Posted on 01/17/2018 4:05:22 PM PST by blam
The impending economic collapse is hidden from most. People only see a rising stock market, not the negative underlying factors that will cause the whole system to crash.
The weakening of the U.S. dollar is just getting started, warned veteran market forecaster Peter Schiff, CEO of Euro Pacific Capital. “We have just begun a major, long-term bear market in the dollar,” he said, which should cause a spike in oil prices. He thinks oil will reach $80-$100 a barrel in 2018. The commodity currently trades at roughly $63 a barrel. Shiff focuses on oil as just one example of the inflation that will help collapse the dollar.
When the price of oil rises, it reverberates through the economy. Peter called it a gigantic tax hike for consumers. But the Fed is still worried prices aren’t going up fast enough and that they won’t hit the mystical 2% goal.
“They’re going to hit that out of the park. They’re going to be looking at 2% in the rearview mirror – in the distant rearview mirror. That is going to be the big story. They’re going to way overshoot and they’re not going to be able to do anything about it.” –Peter Schiff
Schiff also warns that the dollar’s decline is just getting starting. He also says “everything that can go wrong, will.” We are not experiencing economic growth. We are experiencing inflation.
“High inflation is not good for the dollar. By definition, high inflation means the dollar is losing purchasing power. If the dollar is losing purchasing power, that is bad for the dollar,” Shiff explains.
(snip)
(Excerpt) Read more at shtfplan.com ...
If the South rises again, I'm cashing my Confederate bonds. It's amazing what 5 percent interest will do over 150 years.
One of the bonds has monthly coupons printed right on the bottom, row after row. They have been neatly clipped through April, 1865. The rest is mine, all mine ....
What is the new “pass-through” rate for S corporations?
I’ve heard 30%, and I’ve heard 20%.
Do you know which one is accurate?
Yet I am Intrigued by whether massive tax cuts in the midst of an already growing economy will produce unprecedented wealth or unprecedented collapse given the nation's massive debt.
Somebody used to post a graphic of a stick figure typing furiously at a keyboard. Eventually blood starts coming out of the stick fingers and the stick figure just collapses.
I really liked that one.
Thanks for the response. You address good issues there in a reasoned way IMO. I’m no expert mind you. Still when you have a market jumping by 320 points on a day like this, man o Manischewitz. Looks like plenty of life left, but then this does have to end some day. It could be in a few days, or in another six months. I just don’t know.
We seem to be well on our way to a 50% gain (since SoBD 01/17/16) by the end of another week. We’ll see.
We could see a correction prior to that. Who knows?
Yup, that is the main part of awesomeness for me. My first 20% of pass through is tax free!
If the economy does collapse, it will be(mainly) due to the ~ 10 trillion (!) dollars of government debt Obama rang up. Do I need to mention who’ll get the blame for that?
I agree with diversification.
That’s always a must, especially the older you get.
Well, the Chinese Yuan, supposedly gold-backed has been added to the Duetche Bank list. Agreements between several countries to settle commerce in Yuan.
Petro Dollar is going to have competition. When the 2008 banking crisis hit the news, I watched my mutual fund treasury account go negative for a few days, with Banks all over the world claiming it was a US problem.
After a few days, I watched as the same accounts rose because every one was fleeing to safety - the US dollar. Still we can’t keep borrowing like crazy. As Trump continues policies to bring back jobs to America, the doom and gloom scenario becomes less and less likely.
As the American economy goes up, it usually helps the rest of the world too.
This guy must write for Marketwatch. Every day they say the collapse is tomorrow, for sure.
It wouldn’t hurt to take some profits-that’s for sure.
Buy my book and a used Scottevest!
NEVER !
That settles it! I’m putting everything I own into Bitcoins. After all, I want financial stability.
Years ago a good acquaintance was telling me about some company called Enron and how great, glorious and growing they were. I distinctly recall him saying, “They only hire eagles.”
One of their eagles was a dud who once worked for me.
Anyway, after the Enron failure I asked him if he didn’t think the eagles had crapped in their nest. He didn’t reply.
The next hot tip he brought to me was the flourishing dot.com investments. Yup, I fell for that one and lost a lot just like many others did in 2000 or so. Some of them were the winners but most were not. It is hard to pick the next Microsoft or Apple and buy enough of it to make your fortune all at once. It may even be impossible.
The next one was Bitcoin. Even on the heels of the AIG and credit default swaps people thought this was a good idea? I didn’t bite on this one or any other tip since from him. I have no regrets.
I buy companies that make things and produce value added and supply things people need in good times and bad. Most are not very sexy or exciting. They go up and they go down sometimes. Most are things I’m proud to own. Most of us are not venture capitalists and not able to pick the next big thing. We use 100% of our own money and so we probably should not be poking around in such things.
I have been 80/20 stock equity for many years in situations where it was normally warranted at 60/40. With two years of rocket ship, I’m back to 60% in the last week for the equity side of things.
If the market continues to rip it up, I might take my normal 60 down to 40.
Again, I’m seeing that many and most of the SP500 is at mid 20 PE ratios, but if you factor in the tax package, what does that mean? Maybe it means 15? So, then you also have massively surging business conditions with profit growth. So the 15 becomes 10? Does that mean the market could grow by 50% more in the next 2-5 years? Perhaps? But I’d never bet the entire portfolio on that.
A market generally doesn’t crash until everything is grossly overvalued. Right now, only some stuff is.
Can you even imagine if Hillary had won.???
Thank you, forever, God. Thank you.
What you said!!!
Where are they going to put it...under a mattress, bury it someplace, in a tin box in the basement?
Nothing is great when you are poor. That is why it stinks and why anyone who is poor needs to do all they can to get out of it. Most don’t succeed or try to get out of it and that is why there are so many poor.
If you are going to be in business you need to know all you can about the tax code as it pertains to you.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.