President Trump is walking on a tight rope. He is making a huge bet, but he isn’t using his own money. Instead, he is risking ours.
As you can see, though inflation-oriented doom investors would have you believe that we’re on the verge of hyperinflation at any given second, the truth is that the global financial system has seen a sustained and prolonged deflationary era since 2011.
This chart shows how highly predictable and cyclical economic periods are.
Fiat currencies go through periods when supply is tight, so monetary expansion occurs, then they contract. As the money supply tightens and finally bottoms, the expansion begins again. Historically, as this happens, the economy is over-heated; a crisis emerges, followed by recession.
Portfolio Wealth Global expects nothing different this time, but 2 questions remain unsolved:
- What type of crisis is coming?
- What will the government and central bank do to counteract and ease the crisis?
Since the U.S. is deeply indebted, 2 years into a tightening period, which the central bank states will last at least 2 more years, with 7 additional hikes planned, with a tax reform at play, which puts the government further in deficit, and inflationary pressures mounting, I see President Trump taking a leading role in the next 3 years, as opposed to Jerome Powell, who I see as taking a secondary role in stemming this coming tsunami.
Not only are we headed into a crisis, but in so far as dealing with it is concerned, the available tools are narrow and limited, when the Federal Reserve is concerned.
Reversing the course they took and lowering rates again is out of the question. In fact, they would rather see the economy rolling over into full-blown crisis than admitting their policies for over a decade are to blame for our current situation.
Therefore, it will be the fiscal policy, such as the new tariffs placed on iron and aluminum, the tax cuts, the proposed infrastructure plans, and the many new policies that are in the works, which will be put to the test.
There’s no replacement for commodities during times, such as these, especially gold.
Personally, I bought silver coins recently, and I’m preparing to invest 6 figures into junior mining companies in the coming months.
We could be a year away from the full effect of a commodities bull market, but on the flip side, it could be only weeks before the market makers sell growth and tech stocks and pile into hard assets.
Don’t expect a starting gun to sound the alarm. These trends shift, as if out of the blue, and trying to catch them to the day, is impossible.
Millennials don’t even know how it feels to see food prices rise or consumer prices soar.
Sure, they’ve seen tuition and rents consistently higher for years, but a general sense of currency panic, the type that features full-length mainstream media shows on inflation, has not been the case since the 1970’s.
Since they can’t afford gold ounces, Portfolio Wealth Global sees them choosing silver and cryptocurrencies instead, while the institutions and the baby boomers prioritize gold.
One of the focal points of this period will be the wealth gap in America. Stocks and bonds will lose value, and this will impact the ability of retirees to liquidate their assets. Many of them will have to keep working, which will fuel further animosity between generations.
In the coming weeks, then, Portfolio Wealth Global will be embarking on an unprecedented publishing schedule:
- The release of a new micro-documentary titled MillenniLand: The New America.
- A full update on our top positions for 2018, including my personal portfolio model.
- An increased quantity of top-level interviews on our YouTube channel.
- 3 alerts on upcoming IPO’s, which I’ve been tracking for several months. To be exact, one of these companies has an immediate potential to double and is my top, personal trade for the month of March.
For 7 years, I’ve studied the topic of monetary inflation, its impact on civilized societies, and the ins and outs of the natural resource sector. Portfolio Wealth Global is more prepared than ever to thrive through this era and make a killing.
The next two years will separate the investors, who are willing to delve into niched sectors, such as blockchain, commodities, and cannabis, from the rest. We will be on the winning end of this pivotal era.