunity of your life.

Read about it in our June newsletter (HERE).

 

Even the part about the vaccines?

 

 

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