What we know now
Coordinated global central bank market manipulations have distorted price discovery mechanisms impacting valuations in stock, bond, and property markets. Politicians are taking credit for record-high stock prices and the unprecedented 5,000-point surge in the Dow Jones industrial average.
What you need to know
Things are not at all what they seem, and it’s not different this time, nor will it be different next time—it’s never different.
The credit crisis, which began in 2008, was the result of too much private and public debt, too much credit and too much leverage. After the crisis began, Alan Greenspan, the previous Federal Reserve Chairman, stated that the “systemic fraud” that was committed across the banking system helped worsen the crisis. Fast forward to December 2017 and the levels of debt, credit, and leverage in most markets exceed 2008’s pre-crisis highs.
Is this a warning sign?
Bet the ranch on it. Have central banks eliminated volatility? No chance! Central banks have inflated gargantuan hyper-inflation asset bubbles in select asset classes. Just take a look at bubbles in the art market. A Van Gogh recently sold for $81.3 million, which was not a bad price, but Christie’s just sold Leonardo da Vinci’s Salvator Mundi for a record $450.3 million. This is hyper-inflation at its best.
The same hyper-inflation is occurring in the property market as well. In 2015, Saudi Arabia’s Crown Prince Bin Salman purchased the Chateau Louis XIV, the 54,000 square foot palace near Versailles, for a paltry $301 million. Now, select properties in London, Hong Kong, Singapore, Bel Air, Los Angeles, Florida and New York have homes and apartments listed well above the $200 million-dollar price point. The winner is the Odeon Tower penthouse in Monaco, which is selling for $440 million.
A key driver behind these property price surges in Asia, the United Kingdom and the USA is that many of these expensive flats and homes are investment vehicles designed specifically to launder money and evade taxes. But, per the non-elected ex-Goldman Sachs officials running the world’s largest casinos — the Federal Reserve, the European Central Bank, the Swiss National Bank, the Bank of Japan, the Bank of England and the Bank of China — “There is no global inflation.” Which is a bold-faced lie!
Albert Einstein said, “Insanity is doing the same thing over and over and expecting to achieve a different result.” Just like the great financial crisis of 2008, no one is paying attention to the asset bubbles in our pre-recessionary global economy. What have we, or our regulators, learned from the credit crisis of 2008? Apparently, absolutely nothing. In fact, the only thing that we have witnessed is the .001% getting richer, the extinction of the middle class and the poor getting poorer.
Just like the great financial crisis of 2008, no one is paying attention to the asset bubbles in our pre-recessionary global economy.
The wealth inequality gap has widened to epic proportions. Consumer credit and total debt have expanded to the point that another crisis is imminent. Why aren’t people worried? Because it’s expected that our omnipotent central bankers will, once again, print unlimited amounts of money and offer infinite bailouts to insolvents. What could possibly go wrong?
When things go terribly wrong, politicians and central bankers always look to place the blame squarely on anyone or anything other than their policy failures. The UK poured petrol on the blaze by implementing misguided austerity measures which decimated the middle class. Those in power can never be responsible for our countries’ problems. When the next crisis happens, those in power will blame Putin, the Russians or — in the case of the UK — Brexit, of course!
When things go terribly wrong, politicians and central bankers always look to place the blame squarely on anyone or anything other than their policy failures.
They fooled you once; they fooled you twice—don’t let them fool you again! We need to rein in all of the central banks. If not, these bubbles will pop and banks will fail. Of course, the central bankers and politicians will claim “no one could have predicted this”, but it is completely predictable simply by looking at the reckless amounts of debt; low productivity; skyrocketing, housing, tuition, and medical costs; stagnant wages, and massive asset bubbles that are the result of failed policies pushed by the central banks.
As dark storm clouds assemble and begin to roll in over the economy and the Federal Reserve starts priming up its printing presses, remember what and whom got us into this mess last time. Don’t buy into the VERY fake news media and “deep state” strategy: pump, dump and blame the next credit crisis entirely on Donald Trump. It’s time to hold the central banks responsible for policy misdeeds. 2018 is the time to protect yourselves and your family’s assets.
And now we get to bitcoin. It makes sense for investors to diversify to protect themselves. My preference is physical gold and silver, but many have gone into cryptocurrencies. Bitcoin is a highly volatile instrument, and perhaps it’s a bubble; but even if it is, the price can go much higher.
You need to protect your assets because, sadly, no one else will. It’s different this time all right—and you have been warned.
Getting to know Mitch Feierstein:
- How do you spend your days?
In addition to acting as an advisor to several family offices I am a Managing Director at Storia Inc. a multi-media platform created to change the paradigm in digital content creation, delivery and consumption. Storia will leverage the generational shift away from traditional media to 'mobile and video first'.
-What in your answer to Q1 is especially important to you and why?
It is important to make an impact that can positively influence change.
The west has lost its way, capitalism and free markets have been bulldozed by the interests of .001% of the USA’s gargantuan Military Industrial Complex. Add in a dash of 'narrative designed to move forward specific political agendas', a controlled media, owned by six mega corporations and a cabal of reckless misguided academic central bankers - you have the perfect recipe for either:
1) The worst global economic depression in history, or
2) Civil war, as the left’s political repression of speech, thought and conduct has become 'nazism of the left,' which will end badly, or
3.) World war.
- What drove you to focus on finance & investment? Was there a particular moment you can remember that led you to this field?
Yes. When I was in college I was fascinated by everything 'Wall Street'. I was drawn in by the action and went to work in World Trade Center, Tower I in the very early 1980’s. OUCH.
- What drives you professionally?
Every day presents a different set of challenges.
-In your opinion what are the three biggest problems facing the developed and developing world?
1) Non-elected out-of-control rouge central bankers acting as risky, highly leveraged speculative hedge funds – picking market winners and losers.
2)Non-elected politicians in Brussels that want to strip EU citizens of sovereignty, liberty and democracy.
3) Extremism by the left: A 'social-justice' movement designed to end conservative thought. It seems like totalitarianism because it is. The left are only tolerant, accepting, inclusive if you agree with their opinions – when you disagree they become intolerant, violent fascists.
-If you hadn’t become an investor what would you have done?
Played golf on the PGA tour.
-If you look at recent history, can you identify a turning-point that explains how we come to face the peculiar challenges of today?
It was the excesses of the 1980’s and 35+ years of failed neo-liberal thought and policies that began with bill Clinton and ended with Obama. In reality, this was plunder, (financial fraud), on a massive scale that saw wealth inequality ratios skyrocket.
It started with Larry Summers and Robert Rubin’s convincing Bill Clinton to scrap Glass-Steagall – this allowed securitisations and use of derivatives as speculative financial instruments or weapons of mass financial destruction that allowed creation of massive credit, leverage and debt.
-What are the lessons we failed to learn during and since the 2008 crisis?
Nothing learned – we have re-inflated the same bubbles only larger – no meaningful deleveraging and risk assets are now even more risky.
- Name one measure we might implement immediately to improve the situation.
Immediately stop the central banks madness.
- If you were a President / Prime Minister what would your first three pieces of policy be?
1) Audit, shudder the Federal Reserve Bank, deflate the bubbles and jail the financial terrorists.
2) Disband and dismantle the deep state and shadow government operatives working on behalf of the military industrial complex en mass.
3) Maintain sovereignty – secure the nation- ensure democracy- end the policy failures and restore growth.
- What was your biggest & / or your most recent mistake?
Biggest mistake: owning a huge position on Lehman options.
Most recent: assuming central banks would act rationally.
- Name the book that changed you.
Alexander Hamilton by Ron Chernow
- What would you do differently if you were to start all over again?
Nothing, no regrets I move forward!
- Give our readers, members and subscribers a piece of advice that has served you well.
Never invest in anything you don’t fully understand and never, ever believe that 'it is different this time'.
- What is your main anxiety where you and / or your family are concerned?
How the coming global financial collapse unfolds and will DC be stupid enough to allow WWIII.
- What gives you hope for humanity?
As we near our darkest hour, a ray of sunshine will brightly illuminate the process in which we may begin to rebuild our crippled, corrupt and broken financial and political systems from the ground up… The revolution is coming prepare now…
Latest posts by Mitch Feierstein (see all)
- Pump, Dump & Blame it on Trump – 2018: What you need to know - January 3, 2018
- Google, Amazon, Facebook & Twitter are evil - November 27, 2017
- What happened - September 18, 2017