Nov 20, 2017

How Much Debt Can The US Withstand?

We got 20 trillion in national debt, why can't we go to 35 trillion? Why can't we go to 40 trillion? 

Why can't we just continue to increase the national debt? 

It reminds me of the old adage about how many straws can you put on a on a camel's back? You don't know until you put that final straw that's one too many and then you break its back. 

So, can we go to 25 trillion? Maybe. But can we go to 30 trillion? We're not going to know. At some point we're gonna break the back of the camel with all this debt and then we're gonna find out how much debt we can pile on and it's not going to be pretty because then we're gonna have a crisis.

Nov 17, 2017

Dollar Crisis, Sovereign Debt Crisis

This is the third gigantic bubble that the Federal Reserve has inflated and when this one pops it's not going to be the third time's the charm. It's gonna be three strikes you're out because I think that this bubble is too big to pop. It's the mother of all bubbles and when it bursts there is not a bigger one that the Federal Reserve is going to be able to inflate to mask these problems meaning that we can't kick the can down the road anymore we're gone we're going to have to deal with these problems.

I think the problem that we're going to be confronted with is going to be much worse than a financial crisis, it is going to be a dollar crisis and it is going to be a sovereign debt crisis where the bonds that people are worried about are not some subprime mortgage that some guy borrowed money to buy a house that can't afford. It's going to be the US government that people are worried about and the the the solvency of the government and the Treasury bonds.

Nov 14, 2017

The Appeal of International Stocks

People who are in the US stock market are overlooking much better returns from much better valuation levels that are happening overseas. So, I think people should take advantage of the overpriced US stock market plus the overpriced US dollar and sell and move money abroad get into the international markets. (SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares MSCI Emerging Markets Index ETF (EEM))

Nov 13, 2017

Stock Market: The Valuations Here Are Extreme

The valuations here really are extreme, the complacency is also extreme. I mean investors are willing to pay very high prices and have very little worry that the stock market is going to go down.

People have very short memories, I mean we've had two major 50% declines in the stock market this century. Since 2000 we've had the market cut in half twice and it could easily happen again yet nobody seems concerned. 

Related trading instruments: SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM)

Nov 10, 2017

Thoughts On Powell As The New Fed Chairman

It's just more of the same but you know Powell embodies everything that candidate Trump criticized when he ran for office!

Instead of taking the opportunity to change the Fed he is simply reappointed or nominated somebody who is going to continue the very policies that he criticized when he was running for President and Powell is going to be just as political as Yellen except now the beneficiary is going to be Trump instead of Obama.

Video: "Trump Names Powell Fed Chairman"

RT Video: "Trump names Powell Fed Chairman"

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