Market Pessimism

Thank you for you frequent unsolicited emails.  I am not currently interested in any financial advice because I haven’t found anyone who demonstrates a realistic-enough view of the economy (in my opinion).  I appreciate your message on diversification/SEARS but this advice seems more like a financial meme. 

Since 2008, despite asurances, I don’t see that much has changed. We are still accruing trillion dollar/yr deficits, off-shoring manufacturing jobs, and QE money printing. 

QE is like a patient being in the ICU on a vassopressor drip (eg adrenaline). The blood pressure may be perfect 120/60 on the monitor, but the second the adrenaline is shut off, the patient would flat-line. So, it is with the US economy.  Trump announces +4.1% GDP, but if you correct for QE, the real number is improving but still -1% (money supply adjusted GDP).  Most growth, if any, has been in the speculative markets and not in the real economy.  

After Glass-Stegal was abolished many big companies became banks. These bank/companies were able to borrow nearly free QE money from FED.  With that QE, these banks bought AAA bonds.  But with record low intetest rates, bond yields were not keeping up with inflation.  So, banks exchange bonds with each other on the REPO market and then buy up their own stock. We see the stock market rise to record levels even while the CEO’s and others cash out their stock options.  The QE ended up going into the pockets of a few has produced record billionaires in the last 10 years and limited inflation that we might have otherwise expected due to all the money printing.  However, inflation has been moderated due to this strategy of “sterilization”.   The stock market is just smoke and mirrors.

Hurricaine Irma in Puerto Rico decimated the US’s domestic pharmaceutical manufacturing. Following the hurricaine, US drug manufacturing in Puerto Rico closed up and off-shored. 

The Westinghouse reactur design was supposed to create a renaissance of nuclear power in the US.  However, the NRC re-formulating their requirements following 9/11 (false flag), doomed the VC Summer project, and bankrupted the Louisiana company that had already built mass production infrastructure to produce the Westinghouse passive cooled reactors.   Bechtel has come in to save Plant Votgel, but US nuclear manufacturing was off-shored to Korea. 

I am pretty pessistiv about the state of the nation. We have been fooled into fighting Israel’s never-ending wars in the Middle East.  Syria is a quagmire, and now the attention is being turned on Iran.  I just hope we fare better than Alexander the Great and the Greek Empire after he took on the Medes abd then Persia. Of you don’t remember, Alexander was murdered, and Greece was divided into 4 parts. 

If the US/Israel go to war with Iran, which is ultimately wnat Israel wants, I fear that will be the “final straw that breaks the camel’s back”.  Russia and China just might finally strike the West.  Russia and China have been continually modernizing their nuclear triad, violating all nuclear treaties which we have only just now publicly recognized. 

Needless to say, I’m not too bullish about the future.  I am interested in investments that are not tied with the market.