CELENTE AND MANNARINO: PREPARE FOR THE GREAT ECONOMIC DESTRUCTION

October 20, 2022October 20, 2022

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THE COMING FINANCIAL DEPRESSION

Instead of the ad slogan for Capital One (“What’s in your Wallet”) starring the Vikings, we should be thinking “What is Your Plan B”?. Looks like we all may need one in only 7 more years or less. We may eventually be forced into a more primitive world and way of life ourselves, as things are going.

” The “Build Back Better” slogan was launched at the World Affairs Forum. NEVER in the history of human civilization have we EVER seen all the world leaders adopting that very same slogan. We are on the path to 2032 A.D. So, we need to start thinking about what new form of government we must create. Our current version will collapse by 2028″. – Martin A. Armstrong, economist and institutional level financial consultant.

As factors begin to coalesce, I can begin to see where we are on the roadmap. I now believe that a major bond market crash will happen and cause all fixed income debt to devalue and their yields to spike even higher than thus far. This is exactly what happened in 1933. So, both Investment Grade Corporate Bonds and Government Bonds alike will devalue as the coming defaults force yields way up from here. Not sure when but you sue won’t be given any warning or notice. Even pristine debt (AA) will not be immune in the market downdraft, as the panic will be very powerful. Municipals will die in many poorly managed Blue states and Cities. Pension funds, well, their bonds incinerated. As one should anticipate, stocks would crash in sympathy. Emerging market debt and currencies have already been under fire for well over one year (Weak foreign markets were the first to go) .

So far, neither Junk Bonds (CCC) nor investment grade corporate bond (BBB) prices have yet to be much affected by default risk.( Its not yet priced-in). Growing debt defaults, starting with “Zombie Corporations” ( About 300 listed mid-sized unprofitable enterprises with $50-$100 Million in Market Cap, New Constructs Dave Tainer.). is coming in the next 1-2 years as this recession slowly unfolds. So, you have to get ahead of this reality before the Bell Tolls. Once the debt avalanche is triggered ( not sure exactly when or by what) one can assume a number of major bank failures will likely occur sometime thereafter.

Therefore, investors need to start thinking about how to preserve their capital while its still possible. Once the credit system freezes-up, it may not be possible to move money around so easily. I would suggest using the current Bear Market Rally to offload some positions and move into more safe cash, gold, and especially, silver coins or “junk” silver. Just be careful where you put it !!

https://www.armstrongeconomics.com/international-news/politics/biden-is-not-president/

October 20, 2022 Craig Bradley

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