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August 28, 2017 | Three D-Day Events Coming in October

Sean Brodrick

Sean is the natural resource analyst for Weiss Group. You can read his thoughts on gold, oil, cannabis, uranium and other natural resources at EdelsonInstitute.com

D-Day means Debt Day. And there are three major events coming in October that will focus the world’s attention on the massive amount of debts piled up by the world’s most powerful governments.

Have you protected your portfolio from the consequences?

Are you prepared to jump on the likely profit opportunities?

What about the unknown — and unknowable — things that can happen when powerful forces converge in one time and place?

Today, I lead you to the answers.

In Shocking Forecasts for 2017-2022, Martin Weiss describes a great Supercycle — the millennial convergence of five major long-term cycles.

He forecasts a rolling series of government debt crises on the horizon.

He lays out a strategy for making a fortune from each.

And he tells you precisely when the tides of history will begin to turn, just a few weeks from today.

This monumental shift was predicted long ago by the cycles research left to us by Larry Edelson, who passed away in March. But it’s only now, as we come closer to D-Day, that our telescope can focus more clearly on how the shift will hit the fan.

We see three D-Day events, all manifestations of the Supercycle, all set to strike this coming October …

D-Day Event #1
Day of Decision in Japan

Japan has the biggest and most worrisome pile-up of government debts in the world.

According to the IMF, its debts are 238% of GDP. That’s more than DOUBLE the debt burden of the United States government.

But if you think that’s frightening, consider what the Bulletin of Atomic Scientists had to say about Japan just last week.

“Kim Jong-un’s unbridled military aspirations, and Pyongyang’s desires to become a recognized nuclear power, risk provoking a spiraling arms race in Northeast Asia. Together, they represent potentially the biggest strategic and diplomatic challenge to … the Trump administration.

“But while the pressures are intense for the United States, they are arguably even worse for Japan. The North’s unexpectedly rapid progress in its nuclear ambitions in the last year is raising fundamental questions about the durability of some of Japan’s distinctive, established political and strategic norms of behavior. …

Japan will soon install the land-based version of this missile, just the first of major new defense expenditures and major new debts.

“Will the looming threat of an unprovoked North Korean nuclear attack force Japan to break with years of post-war anti-nuclear sentiment and develop its own nuclear weapons capabilities in an effort to acquire its own independent nuclear deterrent?”

The answer to that scary question is still pending. But we already know three things:

  1. Japan is going to install land-based Aegis missile defense systems to ward against North Korea’s threats.
  2. More big defense spending is bound to follow.
  3. And to pay the bigger bills, Japan will heap another load of debts onto its already-gigantic debt pile, all starting in October.

D-Day Event #2
Looming Debt Ceiling Debate

In the past, most investors didn’t care much about the debt ceiling. But this time, says Bloomberg, they’re starting to freak out.

Fitch Ratings warns that the looming debt ceiling crisis is so frightening, its triple-A rating for the U.S. government could be in jeopardy. Moody’s and S&P agree.

Heck, even investors holding Treasury bills, supposedly the safest security in the world, are nervous. So they’re driving T-bill prices sharply lower and their yields sharply higher.

The official debt ceiling D-Day is at the end of September. But by deploying some delay tactics, the U.S. Treasury could postpone the final day of reckoning until late October.

Unless Congress can muster the votes by that time to raise the debt ceiling AND get the president’s signature, the U.S. government will shut down. A debt default is also a threat that lurks in the deep background.

This was the sad truth before Mr. Trump weighed in. Now, it’s even sadder:

  • The president has vowed he’ll veto the debt ceiling bill unless Congress includes funding for the border wall with Mexico.
  • Most of Congress has vowed it won’t finance the wall come hell or high water. Thus …
  • Both sides have now drawn such a solid line in the sand, the chances of a government shutdown due to lack of funding are higher than they’ve ever been in history.

Will it actually happen? Politics in Washington today is too darn nutty to answer that question with certainty. And as Martin stresses in Shocking Forecasts for 2017-2022, the bigger debt crisis is looming in Japan and Europe.

They’re the ones who are going to be the first to get smacked by unpayable debts coming due. And it’s their debt crises that will continue to drive massive amounts of flight capital to the United States.

But just the big brouhaha about our debt ceiling has consequences. And it brings home what I’ve always said about debt: The more debt a country has, the weaker it will ultimately be. And the weaker indebted countries are, the more difficult it becomes to keep a lid on very EXPENSIVE global conflicts that have to be financed with still MORE debt.

Our friend Bill Bonner, author of the international bestseller Empire of Debt, says all this means we’re just going to see more war and more debt.

There’s no doubt that our foreign allies and adversaries get the message loud and clear. “If Washington can’t even balance its own checkbook,” they reason, “how dare they tell us how to manage our finances or fight our battles! We can do whatever we damn please, and they’re losing their power to stop us.”

Meanwhile, what never ceases to amaze me is that none of a government’s so-called “solutions” ever make the debt go down. They always make the debt grow bigger.

D-Day Event #3
Fed Fire and Fury?

While the final debt ceiling debacle hangs over Washington like the Sword of Damocles, another thing will happen: The Federal Open Market Committee (FOMC) will meet to decide on its next interest rate hike.

Already, the Fed has raised interest rates three times. And already, the pressure is building to a crescendo to do something no one on Wall Street dares think about: Shrink the Fed’s gargantuan $4.5 trillion balance sheet.

Where did that $4.5 trillion come from? About four-fifths came mostly from rescuing and buying up bad debts that got dumped out of the great debt crisis of 2008.

See how all these debt messes are coming to a head?

Convergence

THIS is what Larry Edelson meant by CONVERGENCE — when cycles and powerful forces of history come together in one time and place.

This is what’s behind Martin’s Shocking Forecasts for 2017-2022.

This is what’s driving the megatrends I’ve been harping about.

You see, the looming debt monster can only be aggravated by global conflicts. And the global conflicts are mostly a big grab for natural resources.

This is another strong force driving key resources higher. As I told you last week, palladium, copper, aluminum and other industrial metals are hitting multiyear highs. It’s the secret rally no one has told you about. Gold and silver? Also looking very good. Oil, meanwhile, shows surprising strength.

And it’s just one way to profit from the coming D-Day events. If you want the full-blown list of profit opportunities, go here.

All the best,

Sean

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August 28th, 2017

Posted In: The Edelson Institute

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