The President of the United States is walking on thin ice.
No matter how it’s portrayed in the media, politicians go through rigorous Q&A sessions with their advisors before drafting any news releases, especially as fatal as the one Trump made about Jerusalem being the official capital of Israel a number of days ago.
Portfolio Wealth Global is a financial newsletter, and we keep away from politics, as they’re not as important as it is to research investment opportunities.
What we do know, politics or not, is that President Trump is provoking the international community in order to flash out problems and create an environment where oil rises because of turmoil.
It’s an age-old strategy used and implemented by all U.S. political leaders in an attempt to stabilize the USD.
You see, the dollar is having a disastrous year, but that’s GOOD for business.
The way Trump envisions it, the U.S. economy needs a weaker currency to compete for manufacturing jobs.
Oil needs to be more expensive and inflation has to be higher, and then it will be easier to pay down debts and lighten the load of the Federal Government.
Of course, the Chinese and Russians perfectly understand this conniving agenda.
Around the globe, manufacturing is on the rise for the first time in over a decade.
Since the year 2008, there wasn’t a single demographic sector in hyper-growth.
You see, baby boomers had reached the peak of their spending decades, and they all had their homes and their cars, so they couldn’t influence the economy any longer.
Millennials were too young to consume and grow their purchasing power back then, and Asia’s middle class was just getting off the ground.
Deflation was assured, so central banks began adding liquidity to the banking system to stave off the deleveraging that was happening.
And here we are, 9 years later, with triple the debt, but with a nonexistent deflationary spiral risk.
Instead, we have a new paradigm, called “the pendulum of the East.”
China is now the barometer for global growth – when it coughs, the rest of the world sneezes.
That’s why when their rates rise and their economy cools, major events occur.
When the Chinese can earn 4% on their 1-year bond, gold demand drops (since it doesn’t produce yield) and the price falls, as we’re seeing now.
The stock market and housing market are also impacted.
Lastly, the renminbi becomes safer, so demand for cryptocurrencies such as Bitcoin can potentially weaken, while demand for cryptocurrencies that support banks and international trade could gain.
This is what the end of a stock bull market looks like.
The tech sector is rising so disproportionately to other sectors that the overall market is rising, but under the surface, most industries are shrinking.
The U.S. is about 4-8 months away from a stock market top and 12-16 months away from a full-blown recession. I personally don’t think the nation is mentally and socially ready for a downturn.
This is why Portfolio Wealth Global sees China as the determining factor as to where the global economy goes from here – the U.S. is already hitting peak corporate margins, record low unemployment levels – it’s as good as it will get. China is the only country that can make it even better at this point.
Their middle class is growing in size like nothing the world has ever seen, and it seems highly plausible that in 8 years, they will have the world’s largest economy.
This is the cause for my repeated remarks that you have 5 years to become wealthy if you’re living in America or Europe or you can say goodbye to a middle class lifestyle.
The rich certainly get richer under the debt-based currency system, but the working class is inflated away by USD debasement.
You have 5 years, because by 2022, America will be unrecognizable – the middle-class will be wiped from the face of the earth as if it never existed.
2018 could be the final year to extract value from the stock market, but, as I see it, the largest gains will be made in blockchain tech, such as cryptocurrencies and with cannabis stocks.
If we experience a general correction with the S&P 500, Dow Jones and NASDAQ, which is highly likely, then I expect gold stocks to give us a show as well!
Bottom line is this: There is no more American Dream. There is a race going on and it will separate America into “haves” and “have-nots”.
Be super smart right now and throughout 2018 – the U.S. economy is getting kneecapped, but you can avoid this fate by investing wisely and living intelligently.