A short one today. I want to point out two developing stories that deserve your attention – and connect with the themes of money, banking and gold over the last few weeks.
Then I’ll have to leave you. I have a couple of big studio projects I’m working on this week.
A brief teaser. Tomorrow I have two professional million-pound money managers coming to visit our studios. I’m going to quiz them, on camera, about an income generating strategy.
It’s something that I know City and Wall St insiders have used for decades to juice up their returns. Most private investors know nothing of it. But learn the secret and it’s possible to start generating a lot more investment income.
Frankly it’s about time we took on that challenge. We being Southbank Investment Research. There’s been an all-out war on income seekers since the financial crisis. Savings rates have plummeted. Bond yields have gone negative in some places ($16 trillion worth of bonds now trade at a negative, meaning you’d actually have to pay to hold them).
Annuity rates are no better. They’re close to all-time lows already.
Rental yields are hard to come by and take a lot of expertise and time. And dividend stocks alone won’t provide you the income you need.
If one of your goals is to generate more income from your investments you’ll know all this. I have a message for you: there is still hope. There is a way to boost your income. Maybe even double it. Instantly. Later this week I’ll lay out what I mean. Do not miss my messages!
In the meantime, ask yourself how doubling your investment income would change your life. I’m all ears on firstname.lastname@example.org.
That’s not the only video I’m recording this week. I also have Sam Volkering, resident crypto expert, popping in. I want to quiz him on several important new developments in the crypto market.
Sam’s theory is you can’t look at prices alone to figure out what’s happening in the crypto market. You have to look at what informs prices. Tech development. Scale. And, more recently, a flood of institutional cash heading towards the crypto market.
Case in point. Last week Swiss banking regulators gave the first ever “Crypto Bank” its licence. It’s called Sygnum (what an awful name!). And I doubt it’ll be the last to go down this route.
Like it or not, there’s a lot of appetite for cryptocurrencies in the institutional capital markets. But right now most institutions are “locked out”. Hungry diners staring into a restaurant. One of the challenges for the industry is giving these organisations – and the capital they manage – a route into the crypto market.
A crypto bank is one way of squaring that circle. “Cryptocurrencies will come out of the shadows if dealing with these assets can be done in a 100% compliant manner upholding all the rules that a strict regulator demands. That is a game changer,” the CEO of Sygnum said.
Game changer indeed. A reminder, if you need it, that cryptocurrencies aren’t going anywhere.
Game changer indeed. A reminder, if you need it, that cryptocurrencies aren’t going anywhere. Learn what you can, while you can, by claiming a copy of this book.
Let’s hope he changes the name of the bank to something pronounceable soon. I don’t fancy saying that on camera.
The second story I want to point out to you is a worrying one. It comes from the US. But it may well be something we’ll have to deal with this side of the Atlantic before too long.
It’s connected to a theme I’ve been banging on about for weeks. The existing financial system has flaws that allow it to be hijacked by special interests and seduced by corrupt ideas.
Here’s a particularly corrupt idea. Should the central bank intervene in the markets in order to topple an elected leader?
A coup by monetary policy. Sounds crazy. But last week a former president of the New York Federal Reserve went there in an opinion piece.
It’s a long piece. I won’t quote it all. Just the most chilling part (emphasis added):
There’s even an argument that the election itself falls within the Fed’s purview. After all, Trump’s reelection arguably presents a threat to the U.S. and global economy, to the Fed’s independence and its ability to achieve its employment and inflation objectives. If the goal of monetary policy is to achieve the best long-term economic outcome, then Fed officials should consider how their decisions will affect the political outcome in 2020.
Translation: Donald Trump has threatened the Federal Reserve. The Fed should respond by using its considerable monetary clout to alter the outcome of the next election.
If that’s your logic, why bother having elections at all? It sounds like our central banking friends know what’s best for us all already. Let’s skip the part where we’re offered a choice because it seems the people keep getting those choices “wrong”. Let them decide.
Why stop there though? If Trump is such a threat why not just put a hit on him? Take your printing press to Trump Tower and bury him under a stack of freshly minted banknotes?
I joke. But only a little.
And I ask you: how long before we’re having the same conversation here? Before Mr Carney is pressed to use monetary policy as a weapon against the government, in order to – say – prevent Brexit?
Don’t scoff. It’s coming. It’s why a system of money with no constraints, which grants unlimited power to a small special interest group who considers itself above us all, is fraught with danger.
Makes me glad I own gold. And not just because it keeps hitting all-time highs around the world. What’s coming next will make gold a necessity, not a luxury.
It’s why we’re hosting a special online event for anyone with an interest in gold. Whether you hold it now or are thinking about dipping a toe into the market… make sure you don’t miss this.
Publisher, Exponential Investor