www.armstrongeconomics.com
I do not like to contribute to conspiracy theories. They are more often
just wrong. I have mentioned that there was massive liquidation last
week, but it is not over. The largest hedge fund run by Ray Dalio who
said “cash is trash” and his #1 guy pronounced that the central banks
had defeated the Business Cycle, is facing huge losses at Bridgewater
Associates. The firm’s macro fund is down roughly 20% through this past
Thursday. Their view has been anti-dollar, bullish gold, and thought
that the rise of cryptocurrencies was a structural change that ended
declines like this. The drop in the fund, Pure Alpha Fund II, comes
nearly two months after Dalio told CNBC “cash is trash” in an interview
held during the World Economic Forum.
The problem with such funds as Bridgewater is very clear – their strategy is based on human opinion. The ONLY
way to survive the years ahead is to eliminate human opinion and stand
objective between all the yelling and screaming. We are expanding our institutional service
for small businesses. Governments are incapable of dealing with this
event. Despite all the conspiracy theories about the Coronavirus and
thousands of millions will die, all of that is COMPLETELY irrelevant!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
These are the typical ranting of people who have never dealt behind the
curtain and are clueless as to how the world truly functions. They spin
their theories about the Coronavirus and how Trump will be defeated, but
the real elephant in the room that nobody seems to notice is the fact
that central banks are at negative rates and lack any monetary policy
room whatsoever to combat this economic decline. This is what I have
been warning about – the Central Bank Crisis. They have shot themselves
not in the foot, but in a vital organ. They have destroyed the Keynesian
Economic Model. They have nothing left.
I have laid out in Manipulating the World Economy that the solution
requires political action. The central banks are dead. This is a far
greater crisis than most expect. (look for that book on EBay for now).
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