Economists on "Fiat, Stocks and the Black Swan Event" Saturday 2-29-2020
The Next Black Swan Event: Adam Baratta
Cambridge House International: Feb 25, 2020
The next black swan event is nearly here and Adam Baratta is going to show you his theory to predict the future of financial assets.
n this video, Adam talks about the four key components he uses to predict the future of financial assets and impending market crashes.
Those components are: *Populism *The Wealth Gap *Tariffs *Asset Bubbles Adam believes that a black swan event is eminent and is calling it The Great Devaluation.
Adam's thesis predicts the next market crash will cause catastrophic events to the economies of the world.
In the last 30 years, the top 1% of wealthy individuals have gained $21 Trillion in wealth. During that same time, the bottom 50% of non-wealthy individuals have lost 900 Billion dollars.
The Top 20 Richest People in the world are worth $1.3 Trillion dollars and the stock market is up over 400% in the last decade. With lower and lower interest rates and free money flowing to the very top, the market is on the precipice of great decline.
This combined with the effective federal funds rate that has decreased year over year since 1980 and there is a wealth inequality like the world has never seen.
The Etruscans believed that black swan events would happen ever 90 years. Being that 90 years is a supercycle and that nobody would be around that remember the last crisis. The last black swan event was the great depression of the late 1920s and early 1930s.
The great depression was lead by the stock market collapse. The corollaries to the US economy now and the economy then are nearly the same. Interest rates in the 1930s averaged 0.63%, whereas interest rates are currently sitting at 0.63%.
During the 1970s when the economy was booming with organic growth interest rates were close to 20%. Adam sees a return to this number once the markets crash. The United States Debt has doubled for every president since Jimmy Carter.
The US Debt is spiraling out of control and the world is about to learn the lessons of thousands of years of finance. In that we cannot borrow our way into growth.
The more we grow, the more we owe. Organic growth means higher interest rates (20%+) and that means a higher cost to serve the debt.
If a black swam event occurs, the 2020s will be the largest transfer of wealth in human history.
Gold will surge to unthinkable new highs. But how can we predict a black swan event? The problem begins with the human brain. Our brains are designed to recognize concrete things. We don’t understand exponential growth. We base our future expectations on our recent experiences with the past which makes predicting black swan events difficult but not impossible.
Keiser Report: The Battle For Hash Power (E1508)
Feb 29, 2020
In this episode of Keiser Report from Las Vegas, Max and Stacy discuss the fact that Democratic frontrunner, Bernie Sanders, has chosen to ignore the role of the central bank and fiat money in creating the explosion in the wealth and income gap.
They look at the data proving that the discontented voters are right and the academic economists are wrong . . . the cost in time of the average middle class lifestyle has, indeed, increased.
In the second half, Max interviews Alexander Liegl of Layer1 about the company’s plans for bitcoin mining in Texas and the importance of bringing hash power to America and away from China.
2020 Stock Market Crash, Literally Everything Is Crashing! Worst Week Since Lehman Collapsed.
Silver Report Uncut: Feb 29, 2020
Economic Collapse News February 29, 2020. Literally, everything is crashing, records are broken, history is made.
The craziest part is the total denial that we are facing some serious issues.
Also, in what seems like an attempt to blame the stock market crash on someone The president doubled down on his assurances that there is no time like the present to buy stocks. I think we have taken this obsession with the stock market to extremes at this point and I'm trying to avoid these issues honestly but I have been very concerned.
I know stress is running high and our economy is crashing. Honestly, I just don't understand the magnitude of these losses or what it must be like to deal with this mess. But people are in for a rude awakening soon because it doesn't seem like the crash is done.
We see the S&P500 had it's the fastest drop into a correction in history, S&P is down 7 consecutive days, and the worst week since Lehman Brothers collapsed in Oct 2008.
A new record was reached Dow volume today hit an all-time record high. In total world stocks lost $5 trillion in market cap. The fear gauge was red hot sending VIX 30 points higher in February this is the largest monthly spike in volatility ever.
This is quickly becoming a real stock market crash and the question must be asked? Will the headlines begin to get better in the coming days and weeks?
I bet we don't last the weekend before we get some shocking announcements. We also see bank stocks suffered their biggest weekly drop since March 2009.
The entire treasury curve fell below the effective fed funds rate. 2Y yields dropped 39bps this month which is the biggest yield drop since Nov 2008. Rough week.
The moral of the story is there is more than money.