The Godfather of newsletter writers, Richard Russell, had some ominous warnings at the end of last year.  This is part of a weekly series KWN is running from the legendary financial writer.

Richard Russell:  “Normally, free markets allocate capital very efficiently. But the Federal Reserve has taken over the free market and as a result, money has gone mostly to the upper 1%. One of the results is that savers are unable to get satisfactory returns on their money.

In desperation, Americans have turned to junk bonds as a source of income. Long-term Treasury bonds sell at fantastic prices and provide yields in the 2-3 % range.

KWN Russell I 9:15:2015

U.S. Has A Ticking Time Bomb

With the government backing student loans, these loans have gone crazy and now amount to over a trillion dollars. Most of these will probably never be paid back, leaving students with masses of debt that they can never repay.

KWN - Swiss Franc Fiasco And Crazy Trading In The Gold And Silver Markets

A Desperate Fed And The Ultimate Refuge

My conclusion is that the market is bearish and we’re positioned as we should be – out of common stocks and in bullion silver and gold. The world is still waiting to see if the Fed has the courage to raise short rates. For some reason the Fed believes the US economy is stronger than it actually is.

But I think the Fed senses that something is wrong. Thereforethe Fed has painted itself into a box whether it raises rates or not. The action from Wall Street will be negative.


Turning to politics, experts are amazed at Donald Trump’s popularity. Trump disparages the government and expresses what the common man feels, which is anger and desperation at the current state of the US. Voters feel that politicians are spouting a lot of what they want the population to believe. But voters are disgusted with the usual political talk. Trump’s voice is the voice of anger and protest.”

KWN has now released the outstanding audio interview with Stephen Leeb and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

KWN Leeb mp3 4:2:2016

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