The
Elites Are Jumping Ship As The Financial
Collapse Draws Near
By Mac
Slavo
July
29, 2017 "Information
Clearing House"
- It’s easy to think of the political and
financial elites who run our world as lofty and
all powerful. They command dangerous governments
that can wield devastating weapons, central
banks that treat our economy like a rigged
casino, media conglomerates that pacify the
minds of the public, and unbelievably wealthy
corporations that have concentrated wealth to an
unprecedented degree.
However, they’re certainly not invincible, and
the systems of control that they’ve created are
rapidly diminishing. Most notably, they seem all
to aware of the fact that the global economy is
headed for a crash. On the rare occasion where
you can catch one of the elites in a moment of
candor, they’ll tell you
that the party is almost over.
Mohamed A. El-Erian is a bona fide member of
the global power elite (a former deputy
director of the IMF and president of the
Harvard Management Co.). Yet he writes in a
fairly accessible style on the popular
Bloomberg website. When El-Erian talks, we
should all listen.
In a recent article he
raises serious doubts about the
sustainability of the bull market in stocks
because of reduced liquidity resulting from
simultaneous policy tightening by the Fed,
European Central Bank (ECB) and the Bank of
England.
He
says stocks rose on a sea of liquidity and
they may crash when that liquidity is
removed. This is a warning to other elites,
but it’s also a warning to you.
Their
actions are quite telling as well. Sovereign
wealth funds, which are largely funded and owned
by powerful governments to invest in domestic
industries, are jumping ship.
Among sovereign wealth funds, the Government
of Singapore Investment Corp. (GIC) is one
of the largest, with over $354 billion in
assets. So what does the head of GIC say
about markets today?
Lim
Chow Kiat, CEO of GIC, warns that
“valuations are stretched, policy
uncertainty is high” and investors are being
too complacent.
GIC
allocates 40% of its assets to cash or
highly liquid bonds and only 27% of its
assets to developed economy equities.
Meanwhile, the typical American small retail
investor probably has 60% or more of her
401(k) in developed economy equities, mostly
U.S.
In
other words, the investment arms of wealthy
nations are pulling out of the stock market and
out of companies in their own economies
(developed economy equities), and putting their
money into assets that can be quickly turned
into cash. It’s practically an admission by the
elites, that they think the economy is
completely unstable.
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But this is just the latest warning sign that
the elites are getting nervous. Corporate
executives
have been selling their stocks
at an unprecedented rate for several months.
Meanwhile,
ordinary people are still placing their faith
and their bets
on a stock market that most experts agree
is completely unsustainable.
And let’s not forget that “luxury
bunkers”
have become
immensely popular,
and that the super-wealthy have also been buying
remote retreats all over the world.
Are they afraid of what the public is going to
do to them when their phony economy crashes and
leaves everyone broke? Are they positioning
themselves for a crash that they know is coming?
All of
this suggests that the wealthiest and most
connected among us know that chaos is in our
future, and they’re getting ready for it. Ignore
them at your own peril.
This
article was first published by
SHTFplan
-
The
views expressed in this article are solely those
of the author and do not necessarily reflect the
opinions of Information Clearing House.
