Financial markets

Very few people realise the enormous wealth transfer that will take place in the next 5 years. Most will lose 75-90% of their wealth and some 100%. What is interesting is that investors needn’t lose most of their money if they took a few measures to protect their fortune.

During the election campaign, Donald Trump accused the Fed of playing the Democrats’ game by keeping rates low and creating a “horrible financial bubble”.

US President Elections vs NBER Recessions vs Gold/Silver/DJIA

In a rerun of the immediate shock felt when the United Kingdom voted to leave the European Union, gold prices rose nearly 5 percent the day after Donald J. Trump scored his stunning victory in the United States election.

The possibility of a hike in long-term rates is becoming a recurrent issue of concern in the markets. Will the Fed raise its rates? Are investors anticipating a normalisation in the yield curve? More important is the question of all the liquidity created by the central banks since 2008.

The world economy is now at its most dangerous point in history. In virtually every major country or region, there are problems of a magnitude which individually could trigger a collapse of the financial system.

The €42 trillion (notional) derivatives mess known as Deutsche Bank remains under severe pressure. Its market cap is $17 billion. It has no earnings and pays no dividend.     On April 23, Deutsche Bank was Fined $2.5 Billion over LIBOR rate rigging. Twenty-one people face criminal...

You need neither words nor a Ph. D. to see the evident distortion created by government manipulation of the currency.

The fate of the global economy was decided decades ago as deficits, debts and derivatives started their exponential growth and reached the time bomb phase that we are now in.

This coming autumn, we are likely to see the beginning of the hyperinflationary phase of the sovereign debt crisis.