Boots and a shovel may be helpful in the coming mini ice age, but they will be totally inadequate for digging out from under the massive pile of BS excreted yesterday from the govt’s human centipede that ended at the mouth of James Comey. Some think Comey’s testimony in front of Congress tomorrow will amount to anything other than Republicans trying to convince their constituents how tough they are, while never actually doing anything that is not in govt’s favor.
The last big cooling cycle occurred during the last revolutionary cycle, which produced the French and American revolutions. Peak govt / corruption is back and so is the next cooling cycle, but that will not stop the ethically challenged from voting for Crooked Hillary, or the Unicorn chasers from believing govt cares about pollution, while destroying their standard of living with punitive taxes, fees, and civil asset forfeitures.
The next 15 years will be the test of our life time, starting with our elections in Nov, followed by the elections in France and Germany next summer, where their establishments are also under attack. To defend the status quo and money train that enriches politicians at the expense of everyone else, the establishment will do what ever it takes, including distractive wars. The FBI’s malicious falsehood, that always brings indignant responses, should certainly serve as a brightly lit signpost.
The coming “cold” war will start with civil unrest in Europe, where they are experiencing increased capital flight, mostly into the US, which does not have a FATCA reporting requirement like foreign banks wanting to do business with the US (the reason the US is becoming the new Switzerland).
The reduced jobs from reduced capital, and increased austerity, coupled with the influx of refugees will make the Arab Spring look like a walk in the park for much of Europe. These events will accelerate the flow of capital into dollar-based assets. Italian banks would be fighting to be the next Lehman Brothers, if it were not for Deutsche Bank (DB), whose stock is quickly approaching single digits after hitting a pre-crisis high of $160/share.
It will be the rising dollar that brings down the house of cards, built on excessive amounts of dollar-based debts levered up while debt was cheap. As the dollar rises, so do the dollar-based debts that must be paid back with depreciating foreign currencies, like the euro that will collapse as other countries demand exit from the doomed EU. As govt default risk rises, so will interest rates, which will only exacerbate the sovereign debt crisis, and the rise of the dollar that will force a change in the monetary system at the end of the decade.
This tumultuous period will see pensions, insurance funds, Social Security, and other funds holding excessive amounts of govt debt go bust as the govt bond bubble pops. The dollar will lose its reserve status, and the financial capital of the world will move East within 15 years, aided by the collapse of trust and the rule of law. There is a reason corrupt countries are the poorest, but career politicians don’t care as long as they think they will remain unscathed.
Those that understand the trend change from public debt to private equity can make a fortune, stay ahead of the rapidly changing curve, and be prepared to benefit when the dust settles. The first step in this process should start shortly with a market scare that will last a few months and get the last of the govt bond bag holders on board, and allow the stock haters to say I told you so.
As stocks look like they will pull another 2008 collapse, a bottom will form as it anticipates the collapse of the EU, which will chase more capital from Europe into dollar-based assets. By the time the French and German elections conclude next year, the destined-to-fail EU experiment will be an obvious failure, and stocks will be well on their way to doubling, as capital seeks the only viable asset class that’s big enough to absorb the flows out of sovereign bonds, including treasuries. Many will lose everything because they believe conventional wisdom and fail to understand why stocks rise during economic contraction.
Get prepared – civil unrest is warming and the climate and economy are cooling.