How will your Investment plan manage these changes?

“The US system is highly optimized for financialization”

Financialization leads to extraordinary imbalances, not just in income, but also debt

What choice does the rest of the world have if they don’t like the dollar system?

Asia gets ready for its move

Or will the IMF move first?

Investment plans must think beyond current low volatility and be prepared for substantial change with the ability to react effectively. 

—————————— —

“The US system is highly optimized for financialization”

“Labor’s share of the national income is in freefall as a direct result of the optimization of financialization. The money flows to those with the capital, credit and expertise to optimize financialized skims. As for selling one’s labor in an economy optimized for capital and the asymmetries of finance–there’s no premium for labor in such an economy, other than technical/managerial skills required by finance to exploit markets.”

Financialization was set loose in 1968 as the money supply was no longer constrained by the gold link. Lower income earners have been losers ever since.

 

 

 

 

 

 

 

 

 

http://www.oftwominds.com/blogsept17/financialization-wages9-17.html

Financialization leads to extraordinary imbalances, not just in income, but also debt

“The fiscal exigencies of empire, demographics and debt have now become insuperable.”

 

 

 

 

 

 

 

 

 

 

https://dailyreckoning.com/americas-fiscal-doomsday-machine/

What choice does the rest of the world have if they don’t like the dollar system?

Putin’s – and Xi’s – concept of multilateral order is clearly visible in the wide-ranging Xiamen Declaration, which proposes an “Afghan-led and Afghan-owned” peace and national reconciliation process, “including the Moscow Format of consultations” and the “Heart of Asia-Istanbul process”.

That’s code for an all-Asian (and not Western) Afghan solution brokered by the Shanghai Cooperation Organization (SCO), led by RC, and of which Afghanistan is an observer and future full member.

And then, Putin delivers the clincher; “Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.”

http://www.atimes.com/article/real-brics-bombshell/

Asia gets ready for its move

“The world’s top oil importer, China, is preparing to launch a crude oil futures contract denominated in Chinese yuan and convertible into gold”

http://russia-insider.com/en/politics/game-changer-china-buy-oil-gold-backed-yuan/ri20807

Or will the IMF move first?

Jim Rickards writes:

I’m sure some people in the mainstream media thought I was out of line — but the United Nations and the International Monetary Fund (IMF) have both confirmed this plan to replace the U.S. dollar is real. I’ve made this warning many times, but it seems to be falling on deaf ears. That’s why I’m writing directly to you.

Here’s the proof that the U.S. dollar is under attack, right in front of our eyes:

The UN said we need “a new global reserve system… that no longer relies on the United States dollar as the single major reserve currency.”

And the IMF admitted they want to make “the special drawing right (SDR) the principal reserve asset in the [International Monetary System].”

https://dailyreckoning.com/president-trump-america-rude-awakening/

Investment plans must think beyond current low volatility and be prepared for substantial change with the ability to react effectively.

The recent record lows in volatility are a result of central bank influence on markets. Record low interest rates around the world combined with massive intervention has led to central banks dominating markets. The Bank of Japan owns an astonishing 75% of all ETF assets!

 

 

 

 

 

 

 

 

http://www.zerohedge.com/news/2017-09-11/wtf-chart-day-boj-now-owns-75-japanese-etfs

​This has been a coping mechanism, not a long term solution. When the system changes or begins to discount changes, the volatility could be extraordinary. A new currency system would change the dynamics significantly.

What plans do you have in place to address this?

A combination of Tactical systems, or trend aggregation, could not only work well in the current environment, but could also provide peace of mind from the ability to automatically and effectively adapt to major changes that are hard to predict.

 

This entry was posted in Notable Articles. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *