Asset Allocation Strategies

[gfp927z]

This chart says it all -





And what it says is batten down the hatches for a recession. Unfortunately the Fed is no shape to deal with a recession, and the world's other central banks are in even worse shape - already near ZIRP or even in NIRP. The Fed balance is still bloated up near $4 tril, and the US is already running trillion plus budget deficits.

So..

What tools are available to deal with a big global recession? And what if the downturn morphs into a financial crisis? You're looking at an IMF bailout of the world with their SDRs. As Rickards says, the IMF has the only clean balance sheet left in the world.

The SDR system is what the global financial elites have been building to replace the current dollar reserve system. Whether they want the change to come now or later I'm not sure, but they don't want to get the blame for the crisis required to bring in the SDRs, and in Trump they have a convenient scapegoat. Dumbass Don walked right into it, both guns blazing.