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Time to stop cheering the wrong people! You can’t trust anyone!

This post was originally published on jpfs.com

This week, I aimed to delve into the potential risks posed by Black Rock and examining how they’ve reshaped the narrative surrounding Bitcoin, ultimately leveraging their financial and political clout to potentially impact the industry detrimentally.

Additionally, I had my concerns regarding Circle and USDC, highlighting their role in paving the way for the potential introduction of CBDC. I’ve articulated these views in numerous reports, expressing why I staunchly oppose supporting their endeavours, given their alignment with the ideology of “You will own nothing and be happy” – a notion that should raise concerns.

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However, while researching, I stumbled upon a recent video from Coin Bureau that succinctly echoes the sentiments I’ve been expressing for some time. Instead of reiterating these points and risking sounding like a conspiracy theorist, I urge people to watch their video, the link to which I’ll provide at the end of this report.

 

Let’s pivot to discussing the markets.

The recent weakness observed in equity markets is no surprise; much of the surge was fuelled by speculative fervour and a rise in purchases from young investors chasing the latest trend, AI.

 

While I’m all for investors capitalizing on opportunities, and I commend fund managers who quickly identify price anomalies and take advantage of short-term volatility, all players need to have a sound exit strategy in these markets, particularly in anticipation of a possible recession.

As an older individual, I naturally approach feel-good market narratives with scepticism, especially during an election year when trusting government figures is dangerous. This scepticism is necessary for critical thinking and caution in the face of uncertain economic outlook.

Over the past six months, claims of an improving economy, controlled inflation, and anticipated interest rate cuts in 2024 have been regurgitated ad nauseam, propping up equity markets. However, these assertions lack substantive truth, and the supporting statistics are hardly reliable benchmarks.

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I don’t buy into the notion that the economy is thriving as many suggest; real inflation exceeds official figures, impacting consumer spending and inevitably influencing employment trends. Pressures are already manifesting in the real estate sector, and with interest rates showing no signs of weakening, we must brace for further challenges ahead.

 

While those of us with the means to capitalize on market movements are privileged, the vast majority of the public, will likely face hardships. And the notion that a change in administration, such as Trump’s potential return to the White House, will swiftly rectify the situation is misguided.

 

A change in administration can bring about significant policy shifts, which in turn can have profound effects on the economy. However, the impact of such changes is often gradual and complex, and it’s important to consider a wide range of factors when assessing their potential outcomes.

I’ve been vocal in my criticism of the current American administration for its mishandling of economic affairs, (among other issues). However, the looming spectre of American and Western world debt threatens to overshadow us all for many years, regardless of who occupies the presidential office next.

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What we need is a sustained period of economic growth, wherein companies thrive, and employees witness real wage increases. However, this prospect remains elusive, given years of wasteful government spending, often squandered on non-productive ventures and ideological pursuits, not to mention foreign policy and climate change initiatives. The urgency and necessity of electing politicians with responsible fiscal policies and sustainable economic growth cannot be overstated.

Responsible fiscal policies need to be seen across the whole Western world. Central bankers alone lack the capacity to rein in inflation amid rampant government spending, which does nothing but erode the value of currencies like the dollar, Euro, and pound sterling.

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While Trump may advocate for tax cuts and increased oil production, their effectiveness to revitalizing the American economy remains uncertain. Moreover, the challenges posed by porous borders and widespread illegal immigration compound existing economic woes, with millions of undocumented individuals placing strains on public resources.

Until our policymakers acknowledge that continually introducing trillion-dollar stimulus packages and excessive foreign aid budgets are unsustainable, a return to widespread prosperity seems remote.

 

For now, those of us who are able to use capital markets with short-term trading strategies and prudent investments programs will find ample opportunities to bolster our portfolios. However, allocating resources solely to assets reliant on genuine economic growth for another year or more may not be prudent.

 

As promised, the link to the Coin Bureau video which echoes points I have raised for months. Enjoy.

The post Time to stop cheering the wrong people! You can’t trust anyone! first appeared on JP Fund Services.

The post Time to stop cheering the wrong people! You can’t trust anyone! appeared first on JP Fund Services.

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