Ray Dalio is one of the best investors alive, and what he had to say yesterday on CNBC was quite startling.
“There’s only so much you can squeeze out of a debt cycle… we are there… you can’t lower interest rates materially, and you are also at the limit on QE.”
I am the first to admit that the FED and global central banks have done an astonishing job propping up the economy and rigging the markets since 2008. But all stimulus is unsustainable, and the end of this current game they have been playing with the entire global economy is ending.
You can see it in our bond market, stock prices, and currency markets, all of which are completely dysfunctional. Previous correlations that lasted 100 years are all broken down due to an unprecedented injection of central planners trying to manipulate 7 billion people into thinking Keynesian economics works.
This debt-fueled world is about to see a major reset, one that we are urging our subscribers to prepare for now. Sadly, the destruction of the middle class is accelerating, with a new trend of “tent cities” popping up and booming with new homeless Americans all over the country.
With a great crisis comes a significant opportunity, however, and we always want to urge readers to be prudent first in this environment.
- Hold a significant amount of cash and physical precious metals.
- Eliminate debt.
- Long-term investments should focus on cash flow (growing your income).
- For speculative positions, use only money you don’t need for up to 3 years and would not harm your family’s finances if you lost it all.
- Habitually over-deliver in your work, business, or job. Your core source of income must be treated the same as your favorite investment.
Keep in mind that most Americans are literally living paycheck to paycheck, so don’t ever submit to peer pressure when it comes to spending.
You are exceptional, and are not the average American. Continue reading this letter, and let’s dramatically increase your net-worth both during and after this global monetary reset that could last for years.