A lot of you need to pull your head out of the weeds and look out over the field.
Our entire economy is built on money that didn't exist before the snap of a finger. It isn't backed by anything and there's nothing that can support it when push comes to shove. Through a combination of accounting tricks and mass ignorance developed over time, the world has forgotten that the majority of the economy we know is completely propped up by faith. Faith in the "system". Faith in the people running the system. Faith in the power of the USA. Faith in.. well.. continued ignorance.
At some point in time, whether soon, 1 year, 10 years, who knows, the majority of the public who make up the sentiment that keeps faith in the system will realize that the "value" of everything in the system is FAR LESS than what it appears to be.
What is a market correction? It's when investor sentiment drops and market valuation is reset. And the reason you're so accustomed to your faith in the system is because the system has always pulled a lever (that they created and only they can pull) that injects a new batch of fake value into the economy during a crisis correction event that THEY CREATED. This allows the valuations to jump again as the fake money trickles through the banks, the government, and ultimately, the economy. Much of this fake money is then used to lever up into even more fake money. Much of it is used on speculation. But at the end of the day, we still have the same general economy. Except now, the things we purchase appear to be more expensive, companies appear to be more profitable, and the banks collect REAL interest on what started as literally nothing after they almost collapsed from their own failed business practices. Then we the middle class get to pay perpetual taxes that we didn't vote for. This is called inflation. And yes, that 2% target you love is the exact number they have realized that they can tax you at before you wake up and realize something doesn't feel right. But you get your V-shaped bottom and you pour a glass of whiskey and count your "winnings".
But at some point, the system either can't pull that lever due to a loss of faith in the system, or it will pull it one too many times and crush itself under the weight of excessive inflation. we might not be there yet, but we're very close. If the FED can't raise rates or keep them at this historically normal level because it will cause a cascade of bank collapses, but they can't drop rates because it would cause runaway inflation that would expose their phony economics to even the most faithful and ignorant, then they have to make a choice. And you think the organization that started as a partnership between the most wealthy bankers and government politicians is going to let their own membership fail and lose money and power? They might attempt to throw some smaller players under the bus (cough.. SVP), and maybe a big partner royally screws up, nearly exposing the ponzi scheme they all participate in, and have to be publicly hanged to gaslight the masses that it was really really just this one idiot, not the system itself(2008), but ultimately, they will really only have two options.
1. Pull the lever again. The result will be dropping rates and the appearance of the end of this "correction". Inflation will run wild. The only thing that can save them is hopes that the general populace can be subverted into complete ignorance as to what's killing them. And honestly, I can't discount this possibility. We can't even define what a woman is.
2. Parachute out and let the system burn. This likely doesn't happen unless they've got the new system planned for and ready to turn the engine on. This is the "CBDC" and "New World Order" conspiracy theories you hear about and discount because of your faith and ignorance in the system. But go do your homework. Before the conspiracy theory was about CBDC, it was about "newly minted money". People warned us decades ago about what was coming. But we had A LOT of faith in the system and just couldn't possibly imagine things getting that bad. But this is not a new theory.
And if you truly understand how this is all works from above the weeds, you know that these are the only two options. I, personally, expected the FED to continue to raise or keep rates higher longer.. at least through the end of this year or next year. I didn't foresee the bank collapses coming this quickly. And perhaps they still haven't and the masses can be convinced to stay ignorant a bit longer. Maybe XLF bottoms soon and we get a nice V into a new high. And maybe with that the FED gets rates up a little higher and maintains for a year. I'm not a time traveler. But I know what the only two options are in times of crisis. And our economic backdrop has us closer to option 2 than ever before. So maybe this next one isn't the big one. Maybe they can pull the lever oooonnnneee more time. I mean.. I see how many of you still think the FED actually has your best interests at heart. So maybe the ignorance can last even despite the dagger sticking in your back.
Whatever you believe, you've been given multiple warnings and multiple chances to prepare yourself. In the event that values are being completely reset, you want to own things that aren't manipulated by printing presses. Precious metals, real estate (just make sure your debt isn't too high or you will find out real quickly who actually owns it), Bitcoin (No different than the others, as long as you are ok not actually being able to physically touch it.. ever), etc. If you don't own at least a percentage of things that have borderless value without being tied to the dollar, then you are completely tied to the mass faith of the system with no true hedge.
Here's GOLD vs the dollar. The dollar is that stable orange line at the bottom. This makes it appear GOLD is rising like crazy in value over time! Similar to a chart of BTC over the last 10 years.
In the 1920's you could get a 1lb steak for $0.40 per lb. 1 oz of GOLD was worth $20 and change. So 5lbs of steak was worth 0.10oz GOLD. How many ounces of GOLD does it take to buy a 1lb steak today? See for yourself.
See, the value of steak hasn't really changed. And you can't argue the quality has either. I bet we still get the same satisfaction our grandparents did in the 20's. These items still move up and down against each other based on supply & demand of each, farming and ranching productivity, yield, and efficiency, mining and exploration productivity, yield, and efficiency, transportation costs, processing and warehousing costs, and ultimately, retail and brokerage costs. But at the end of the day, if your cash was always in GOLD, a 1lb steak is still worth relatively what it was worth to your grandfather and his grandfather. But we have to use dollars that are constantly printed out of thin air by the FED thus devaluing the purchasing power. So we think steak is going up. We think GOLD hasn't done anything compared to stocks that are valued in dollars. In reality. Steak is the same. GOLD has HELD it's value over a LOOONG time. The dollar has been absolutely decimated. And will continue to be for as long as they can force us to keep ignorant.
So stop viewing things as how many dollars they are worth. They are worth roughly what they've always been worth in true value. Start asking what the dollar is worth. Because where the dollar goes is what's important. And when the dollar can no longer be manipulated lower, what things are worth in relation to it are going to fall. Dramatically. But if your assets are in things that have been historically stable, you have the best chance to not suffer, assuming you can keep and protect your assets.
** Sorry for the edits, I get typing and make some errors.
"H-A: In return for the flattery, can you reduce the size of your signature? It's the only part of your posts that don't add value. In its' place, just put "I'm an investing savant, and make no apologies for it", as oldarmy1 would do."
- I Bleed Maroon (distracted easily by signatures)
