A financial storm is coming, and you’d better be prepared for it.
But this storm is not new. Almost 100 years ago, we were in the EXACT same place that we’re in today. A booming stock market, financial excess, political unrest, and a crazy Tariff Policy.
Those who neglect to learn history are doomed to be exploited by it
-Monk
The U.S. economy is the largest economy in the history of the world. But what most people (and apparently most politicians) don’t fully grasp is that the American people are 70% of that economic superpower-not business or industry!
What Americans buy & consume is the driver of the U.S. economy. From houses to hot dogs, this is what drives the U.S. economy.
But right now, we have a government that is laying off countless workers while at the same time destroying social safety nets. This decreases not only spending but also the amount available to spend.
We have tariffs causing the price of goods to go up on those same people who are losing their jobs and their social safety net.
We have a Federal Reserve Bank that will only let you get but so far ahead before it feels it must cool the economy down, which, for regular folk, is like running UP a downward escalator.
We have a tax system that saddles the middle class with the responsibility of propping up the country, while at the same time exploding the debt burden that the middle class has to pay down.
(We won’t talk about MMT)
The U.S. Bond market is what can better be called the U.S. credit card. The U.S. has been living off that credit card. In the past, this was fine since the U.S. Bond was considered the safest and most reliable investment in the world.
But politics has ruined the US Bond credit line. The full faith and credit of the U.S. government was just downgraded. To put it in simpler terms, the U.S. credit score just went from 850 down to 650.
The current deficit situation has made a dramatic shift, but this was created “by fine people, on both sides”, very slowly, and over a very long period of time. Instead of doing something to decrease that deficit, the can has been kicked down the road for far too long.
Don’t think so? We have had both Democratic & Republican presidents, and yet, the rich get richer and the poor get….
If you finished that phrase in your head, then you are lifting the veil on what has been happening – slowly, methodically.
The dollar is slowly losing its dominance as the reserve currency. The BRICS (Brazil, Russia, India, China, South Africa) are slowly creating their own global trading block, while the EU is pushing to regain dominance as the world’s currency reserve.
There will be a global realignment.
So, now we have the makings of a perfect storm (perfectly rotten!)
And I am stating all of this as my portfolio picks are up 280%.
Get your winter provisions (portfolio adjustments) because Winter is coming. In the game of Tonk, we call it getting low.
Quitting while you’re ahead is not the same as quitting.
-Denzel Washington, American Gangster
Bookmark this. Save it. Forward it. Prepare for it.
This is a game with brutal consequences.
To the youth, young adults, and the mothers who raise them, Financial Literacy: Monk Says… Learn the Game
The problem is we spend 12 – 20 years in school learning about every subject, except for money. Then we spend the rest of our lives trying to figure out how to make money or how to grow the money we have.
My approach to financial literacy is to teach it in a way that makes the complexities of finance so simple that your investing actions become instinctive.
To the youth, young adults, and the mothers who raise them,
Financial Literacy: Monk Says… Learn the Game