The Winners Club
America doesn't bail out losers. - Rick Carver
I have taken pen to paper on the dystopian political environment that has been emerging over the past 10 years but I have completely ignored the dystopian financial environment that is in full bloom maturity. In the year of SARS Cov-2, central banks have enjoyed cheap financing by killing interest rates and somehow keeping bond prices high, can you believe it? Investors are happy to swap good old interest rate yields for speculative capital gain; will this continue? You bet! That being said, the stock market has never been greater, once again the unprecedented money printing by global central banks with the king pin FED leading the way, has led to massive stock market growth with Apple needing a stock split and Tesla going supernova. So what are we complaining about? The bankers have put food on everyone's table; it's the f**king winners club right!?
Well, that's just one perspective. If you don't have a stock portfolio (what are you doing on my blog then?) or you are the so called working class poor, then you are truly on the losers side. If you have seen the movie 99 Homes, then you have heard the saying "America does not bail out losers" That's right... neither does the BoE or the RBA or any other central bank, you need to do that s**t on your own. So when you ask me, what the hell do you mean? I'll say, wait till you see the tax rises that are inevitable. In most of the already tax raped countries, we will see more tax raping. Some countries will tax SME's because yes, they are classified as businesses and business has been profiting for years or so they will sell it, while large corporations will be granted liquidity in the name of jobs. Well, I guess all corporations are equal but some corporations are more equal than others. You all know what I mean. If we are done talking about taxes, let's talk about the oncoming credit crisis.
The world is not ready to pick up the tab on the oncoming defaults from bounce back loans in an economy that did not bounce back, it's not ready for the oncoming massive welfare requirement or the impossible car credit defaults or the oncoming foreclosures. Yes, the world is not ready. So what should we do? It's not about what a man should do, it's about where on this great divide you stand and if you are the wrong side, then you need to get on the right side and you need to get on there now. So you ask me how.
You first need to recognise, no one cares anymore about how hard you work, what school you went to or how many kids you have, all anyone cares about is, are you surviving the high global inflation? And most importantly are you getting wealthier? By that I mean CASH RICH! If you get this side of the equation then you know you must be investing in the oncoming bull market whether you like to acknowledge this or not the boomers, the hardest hit by SARS Cov-2 need to be compensated, this will come in the form of massive portfolio growth to save those pension pots; fat pensions equals votes. So there will be a green march, a cannabis march and yes stock will go up. So now that you are standing on the right side ensure no media hack or financial pundit talks you into bricks and mortar or crypto gold. The play will be in commodities, European currencies and yes US stocks. Is this the end of the Dollar? Certainly not but would I want to stay in cash? Definitely not. Is the advent of the greatest bull rally of a generation? I'll let you answer that question.