Federal Reserve Chair Jerome Powell promises to raise interest rates.
Wall Street wavers.
Crypto corrects.
But then, as the dust begins to settle, folks wake up, look around and suddenly realize that the whole thing is a big joke.
But it’s not funny.
In fact, it’s actually very tragic, with two telltale signs of what may REALLY lie ahead.
The first sign comes from the history of conflict — times of intense economic distress and extreme social divisions.
I’ve seen how those divisions stretch society like a rubber band, how it eventually snaps, how people revolt and how governments use the crisis as a chance to grab more power.
I pray that does not happen in America.
But what concerns me is that every time we’re told that someone or some thing will unite us, the forces that get stronger are those that divide us.
The second sign comes from the financial mess the U.S. government is in today.
It’s messy not only because of shocking numbers but also because of shocking complacency.
Here we are with the biggest federal deficits in history …
… plus, at the same time, the most government complacency about them!
Here we are with the lowest yields since World War II ...
… plus, at the same time, the worst inflation in 40 years.
And here we are, after decades of monetary blunders, lurching ahead with more of the same.
But this is not a new trend. Look what happened in the Great Financial Crisis:
Lehman Brothers failed on Sept. 15, 2008.
The Federal Reserve and the government suddenly printed and spent $2 trillion, then the biggest amount of all time.
They said it was because the global financial system was crumbling, and they had no choice.
But then, even long after the crisis was behind us, they continued spending and printing with wild abandon.
They promised they would go back to the sounder policy of yesteryear.
But did they actually do that?
No.
They used the crisis as a convenient excuse to burn all the books of monetary policy and boost their power over the economy to a whole new, higher level.
If you think that was extreme, look at where we are today:
This time, in response to COVID, they’ve printed and spent $5 trillion in a much shorter period of time.
And again, the Fed is making mealy-mouthed promises that it’s going to change its ways.
Truth be told, even if the Fed does fulfill all its promises to fight inflation (unlikely) …
Its official interest rates will still be a whopping six full percentage points behind inflation.
What is really going on behind the scenes?
They have obviously embraced the new, radical policy called Modern Monetary Theory.
This theory used to be on the fringes of economic thinking. But today, it’s becoming mainstream — not just here or there, but at the IMF, at the European Central Bank and, based on their actions, even at the U.S. Federal Reserve.
According to proponents of Modern Monetary Theory, governments that issue their own fiat money have the power to spend as much as they please.
They think they can buy up virtually all the bonds in the world with no adverse consequences.
They think they can spend money on whatever they damn well please with no adverse consequences.
They think they can fiddle as the nation burns up in the flames of inflation.
So, is Modern Monetary Theory correct?
Or are they like Emperor Nero, who destabilized the Roman Empire, hastened its downfall and did so with the same kind of policies our leaders are pursuing today?
Nero spent government money lavishly, just like our leaders have done.
Nero created huge government deficits, just like our leaders have done.
Nero abused his power to debase the currency, just as our leaders have done.
And one more thing: Nero opened the floodgates of revolts and external attacks — from the Roman province of Gaul in the West to the Roman-controlled territories in the East.
Could it be that our leaders, especially the proponents of Modern Monetary Theory, are taking us down that same dark path?
Could they be inviting attacks, economic or otherwise, from the East and Far East?
We will get some answers to these questions in 2022.
And no matter what new shocks the year may deliver, the fact is, when it comes to your finances, the government is not telling you the truth.
Even while they said they were rescuing the economy, they were gutting the interest income you could earn.
Then, even while they were denying inflation’s very existence, they let it gut the value of your principal.
So what’s the solution?
To turn the tables on Wall Street and pull a new kind of steady, high income out of the stock market like never before!
Mark your calendar. Because next Wednesday, Feb. 16, I will show you exactly how.
Click here if you’d like to join me then. Then, check your inbox. You should get your free ticket and instructions to attend a few moments later.
Good luck and God bless!
Martin
