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Donald Trump Warns of ‘Very Scary Scenarios’ for Stocks Ahead

Stock-Markets / Stock Markets 2016 Aug 06, 2016 - 05:55 PM GMT

By: Jeff_Berwick


I’m not sure Trump is aware of this Jubilee year, but he certainly understands that the stock market is at a highly dangerous level.

“Interest rates are artificially low,” Trump told Fox in an interview, HERE. “The only reason the stock market is where it is is because you get free money.”

That is absolutely true and unheard of to be acknowledged by a front-running Presidential candidate.

He then warned of “very scary scenarios” ahead for investors.

It’s an obvious-enough warning. Central bankers continue to build a pyramid of debt by printing trillions in aggregate. Since 2008 and the beginning of the current slump/depression, the US money supply alone has more than doubled. The money hasn’t helped the economy… in fact it has made it worse. But it’s sent stocks and bonds into the stratosphere.

The only trouble is that this kind of artificial market inflation always ends in disaster. Prices and interest rates are meant to be discovered, not planned; and they contain vital information for entrepreneurs and investors. Trump obviously knows that much.

So does William White, a top financier with the Bank for International Settlements who warned earlier this year HERE that debt levels were unsustainably high and that neither countries nor individuals were ever going to be able to pay back what they owed.

He was quoted in a UK Telegraph article, as follows:

“The only question is whether we are able to look reality in the eye and face what is coming in an orderly fashion, or whether it will be disorderly. Debt jubilees have been going on for 5,000 years, as far back as the Sumerians. The next task awaiting the global authorities is how to manage debt write-offs – and therefore a massive reordering of winners and losers in society – without setting off a political storm …

I was surprised when I first read his quote because he actually mentioned a debt Jubilee. It’s fairly apparent that the elites orchestrating the latest financial disasters want people to be aware of the Jubilee event that we’ve discussed at length.

Trump didn’t mention Jubilee but he certainly sees the catastrophe being created worldwide. He’s not a big fan of the Fed, either, and previously indicated back in May that he would “most likely” replace Janet Yellen.  But, to be sure, he still wants the Federal Reserve to remain as the central bank of the US… if he didn’t, he wouldn’t have made it this far.

Price-to-earnings ratios and conventional measures of value are massively inflated. Interest rates are suppressed at all-time historic lows and actually have been pushed into the negative in some cases – as hard as that is to believe – by print happy bankers.

Corporate profits peaked in 2014 in the US and have been trending down for almost seven quarters. In many cases revenues and profits of top Dow companies like MacDonalds and Caterpillar have been stagnant since 2011 while their market capitalizations have doubled. And what are they doing with their shrinking profits. Not investing in fixed capital. They are buying back their stock to boost share prices. There’s simply no justification for the markets to be at all-time highs. The world is in a quasi-depression and stocks, especially, would reflect it if central banks were not frantically pumping money into the world’s economy.

Janet Yellen and the Federal Reserve know how bad it is.  Why else would they keep interest rates at or near 0% for 8 years?  If there were real journalists in the mainstream media they would ask this question of Ol’ Yellen, “Stock markets are at all-time highs, why are you too scared to raise rates 0.25%?”

Of course, she wouldn’t give a straight answer.  But, the straight answer is that stock markets are at all time highs BECAUSE they’ve held interest rates so low, so long and printed up trillions in currency units.  If they hadn’t, the stock markets would be somewhere in the neighborhood of 50-90% lower and the US government would already be bankrupt.

Instead, they continue to keep the game going just a little while longer.  But the longer you play this game the more destruction will come as a result.

The Bank of England just cut rates by 0.25% and expanded its QE program to 60 billion pounds (including the purchase of corporate bonds). This is a significant move since the last rate cut for the BOE came in 2009. And to combine the cut with quantitative easing is even more significant.

It’s not so much a move as a kind of controlled panic. And it collapsed the pound against the dollar when it was announced.

Of course, lies surround the rate cut. Governor Mark “The Con” Carney justified the news by explaining the easing was the fault of Brexit!

Say what?  The British seek to free themselves from the corrosive authoritarianism of the EU and somehow Carney and others interpret that as a disaster demanding further frantic  debasement.

Carney emphasized he stood ready to “act in exceptional circumstances” and made a huge downgrade in growth forecasts, cutting growth expectations for 2017 from 2.3 percent to 0.8 percent.

This is just the beginning. His easy money stance is shared around the world. Central banks are reacting in unison, pumping more and more cash into an already stuffed world economy.

The US Federal Reserve, for instance, was going to raise rates three or four times in 2016. It hiked a paltry 0.25% once in 2015 and stopped after markets crashed. Meanwhile, China continues to loosen but hasn’t formally cut rates since mid-2015.

In Japan, the government hasn’t yet dropped helicopter money, as threatened. But Bank of Japan Governor Haruhiko Kuroda is continuing to conduct reviews of ways to hit his 2 percent inflation target, which inevitably will involve yet more monetary easing. Lord knows why he wants the prices of everything to increase 2% each year, but that’s the nice thing about central banking. You never really have to explain, or not in ways that make any logical sense.

In Europe, the central bank is conducting its own form of quantitative easing. Stocks increasingly bear no resemblance to the corporations they are supposed to track. We’re supposed to believe that this is “judicious policy” but it is not. You see, we’re being set up for one final Crash. The biggest one ever.

That’s the fundamental reality of this Jubilee Year as we’ve been explaining it.  It is not only ushering in catastrophes, it’s creating additional ones that may be triggered by October when this Jubilee Year ends.

But the economic disaster to come has been thoroughly prepared. Carney wants to blame it on Brexit, of course, because that makes it convenient. He wants to hide the destructive reality of central bank money printing and the global bankruptcy it has helped create. With the divergence between securities and underlying investments worse than at any time in history, it’s hard to express just how bad things are going to get.

Trump is not alone in seeing this. An assortment of billionaires and market observers have been warning about what is going to come. We’ve been updating you regularly on their predictions:




We’ve also acted to take advantage of our Shemitah and Jubilee analysis to benefit our own TDV portfolio and our subscribers.  In fact, our TDV portfolio is up some 200 percent in the last year and our Senior Investment Analyst Ed Bugos continues to make picks that quickly climb as high as 100 percent or more.

What you have to understand is that this “sweet spot” in the markets is not going to last forever. Right now central banks are acting so irrationally that it is fairly easy to find profits if you know what you’re doing. Ed Bugos has proven his expertise over and over again during the past several decades and we’re very lucky to have him guiding our investment strategies at this point in time.

Right now there are big pre-crash profits to be made, but this scenario is not going to last forever. I would strongly urge you to get on board with us in order to be positioned for September and October.

And as Trump and others perceive, the “worst” is headed our way, but if you travel with us, the worst can turn into the “best,” at least for you.

It is quite possible we won’t see a massive market crash if they continue to print more money.  But printing even more money will not fix anything, it will again make things even more difficult for the average investor, though not for our Senior Analyst.

At times like these it is important to understand exactly what is going on and get the best information and analysis.  Ed Bugos has an insanely good track record at seeing things before they happen due to his decades of experience.

Our subscribers have certainly been happy lately.  Including Bill who said his mother’s broker was pleased she was up 1.5% in the last year… while he was up 200%.

Even the smartest won’t get through the coming months and years undamaged if they are not operating from the correct understanding of what is going on.

And we can provide it all to you at The Dollar Vigilante newsletter (subscribe here).

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2016 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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