Habakkuk 1:5 Look among the nations, and see; wonder and be astounded. For I am doing a work in your days that you would not believe if told. -LORD God
Proverbs 27:12 The prudent sees danger and hides himself, but the simple go on and suffer for it.
Proverbs 4:13 Hold on to instruction; do not let go. Guard it, for it is your life.
Are we entering another Credit Event? I remember Lehman Brothers and Bear Stears. These events start slow and gather speed until things start to cascade.
Germany’s Deutsche Bank is in the news. Credit Default Swaps (insurance) are soaring! Tier 1 Bonds are crashing. Did Deutsche Bank receive $60 billion in Federal Reserve Foreign Repo Agreements?
European banks hold bonds yielding less than 0%. They are losing money big time as interest rates go up.
Global liquidity and money are in short supply. Liquidity is the fuel of the economy. Bank deposits are decreasing. Things are getting more difficult to get a loan.
Federal Reserve Chairman Jerome Powell is focused on lowering inflation. He says interest rates are not coming down any time soon.
Michael Douville recommends reading an article, Too Small To Not Fail, A Short History of the World by Danielle DiMartino Booth. For those not familiar, Danielle is a former Federal Reserve Insider. She is the CEO & Chief Strategist, Quill Intelligence LLC, and Economist.
Instead of mass mobilizing against Powell as if he was the reincarnation of King Louis XVI, why not grow up? In the absence of a solution without consequences, he’s made an attempt to steer the economy into the first recession from which it has the slightest chance of exiting without the dead weight of zombie companies, without the corrupt practice of anointing Wall Street’s kingpins the de facto makers of monetary policy. A wise man once said, “There is no such thing as a free lunch.”
Damn right there’s not. Perhaps we accept the truth in this wisdom and, in doing so, the consequences of our actions. -Danielle DiMartino Booth
I invite you in today with my clients' blessings. We live in troubled times. History's lessons are scorned. Those with the courage to make impossible choices are pilloried for sport. The sin of ZIRP & QE are presumed to be other-worldly 'free lunch.'https://t.co/KvIpH8f0tbpic.twitter.com/MccOhd4oKx
— Danielle DiMartino Booth (@DiMartinoBooth) March 22, 2023
Check out Michael’s analysis, economic news, charts, and commentary below on the YouTube video. Click on the red play button.
Proverbs 22:3 The prudent see danger and take cover, but the simple keep going and suffer the consequences.
Ecclesiastes 3:1 For everything there is a season, and a time for every matter under heaven…
Ecclesiastes 7:12 For the protection of wisdom is like the protection of money, and the advantage of knowledge is that wisdom preserves the life of him who has it.
Michael Douville and Charles Nenner discuss the latest in economic and market news. What’s coming next. Dr. Nenner is one of the world’s best when it comes to economic cycles.
Charles Nenner believes the current Banking Crisis will resolve itself for a short time only. The Banking Index will rise for a “Bounce” only. Charles believes the Whole System is ready to go under.
We need to make plans.
One of the 3 strategies would be trading. This is not a “Buy and Hold” environment.
Charles also believes Inflation will start up again after May.
We are in for a “terrible” time. Charles’ War Cycle and Civil Disruption are turning up.
It is time to be cautious. Build cash reserves. Hold some cash at home, and when buying physical gold, take possession.
Click on the link below for the interview and video. You can’t afford not to listen…
Learn how Charles Nenner’s unique research can help you get better experience for your future investments: https://www.charlesnenner.com/
Matthew 10:28 “And do not fear those who kill the body but cannot kill the soul. But rather fear Him who is able to destroy both soul and body in hell.” -Jesus
See also Luke 12:5, Revelation 20:14, 15, 21:8 (Lake of Fire)
Pope Francis denies the physical existence of Hell.
“Hell is not a place. If one goes to attend the Last Judgment, and sees the faces of those who go to Hell, one gets scared. If you read Dante, you get scared. But these are media representations.”
“Hell is a state, there are people who live in Hell continuously.” -Pope Francis
With these comments, along with others, the Vatican went into spin mode.
“All official, final texts of the Holy Father are found on the Vatican website,” and since they were never published by the Holy See Press Office they “should not be considered official texts.” -Holy See Press Office
Tension is on the rise with Russia attempting to spray a U.S. drone with jet fuel over the Black Sea in international waters. The Russian pilot got a little too close for comfort and appears to graze the drone.
The Pentagon’s European Command published a video showing the events resulting in the downing of a U.S. MQ-9 Reaper drone by a Russian Su-27 fighter jet over the Black Sea on March 14. pic.twitter.com/GpGLK0PlZU
— The Kyiv Independent (@KyivIndependent) March 16, 2023
The International Criminal Court has issued a warrant for the arrest of Russian President Vladimir Putin as a war criminal for illegally exporting Ukrainian children.
Situation in #Ukraine: #ICC judges issue arrest warrants against Vladimir Vladimirovich Putin and Maria Alekseyevna Lvova-Belova Read more ⤵️ https://t.co/5OMC7Xuuy5
China’s President Xi is headed to Moscow early next week. The focus is peace between Russia and Ukraine. Some think China is on the verge of a weapon’s deal with the Russians.
Leviticus 19:36 You shall have honest scales, honest weights, an honest ephah, and an honest hin: I am the LORD your God, who brought you out of the land of Egypt.
God wants honesty when it comes to economic matters.
The last couple of weeks in financial markets and global economics has been rocky. In the last two business weeks 5 banks have crashed. The United States has witnessed two of its largest bank failures in history.
Moody’s Investor Service has downgraded the entire United States banking system to negative.
“We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY.” -Moody’s
The banks in the United States includes: Silvergate Bank, Silicon Valley Bank, Signature Bank, and First Republic Bank. The mess has made its way across the Atlantic to Europe. Switzerland’s Credit Suisse required a bailout from the Swiss government.
The US Department of Treasury decided to insure all depositors in banks that expose a “systemic risk exception”, even those above the insured threshold of $250,000. The two banks who meet this “exception” include Silicon Valley Bank and Signature Bank. All depositors were “made whole”.
This “exception” appears to be on a case by case basis as decided by the boards of the FDIC, the Federal Reserve, President Biden, Secretary of the Treasury Janet L. Yellen.
During hearings with the Senate, Oklahoma Senator James Lankford (R) pressed Secretary Yellen. This exchange was extraordinary.
“Banks only get the treatment if the failure to protected uninsured depositors would create systemic risk.” -Secretary of the Treasury Janet L. Yellen
PLEASE WATCH!
This is truly incredible.
Here is an exchange with Senator James Lankford & Yellen.
He asks, "Will every community bank … get the same treatment as SVB?"
Yellen: "Banks only get the treatment if … the failure to protected uninsured depositors would create systemic risk." pic.twitter.com/JvAX3Hhb6F
If a bank does not meet the threshold of “exception” and one has deposits over the FDIC insured amount of $250,000 in said bank, tough! No bailout for you!
Plan Accordingly!!!
Money is flying out of smaller banks and being deposited into Tier 1 Wall Street banks. These Tier 1 banks include JP Morgan, Bank of America, Wells Fargo, and Citigroup. And the rich get richer.
Will Federal Reserve Board Chair Jerome Powell raise interest rates next week?
The Debt Limit deadline looms some time around April 2023. The United States has wracked up $31.4 trillion in debt (31,400,000,000,000). Secretary Yellen has already warned Congress that if the Debt Limit is not increased, it would be crushing to the banking system.
Buckle up! This is going to get rough!
Is all of this dishonesty in the banking industry reaching a tipping point? God says judgment is ultimately coming.
Micah 6:11-13 Can I excuse dishonest scales or bags of false weights? For the wealthy of the city are full of violence, and its residents speak lies; their tongues are deceitful in their mouths. Therefore I am striking you severely, to ruin you because of your sins.-The LORD God
Isaiah 46:10 Declaring the end from the beginning, and from ancient times things which have not been done, saying, “My purpose will be established, and I will accomplish all My good pleasure.”
Isaiah 14:27 For the Lord of hosts has planned, and who can frustrate it? And as for His stretched-out hand, who can turn it back?
Dr. Charles Nenner reviews some major markets including the Goldman-Sachs Commodities, the DBB ETF for Base Metals, the Proprietary graph for Copper, Corn, Wheat, Gold, Silver, and Natural Gas. All showing weakness… there is nowhere to hide.
Rule #1, Don’t Lose Money!
Follow the math and do not listen to the media.
Cash is king. The US Dollar is strong and gaining.
Photo: iStock
Dr. Nenner says a significant recession is coming. The economy is getting weaker. Brace yourself, this may take awhile. Nenner discusses the likelihood of a significant stock market correction. Would you believe a Dow 5,000 target scenario? The average recession costs American’s 40% of their portfolio.
Commodities are rolling over in the short term. Inflation appears to be slowing. But watch out. Eventually, prices are going higher again towards the end of the year.
What does Dr. Nenner’s work say about gold and silver? The BIG bull market is coming, but when? Be patient and wait for the right opportunity to go long and buy. Listen to Dr. Nenner’s commentary and analysis for details.
Interest rates have turned and rates are going up. We are witnessing a significant cycle change according to Nenner’s research.
Wheat prices appear to be on the cusp of turning up again.
Energy prices are discussed in this video. Oil and natural gas are significant considerations to our pocket books.
Dr. Nenner recommended to go into cash around the first of the year 2022. If you had listened to Nenner’s research and recommendations, your retirement account and stocks would have been spared a 20-30% reduction.
Don’t fight the cycles…
Click on the audio/video link below for mathematical analysis, data, and commentary. This video is loaded with content and economic information.
DON’T MISS OUT ON THIS OPPORTUNITY… Charles Nenner will be holding a Private Live Webinar where attendees can listen live and ask some questions. Attendance is going to be limited. This amazing opportunity to get a insiders view on the markets is scheduled for August 7th, 2022. Send your request to attend to info@charlesnenner.com. Details will be sent.
Ecclesiastes 3:1 For everything there is a season, and a time for every matter under heaven…
Proverbs 22:3 The prudent see danger and take cover, but the simple keep going and suffer the consequences.
With inflation, market volatility, and economic changes occurring in today’s world, Michael Douville had a chance to sit down and visit with one of the world’s foremost cyclical economist and market forecaster, Dr. Charles Nenner.
Dr. Nenner offers a free trial subscription for a few weeks. Please mention you watched this video. https://www.charlesnenner.com/
photo: Pinterest
May 2022: An Amazing and Candid interview with Charles Nenner. Charles discusses his Dow Jones Weekly chart showing all three of his Cycles that rule the Equity Market. The three cycles are all topping; topping just as they did in 2007. The Cycles are worse than in 2007-2008, the amount of downside in the last 4 months is the worst in 80 years; if this is the beginning, it can be a very bad time. There is a window of opportunity to sell into a bounce that appears to be imminent.
Dr. Nenner recommended to exit the Bond market for the last 2 years. The amount of money lost is tremendous; Q1 2022 was the worst Quarter for Bonds in 157 years. Interest rates are going much higher.
Charles Nenner sees a slight short term topping of Inflation and a near term moderation of Inflation, but sees Inflation for many years very similar as in the 80’s. Inflation will be a big problem moving forward. Natural gas and Crude oil are a big component.
Charles thinks there is nowhere to hide, but Cash is King at the moment. He believes Inflation will continue to be a major problem. European pension funds are in Bonds, many that are below zero. This is very difficult for Pension funds, it is not safe and no return. It will be very difficult for people to retire. It is not good to “Be in it for the long term!”
Dr. Nenner and Michael Douville have a significant discussion on the housing market. Are we in the process of peaking???
The Us Dollar is flirting with the 104 on the DXY, it is possible the US will get very strong and possibly go up to possible the low 120’s.
Looking at the Wheat chart, the prices are heading higher. Food prices are going to get much higher.
Click on the link below for all the economic details with Dr. Nenner’s proprietary charts and analysis.
Proverbs 27:12 The prudent sees danger and hides himself, but the simple go on and suffer for it.
Proverbs 14:16 One who is wise is cautious and turns away from evil, but a fool is reckless and careless.
Cash is Trash? Think Again! I have been in many Stock Cycles, many Bond Cycles, through a few 18-year Real Estate Cycles and having a Cash Reserve on hand to insure against credit line restriction is good business, So Cash is not always Trash. Cash is also a separate asset class.
When the Economy gets in trouble, the Banks will take back their CREDIT LINES!
Having cash, savings, checking, and bills: $1, $5, $10 dollar bills, is reassuring to carry you through any slow period. We have all done well in the last couple of years, maybe it’s time to take some profit or refinance and take some cash.
I have been suggesting maybe it is time to take a little money off the TABLE! Trees do not grow to the sky, and it is often nice to have some cash to supplement through a soft patch or use for an Opportunity! Cash is not always TRASH!
However, DO NOT SPEND this money, the cash is for opportunities or reserves.
Click on the YouTube video below for the details.
When the Recession hit in 2020 the Stock Market dropped like a rock, and it was difficult to get out. More and more of my clients have their Asset Allocation overweighted in the Stock Market. The Stock Market has had a very good run and perhaps it is time to take a profit and place the Capital in another ASSET CLASS!
World famous cyclical economist Charles Nenner weighs in on the market with his proprietary charts.
Michael reviews where he thinks we are in the 18 year Real Estate Cycle.
Real Estate Rentals add diversification, Cash Flow, Capital Gains, and are a separate asset class. If you or your clients are overweighted in Equities, perhaps change Assets to Real Estate. Real Estate and especially Rental Real Estate is “Counter Cyclical” to the Stock Market and often Capital will flow out of one Asset Class into another. Real Estate often benefits! Self-Directed IRA’s and Self-Directed 401K’s are ideal. Real Estate Rentals not only provide an excellent Cash Flow, but also act as an Inflation Hedge.
Michael addresses charts from the Federal Reserve. In Q1 of 2020, there was $6.3 Trillion of stimulus unleashed into the Economy and that ignited INFLATION! Once worker make $20 an hour, they are not going back to $12 an hour.
Are economic bubbles beginning to pop? The economy appears to be cooling.
Please check with your Financial Advisor to discuss what is right for you. I do not advocate that all of your assets be in Real Estate, nor do I believe all of your assets should be in the Stock Market.
Click on the YouTube video below for the details.
Proverbs 22:3 The prudent see danger and take cover, but the simple keep going and suffer the consequences.
1 Chronicles 12:32a And of the sons of Issachar, having understanding of the times, to know what Israel should do.
Michael updates what is happening around the world and how it will impact the U.S. Understand the economic times and conditions we are living. Do you have a plan?
Another indicator that the US might be entering into recession. Michael explains the Yields on Debt indicates recession coming to our shores.
Do you have all your money in stocks and bonds? Are you holding debt? What happens if we see a sharp reduction in the markets. Have you prepared your life boat?
Michael explains the 18 Year Real Estate Cycle that has been going on for a couple hundred years. You can achieve generational wealth by using this cycle to plan your real estate investment strategy.
There is a Cycle to Everything; rain, drought, moon, eclipse, orbits, Sun Spots, and what I am concerned with today, the Real Estate Cycle. Edward R. Dewy, Phil Anderson, and several contemporary researchers have identified the 18.5 year cycle for housing.
In my Conferences, I use January 1, 2010 as the turning point. Researchers and statistics indicate the Real Estate cycle is 18.5 years which places the next bottom July 1, 2028; in a perfect world. That is almost 10 years from now: so what?
The Real Estate Cycle keeps repeating itself over and over again. Cycle data in the US recorded as far back as 300 years; to pre-revolution! Also repeating in the data is a period of vulnerability for a Housing Correction 7.5 to 9.5 years from the bottom. This corresponds to July 2017 to June 2019; the current time frame!
When investing, these cycles become exit and entry points for Capital Deployment as well harbingers for Economic Distress for Real Estate Slowdowns seem to be always accompanied by a Stock, Bond, or Economic corrections which will affect jobs, interest rates, Foreign Exchange, and therefore businesses and families. Forewarned is forearmed. I have been warning about this vulnerability for 18 months; advising to raise cash and reduce debt.
Leviticus 19:35-36 You shall do no wrong in judgment, in measurement of weight, or capacity. You shall have just balances, just weights, a just ephah, and a just hin; I am the LORD your God, who brought you out from the land of Egypt.
Proverbs 11:1 A false balance is an abomination to the LORD, but a just weight is his delight.
Currency manipulation is global issue. The above verses are two of many examples provided in Scripture. All currencies are not balanced the same. Imagine that, the world’s economy is out of balance in regards to the standard of the Bible. All currencies are not created equal. There are global economic consequences when standards are out of balance and there is reconfiguration. God is not a big fan.
Many Researchers have been forecasting a rising US Dollar. This seems like an impossibility, but technical methodology from several different disciplines are coming to the same conclusion. A top researcher in March placed a 103.8 target from 88.1; currently, the dollar has risen to 92.46. Should the target be exceeded, a Spike could develop going much higher. The Dollar rose .7% on May 1, 2018 alone. A strong dollar will pressure the repayments of debt across the Globe in an environment of struggling Municipalities, States, and Sovereign debtors. A stronger dollar will not only change the repayments dynamics, but the exports in Emerging Market Countries are affected as Commodities expressed in US Dollars lose value.
A stronger Dollar is enhanced not only by the perception that the US Economy will be stronger than any other, but also by the Interest Rate differential across the Globe and the avowed Federal Reserve policy of raising short term rates. Higher rates from both the Federal Reserve and the LIBOR affect 40-60% of all Global Debt; currently exceeding the 2008 Debt Record and now over $217 Trillion Dollars. Charles Nenner called the 10 year Treasury low at 1.6% in July of 2016. The trend line from 1981 has been broken at the 2.65% level and has now exceeded 3%; better than an 85% increase. With the trend line broken, rates could rise swiftly and approach 4.5% faster than thought possible. Normalization is occurring as Central Bank intervention recedes. Normal could easily be 5-6%; a double from here.
Prices in asset classes will be affected. Housing prices will be compressed as rates rise; Home buyers buy based on payments. Higher rates equal lower affordability; some Luxury Markets are already affected! Equity prices will be affected as repatriated funds are reduced inversely with a stronger dollar. The US Dollar has depreciated 24% since the Presidential election. Take for example a US manufactured auto sold for 20,000 Euros in Germany in December 2016; the same car sold for 20,000 Euros in December 2017 netted the US Manufacturer 20+% more profit due to the Dollar decline; great news for Stock Prices. Bad news when the US Dollar rises; the same formula works negatively in reverse. Look for earnings to decline; stocks are correlated to earnings. Need I mention Bonds? Higher rates will decimate Bond values as well as higher rates will cause many more defaults across the Globe, again affecting the value of Fixed Income. Commodities will also be negatively affected by a spiking US Dollar as it will take fewer Dollars to purchase in local Currency as well as higher rates will certainly curb demand.
What to do? Everything cycles! Raise cash to purchase assets at lower US pricing. Research is indicating it will probably be a Spike; vicious, but not exceedingly long term. This will present HUGE opportunities for those prepared. Every Investor has personal goals. Review your portfolio and make the proper adjustments.
1 Timothy 6:10 For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows.
My Grandfather lived on a Farm in Minnesota. He grew his own vegetables and a raised a few chickens. He had a very limited Income, but had all of the money he needed. My Grandfather owned his Farm, did not have a credit card, nor a HELOC (Home Equity Line of Credit), nor a Margin Account; he was an extremely Happy Man!
Do you find that you can’t sleep at night? Are you always on edge? Arguing with your spouse and yelling at the kids? Are you drinking more than you should, but need the alcohol to “take the edge off”. Financial stress is generally the root cause of Marital Discord, Child Abuse, Alcoholism, Drug Abuse, and Workplace Strife and Violence. Debt is the cause; the opium pervasive in our society. Credit can be a very useful tool to enhance and build Wealth; it can also destroy Families.
Debt is insidious and pervasive; there is enormous temptation to indulge today and book that lavish vacation or lease that expensive car to feel important and look successful. After all, you only pay and pay and pay for months or years. You can have all these things and more; just allow your work, your ingenuity, and your sacrifice to benefit you not the Bank! Get out of DEBT! Then use the money that is NOT going to the Banks for your Future! The Banks will Hate that!
Set a goal of Debt Freedom. Once started, the savings start to build quickly. Start by cutting expenses: clean your own house, eat meals at home with the family, rent DVD’s or online entertainment like Netflix or Amazon Prime to reduce the Cable bill, cut your own grass, clean your own car, downgrade your car to a good clean economy car like a Toyota Camry or Honda Accord rather than a Mercedes or BMW. Reduce or eliminate every expense and use the savings to start to pay down credit cards, student loans, HELOCs, and any personal debt. Review Investment debt and refinance for better terms. Sacrifice for just a few short years and the debt will go away. Once the Debt is gone, keep up the habits and start to build reserves; this was also known to the Ancients as “SAVINGS”!
Do not reward yourself with a renewed indulgence in Debt! You can reward yourself with Investments for your future. Investments that will PAY you; a big change from Debt! Accumulating cash flowing assets will become easier as they add to your Wealth. After you have been disciplined in your Financial Habits, you will recognize the moment you have earned the right to indulge, the right to upgrade to First Class or the Penthouse. At that moment, you will realize, you have all the money you need and you will sleep very well at night! If you are lucky, you might even be Happy!
