Counter-Party Risk…Your Worst Enemy

One of main reasons why we suggest you own gold is simple.  With Gold there’s No Counter-Party Risk

Let me explain…

Counter-party risk, is risk based on another person/company’s ability to pay you back or honor their commitment.

Example:  When you buy a stock or bond, the company or municipality issuing it is your counter-party risk based on their financial strength.

In the past a government bond was considered one of the safest investments on the planet.

Not anymore.

Because with a $40+ Trillion debt (This does NOT include the unfunded liabilities of Social Security, Medicare, Medicaid and a host of other off-the-books debts), it’s mathematically impossible for the US to pay off its debt.

In other words, our debt has become toxic.

That’s why nations like China (the former largest owner of US Treasuries) are quietly dumping those bonds in exchange for hard assets (like gold).

And don’t be fooled about Xi coming to America and making nicey-nice with Trump.

 

 

Because Xi sees the writing on the wall with WW3 and knows he only has a certain amount of time to dump the remainder of China’s Treasuries.

And no one wants to be holding someone’s debt if you are at war with them.

Russia (at one time a big player in US debt) off-loaded all of its US Treasury bonds after we put sanctions against them.

More proof that sanctions DON’T work.

But the other reason is how they know the US can and HAS default on their debt in the past.

Wait! Aren’t we the strongest nation on the planet?

Yes and no.

And the risk of Uncle Sam defaulting on its debt has skyrocketed in the last decade.

Contrary to popular opinion/belief the US defaulted on their debt in 1790, 1861, 1933, and in a near miss in 1979.

But this won’t happen until the boyz in the “Club” hit the reset button and the global economy goes into a tailspin.

Ironically (or NOT) Europe is leading the charge to default first on its debt.

And that’s why they are desperate to start WW3 with Russia.

Trust us on this…it’s only a matter of time.

As a result, their government bonds will go (like traders say) “No Bid.”

That means there are no buyers…anywhere.

What’s ironic is that your money is safer in corporate bonds.

This mindset goes against normal thinking but stay with me here.

Corporations have assets… real estate, factories, etc. that can be used as collateral if they default.

But the irony is when government bonds go into default, money scrambles into hard assets.

Gold will be one of the major beneficiaries mostly because it has NO COUNTER-PARTY RISK.

And there are plenty of stocks that will surge in the madness that will continue to fuel The Most Hated Bull Market in History.

Learn more about it (HERE).

P.S. And if Gold takes a dip in October (Cough! Beware of a False Flag, Cough! Cough!) it may be your last opportunity to load up before the slingshot effect kicks in.

Share this with a friend…especially if they don’t know about Counter-party risk. They’ll thank YOU later.

And tell them:

We’re Not Just About Finance

But we use finance to give you hope.

“And you shall know the truth, and the truth shall make you free.”

~John 8:32~