Countdown to U.S. Government Default

Posted on April 1, 2022 by MN Gordon

Central Bank Digital Currencies (CBDC) are coming.  And they’re coming much faster than most people care to think about.  Are you ready?

At the moment, roughly 90 central banks – including the European Central Banks and the Federal Reserve – are either experimenting with, or are in varying stages of CBDC implementation.  Moreover, these CBDC friendly central banks include all G20 economies.  And together, represent more than 90 percent of global GDP.

What’s important to understand is the adoption of a CBDC in your country of residence would accompany the abolition of cash.  This would be for your own good, of course.  To eliminate nefarious transactions and black markets.

If you value financial privacy and the liberty to spend your money as you please, then the rapidly approaching rollout of CBDCs is a major red flag.  Compulsory use of a CBDC, like a digital dollar for example, would give central planners complete oversight and control over your finances. Continue reading →

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Welcome to the Death Zone

Posted on March 25, 2022 by MN Gordon

Do you own a house?  Do you rent?

How you answer these questions likely influences your perception of inflation and the economy.

But what if the forces driving your perception are about to reverse…thus, standing your perception on its head?

We believe big, earth-shattering changes are under foot in the credit market.  A seemingly firm foundation may soon give way like liquified soil following an earthquake.

Where to begin…

Many investment gurus in the early 1980s were predicting the future while projecting the past.  After a decade of raging price inflation, the popular dogma was to pack one’s portfolio with gold coins, fine art, and antiques.  This was the proven, surefire way to preserve one’s hard earned wealth.

The United States, it seemed, was about to go full Weimar.  Howard Ruff, in his investment newsletter The Ruff Times,  was predicting the dollar would soon turn to hyperinflationary ash, like conifer trees in a California wildfire.  It was inevitable.  And imminent! Continue reading →

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What is the Strike Price of the Powell Put?

Posted on March 18, 2022 by MN Gordon

The Federal Reserve, through a multi-decade series of shady practices, finds itself in a very disagreeable place.  Policies of extreme market intervention have positioned the economy and financial markets for an epic bust.

Price inflation.  Unemployment.  Interest rates.  Stock market valuations.

These metrics are presently situated in such a way that the “Powell put” will be impossible to successfully execute for the foreseeable future.

Price inflation is at a 40 year high.  The unemployment rate is 3.8 percent, which is near its low.  The 10-Year Treasury note is yielding 2.15 percent.  While this key interest rate is certainly trending higher, it’s still near a historical low.

And for all the wild price swings and gnashing of teeth over the last two months, the S&P 500 has hardly slipped.  In fact, as of market close on Thursday March 17 of 4,411, the S&P 500 is down only 7.83 percent from its all-time record close of 4,786 reached on January 3.  It still has another 12.17 percent to fall before reaching official bear market territory. Continue reading →

Posted in MN Gordon, Stock Market | Tagged , , , , | 24 Comments

Is Your Wealth Durable?

Posted on March 11, 2022 by MN Gordon

“Money is not the definition of wealth.”

– Unknown

America’s Oldest Family Farm

John Tuttle arrived in the New World from England in 1632.  He was not empty handed.

He had a land grant from King Charles II.  It was for a small, 20 acre plot of land located between the tidal waters of the Bellamy and Piscataqua rivers, in what became Dover, New Hampshire.  There, the Tuttle family farm expanded and prospered for over three centuries.

Along the way, the Tuttle’s withstood many tests.  Revolutionary and civil wars, the industrial revolution, economic depressions, financial panics, relentless competition, plagues, droughts, government encroachment, and countless other assaults to prosperity.

For a business to survive nearly 380 years in the same industry, with the same family owners, is a remarkable achievement.

Started in 1632, Tuttle Farm became America’s oldest continuously operated family farm, passed down across 11 generations of Tuttles from father to son.  What was their secret? Continue reading →

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