How to Respond in a Manipulated World
As the proof that the stock market, metals market, bond market, real estate and basically everything money outside of decentralized currency is manipulated by central banks and planners, I have attempted to make sense of what is best for me in this crazy world we are living in.
I have come up with a series of truths that have led me to my current state of mind:
- The Stock Market is manipulated by the Federal Reserve through the President's Working Group on Financial Markets and the Federal Reserve Bank through the Exchange Stabilization Fund to change the price of anything with the click of a mouse
( As of October 2009, the fund held assets worth $105 billion, including $58.1 billion in special drawing rights (SDR) from the International Monetary Fund. The U.S. Exchange Stabilization Fund was established at the Treasury Department by a provision in the Gold Reserve Act of January 31, 1934.).
Big banks are acting as quasi government agencies to suppress the price of metals (Deutsche Bank settled their lawsuit regarding their metals manipulation scheme HERE)
The price of real estate is artificially propped up using derivatives, CDOs, Synthetic CDOs and other paper pushes that don't represent any semblance of a free market. (Selena Gomez and others explain CDOs pretty clearly below in the movie "The Big Short")
So with an artificial market that is hyperinflated, what do you do?
Do I short the market for the crash? I'd make millions, right? NO! If they can pump them up with a keystroke, they could destroy your short position and close you out! Since there is no true price discovery or timing science behind this, you will have to have insider information in order to even break even.
My current solution?
Stack physical precious metals while the paper prices are being artificially suppressed. I am buying silver over gold since the current gold to silver ratio is off from it's historical lows. See my article on why to buy silver HERE.
Stack cash. For a few weeks of turmoil when the stock market crashes, cash will be king. I will use cash to accumulate valuable assets to get me through the next few months or years until things correct.
Hold onto my real estate and improve my house with cheap dollars. I still need a place to live, and out of major population zones in case there is civil unrest. I don't plan on purchasing any additional real estate until the middle to end of the crisis.
Stack ammo and firearms. The price of firearms and bullets have consistently been climbing, making it my third most profitable and functional investment I've made.
Stack bitcoin and altcoins (65% bitcoin, 35% altcoins with good dev and product support). Bitcoin off exchange and in a paper wallet will be the surprise investment over the next 5 years as the country goes off of the old dog system and into a new, more efficient form of payment processing. With Coinbase being audited by the IRS and a blanket subpoena, the witch hunt has officially started, so put some of your bitcoin on paper.
I hope this article gave you some insight as in what to expect and how to protect yourself from a manipulated market.