 |
Once confirmed, as I am sure she will be, Janet Yellen will stop at nothing to help the economy.
She will print more money than ever, buy more bonds than ever. Even purchase distressed real estate, equities, probably even European and other sovereign national debt. She will pull out all the stops.
But based on all of my research, none of it will amount to a hill of beans. Central bank monetary policy will have little or no impact on the markets going forward. At best, all it will do is cause short-term gyrations and confusion.
Instead, what will matter is this: Politicians in Washington and Brussels.
 |
| Leaders in Washington and Europe are getting ready to tax you more and even confiscate large portions of your wealth. |
Why will they matter more than central bankers in the future?
Because the simple truth is that they are getting ready to tax you more than ever and even confiscate large portions of your wealth.
Years ago when I foretold of the financial crisis the Western world is now going through, I didn’t think the leaders of the developed Western world would be acting like they are. I figured central bankers would print money into oblivion, hyper-inflate the debts of the U.S. and Europe, and that would be it.
There would be little or no interference from politicians around the globe.
But all that has changed. Instead, we now live in a world where the forces that are quickly unfolding are far greater and stronger than any number of central bankers combined, and the leaders of the world know it.
The tipping point was September 2011, when gold failed to respond to the announcement of QEIII and began to crash.
Its fate was sealed in March of this year when European Union (EU) finance ministers confiscated the wealth of all deposits above 100,000 euros in Cyprus banks. And now …
Leaders in Washington and Europe are getting ready to tax
you more and even confiscate large portions of your wealth.
Don’t believe me? Then consider the following …
The European Union is now penning a law to legislate Cyprus-style “bail-ins” of depositors in all European Union banks. That would make all deposits above 100,000 euros creditors of the banks.
Last week, the European Central Bank came out in favor of the bill. If you have money in a bank in the European Union, get it out of there as fast as you can.
In France, new and very tough reporting requirements have virtually shuttered the nation’s gold dealers, sending them packing. Try buying gold anywhere in France today. It’s almost impossible.
The European Union has passed a financial tax to take effect next year on all stock and bond trades done by any of its citizens worldwide.
In Italy, a “Google” tax is being introduced to force multinational companies like Google, Microsoft, Facebook and many others to pay a local tax on the services they render.
In September, authorities in Poland confiscated bonds held in private pension funds without giving 1 cent of compensation to pension owners.
In Washington, proposals are now under way behind closed doors to enact similar depositor “bail-in policies” for U.S. banks.
According to a well-placed source, Washington is now preparing contingency plans to confiscate and nationalize IRAs and 401(k)s.
And then there’s the ongoing National Security Agency spying, which has not stopped. Admissions on international wiretapping and spying now from Europe. Increasingly authoritarian governing in Washington and Europe.
All this, and more, is why I say monetary policy won’t matter much in the months and years ahead, and instead, the actions our leaders take will. They are out to save their own hides and their desperate bankrupt governments. Not you.
It’s all part and parcel of the war cycles I’ve previously told you about and how they began ramping up this year and will rise in a feverish pitch all the way until 2020.
They will be characterized by rising taxation, confiscation of assets, trade and currency wars, cyber espionage, riots in the streets, civil and international wars.
These are the forces that will drive the markets in the years ahead. Not monetary policy.
We will see a great battle between the public sector and the private sector, in opposite sides of the ring. Think of the American Revolution and no taxation without representation. Think of the French Revolution from 1789 to 1799.
Think of the recent Million Mask March in England earlier this year. Think of the Occupy Wall Street movement, but on steroids and turning against Washington.
That’s where we are headed. That’s what will impact the markets most. Revolution, rebellion, civil war, chaos in the streets and more.
For me, I have already moved my email and digital storage offshore, to Swiss-based providers like mykolab.com and wuala.com. I will soon move my money offshore as well.
I will seek as much financial privacy as possible, and I will do whatever methods are legally still available to me to preserve and grow my wealth.
Thing is, I won’t bury my head in the sand or withdraw from the markets thinking we face the end of the world and everything will crash.
Quite to the contrary, as leaders in the developed Western world become more authoritarian and move to confiscate wealth, most markets will actually respond very positively.
Seems illogical, I know. But the facts of the matter are this:
In times of war and potential confiscation of assets, stocks can become safe havens as money is pulled out of sovereign bond markets to be invested elsewhere.
In times of war and potential confiscation, commodities can take flight as investors begin to hoard tangible assets and portable wealth.
In times of war and potential confiscation, the real bull markets in precious metals truly unfold.
My top recommendation right now: You can largely ignore the central bankers. Instead, keep both eyes on the leaders in Washington and Europe and what they are doing.
That way, you will be way ahead of the game and fully prepared to protect your wealth and grow it in the months and years ahead.
I’ll be there to help you, in my columns and more actively with specific recommendations in my monthly Real Wealth Report.
Until next week, best wishes …
Larry
P.S. For breaking news on geopolitical developments that will have a dramatic impact on your precious metals and other investments, give my Real Wealth Report a zero-risk test drive.
Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader.
Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.
{ 6 comments }
One day at a time larry sad situation money is the root to all evil the sheeple have been warned.The STATISTS always want something for nothing time to plant a victory garden LOL. Buy gold and silver and have faith and pray see ya.
Hi Larry,
What is your opinion on energy independence of US in coming years?
wow
Larry, How the hell I am I supposed to move my money offshore? What offshore bank do I use to write checks against while I live with my family in Plymouth Michigan to pay my bills? Where do I do a tax free rollover of my 401K outside the US? Do you have some practical advice here? Have you heard about how difficult it is to do an international wire transfer?
forewarned is forearmed
But based on all of my research, none of it will amount to a hill of beans. Central bank monetary policy will have little or no impact on the markets going forward. At best, all it will do is cause short-term gyrations and confusion.
If you have an IRA or 401(k) this is worth reading.
Excerpt; "Instead, what will matter is this: Politicians in Washington and Brussels. Leaders in Washington and Europe are getting ready to tax you more and even confiscate large portions of your wealth. Leaders in Washington and Europe are getting ready to tax you more and even confiscate large portions of your wealth. Why will they matter more than central bankers in the future? Because the simple truth is that they are getting ready to tax you more than ever and even confiscate large portions of your wealth."