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May 24, 2019 | Economic Slow-down Evident! What are the Issues?

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

The global slow-down is now obvious and the trends suggest more of the same going forward. Delinquencies of auto debt are now at 19 year highs. Student loan debt and delinquencies are at new highs. Existing home sales are down. Retail lay-offs up. Interest rates continue to go down indicating that the slow-down is continuing to build. At some point our stock markets should register on these issues and stocks will plummet.


Our central banks will likely attempt to manage this slow-down with changes in their policies. This is likely by July/August. I am expecting more QE to start within American markets prior to the end of 2019. This will be the sign that our central authorities recognize the slow-down and choose to act. Europe is already delaying their policy to end QE. Japan and China are likely to add more QE to their mix of policies. It’s all happening behind closed doors (where the public can not discern the issues).


Inflation is not happening in most Western markets (as of today). Latin America is experiencing some inflation but most Western countries witness minimum inflation…and actually some deflation seems to be occurring (within select sectors). If spending starts to decline in coming months, we could witness more deflation. Our 24/7 robotic production lines seem to be supplying us all with ample ‘stuff’ to buy. Automated production allows our robots to produce 24/7 and keep inventories (of goods) at high levels.


With liquidity declining in relative terms globally, I think that asset prices (especially stocks) should start a decline process soon. The global bull market is now reaching the longest in all of our history. We are now 122 months without any significant correction. Emotions are changing gradually and sentiment is also changing. Confidence is waning and this means a serious recession is on the horizon (sometime). Consensus seems to think it will be 2020. Can the Trump put delay this event?


Mr. Trump will likely jaw-bone the Fed to lower interest rates by another point. This could start a trend which delays a recession. We might also witness the Fed increasing their balance sheet from the current level of $3.7 trillion to maybe $10 trillion. It would take substantial QE to reverse a downward trend in our global markets. But our central banks can now create ‘digit’ currencies with the stoke of a computer key. Money creation is not our problem today.


The other option for our central authorities is to initiate a global Reset (of the system) and introduce a global cryptocurrency for the planet. A cryptocurrency managed by a central bank (like the BIS or the IMF) could be implemented in short order. This type of Reset could initiate the ‘mark of the beast’ financial system which is prophesied to happen. We live in interesting times. Something major is about to happen within our global interconnected economy. I watch with anticipation daily.


Our economy is now living within cyberspace and cyberspace is a virtual space without any physical characteristics. I like to say that I live within my ‘consciousness’ today when it comes to money and finance. All the currencies are transitioning to virtual currencies which live within our ‘inner’ self (the human mind). Cyberspace is this space which we witness within our computer screen. Computers create this space and the space is virtual in nature. It has no material existence but it appears to work for money/math issues.


Soon my smart phone will be 5G (some 100 times faster than my 4G phone). This will allow for this ‘mark of the beast’ financial system to emerge globally. Frequencies, photons, electronic machines, and smart phones will be used for most economic transactions. All I need is a ‘number’ (the mark of the beast) to transact all my consumer needs. If I bow to the will of our authorities, I will survive during this coming Beast Era. The key is for me to ‘sell my soul’ to the authorities which implement this Beast System.


Economics is key to our survival on this planet. We can witness this by watching what is now happening over in Venezuela and Iran. Mass starvation and looting is happening in these countries. Our authorities will provide cover for anyone and everyone who bow to their control system. It’s all about control and political correctness. Most will bow and sell their allegiance to the authorities. It’s human nature to take the easy road when survival is the issue.


We live in interesting times and also scary times. Fear does change behavior. As fear sentiment grows behavior changes rapidly. Life is mostly about survival and the avoidance of fear and conflict. And economics and finance is key to reducing or increasing this emotion called ‘fear’. Those with ample spending power tend to live with less fear and trepidation. Human nature gets revealed in times like that which are emerging. Millions live from pay-day to pay-day (with no real savings).


How long can our central banks and our commercial banksters delay the coming crash in our stock markets? So far, we are at 122 months and counting. Some say that this could continue for another 50 – 84 months before the crash. I noticed the many opposing views at the recent Money Show conference in Las Vegas. Mr. Forbes and Mr. Moore think we have another six to seven years of central bank positive management left (before any crash).


Others think that we have only a few months left. Maybe a war in Iran or Venezuela will delay the recession/correction. Maybe our authorities will decide to pull the plug and create a RESET later in 2019 or 2020. It is impossible to predict any scenario with confidence. I have been wrong for years. Maybe I will be wrong continually. Only God knows. I will watch with anticipation. I assume you will do likewise. Have a great day and we’ll all watch our markets to discern what is happening (going forward).


I am:

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May 24th, 2019

Posted In: Kingdom Economics

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