An early mentor once warned me, “If the public knew the truth, the markets would be cut in half.” Decades later the stock market has soared tenfold, but so has the deceit.
We have a new administration coming in with a central promise of “truth.” Trump has placed what some call “radicals” in charge of key agencies and departments. The good news: this bold strategy may be the only way to cut through the noise to find the truth. The challenge: the truth sometimes hurts.
This is a risk piece and not a political one. We see several potential landmines on the journey toward truth. Our new set of radicals will face countless rabbit holes to explore—like why our life expectancy lags a full five years behind most developed nations, or the reflexive stamp of “classified” on supposedly benign files that keep us in the dark, even though the politicians supposedly work for us.
Much of this truth won’t be pretty, and each carries a unique set of risks. We’ll keep our focus on the markets and highlight a few potential time bombs that may prove my mentor right.
Yes, the science of economics is alive and kicking, but you had better watch out for what people are avoiding looking at. For instance, there is something called rehypothication that is a truth that will bring deadly results to the markets and bonds. rehypothecation is lending out someone’s asset to someone else for use, in other words making more than one owner for an asset. Can you see the problem when this Babylonian Money Magic is discovered and what will happen to THEM when it is?