Catherine’s Money & Markets Commentary: August 16th, 2018

13 Comments

1. Thank you for this week’s Solari Report, and Money & Markets – fabulous as usual!

   Looking for the letter discussed in Ask Catherine in the Money & Markets about radiation. Where can we find this?

   Also, is there a link on the Solari website where one can click once and see all the recent News Trends and Stories articles uploaded?

   Thank you again!!

   1. The link is in the notes in the Money and Markets section https://home.solari.com/wp-content/uploads/2018/08/sr20180816_Notes.pdf
      Here it is http://akiomatsumura.com/?p=2460

      We are looking for a way to do a one click solution for NT&S…percolating!

2. Great insights on the Reset. Look to the 1970’s for our last inflation ‘Reset’. Going off the gold standard in Aug 1971 (‘Those darned currency speculators!’ – Nixon) lead to HUGE inflation and currency devaluation for the next 10 years. Precious metals, oil, gas and real estate shot up in ‘price’ (not value!), catching everyone by ‘surprise’. Nixon blamed US companies and greedy American workers by freezing wages & prices – later Ford used to wear a lapel pin ‘Whip Inflation Now’. The average home price in California went from $33,000 to $114,000 between 1973-1982 & mortgage rates went from 8% to 16+%. Reagan said that ‘Inflation was a grave threat to the country’ in 1981. The people who knew the backstory of the Fed, money and inflation saw an opportunity to protect their wealth while those who believed the official story and stayed in paper assets lost 80% of their purchasing power.

   Today’s reset will follow a similar pattern … with hard assets preserving wealth and paper assets losing real value. So your insights into the Reset are VERY timely and helpful. BTW, CNBC’s Diana Olick recently wrote an article saying that the Southern California real estate market is ‘crashing’ and since California leads the country, that crash may spread to the rest of the country. Factually, 2018 sales volume is the second best year for sales in the last 12 years. So the mainstream ‘reporters’ are at it again. Many buyers are nervous and the harvest has begun!

   Real estate in the 3.0 Economic Zones will increase – dramatically increase. And the MAGA repatriation is a KEY factor. And yes … inflation will be in the daily headlines once again.

   BTW, Venezuela handled their runaway inflation like any good politician would: They simply cut 5 zeros off of every price! Problem solved! Next their generals will be wearing Whip Inflation Now buttons, too.

   VERY valuable insights as usual Catherine – especially valuable for anyone under 60 who didn’t live through the Stagflation and gas lines of the 1970’s. The less one knows about ‘Money’ and how it works, the more they will be harvested!

3. I’m conflicted Catherine. I’ve been thinking about this since your Rise of the Asian Consumer report.

   I agree with your comment that no leadership has the right to attack their citizens but something is going on that has a huge sense of urgency behind it. I don’t know what it is. If it’s privatization shouldn’t eminent domain be enough? Burning everything to the ground means they need this ASAP. So why the urgency?

   Is it the rise of the Asian consumer or is it something else?
   I will be cautious of hope porn and have more of a critical eye on Trump but my speculation something bigger than privatization is going on.

   1. If they are going to repatriate, they need to do fast. It is like a bandaid. You need to take off fast. It may also be possible that they are concerned about tension (electronic war in South China Sea) and trade balances with China. And of course there is always currency risk – such as how much more life the dollar as reserve currency has. However, for such a major change of policy, if I were them, I would want to go as secret as possible and as fast as possible. Gives people the least chance to play you, mess with you, question you, etc. Finally, there are wildcards – geophysical risks, etc. This is like a body in trauma. It is bringing the blood back to the heart, lungs and brain.

      1. Reading China Rx. Just finished page 95. Ugh!

         We have been royally screwed. Yes, I can really understand why the band-aid needs to be ripped off. Talk about trauma! America is in free-bleeder mode.

         FYI, pine needles are a good natural source of vitamin C. Just make an infusion or tea of the needles. In the winter the deer outside my window are always eating away at the tips of the pinon pine trees. It’s a good thing that pine trees are everywhere in the US. We will be back to using herbs and what is growing naturally. We may become more healthy for it.

         Why do we not have a new WPA program?

         1. We probably will have a new WPA program. My grandfather was a part of that program in Wisconsin. But that means that things will go from bad to worse.

            Why not have an economy that is not controlled by the government and a currency that is not controlled by the Fed and Mr Global? The free market works SO much better than what we have had for the last 100 years. Did you know that the first Model T’s cost around $1,300 dollars? And 15 years later, they cost $290? Prices DECLINE is the real economy while people prosper.

            Yes … I’m also wishing for world peace and for the children to not go hungry too. Well, I can dream ….

            1. Yes, I would love a free market. And a state owned bank. But, alas, not going to happen in the near future. One can only hope it happens in my lifetime. If I remember correctly my grandmother bought a brand new Chevrolet in the 60’s for $2500. People actually bought new cars yearly, then. Strange and wasteful but there you have it.

               Then there’s the competition for resources with the Chinese and debasing of the $. I bought a car in the mid 80’s for $1500. Super good car I drove for years but not new. I sold it for nearly the same amount that I paid. Free use for years. My last car I bought 3 years ago for nearly $30K. Like buying a house in the 70’s. My sister’s first house cost 35K. That house will sell for at least 10-20 x that today. Depending on location.

               It’s just that I live in a rural area now and I see so many young people drifting through that are highly educated but their majors are in the arts and humanities, etc. Not in the 4 subsidized fields in the US: Wall St., DC, silicon valley or Hollywood.

               We took Belgian visitors to a tiny airport nearby to fly to Denver. There were 6 passengers on the flight. There were 6 TSA agents checking them in. I suppose that is today’s WPA. We are still in shock that there are 6 TSA agents in the tiny airport. There are only 3 flights out per day. That makes 18 passengers for goodness’ sake. The agents were incredibly thorough in their work. Amazing. Felt like I was at an airport in Venezuela in the mid ‘80’s. The first time I ever saw a machine gun. The police carried them in the airport in 1985 in Caracas.

               A friend of mine collects books. She has a huge library. WPA writers wrote a book on each State of the US in the 40’s. They are amazing. Very fun to read.

               I was reading China Rx. I read that thousands of chemists lost their jobs as the manufacture of the drugs moved to China. My husband and I were trying to think of a good business that is not polluting that one could start here to employ some of these brilliant young people. I think that once people realize where their drugs come from there will be opportunities to re-shore drug manufacturing in the US. But, I’m not interested in pharma drugs. I took Vioxx for 5 years until the radio announcer one morning reported to throw out your Vioxx…lost all faith in pharma then. 60,000+ reported deaths in less than 5 years from that one drug. How many deaths were not reported?

               Maybe, the electric grid will go down. Nope, not a chance. How would tptsb control the herd if the power goes out.

               All is not gloomy however. I am seeing many people abandoning their denial. One by one. Then…?

               It’s a beautiful day. The sun is shining and there is beauty all around. We are really blessed!

               And… we have CAF, Solari, Harry Blazer, Ulrike Granögger and the whole marvelous Solari team.

               I am thankful.

               Aren’t we lucky?!

               Big smiles!

            2. Sandra:

               Your post says it all. Made my evening.

               Yes. We have each other. That is pretty wonderful as I remember the dark days when it was not so. Felt like 40 days in the desert. Never again because now we know.

               I am sitting in a beautiful home on the top of the French Pyrenees. I took a stroll today and crossed the border to Spain and then strolled back past the monument honoring those who died in the Spanish civil war. The breeze was soft, the sun bright and the weather cool – sweater weather. If you turn on the TV there is one news story played 1,000 times – its hot and everyone is at the beach.

               Life is good.

               More smiles…

               Catherine

   2. They need to swing in significant operations and people at a very fast speed if they want to make sure the national security machinery is more self sufficient and resilient. This is an enormous move. Speed is essential for secrecy. The more others know, the more the move will be played or messed with.

      1. Catherine,

         I am so happy for you. I am loving your travel reports and you deserve all the delights the world has to offer. My son loved the Where’s Waldo books as a child. I often think… Where’s Catherine today?
         Thank you for all you do.

         We are not alone. 🙂

      2. I understand what you are saying. I am just not quite sure what to pray for. I’m hoping this covers it: Dear Lord, deliver us from evil.

         Have a lovely day.

         1. Amen!

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