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Vietnam's "Shadow Plan" for a Fight in the South China Sea
When U.S. President Barack Obama visited Vietnam earlier this week, he became the third American head of state to do so.
But I’m going to let you in on a little secret.
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Keith is the Chief Investment Strategist for Money Map Press. A seasoned market analyst and professional trader with more than 30 years of global experience, Keith is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes.com recently hailed him as a "Market Visionary."
He is a regular on FOX Business, CNBC, and CNBC Asia, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, Forbes, and MarketWatch.
Keith has been leading The Money Map Report since 2008, our flagship newsletter with 80,000+ members. He's also the editor of the High Velocity Profits trading service. In his new weekly Total Wealth, Keith has taken everything he's learned over a notable career and distilled it down to just three steps for individual investors. Sign up is free at totalwealthresearch.com.
Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.
If you like extreme risk and consider living on the edge to be "normal," today's column isn't for you.
Today I'm writing to the millions of investors who are completely terrified by the prospect of what's next and who simply want their faith restored – not to mention their investments.
To all of them I would say: You are not alone and you're not wrong to be apprehensive.
Our political situation is an embarrassing train wreck, our national debt looks like a one way trip to financial hell, housing remains in the dungeon, unemployment is unacceptably high and Europe…oh Europe.
It's nothing short of a gigantic wall of worry.
Plus, there have been so many attempts to "fix" things that I've lost count. Throwing good money after bad is a fool's game and one that will have very real and inevitable consequences.
So what should investors do?
Here's how I see things. The "Whitewash Ministry" has basically five options:
You can forget the double "d's" – devaluation and deflation.
Even though both would be the proper way for free markets to bleed out the excesses of the past, they are essentially political nukes and nobody has the willpower to touch either one of them.
The third, austerity, is being tried but only halfheartedly. Our leaders have no idea what this actually means. Since they remain completely unaccountable, there is no true incentive.
Besides, large numbers of people have figured out it's easier to be on the dole than it is to actually work, so this is another disincentive for meaningful cuts in spending.
As for inflation, this too is officially a non-starter as long as interest rates are held near zero. Unofficially, it's a different story. Most investors I know are feeling the heat of 12% to 15% a year in their wallets.
That leaves option number one – repression.
You can call it what you want, but repression is really a fancy way of saying that our government is conducting punitive monetary policy.
While they mouth off about how they want to create jobs and take care of the middle class, in reality they're eviscerating it.