February 5, 2023

In the middle of October of 1929 – the stock markets of the United States reached impressive new all time highs. Investors were giddy and one of the leading economists of the day, Irving Fisher, said that the new all time highs were going to be the base level from that time forward.

Last week, the U.S. stock markets reached new all time highs. The most corrupt and exploitive president in the history of the United States crowed about the record breaking highs. He’s not an economist, he’s a guy who got his start in business with millions of dollars of seed money from his dad. He’s a guy who has never turned away from the chance to take a deal that left someone else screwed. He’s a reality TV star and an annoying talker with tiny hands. But none of that is important. Like the economist in 1929 – he called the top but he doesn’t realize that.

At the end of October 1929, just a few weeks after the giddy highs – the market began to crash and it just kept crashing. October 29th was the tipping point. All told – the stock markets lost 40% of their value and didn’t recover for a decade. The period leading up to the crash was a period of unbridled excess and thoughtless borrowing. Kind of like now…but milder.

Make no mistake, friends. A big crash is coming. Markets are inflated. The dollar is overvalued. Inflation is being hidden. Credit is easy and out of control. Your money and your investments are worth half of what you think they are. And, a correction is coming.

This isn’t going to be a healthy, buy the dip correction. The shit is going to hit it. The yield curve has not only flattened – it has inverted some time ago but that is being hidden by market manipulation, cash infusion, and strategic use of policy that isn’t intended to fix the problems but only to hide them.

What can you do to protect yourself and your investments? Several things:
1) Get out of cash – keep enough to pay a few months of expenses but not more – hyper inflation is coming.
2) Buy Bitcoin – this is your hedge. Don’t let the volatility fool you – bitcoin is an actual store of value
3) Put your money in big companies that aren’t going to go away for the long term. – I’m not talking about Amazon here. I’m talking about IBM and Ford and GE. Despite fluctuations – these companies are not going away. They will recover from any market chaos. Will they lose share price? Of course, everything will.
4) The Bond markets are a recipe for disaster.
5) Real Estate is due for another large crash – sell while you can or hold for long term if you can do it and it makes sense.
6) Vote for sanity – things like universal healthcare and universal basic income aren’t just for poor people looking for handouts – they are well thought out economic strategies that actually end up costing less than allowing people to get sick, starve, or become homeless.

Did I mention that you should buy bitcoin and get out of cash? What do you think will happen when all the paper money becomes worth less than the paper it is printed on? Yes, people will turn to sound money. Gold, silver, bitcoin, and Swiss francs. Only bitcoin is a sure thing. Buy some.

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