Kerry Lutz's--Financial Survival Network

The West is breaking down. Democracies seem unable to handle the onslaught of problems being thrown at them. According to Alasdair Macleod, Russia and China will be the last men standing once this economic cycle reaches its unhappy conclusion. Perhaps the rest of the world will wind up emulating their oppressive systems. It's happened in history before, and there's definitely a large rhyme taking place. 

John Rubino and Andy Schectman joined us for a roundtable today. If the economy looks so great then why would anyone be worried about it. As John and Andy point out there's lots to worry about and that's why gold prices are breaking $1300 yet again. No doubt, President Trump will pull another rabbit out of a hat with China Trade, but then what? Debt keeps going up and so do entitlements and the demise of social security is just around the corner. And it's not much better in the rest of the world. The case for the world's most historically proven store of value just keeps getting strong and stronger. 

Adam Andrzejewski runs OpenBooks.org, a fiscal watch dog that often blows the lid off of corrupt spending. Corporate welfare now runs $400 billion per year. Boeing is by far the largest benefactor receiving billions yearly. And they're certainly not alone. Adam tells us about $1000 coffee cups at the Pentagon, that 5 sided paragon of waste, inefficiency and corruption. It's Adam's hope that Trump will address the true swamp in his second term, should he be reelected. 

Jason and I discussed the economic expansion and how much longer it can continue. The answer, contrary to popular belief and punditry, is that it can go on for quite a bit longer, perhaps many years. There are mega-trends taking place that can keep it going, almost indefinitely. Everyone already knows that this is the longest stock market advance in history. However, the real economy didn't start moving until Trump's election. GDP growth had been lackluster and anemic during the Obama years. The major opposing trend is a potential debt crisis lurking in the future. But, Europe is starting to send flight capital come to the US and that will be a strong countervailing force. And real estate is going to benefit from all of this, Bigly. Just wait, the best is yet to come. 

Trade Deficit Improves 3.4% as China Deficit Hits Best Level in 23 Months. Now Trump has imposed 25% tariffs on $200 billion of Chinese goods. There's more to come and Trump isn't backing down. On brighter news, the U.S. trade deficit in goods and services for February was $49.4 billion, an improvement of 3.4 percent over the January figure of $51.1 billion, providing more evidence that tariffs are reducing the U.S. deficit. That’s according to figures published by the Department of Commerce. Equally significant, our goods deficit with China came in at $24.8 billion, nearly $10 billion or 28.1 percent better than January’s $34.5 billion, and our best monthly China deficit figure since March 2017. The China deficit in February tends to be smaller due to the Chinese New Year holiday, but the figures still provide evidence that tariffs are reducing our imports from China.

“To disarm the people; that … was the best and most effectual way to enslave them.”
—George Mason, the Founding Father who championed our God-given rights
 
Individual freedoms are under attack in America today. Too many have misinterpreted—and even manipulated—the words and intent of the Bill of Rights to fit their own agenda. The only way to know their true meaning is to understand their chief architect, George Mason.
 
George Mason:
The Founding Father Who Gave Us The Bill of Rights
by William G. Hyland Jr. 
 
Mason is arguably America’s most unappreciated and underestimated Founding Father. Now, historian William G. Hyland Jr. reclaims Mason for modern Americans at a time when the individual rights Mason secured at the beginning of the republic are under threat.
 
George Mason reveals the little-known truths about this forgotten Founding Father that made him a powerful contributor to the new nation:
· The Declaration of Independence was not Jefferson’s original idea—he adapted it directly from Mason’s Virginia Declaration of Rights
· James Madison, the supposed “Father of the Bill of Rights,” strenuously opposed their addition to the Constitution while Mason avidly insisted on it
· The original declarations of our “God-given rights” were forged from Mason’s bookish knowledge of political history and philosophy, and his loyalty to liberty
· Mason was so dedicated to defending individual freedoms that he refused to sign the U.S. Constitution—asserting it did not adequately uphold them
· He warned against the dangerous growth of the federal government—especially an over-powerful executive branch and overweening judiciary
 
Like the words of the Constitution and the Declaration, Mason’s life and work must be justly understood if our rights to speech, religion, and liberty are to have a chance of survival. This is the essential biography of an essential Founding Father.

Your medical insurance won't cover glasses or contacts. Nor will it cover cavities or root canals. What about preventative care and routine visits? You know medical insurance is a must, but when it comes to dental and vision plans, do you really need it? Certified Healthcare Consultant Rich Wessenberg breaks down what you need to know: Most insurance premium dollars are returned for dental and vision policies by taking advantage of annual preventive care visits!

One of the most important news items, the virtual rebirth of the American economy under the Trump Administration, is also one of the most under-reported.

The reasons for that are political. Obviously, it is a success for a White House that most of the media almost desperately attempted to prevent getting elected, and, once that effort failed, did everything possible to cripple. The magnitude of the Trump economic revival could be sufficient to get the President re-elected, an outcome that media seeks to prevent at all costs.

There is also an embarrassment factor, as key left-wing writers and politicians claimed Trump's policies were incompetent or worse. Just two examples: The New York Times' Paul Krugmanpredicted that Trump's policies would lead to a "Global recession, with no end in sight." Obama himself mocked Trump's promise to revive manufacturing employment, stating that "those jobs aren't coming back."

Obama's approach of extensive regulation at home and timidity in confronting China abroad provided poor results for American industry and related employment, continuing a downward spiral that could be traced back to the Clinton Administration. During the 2016 presidential campaign, Slate's Jordan Weissman, noted: "Things have not worked out quite as the 42nd president hoped. Normalizing trade with China set our rival on a path to becoming the industrial powerhouse the world knows today, decimating American factory towns in the process and upending old assumptions about how trade effects the economy. Thanks to a growing body of academic research, we're only just now beginning to understand the extent of the economic fallout..."

They used to say, follow the money, now it's follow the debt. John Rubino believes that the key to deconstructing the news media's latest hype or fake news is to simply watch the debt explode geometrically. Excessive debt causes irrational behavior which leads to comedians getting elected president. Where have we seen that before? 

The Blockchain technology appears to be moving away from crypto/klepto currencies and towards systems and controls to help facilitate accurate and timely record keeps and memorializing transactions. Now that the hype has somewhat subsiding from currencies, Paul Snow explains the true impact of the Blockchain and what his company has is working on. 

You've heard it here on this show before, there's trouble brewing in hog heaven. Seems the African Swine Flu has wiped out large portions of China's pig population. If the flu comes to the US, all bets are off. We could see a parabolic rise in pork belly futures. Bill Baruch has been trading since he was a kid. He got hooked on the old S&P Stock Guide, long before there was an Internet. Now he'll trade anything if there's a profit to be made. He's neutral on gold, negative on copper, and has an opinion on just about every market. 

– Forty-four percent of Americans say the political environment in Washington is the biggest threat to the U.S. economy over the next six months, according to a new Bankrate.com report. This is more than three times the amount who cite terrorism or political/economic developments overseas, the next most popular choices (both 14%). Other perceived economic risks include a decline in the stock market (11%), interest rate decisions (8%) and something else (2%).

The propensity to point to politics in Washington is greatest amongst Republicans (49% vs. 45% of Democrats and 42% of Independents), and increases with age, income and education level: 40% of Millennials (ages 23-38) cite politics as their chief economic concern, compared to 51% of those who are ages 55 and older. 52% of those who make at least $50K per year single out Washington, compared to 40% who make less than that.
54% of those with a college degree name the political environment in Washington, versus 32% who have no more than a high school diploma.

While nearly all Americans (93%) can point to some factor as being a potential threat to the economy over the next six months, the majority are not taking appropriate measures to prepare for a downturn. Just one-quarter of those who identified a threat to the economy are spending less as a result, 25% say they are paying down more debt and only 23% are saving more. “With the economic expansion set to become a decade-old this summer, more Americans should be focused on paying down debt and saving more both for retirement and for emergencies,” said Bankrate.com senior economic analyst Mark Hamrick. “Savings rates are the highest we’ve seen in some time (https://www.bankrate.com/banking/savings/rates/), and there are generous balance transfer offers on the market (https://www.bankrate.com/credit-cards/balance-transfer/) to help knock down high-interest credit card debt. Take advantage while things are going well, otherwise, when the inevitable downturn does occur, individuals risk having failed to improve their finances when the proverbial sun was still shining.”

While the political environment in Washington was the most commonly cited economic threat, worries about a stock market decline are most prevalent amongst Millennials, especially younger Millennials (ages 23-29), and those who make less than $50K per year. Terrorism is more of a concern for those with lower income and education levels, while interest rates worry Millennials and Gen Xers (ages 39-54) more than their elders. Fears about international politics or economic developments are highest amongst younger Baby Boomers (ages 55-64).

US Stock markets led by the S&P and NASDAQ hit record highs during April. Canadian markets up and emerging markets up as well. Dollar up, Euro flat, Bitcoin up to 5248, 10 year treasury yield up to 2.54. Silver and gold got hit again. Platinum looks like it's bottomed and Palladium was flat after last month's huge decline. Copper down a paltry 1.3%. WTI up another 6.3% and Brent up 7.7% for the month. Natgas continued its slide down another 4.8%. Uranium stabilized at 25.13. Gold/silver ratio almost at 86. Plat to AU at .69, Plat to Pal up a bit to .65. That's it for April, check back next month for May's performance.