The Bond Killer

007 escaped death a dozen times but, the Bond Market will not. Though I am not a financial adviser, I know math. MATH DOES NOT LIE. To get a rocket on the moon you use math; whether it be the math associated with the heat expansion of elements or the path of trajectory from a moving object to another moving object, YOU USE MATH PRECISELY BECAUSE IT DOES NOT DEVIATE…IT DOES NOT LIE. That said, Inflation is the Bond Killer and it is simple math. The Ten Year has been under 5% for most of the last three years while REAL INFLATION has been as high as 20% and never below 5%. Real Inflation today is approximately 8% despite Powell’s extended and best lies. Within the next six months, Inflation is projected by most economists, to exceed 10% for a sustained period. This translates into HARD ASSETS as a primary hedge that Bonds can not compete with. Those of you who are heavily invested in Bonds, should consult your financial adviser about moving into hard assets. For example, a short term investment into Gold could then be reinvested into Real Estate once the Property Markets – both Commercial and Residential – find an equilibrium in sanity. Also, Gold is expected to substantially appreciate during the coming year. Instead of losing money to Inflation, Inflation will launch Gold to ever greater new highs. By the Summer of 2025, Real Estate will be at a price point that will make sense. In the meanwhile, Bond Yields will not cover the rate of Inflation; they don’t now and they haven’t for the last three years. The single greatest cause of this inflation has been fuel and energy cost. Thence, the greatest single thing that the Trump Administration can do for Americans AT THIS TIME, would be to mandate an emergency measure that costs at the pump for Regular Unleaded and Diesel are at ‘no margin’ – no profit to the oil companies. Expanding Sales overseas will yield tremendous profits to American Oil Companies so that the fuel costs to American Citizens could be kept low. The key is to open every pipeline and award any permit that references oil or any of its derivatives. This will not defeat inflation but it will make life far easier with fuel and energy expenses dramtically reduced. As the world enters a Time of Great Pain – spawned by the Global Elite Malignant Narcissists financial mismanagement – it is my prayer that Americans will be spared much of it.