War On Wealth: Central Target the Masses

Strange as it may seem, no amount of learning can cure stupidity, and formal education positively fortifies it.
Stephen Vizinczey

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War On Wealth Central Target the Masses All along we have stated that the world is the midst of a full-blown currency war: Japan just upped the ante by cutting rates into negative territory, and Sweden has driven the knife deeper in by pushing negative rates even lower. In fact, Sweden has stated that they are prepared to do this, till inflation is at the 2% mark. Interest rates are -0.5% currently, so one wonders how low rates will have to drop for them to hit this pie in the sky inflation target of 2% [/color-box]

Must Read: Little Birds Trading Plan to Wealth

 Low rates are going to put pressure on China and a host of other nations to take the same route; the velocity of the “devalue or die” (currency war) game has increased five-fold.  It won’t be long before the Fed is forced to take a similar path. Start paying attention to the news, for our central bankers are suddenly going to start listing a slew of factors to backtrack on their claims that the economy was sound.   Many Gold bugs have been stating that the central bankers are running out of room to manoeuvre; our response to this is a dream on.   Look at the stunning rally the markets mounted when BOJ (Bank of Japan) fired its latest shot. The only day the central bankers will run out of ammunition is the day the masses wake up and that day is sadly still a long way in the making.  Central banks don’t need to continuously lower rates; they can flood the markets with money while maintaining an ultra-low rate environment.   What’s another 1-2 trillion dollars when our debt is now over $19 trillion? What has changed between 2000 and 2016; our debt in 2000 was significantly lower, and it was even lower in 1990; from the 1980‘s the debt has tacked on roughly $18 trillion dollars and the masses are still quiet.

War On Wealth: Central Target the Masses

The short answer is that nothing has changed other than the level of the misery individuals are forced to endure. 76% of families are living from pay check to pay check, does that signify an improving economy for you.  It seems that this phenomenon is not restricted to the poor only, according to CBS 33% of families earning 75,000 per year are living from pay check to pay check.

[color-box color=”yellow”]Game Plan

Central bankers have not run out of firepower, in fact, we think they are so cocky now that they have just barely started to fire their bullets. So far they have been using pistols and rifles; they are about to transition to machine guns.   The masses are sedated, so this process of pillaging the populace will go on for a long period. Translation; adamant market corrections or as the naysayers would have you believe “market crashes” have to be viewed as buying opportunities. [/color-box]

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