“To concentrate the mind, I fantasize about managing Stalin’s pension fund where the penalty for failing to deliver 4.5% real per year over 10 years is death.” ~Jeremy Grantham
By Catherine Austin Fitts
This week on The Solari Report, I will present the Annual Equity Overview for 2017 and the Rambus Chartology Annual Review. In addition, Franklin Sanders of The Moneychanger will join me to review the precious metal markets in 2017 and the outlook for 2018.
In 2017, equity markets outperformed the general economy – by a lot. The question is – how long can this last? How long can investors achieve returns that are significantly superior to returns to labor, taxpayers, and the general economy – and do so without significant increases in productivity? Clearly tax reform will help as corporate tax contributions continue to decline as a percentage of government budgets.
Gold prices also outperformed, with gold producing its first double digit returns since 2010.
A review of global equity markets and our annual scenarios for 2018 is an appropriate lead into the following week theme on pensions funds. I ask the question, “Does Your Pension Fund Have a Deep State Drain?”
In Money & Markets this week I will discuss the latest in financial and geopolitical news.
In Let’s Go to the Movies, I will review Tom Cruise’s new film American Made about Barry Seal, the CIA pilot who ran a multibillion operation out a small airport in Mena, Arkansas. Seal used to make drops at Area 51 between running weapons to South America and returning with cocaine. He was assassinated with George H. W. Bush’s personal phone number in his little black book. I will talk about what this all has to do with the FBI investigation of the Clinton Foundation, the reported 9,000 sealed indictments around the country, Attorney General Sessions decision to return to pre-Obama marijuana enforcement, why American troops are still in Afghanistan guarding poppy fields and what that all has to do with securities outperforming the general economy on a long-term basis.
Make sure to post or e-mail your questions for Ask Catherine.
Talk to you Thursday!