With unprecedented events taking place around the world, the Godfather of newsletter writers, 90-year old Richard Russell, covers everything from how he almost died in World War II, to coming radical events that will collapse global currencies.
Richard Russell: “Warren Buffet was asked how he came to be one of the richest men on earth. He answered that, 1) he was lucky enough to be born in America, 2) he had good genes, and has lived to his eighties, and 3) he understood the almost miraculous power of compounding through time.
Turning to the present situation, copper has fallen to a four-year low, and oil has dropped into the fifties. The Fed has not been able to crank the economy up to its desired level of 2% inflation. The Fed, in its frantic effort to counter deflation by producing inflation, has turned almost everything into a bubble. Bonds are in a bubble, stocks are in a bubble, real estate is in a bubble. The Fed has created an “everything bubble.”
Seeing prices rise, money from all over the world is pouring into the US dollar and US stocks. This is creating the wild and wooly third phase of this bull market that I have been predicting. The choices are to buy the US dollar or to buy US stocks. No one knows how large the “everything bubble” will grow to. My thought is that my subscribers should take a position in the US stock market with a vehicle such as DIA (Dow Industrials ETF) or SPY (S&P 500 ETF) and be prepared to bail out at your own discretion. I view the coming events as the graveyard for fiat currencies. Thus the madness that I see ahead will culminate with the only honest currency, and that currency is gold.
On another subject, Toyota has developed Mirai, a car that runs on hydrogen. It’s the car that leaves no smog but only a residue of water. If Toyota has its way, Mirai will spell the end of the combustion engine, and of course, this could be a reason for the collapse in the price of oil.
Personal: It’s strange but after all these years, there seems to be an increasing interest in World War II. Never a day goes by that I don’t think about the war. I often think about one particular day. I was on a mission in Italy and suddenly I saw puffs of black smoke in the distance. It was the first time I had seen flack. In a flash, I understood what I was seeing. My mind froze as I suddenly realized, “these guys are trying to kill me.” In a plane, there is no place to hide, no foxholes. Your enemy is either lucky or he’s not. All you can do is pray that the flak does not hit you. Your life is hanging on a thread. It was the most frightening experience I’ve ever lived through. I crouched in the nose of the plane, and I said to myself, “God, get me out of this alive, and I’ll never ask for anything again.”
God kept me alive. But I went back on my word, and I’ve asked for many things since then. Now I ask God to keep me alive so I can take care of my family and my subscribers, whom I consider part of my family. Some day people will realize that war has nothing to do with romance or excitement. War, like the holocaust, brings out the worst emotions and instincts in man. I look for a world where we are all free to love ourselves and our fellow men and women. Peace and civilization start when we cherish and love ourselves and love our fellow men. In the coming age, love and spirituality will sweep the planet and war will be unknown.”
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