Here is what many Wall Street titans are hinting may happen but they cannot predict it out loud because no one these days can risk yelling “FIRE” in a crowded theater. If the socialist democrats can win the vote and take over the U.S. White House, and one or both branches of the U.S. government in any upcoming national elections, then the current overvalued, overpriced stock market may go way down or crash to its true value, at last, conceivably losing up to 50% of its current value.
This is what many stock market investors have been waiting for years to happen since the worldwide financial collapse of 2008 when the Federal Reserve Bank of America, and governments worldwide, in their ‘brave new world’, grand liquidity experiment began printing trillions of dollars of new money backed up by nothing more than the so-called ‘good word and trust’ of governments worldwide.
After the next BIG stock market downturn or crash, the remaining ‘cash rich’ investors, also known worldwide as the “f_____g rich man”, will get the long awaited investment opportunity, literally, of a lifetime. These ‘cash rich’ men will then be able to buy stock ‘on the cheap’ in all the great cash rich companies that did not go broke; companies that, since 2008, have become way overvalued and overpriced due to all the central banks’ of the world seemingly endless quantitative easing. The central banks worldwide, for the most part, simply re-invested most of this unsecured, uninsured ‘quant’, or newly printed money, by buying up stocks around the world, with much of that new money being invested in the U.S. stock market.
Of course, after the next great stock market downturn or crash, only cash rich, debt free companies will survive because companies up to their eyeballs in debt will likely go broke since easy government credit and bank liquidity will dry up worldwide for companies to borrow, and easy credit will no longer be available.
Governments worldwide that buy U.S. treasuries literally keep the U.S. government and the U.S. Federal Reserve Bank in business. Once the world’s banks hit zero, or below zero interest rates, and world government budget deficits continue to recklessly spiral out of control, and governments worldwide continue printing more and more unsecured money; governments worldwide that buy up U.S. treasuries will eventually lose trust in the U.S. government’s ability to pay the interest due on U.S. treasuries.
When governments worldwide slow down or stop buying U.S. treasuries, the U.S. government will not have enough money to pay the government’s bills for welfare, social security, national defense, roads, bridges, and so on, basically leaving our grandchildren ‘holding the bag’ so to speak.
This is when predicted hyper-inflation will, at last, take hold, as many countries’ currencies, including the USA’s, will no longer be trusted or reliable, and gold, silver, valuable art and collectibles, bit coin and fertile farm land prices will soar. What all governments and banks worldwide readily admit is absolutely no one knows how much money or secured collateral their governments’ central banks will need on hand, or should be required to have on hand, to handle the next worldwide government and banking financial crisis and/or collapse.
After the next BIG stock market downturn or crash, millions upon millions of people worldwide will be unemployed in food lines and, unlike allowed to happen in the crash of 2008, many governments worldwide will be insolvent, their citizens will riot, ‘calling for the heads’ of their so-called leaders, and in too many places, the citizenry may actually hang many politicians from the nearest yardarm.
The same politicians, critics charge, will finally get what is due since these so-called leaders, in control since the crash of 2008, did not learn their lesson in basic economics. This means that, in the long run, no government controlled, centrally planned socialist, communist, dictatorial, or even non-government controlled, non-centrally planned capitalistic regimes can ‘print’ their way out of spiraling budget deficits and the eventual lack of credit, loss of liquidity and loss of basic trust in high finance and governments worldwide.
When a true economic bottom in stock markets worldwide is finally reached it will, at last, be the greatest stock market buying opportunity ever…allowing the true value of the stock market to take off upward from there. This is when the cash rich investor, or “f_____g rich man”, truly gets rich at true stock market value. The signal of the great downturn or crash will come in the form of tightening credit which will become less and less easily available worldwide. Once credit dries up, everything else already having been explained here will follow.
The trick will be for the remaining cash rich investors, as well as for all those holding gold, silver, valuable art and collectibles, bit coin and fertile farmland, when the stock market is finally allowed to reach bottom, the “f_____g rich man” will now have the opportunity of a lifetime they have been waiting so long for, buying stock in cash rich, debt free companies at bargain basement prices; companies that produce basic things people will always still need and/or be addicted to like cell phones, computers, pharmaceuticals, hospitals, chocolate, tobacco, food and so on.
Extrapolating out the logic even further, this also includes ‘fake meat’ since, in the future, with two billion more people anticipated to be added on earth in many parts of the world in the next fifty years, the earth’s resources will not be able to sustain mass produced, farm animal meat production to feed the entire world as the earth’s population will be aspiring, longing to be part of the great socio-economic middle class. So if anyone still wants the taste of real meat available to the masses for commercial human consumption, for the most part, the world population will come to rely on satisfying its cravings for meat to be provided by plant protein, created from natural vegetables, or synthetic versions, that somewhat gives us a ‘semblance’ taste of meat.
Bottom line? If it keeps on raining the levee’s going to break. When it breaks there will be no place to stay so we weep and moan and do not know which way to go, and by that time crying and praying won’t do much good. All that is left are thoughts of the golden era now gone and thinking about our once happy home. Going down now…going down.
Truth is like poetry and most Americans hate poetry. To make a fair judgment and good decisions we seek what is authoritative and familiar, but too often we get misled and duped by the authority we put our faith in, and then what we think is familiar turns out not to be familiar after all. To get through it all we have to make peace with the past…and learn from it.
SUPPLEMENTAL SOURCE: UNBRIDLED, FREE-WILLED, INDEPENDENT THINKER 9/22/19