I often get asked what is our current state of affairs in the World Markets?
My answer has been predicated on the fact that our world has too many bond debt factories. This is based on printing money is the solution along with borrowing money to pay for political promises they can’t keep! They are determined on wanting to over burden the system to stay in power to do more of the same.
This brings us to Brexit a coming home for the UK as they have decided to no longer be a part of the European Union. They never really went all full in because they never switched to EURO for printed and coin money they prefer pounds. It was more like okay we will try this but if we don’t like it we can get out. After a tenacious vote the British people said we want out. The politicians wanted to bail on the voters to do as they pleased but had to honor the will of the people.
Here is where the disparity lies. They no longer will support the bond debt of other nations inside the EU. This has not gone over well and will not be recieved well by those countries who will have to pick up the slack. Greece has never made good on any bond debt ever. Once other troubles occur as the exchange for payment on additional bond debt has a reality check in an increased outlay to shore up the short fall, we could see defaults on bond debt. Sweeping it under the rug will keep things fine for now but eventually you will have to have an accountability where those payments can no longer be transacted for the required amounts or on time.
This will send markets into a tailspin rather quickly. Asian markets would also see turmoil as Japan is 40 Trillion $$ in Debt. We could potentially have a world wide monetary shrinkage of assets on a large scale that would curtail consumers access to bank funds as they could close thier doors perhaps for good.
This happened in Cypress when the Russian Black Market decided to money launder on the banks where many Seniors had cash money close by in the spring of 2013. They could not pay back the money to those banks because of recession in Russian Black Market enterprises. EU warned Cypress. Don’t do it! A Greek bank was forced to raid clients bank accounts to recapitalize. I call it stealing when you take money of accounts worth over $100,000. Then in 2015 the Greek Government could not make good on payments to the EU which were eventually voted upon by Greek voters who renegotiated terms. Banks shut down for two weeks and finally ATM’s were refurbished with loot regularly.
Could we see another Greek meltdown or something like it somewhere else now that Brexit has hit the fan but not yet splattered? My belief that this is eminent that eventually has to rear it’s ugly head.
All of the fortunate economic boom that is going on is very helpful as Stock Market and Economies have nothing to do with one another! I will repeat Stock market and economies have nothing to do with one another. Can they parallel one another? Yes at times!
Here is why you need to pay attention as in the BIG SHORT of 2008 (SEE MOVIE) Realize that people knew about what was going on unlike the movie depicts. Those sub prime mortgages were coming from Fannie Mae and Freddie Mac via the over sight of Barney Frank as a hired consultant to Merrill Lynch. ML in turn bundled sub prime mortgages to be sold off to hedge funds and other institutions as CDO’s! When interest rates started too fall so did the ability for people to hold onto thier jobs as economies shrunk and failure to pay became high.
This was a shortage of jobs and income to pay debt. Only now this will be countries who won’t have the means to support borrowed money obligations they leveraged through taxes and come hook or crook.
What to do! Don’t panic! Yet! However
if you want to be savvy start looking at where money should reside and why!
Where would that be? I know a place you can go where they have guarantees galore and your finances never hit the floor. In fact during the Great Depression these highly regarded regulated policyholder owned companies became the banks for many decades before the stock market came back and Bank failures subsided. Why? They had solvency that out rivaled anybody and that includes to this day.
Mutual Life Insurance Companies became a strong hold since their were only 4 places to have money reside. Bank, Stock Market, Cash in the Mattress and Mutual Life Insurance Companies were the only alternatives. Once the stock market became over leveraged with over priced stocks that had companies during the industrial age scrambeling to make a buck the chance to fall to hard on your face became quite commonplace. A lack of marketing, over use of materials, poor design flaws, and non friendly user problems arose!! The selling off of margin to pay back the banks could not happen fast enough and nobody was buying deflated dog stocks. Woof and Poof! Gone!
Those who stuck money in tin cans and mattresses had big problems. Lawlessness, no appreciation and no leverage! Dang!
When all these Mutually owned by Policyholder Companies who backed all loans dollar for dollar 100% in reserves in surplus started showing dividends over bottom threshold guarantees for every year since inception in newspaper articles it became clear! The public wanted to hold these individual contracts
for themselves to gain appreciation and have a leveraged replacement of salary in the event of a expected life span which was not all that great at the time. People decided they trusted themselves and this asset retaining method to do so.
What happened was the greatest occurance monetarily on the face of the planet. People had money and everything was backed. It was liquid and you could borrow to pay for Sally’s wedding and then pay it back and more good things become of it as apprec iation increased! The world had wealth with real cash! This could be you!
How to get started in having predictability with certainty and build a bank of your own that has nothing to do with the stock market is easy. It will give you tax- free income to replace current income for you in the future that will not trigger additional Social Security taxes or any ordinary income tax! It gives you tax- free payout upon your demise to beneficiaries of your choosing. Elim ination of debt becomes a reality. Banks, Wall Street and Taxes are reduced or terminated!
I will evaluate your individual financial condition to determine how to fit this into your overall scheme of things by finding the money you are already spending elsewhere to asset allocate into a well thought out strategy. Together we can determ ine what that will entail and what will be necessary to change your mindset about money. I do not charge fees and this is at no cost. My job is to make you money.
Just go to www.davidbiondo.com and follow the simple steps of scheduling on my calendar, learning more, get all the necessary documentation ready for our meeting or a working knowlege and download a Welcome Packet.
Talk with you soon. Save your Wealth Predictably with Certainty because Risk and Speculation won’t do the trick .
See you soon.
David J Biondo CSA
Signal Butte Financial Corp . – President www.davidbiondo.com
719- 687-5947 / 303-916-5392 cell