Many people look at the stock “markets” and assume it is giving us a message about how the actual economy is doing. In the past this was a coherent thought. Today, it is a HUGE mistake to think that there is any correlation between the economy and the “markets.”

As I say this, I believe that the “markets” are on their way to once again reflecting what is actually happening in the economy.

I have said many times that hundreds of trillions of currency units have been conjured up and spent to keep bond rates low, give banks an illusion of solvency, and to prop up asset (mainly stocks, bonds, and real estate) prices. This has masked the fact that our economy has been imploding at a rising rate since at least 2008. What would our GDP actually be if we did not count DEBT as GROWTH?

Most people have been conditioned to believe that every time there is a pullback in the “market” the Fed will ride to the rescue and the “markets” will resume their upward trajectory.

It appears at this time that the Fed will have a challenging time justifying lowering rates with inflation set to skyrocket because of the rest of the world SELLING our bonds and dollars and the tariff war that is taking place. The US dollar, when markets are falling usually gets stronger against other currencies as it is viewed as the safe-haven asset. Today, even with massive stock selling the dollar is continuing to fall. This is a critical thing to understand. Selling stocks and bonds means converting those assets to cash and SHOULD BE supporting the dollar. The selling pressure from around the world is not only compensating for the selling but is actually overwhelming it and pushing the dollar lower against perceived weaker currencies.

There are FAR more concerning signs that I am seeing.

#1 Bond yields are rising. In a “normal” situation, bonds should be rallying as people selling stocks would move to a perceived safer place. In my opinion bonds are NOT safer than stocks but historically they have been. This is concerning not only because it goes against precedent, but the low yields generally prop up stocks while higher rates put pressure on equities. Bad sign for stocks here.

#2 As I am writing this gold is up $110.00 TODAY (4-9-2025). While I am loving it gold is sending a signal that something is drastically wrong somewhere. It could be almost anything. We could be on the verge of a major war, we could be on the verge of a liquidity crisis, a dollar crisis, or possibly a black swan that only those “in charge” know about at this time and they may be positioning for it.

#3 Most of the countries of the world are using the same word- TRANSITION. The EU has announced that they will roll out the CBDC known as the digital Euro in October 2025. China has a CBDC digital Yuan. They just signed an agreement a few days ago with ASEAN (an organization of Asian nations) to settle trades with the digital Yuan. In addition, a few Middle East nations are also involved. This is a dagger for the US dollar as these nations account for 38% of global trade and they will bypass using the dollar as they had been. (Christine Lagarde (ECB President and County Local News 4-7-2025)

Keep in mind that as we TRANSITION into a non-dollar centric system first the dollar has to be imploded to bring about the new system that they want to transition us to. Since the majority of people do NOT want a CBDC I have always said they will need a crisis so that people will beg for a solution. The solution will likely be the mandated by the Bank of International Settlements (Central bank of central banks) CBDC for every country with a central bank by- you guessed it 2025!

I believe that we are being pushed into a crisis scenario as we speak, and the signs are all around us. I believe that those waiting for the central banks to act as they have in the past to kick the can down the road yet further are going to be massively disappointed.

I have written many times about the fact that our weaponizing of the dollar, our out-of-control spending and debt would ultimately lead to a loss of confidence in the USA and the dollar. It appears that time has come.

#4 “Markets” are whipsawing around in a way that I last saw in 2008. Massive moves up and down in the major indexes indicate BEAR MARKET action- not Bull.

I believe that BTFD should be STR (Sell the rally).

There are reports that Wal Mart has suspended guidance and Amazon is cancelling orders because of the tariffs. In addition, the layoffs that have been plaguing the Federal government are now starting to rise in corporate America. Small businesses are also being decimated. If the “market” is indeed on its way to reflecting the true state of the economy- look out below! (Anand Sinha and Zerohedge)

Even with the recent pullback the assets being artificially propped up are FAR overvalued in regard to historical valuations and have a LONG way to go to revert to the mean. The assets being artificially suppressed are the exact opposite. When reality rears its ugly head those positioned correctly could amass generational wealth if they have the foresight and guts to do it while those positioned for the last cycle will probably be obliterated.

Be Prepared!

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