With continued volatile trading in global markets, the Godfather of newsletter writers, 91-year-old Richard Russell, discussed the serious trouble in China and the United States. The legend also discussed the Fed’s hatred of gold and their astronomical balance sheet.
September 9 (King World News) – The World Is In Serious Trouble
Richard Russell: “China is the second biggest economy on the planet and what happens in China is therefore extremely important. China’s devaluation has put pressure on commodities. China’s leaders are obviously uncomfortable with the crash in the Chinese stock market.
In the meantime, the health of the US economy is in question. The Fed’s balance sheet is now an astronomical $4.5 trillion and the Fed is anxious to normalize its position. The Fed’s target of 2% inflation has not been reached, due in part to the world deflationary trend. Some skeptics are calling for a return of quantitative easing. But if the Fed turns again to QE it will be an admission that the US economy is weaker than had been thought.
The two big questions: Will the Fed raise rates, and if so when? The second question: will China upset the world economy?
The Fed’s Astronomical Balance Sheet & Their Hatred Of Gold
The trend of the stock market is down. Is it a correction or a bear market? There is no way to tell yet, but my subscribers are prepared for anything since we are out of stocks. Gold and silver are pure wealth and are outside the grip of the Fed. The Fed can’t create more gold nor can it reduce the supply. The Fed hates gold and the reasons are obvious.
The Fed, the new master of the universe, has pegged short rates at zero. The Fed had also been buying mortgages and other securities, in the program known as quantitative easing. This is the Fed’s way of bringing loan rates down. But try as it might, the Fed has not been able to push inflation to its 2% target. The Fed’s balance sheet is now an astronomical $4.5 trillion.
The question of the day appears to be whether the world’s second largest economy, China, will sink into a deflationary spiral. In the face of this potential danger, the Fed has hesitated to raise rates. My advice to subscribers is to stay out of the stock market and stay with silver and gold bullion.
The latest issue of Barron’s describes professionals as betting that the market will be higher by 10% by year end.
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Peace Of Mind
I hope my subscribers had a quiet “peace of mind” Labor Day. Remember the Russell choice – if you had your choice of a billion dollars or eternal peace of mind, my choice would be peace of mind.
I like the excitement of capitalism. But capitalism is no path to peace of mind. Consider this: you work half your life in an effort to be successful and wealthy, but wealth is just stuff and things. You only eat three meals a day, you only sleep in one bed and your work supplies you with stuff and things that you’ll never need.
Next July I’ll be 92 years of age. Yesterday I asked my daughter Daria why, on a deep level, I never felt loved. She replied with wise words. “If you love other people and express it, you’ll love yourself and feel lovable.” I tried it and it worked. So I want to declare that I sincerely love all my subscribers. God loves us all and forgives us our trespasses and worst crimes. My goal: A world where all people are free to love one another, and anger and cruelty are forgotten words. God bless America.” I would urge all KWN readers around the world to subscribe to Richard Russell’s 91 years of wisdom and remarkable writings at Dow Theory Letters by CLICKING HERE TO SUBSCRIBE.
***KWN has also released the extraordinary Marc Faber interview, where he discusses why this global collapse will be much worse than 2008 – 2009, what investors can do to protect themselves, what to expect in major markets, including gold, and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***KWN has also now released the tremendous Rick Rule interview, where he discusses the chaos in China and global markets as well as what to expect in the gold and silver markets CLICK HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: The Endgame Is In Sight As The Propaganda And Lies Increase CLICK HERE.
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