A global perspective on money ...
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[/caption] Recently, while on a musical tour, I had the pleasure of visiting with many different people in the UK and Ireland who were extremely well-versed in our economy. One thing I'll tell you is that over there they know when America does well. So do all European countries.
Unfortunately, the despair is real. The UK's not
doing all that well, and the Brexit decision -- to leave the European Union and bring money back to the homeland -- was a direct result. This was in October of 2016 (right before our elections) and also in February of 2016. Let me tell you: I was pleasantly surprised that they knew so much about our monetary system and how it works -- what our economic makeup is -- and that we, too, were in a recession and looking for a way out. I was asked about Trump and his chances. I answered that, given the economic nature of the state of affairs, his win would be a landslide. He had made it clear that he was concerned about the banking industry and the fact that our monetary system (as well as theirs) is not backed by much of anything in reserves and surplus. In fact, all of Europe is a debtor nation of credit and bonds based on no backing. Yes!! They knew it, and so did I! The USA's $20 trillion in debt is astounding. And did you know that Japan is $40 trillion in debt? They can barely even issue any more debt! This brings us back to Brexit and why the UK decided not to pay on the debt of Spain, Italy, France, Greece, and Portugal. Greece has never (and I never say never!) made good on any bond debt they've ever incurred. Not good!
This is really what the banks have done, in connection with their own form of federal reserves that print money and the International Monetary Fund. They have borrowed and invested in global markets through a huge leverage. When UK Brexit hits full stride and defaults occur, we have mechanisms that value shortfall. This will trigger the paying back to the banks the leverage they loaned out through debt to support the bubble. Stocks will need to sell quickly, however, if there's not a market, then they fall in value. When they can't sell off the shortfall fast enough, defaults will occur in larger and larger frequency. This will happen in Europe first -- then the world. Depression in the markets is real and no different than the Great Depression of 1929. The European Union is desperate for money. Recently, they've launched large-scale lawsuits to Google for $2.37 billion for a monopoly. I saw many search engines in Europe. [gallery ids="22494,22495"] It was great to talk with these compatriots of the UK and Ireland who are very proud of their heritage, homeland, and finances. Unlike here, it's not taboo to talk about money. The dinner parties of conversation were a true joy. What this really brings us to is the question of where money should reside. Well, I know a place where the cops don't go. Yes, there is a rumble in Brighton tonight. Runaway, boys!! Run away from the stock market as fast as you can! Sell high! Be the high rider! In the USA, there are track records of appreciation -- over 170 years of dividends paid consecutively. This is on top of guarantees that have always been met. In Europe, this is not a secret, as they have track records of hundreds of years. It's liquid. It can be a bank. It is based on backing dollar-for-dollar 100 percent of all money loaned out. It provides tax-free protection and proceeds. If you want to learn more about why the history of money is so important, then let's talk. You can learn why replacing your income will be awesome if you want to continue living the lifestyle you've grown accustomed to. You can even learn why tax-free income is the most important income you can have. Just contact me at Davidbiondo.com