Saturday, July 13, 2013
Follow the money....
As Europe implodes and China consolidates, the world's richest 1 percent have been flooding into the US dollar to buy up US stocks and real estate.
It's been absurdly cheap for them to do for five years because they;'ve been borrowing US dollars at close to 0 percent, to leverage purchases. Hedge funds are flipping real estate like 2007 - and exotic debt instruments dominate bank balance sheets.
The Fed is keeping real rates low to negative indefinitely. They have chosen to side with the world's 1 percent and against the US middle class.
Meanwhile the vast US middle class is drowning under stagnant incomes, a stagnant job market, and soaring tuition, housing, energy and food costs. And those living on fixed income are dying. There is no yield.
And US debt continues to skyrocket.
Here's the question: What happens when US stocks and real estate bubble implodes? Where does the richest 1 percent go with their capital?
Because that final refuge is where you should go too.
You can try to milk the last drop out of the stock market and real estate bubble. But the richest 1 percent have already made their money there.
Where will they go next?
Where will they seek refuge when the dollar collapses under the weight of unserviceable debt, as they know it must?
Figure that out.
Your capital depends on it.