Going for the Gold; it is not too late; the storm has not started. The latest automobile news is all but stifling. For instance, 17% of new car buyers are trading in their existing scrap metal for another combined piece of steel, plastic, aluminum, copper, rubber and chips. Funny thing is that the two ton of ionized amalgam, is under water according to mortgage speak. Say what? You mean the old jalopy is worth less than the underlying debt? How could that be with the skyrocketing price of used “put puts”? This is where the real world hits the road. 

Terms are not user friendly to say the least; 20% interest rates are like a knife in the borrowers back. Of course, eight- year terms at a G-Note a month can cause ulcers over time. But Uncle Sam

is not immune from this interest rate storm, his debt needs to be paid back too. Amassing 31 trillion in debt is not something to laugh about. Once Powell gets through playing “break the bank” bankruptcies will loom across the land, like locusts plundering an Iowa corn field. If you ever seen the swarm gobbling up acres after acres of crop, it ain’t fun.

As the head of the FED plows the fields, turning over a once vibrant crop, his determination goes unbated. His ultimate goal is to lance the inflated economy by stepping hard on the depression peddle. In other words, Powell won’t let up until the economy crashes. And it will. The current bubbles will be pierced, on way or another. The carnage will be felt across all sectors. So, our advice is to be vigilant, have a back-up plan or two. You don’t want to be one who hits the bottom floor.