Greg Canavan’s Warning: ‘This Endangers Every Dollar of Your Investments…’ |
Monday, 2 August 2021 — Wollongong, Australia | By Greg Canavan | Editor, The Rum Rebellion |
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[5 min read] Dear Reader, If you had to pick the single greatest threat to your personal wealth in 2021, what would it be? The stock market finally crashing? Some kind of geopolitical or trade tension blowing up? Another new strain of the virus that is immune to vaccines? In my view, there is a bigger threat than all of these combined. And that is the monetary system finally rotting off the tree. If and when it finally falls, that’s when some very bad things are going to happen to ordinary investors and savers around the world. I’ll first explain what I mean by that. And then I’ll show you what I believe is the single most powerful thing you can do — right now as soon as you’ve finished reading today’s Rum Rebellion — to protect yourself. In our modern materialistic society, money defines everything. Even if you shun material wealth, money is still the denominator for your labour. Ever since 2008, governments and central banks have had to pump more ‘money’ into the system to keep it going. Those closest to the government and central banks benefit immensely from these policies. Those minding their own business and getting on with their life are the last to see the flow of ‘new money’ entering the system. And by the time they get it, that ‘new money’ doesn’t buy (in terms of assets) what it bought the elites. No wonder there is a self-interested cabal of parasites around the world desperate to keep the game going. They do that by keeping the plebs fearful and busy. And you do THAT by controlling the flow of information. Which is why I turned the TV off years ago. I say it’s ‘new money’, but it’s really just more of the same old, dirty, corrupt, fiat money that has been washing around the system since Nixon ‘temporarily’ suspended gold convertibility in 1971. The ones that are really getting screwed by the old money system are the kids. Those who left university saddled with debt and needing to take on lots more to buy a house and start a family. What’s more, the poor bastards have been brought up to believe the world owes them a favour. If you think there isn’t going to be any blowback from this, you’re kidding yourself. I say this because the blowback has already started. You just need to know where to look. You see… While the world’s elites have been busy pumping money into the system and telling us how to live our lives…the next generation have been building a new, peer-to-peer financial system. What does that mean? Well, in short, it is a financial system that does not need a trusted middleman to facilitate transactions. Computer code performs the role of trust. Add to this the fact that this new money cannot just be created at will — think bitcoin with its limited supply — and you have a mortal threat to the old money powers. What’s happening under the surface is the biggest threat to finance since the Medicis dominated banking in the Middle Ages. Remember old Rothschild’s famous maxim? ‘Permit me to issue and control the money of a nation, and I care not who makes its laws!’ That’s been the bankers’ playbook for centuries. But this new money system is a massive threat to it. They might care who makes the laws now! We’ve just put out an intriguing ‘how-to’ report I think you should read immediately. It’s a five-part plan showing you how to become a stakeholder in this new money system. While it is still small. And while first-mover advantages are plentiful. Please do make time to read this today. I’m convinced this is the biggest financial revolution in any of our lifetimes. You’d be mad not to get a ringside seat (for an insanely cheap ticket price). Click here to read the full report now. Regards, Greg Canavan, Editor, The Rum Rebellion | By Dan Denning | Editor, The Rum Rebellion |
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Boulder, Colorado Here’s an idea. Why don’t we put everyone in government (including public health officials) in a two-week lockdown? It would stop (or at least slow) the spread of idiocy. And it would put an end to the endless directives, orders, and mandates that are quickly becoming a regular thing in what used to be a free society. I’ll come back to that in a moment. But first, a few more questions. How much stress can a system take before it breaks? How much can you take? Is there a breaking point? Or will we manage to muddle through without a dramatic crisis? Advertisement: New Game Stocks: A Beginner’s Guide Listed companies building the infrastructure of the new game — these discounted stocks could be household names in 10 years… Click here to read on |
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There are lots of questions to begin a new week and a new month. The last few days of July were a doozy. They revealed there are some serious problems in the plumbing of US financial markets. Take a look at the chart below: It’s a sign of the times that you have to pay attention to the inner workings of the financial markets to figure out what’s driving stock prices higher. More than US$1 trillion in cash was deposited overnight with the Federal Reserve by money market funds (and others) late last week. The cash gets a puny yield (0.5%). But that’s better than nothing. It’s the first time the reverse repo market hit US$1 trillion. But it won’t be the last. The reverse repo market is a weird one. I’ve written about it before in The Bonner-Denning Letter. The bottom line is that there are huge excess cash reserves in the financial system with no good (or safe) place to go. If these bank reserves ever made it out of the financial system and into the real economy (via lending), you’d have an inflationary monster on your hands. As it is, they remained quarantined behind the walls of the financial system. The main result is very low yields in the fixed income world and negative real rates in the bond market. It’s the world we live in, full of financial repression. As I’ve explained before, heavily indebted governments use financial repression as a way of defaulting on debt without really defaulting on it. By keeping official interest rates below the rate of inflation, they methodically reduce the cost (in real terms) of paying down the debt they’ve accumulated. You wonder why they even bother with the pretence anymore. For example, over here in the US, the great debt ceiling debate is back. Congress suspended the statutorily imposed debt ceiling two years ago. It was one of the few things Donald Trump and Speaker of the House Nancy Pelosi could agree on. Borrow. Spend. Repeat as necessary. The usual partisan theatrics have already begun. If the US doesn’t raise the debt ceiling again, the Treasury Department won’t be able to sell more bills, notes, and bonds to fund the government. Certain parts of the government — usually those the public enjoys, like museums and national parks — are shut down. Then, the Republicans fold; raise the ceiling, and the business-as-usual resumes. Do you see a pattern here? The public — in Australia and the US — are routinely punished for public policy failures. Worse than that, the public is often blamed for public policy failures. This is especially the case in Australia. Grandstanding state premiers routinely scold citizens for selfishly wanting to exercise (or defend) their civil liberties. In France, the citizens are taking to the streets to protest vaccine passports. Why? Because once you conceded that the government, through an app on your phone, has the power to give or withhold permission for things like eating, drinking, sports, or even going outside, you’ve lost. They’ll use that power and expand on it. Today it’s the pandemic. But tomorrow, you might be denied travelling permission because you already drive too much. Or because you’re contributing to the climate crisis by eating too much red meat. Or because you’ve been drinking too much wine with dinner. Behaviour modification by technology — or a social credit score — knows very few bounds once you embrace the totalitarian possibilities. Maybe this is why central bankers are so determined to keep financial markets from crashing with Quantitative Easing. Rising stock prices create the appearance of growing wealth. Take away the ‘wealth effect’, and the middle class would realise how badly it’s being screwed — both financially and politically. What can you do? In the latest issue of The Bonner-Denning Letter, we looked at both financially and practically. Financially, it’s an asset allocation question. When governments and central banks are headed full pelt toward money printing, you want assets that protect your wealth from what we believe will be the inevitable inflation. Land. Land. And more land. That’s one answer. Find companies that own it and earn royalty income from it. In the report, I detail how Chinese firms have been buying up land in Australia and New Zealand since 2008. It’s happening in the US, too, although not to the same scale. Practically, it may be time to start growing your own food. You can do it as a hobby. It’s not complicated to determine what kind of plants, fruits, and vegetables you can easily grow at home. And with global supply chains having been exposed as more fragile than we thought, a little redundancy in your own personal food supply chain isn’t a bad idea. More on that next week. Regards, Dan Denning, Editor, The Rum Rebellion Advertisement: Crypto is undergoing its biggest stress test yet. In response, we’re releasing: ‘A 5-Part Guide to Exploiting the Crypto Sell-off’ If, like us, you see the big picture…and the immense opportunities that have just opened up to you…then let’s talk strategies. Click here for the full guide |
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