Financials Matter

"It's Not Just About Finance"

The 4 Comma Club Curse Continues…

 

It wasn’t that long ago when the term “Billions” seemed like a lot of money.

We used to joke about government spending by saying: “A billion here and a billion there and before you know it, you’re talking some serious money.”

Today, the term billions has become passé.

Trillions is Wall Street’s and Washington’s way of telling you that your money is worthless.

(FYI the 4 Comma Club = $Trillions…with four commas).

Look at the following numbers:

  • Total world debt exceeds $233 Trillion
  • S. debt exceeds $23 Trillion
  • Europe has over $17 Trillion of negative interest debt. (Translation: someone is paying money to own bonds).

 

The global Central bank’s policy of lowering interest rates for the last decade has become the force behind the 4 Comma Club Curse.

Lower interest rates have allowed corporate America to borrow Trillions, (most of which they’ve used to buy back their own stock instead of investing in their future growth).

Ironically (or NOT) they act like it’s a good thing to carry such a huge debt on their balance sheet.

Unfortunately, the 4 Comma Club borrowing has cursed every pension plan – especially government pensions – in the world.

Why?

In order to have enough money to pay pensioners, the plans need 7-8% interest annually.  And to make things worse, most plans are limited to buying only government bonds.

Bottom line?

They’re all broke…and it’s mathematically impossible for them to recover.

What do you think’s gonna happen when the vast majority of pensioners realize their fat pensions are going to be drastically reduced?

Hint…it ain’t gonna be pretty.

The long-overdue effects of lower interest rates becomes evident as shockwaves rip through the markets in 2020, The Year of Chaos.

Most people will misinterpret how to respond to it.

Don’t be one of them.

Learn how to Survive AND Thrive in Turbulent Times (HERE).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Freedom of speech cages

 

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