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Fantasy vs. Reality: Should Your Wealth Stay in the Markets?

Breaking News Jan 24, 2023

Have you heard lately about the soft landing? Historically, it has never ever been done before. What about the global yield curve inversion? Which also, never been done before, and we have the LIBOR to SOFR shift coming up in June, which has also never been done before. Do you have all the confidence in the world that Jerome Powell and our government and the rest of the members of the FOMC can pull this off without a hitch?

CHAPTERS:
0:00 Headline News
2:04 Mass Firings
7:02 Soft Landing Scenario
15:13 Start Your Strategy

SLIDES FROM VIDEO:

TRANSCRIPT FROM VIDEO:

So have you heard lately about the soft landing that even though historically it has never ever been done before? And even though recently we have had a global yield curve inversion, which again never been done before, and we have the LIBOR to SOFR shift coming up in June, which has never been done before. I mean, surely you have all the confidence in the world that Jerome Powell and our government and the rest of the members of the FOMC can pull this off without a hitch. So let your, your wealth stay in the markets. Let it stay in fiat money. Don’t worry about it. This is going to be a nice soft cushy landing. Do you believe that? Because if you do, I have a bridge in Brooklyn than I’d like to introduce you to. More fantasies and a little reality, coming up.

I’m Lynette Zang, Chief Market Analyst here at ITM Trading a full service physical gold and silver dealer specializing in custom strategies. And I have to tell you, if you haven’t already, you really need to subscribe because things are heating up and you need to know what’s going on or you end up believing the lies. And how many times can you be lied to when you do not know the truth? So let’s just start at some of the confusion and what’s going on here. And I’m doing it a little different today without my usual PowerPoint because when I read this from the Bloomberg, I thought, boy, we just need to talk about this.

So here we go. If you’re looking at the labor market to predict the direction of the US economy, you’d be right to be confused. Mass firings are making headlines. Amazon is terminating 18,000 people. Alphabet is slashing 6% of its global employees. Wall Street is cutting its workers by the thousands too. Hundreds of thousands actually. But the job eliminations pale in comparison to the frenzied hiring that took place through most of the Covid 19 pandemic. And the US job market remains exceptionally tight. And what that means is that wages have to go up to attract people so that you can hire them. And we all know that, that that’s been a huge problem. I mean, honestly, if they’re willing to pay my 15 year old, 16 year old grandson, $15 bucks an hour, you know, things are really tight. But what I want you to keep in mind is that the Federal Reserve is bent on raising rates to increase that unemployment because they do not want workers to have the ability to demand more wages. It’s okay. It’s perfectly fine if the guys that are running the corporations are making thousands of times what the average worker is making because somehow that’s not creating inflation. Although don’t those costs go into the cost of doing business and therefore the cost of products? I’m thinking certainly it does, but don’t let the workers get ahead. But I think we’ve got a new movement in place and it’s gonna be with the rise of unions and the rise of the workers. And I think it’s about darn time. So we’ll just have to watch this unfold. But don’t believe that soft landing, this is gonna be hard. They need more people unemployed. And with that hope is rising that the US and the world could skirt the recession. So many have been predicting since summer and fear of which is driving much of the firing indeed, central bankers and Davos for the World Economic Forum. Expressed optimism that they’re getting a handle on inflation. No, don’t believe it. The economic outlook has also gotten a boost thanks to China’s reopening albeit at a potentially monstrous human cost and a warm winter, taking the edge off Europe’s Kremlin driven energy crisis. You know, I find it really interesting that they’re going to, they’re, they’re expressing optimism because according to the data that they jury rig and tweak and mold to look the way they want it to look, I mean, you’ve gotta ask yourself, are your bills going down? Cause they can tell you anything? Do you believe everything that they tell you? Cause it’s not a good idea. And though we may see with oil and gas particularly that some of those prices have indeed come down and relief at the gas pump, which gives people hope. You cannot live on hopium. You can have hope, you can be optimistic. I consider myself a very optimistic person. But you can also be prepared so that if you are wrong, if they’re wrong in the garbage that they tell you, I remember, they don’t really want you to know what’s going on because then you make different choices. But we’ve turned no clear corner when it comes to inflation, according to Connor Sin, who writes in Bloomberg opinion that markets should still brace for a rebound back into two hot territory. And I am completely on board with Connor. I agree. We are gonna see it go too hot. For one thing. We know that the oil producing nations OPEC Plus, keep in mind the plus is Russia want oil prices between 110 and 120 bucks a barrel. Right now they’re around 80 ish. So that’s going to have an impact on all of the prices really for everything. But despite the growing belief that in the soft landing Silicon Valley CEOs are taking no chances and instead firing their workers by the tens of thousands, Google joined the crowd Friday. So we’ve already talked about that. But in the wave of tech worker culling, some hundred thousand people have lost their jobs so far. And this is not over yet. Do you think that’s gonna be a soft landing? I don’t.

Mass firings by Amazon and Microsoft are the latest blow for the Seattle region. Now this is really important because these governments, the local governments, whether they’re cities state as well as the federal government, well they glean a lot of their income from the taxes that those workers pay. So when you have unemployment that puts greater stress on cities and states because cities and states can’t just, well, they can, they can issue, they can issue municipal bonds. And if you think that that’s safe, kind of depends on the bond, but they can’t do what the federal government can do, which is have the Federal Reserve buy back the debt so that they can issue as much debt as they want. Whoopty do. That’d be like, you know, if somebody were willing to just keep paying your credit card bills, right? Well then you could keep going out and spending. So just don’t miss this point that what they’re doing is trying to lure you into a false sense of security so that you stay inside the system and you think that they have a handle on it. They do not. This is complete misdirection. We’ve talked about it so many times. We can look at some of these headlines like, Hmm, how about this US takes emergency steps as debt ceiling fight looms. Well, we’ve already hit the debt ceiling, which is 31 trillion and change. And I remember back, I think it was, I can’t remember the exact date, but I think it was like 2009 ish where I did a study because I said, well wait a minute, if we’re running about a trillion dollars in deficit spending, how come we’re servicing at that time, 13 trillion in debt. So that was right after, well that was in the middle of the great financial crisis, right? 13 trillion. Now here we are just what, 12 years on or something like that and we’re at 31 trillion and raising the debt ceiling again, you have to understand that the whole monetary and financial system is based upon the ability to consistently grow more debt. Are they gonna raise the debt ceiling? Yeah, I mean my guess would be of course they’re going to just like they have hundreds over hundred times in the past because they can print the money that they need to pay their bills and that’s what they’re gonna do. But guess what happens when we go into the next recession and they do this, what in the world do you think is gonna happen to the inflation? Because there is only one way. Only one. So it’s not like there’s a whole lot of choices. The only way to fight inflation is with is with a recession. And the only way to fight a recession is with inflation. There’s no choice. And those balance sheets at the Federal Reserve and this fed debt, I mean they are at nosebleed levels, absolutely nose bleed levels. So you have to decide for yourself what the real thing is. And you have to protect your wealth. You have to protect your purchasing power. And what do we know that does it? Is this, over the long term they can manipulate anything short term and they have to, because a rise in gold price is an indication of a failing currency. And they don’t want you to know that the dollar is dying, that it’s a failing. This is a piece of garbage. This is real money, this is good money. This will protect you. This is proven 6,000 years. That’s good enough for me. You do whatever you want. But goodness gracious.

Stocks fall as data signals. Slump tepid earnings from Alcoa. Other large companies drive down prices. So have we entered an earnings recession? Has the market priced in an earnings recession? I don’t think they’ve priced it in yet, but are you getting suckered in because you see these markets move? It’s easy to make markets move, it’s all derivatives. And remember all of those contracts have to be converted by June 30th and now they’re getting some pushback. CLO’s are stepping up the game and they’re saying, no, we’re not agreeing to these terms. Think everything’s gonna be hunky dory. Because what I also want you to know is that inside of every crisis there’s opportunities and the opportunities are beginning to appear. I’m not saying it’s time to do it yet, it isn’t. I’ll tell you when I’m doing it and then you can choose for yourself.

But I love this, letting go of the family pile. And you guys all know I’m definitely an antique-er, but these historic british’s estates have been in the same family for generations. Let’s see, and same for decades, sometimes centuries. But the effort required to maintain them, lack of inheritors and skyrocketing electric bills have some saying goodbye to their beloved ancestral home.

Opportunities will present. And we’re going to know when the time to shift is when we see real estate hit a bottom, we’re not even near there yet. Hit a bottom and we create that cup formation. It’s those patterns that help you understand where we are in the trend cycle so that when they create all of this noise, that you are not fooled by the noise and they don’t have the ability, official word to nudge you in the direction that they want you to go in.

Because property bust compounds China’s pain. So everybody’s going, whoop, dee doo, China is opening up again. But do you think that they’ve, that they’ve really dealt with anything in their property markets fully yet? No, we haven’t seen the bottom of that. We haven’t seen the bottom in anything. Now with spot gold above 1900, what are you waiting for? Could it get cheaper on the spot market? Sure, they can create as much gold and silver that does not, nor ever will exist as they want. That’s not a big deal. They can manipulate the price that you see. But what we’ve been seeing and what I’ve been showing you, is that the physical market, this market has broken out. Yay. So what are you waiting for? The physical market is a true supply and demand market. That’s what you need. You need to hold it, you need to own it. You need to get your wealth out of the system. You got the FDIC laughing about the fact that you are gonna be bailed in. Well, if they bail any of my money in, because honestly, you have to have a bank account. It’s our tool of barter. So it’s not like we can do without it, but we can certainly hold a lion share of our wealth outside of the system and protect it from that devaluation and it going away. Because I don’t care how high the stock market goes, all you can do is convert it into dollars. You gotta have this to have a truly diversified portfolio.

And if you haven’t seen this yet, you definitely need to see the FDIC plans for collapse banks by gold and plans for bailing because it’s out of the horse’s mouth. It’s not just me saying it, it’s them saying it. So if you haven’t seen that yet, that is also one that I think that you can share with all of the people in your life that think you’re out of your mind. Because again, it’s not me saying it, it’s the FDIC saying it. And if you wanna listen to the whole three and a half hour meeting, you have that link. You can do that. And if you haven’t done this yet, you absolutely need to start your golden silver strategy by clicking that Calendly link below and talking to one of our consultants about your personal goals. What you’re trying to accomplish is so critical. That’s what tells you what to do. You put your goals first. Because we here at ITM Trading, frankly, we are here to support you and help you get through what we’re going through because there’s no escape. We all are gonna go through it and it’s gonna be hard on everybody, but it’ll be easier with opportunities. If you become your own central banker, it’s gonna be much easier for you. Much better. So if you like this, please give us a thumbs up. Make sure you leave a comment, make sure that you subscribe and share, share, share. Until next we meet. Please be safe out there. Bye-Bye.

SOURCES:

https://www.wsj.com/articles/treasury-to-begin-extraordinary-measures-to-pay-bills-amid-debt-ceiling-debate-11674091179

https://www.wsj.com/articles/global-stocks-markets-dow-update-01-24-2022-11643011323

https://www.wsj.com/articles/saying-goodbye-to-their-ancestral-homes-is-a-necessary-yet-terribly-sad-affair-11674136827

https://www.wsj.com/articles/chinas-property-bust-compounds-economic-pain-11674123815

Thumbnail Photo We believe that everyone deserves a properly developed strategy for financial safety.

Lynette Zang

Chief Market Analyst, ITM Trading

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