Treasury supply continues to bulge, thanks to the yawning Federal budget deficit, and the fact that the Treasury must raise $30 billion per month to repay the Fed.
That’s because, under its program to shrink its balance sheet, the Fed is demanding that the US Treasury pay the money back that the Fed lent to the US Government under QE.
On top of that, the federal budget deficit will top a trillion dollars in the 12 months since the new tax law and spending increases took effect.
The soaring deficit has been steroids for the US economy, but the government must borrow that money before it can spend it. That means that a trillion dollars a year is now hitting, and will continue to hit the market in massive quarterly waves for years. And the money isn’t there to absorb it without prices falling drastically. That means lower stock and bond prices and higher bond yields.
Right now we are right in the early stages of one of those waves, and it will decimate stocks and bonds.
Click here to see why…
In 2005, as the prices in housing were going crazy, and as sales volume was at radical levels, I sold my house in Florida.
In other words, I cashed out on my housing investment at nearly the perfect time, just before selling opportunities had dried up and the housing market completely collapsed.
I had bought my house at the bottom of the market in 1991 because I saw the discounts – and because of the panic at that point, the value was just too good to ignore!
By 2005, the price of my house had tripled from the price that I had paid for it. And I had bought it with virtually no money down. So I was sitting on a tremendous profit.
I had become increasingly nervous about the state of the market, and felt like I just wanted to grab the money and run.
And run I did!
I allowed the market shake out over the next few years, and it turned out to be one of the best decisions of my life.
So today, I want to reveal to you a similar opportunity – a housing bubble that we are nearing the end of right now – and show you how you can profit.
But first, a little more about the previous bubble…