Financial Strategy Revamp

Desperation once again wields it's ugly head, or desperate times call for drastic measures? The central bank of empire zero interest rate policy (ZIRP) has caused a $100,000 reduction in financial resources over the past ten years. Those investments have only yielded $2.50 per year in interest and dividends. The conservative approach is obviously not working.

In the meantime, the stock market and housing market has literally gone through the roof. Both are now now huge bubbles. The doomsayers have been predicting a major crash for several years now. However, the bubbles just keep growing. Why?

According to Chris Martenson of PeakProsperity.com, the global central banks have recently accelerated the purchase of dodgy "paper." In the last three months, over $1 trillion has been added to their balance sheets. At that rate, over $4 trillion will be accumulated by year's end. In return, the global central banks allegedly flood the market with "printed" money. Martenson asserts that the massive liquidity has been responsible for pumping up the bubbles. "That money has to go somewhere," he added.

Yet, the protocol of the sleazy "quantitative easing" (QE) policy is to deposit the "printed" money into the reserve accounts of the banks which the dodgy "paper" were acquired. Of course, global central banks are now purchasing stocks and engaging in other questionable practices. So, perhaps money is being loaned for free to the "one percent."

A new investment strategy may reallocate some financial resources to equities. Gains are much higher than bonds or money markets. Yet, the risks are quite apparent. Stocks are very overpriced. In addition, price-earnings ratios are well above 45 in most cases. Valuations are up because of leveraged stock buybacks. Clearly, there is risk.

On the other hand, there does not appear to be any normalization of interest rates on the horizon. Zero or negative interest rates could go on in perpetuity. There also doesn't appear to be a ceiling for debt creation. Public and private debt in empire alone is over $56 trillion. None of that debt can ever be repaid. Yet, the debt keeps accumulating at an exponential rate.

As long as the global central banks continue the sleazy policies, there will be no limit to the bubbles. Nothing could even remotely cause a crash. Stock prices could go to $1 million per share. Tiny houses could become worth over $1 billion no problem. So, is time to take a chance and ride that bubble up into the limitless sky? Yes!