Are We Staring At A Coming Systemic Breakdown & The End Of Capitalism?

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For any problems they face, governments all over the world are now conditioned to simply deficit spend or issue new $trillions in ‘thin air’ currency.

So how in danger are we of that recklessness leading to a breakdown of the entire system?

Respected financial analyst Michael Every suspects we’re closer than most realize.

As governments continue to flood the world with debt-funded stimulus, they not only fan the flames under the social powderkeg of wealth inequality, but they are destroying their own powers in the process.

Up until the Great Financial Crisis, a dollar in new federal debt issued resulted in more than $1 in incremental GDP. But no longer:

<img class=“aligncenter wp-image-612011 size-large” src=“https://peakprosperity.com/wp-content/uploads/2021/09/1-debt-1-GDP-1024x676-1.png” alt="“Federal Debt Growth vs GDP Growth” width=“512” height=“338” />

That indicates the government is now at the ‘pushing on a string’ phase: it can’t grow out of its problems. Issuing new debt only digs the insolvency hole deeper at this point.

Which is why Michael agrees that now, more than ever, is the time to partner with a financial advisor who understands the nature of the risks and opportunities in play, can craft an appropriate portfolio strategy for you given your needs, and apply sound risk management protection where appropriate:

Anyone interested in scheduling a free consultation and portfolio review with Mike Preston and John Llodra and their team at New Harbor Financial can do so by clicking here. And if you're one of the many readers brand new to Peak Prosperity over the past few months, we strongly urge you get your financial situation in order in parallel with your ongoing physical resilience preparations.

We recommend you do so in partnership with a professional financial advisor who understands the macro risks to the market that we discuss on this website. If you’ve already got one, great.

But if not, consider talking to the team at New Harbor. We’ve set up this ‘free consultation’ relationship with them to help folks exactly like you.

SCHEDULE YOUR FREE CONSULTATION

Prefer to listen offline?:

https://peakprosperity.com/are-we-staring-at-coming-systemic-breakdown-the-end-of-capitalism/

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Adam, hearing an interview with Every is like a bucket list item that I never thought of before I love his regular columns on zerohedge. So perfectly in tune with the values of Peak from what I can tell.
Wish I could skip out on the rest of the work day to listen to this now but Ill have to wait till tonight.
 
Thanks

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Whenever Im not sure which way to go with investments, I like to return to the basics. Certain fundamental “laws” that always end up proving true. The most basic, most proven law, which almost nobody follows, is “BUY LOW, SELL HIGH”.
Everybody knows it but very few actually do it. So how does one “buy low and sell high” in the current situation? Everything is high. Well that means one thing is low…dollars.
Theres no point in buying stocks and bonds, theyve topped out at all time highs. Gold is high, real estate is high, its all high. So now is the time to sell those things and buy dollars.
I agree with the guest and Adam; No government or fed is going to allow the market to stay down, they will use every means at their disposal to pump it up. Yes, ultimately. But before they go to the next extreme there will be a deflationary crash and a rush all over the world into safe haven US DOLLARS.
At that point your dollars will be very valuable measured against stocks, bonds, real estate, and etc. Remember the rule, buy low sell high. So that will be the time to buy stocks, bonds, real estate and gold because the powers that be will destroy the dollar to pump those things back up.
We already seeing interest rates rising, despite the feds attempts to keep them down. I see some bubbles about to be pricked in short order. Have plenty of dry powder and ‘buy when there’s blood in the streets’.
[ This is not investment advice, etc and so forth ]

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This was a really good interview, all the way through. Thanks!
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Lots to think about here. I like Michael Every’s focus on the global picture. It’s important to look at what’s happening globally, in addition to one’s own country. The idea of investing in ‘what rich people value’ was an interesting angle. I wonder if there are differences in values between Old Money and the Nouveau riche?
All four of you had great advice. I always like to hear what Mike and John have to say. If I were living in the U.S. I would definitely contact them - I feel I could trust them implicitly.

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When I see the suggestion that capitalism needs growth to survive, I post the following cartoons. Capitalism loves growth, but history is full of examples of businesses that have survived without the need for usury, aka interest bearing debt. Hence, without the need for growth to cover interest costs. Bankers may need growth, but who need them; economies can survive without them. Also, credit unions can work without charging interest.

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I am glad I had a chance to listen to Michael because I don’t tend to like his articles that I read on Zerohedge which I think tend to have a lot of unwarranted political digs (not that I like how the economy is being handled).
About six months ago I had a conversion similar to Michael in that I was basically 100% cash (at least in my liquid assets that do not include real estate). I had this uneasy feeling that it was possible for the dollar to become either worthless or at least worth less (a lot less). I just couldn’t afford the possibility that 100% of my liquid assets would become substantially devalued. So I decided to diversify. I will still stay at least 40% cash but I am adding 15% precious metals, 12.5% US equities, 5% developed international market equities, 7.5% emerging market equities, and 15% commodity equities. The international equities are concentrated in countries that have a substantial trade surplus. I am gradually building up to the 55-60% non-cash level. Right now I am about 70% cash. I don’t want to buy it all in a day and the next day have a crash.
I also recommend this article by Ray Dali https://seekingalpha.com/article/4414285-why-in-the-world-would-you-own-bonds . Obviously it would be nice to have him on but I know that would basically be impossible.