The Global Reset 

Is Coming! 
"The idiot bankers have finally run out of slack" 

How many times have you heard that in the last few months, heck maybe 
even last 12 months or so..? If you follow Peter Schiff, Jim Rickards or 
the slew of other obsessive gold bugs then you will be hearing that 
probably daily as they grasp onto any news pieces they can to prove their 
bias correct. Bias is a funny thing, the more evidence you get served up, 
you tend to double down more and more and more- before you know it, 
that is all you can see.  

First off don’t think that all this is happening because they are idiots and 
finally run out of robbing Peter to pay Paul, if that was the case, probably 
wouldn’t have kept the banking power alive this long, their intention 
with all of this is most likely to always keep banks risk low and the 
peoples risk high, if the country/bank screws up, the tax payers foot the 
bill. I feel most people miss this part, we pay through taxes, inflation, 
and natural rise of goods/services/food which should all be getting 
cheaper at this point. 

Let's set the stage here for the argument that the “great recession” is 
coming and then what you can do about it. First off this shouldn’t shake 
you or scare you, in fact if you have been in Empire since 2018, you 
would’ve had at least a year to start preparing if you hadn’t already. 

There are some interesting things going on right now, first we have 
Central banks accumulating GOLD at record high numbers in 2018 and 
now even more in 2019 (145.5t in Q1, 68% higher y-o-y), here's a quick 
look… 
  

Next we have the BIS Basel III remember a few months back, upgrading 
GOLD to a tier 1, 0 risk asset finally and they talked about a GOLD 
backed standard, of course no one knows how fast they may or may not 
be moving on this but we get some hints with countries and banks 
accumulating at record high numbers and just the other day Malaysian 
Prime Minister Mahathir Mohamad on Thursday (May 30) proposed to 
create a new “special currency” for the East-Asia region based on gold, 
replacing the existing currency trading regime and said the following… 
“We can make settlement using that (new) currency. That currency must 
be pegged to the local currency as the exchange rate, which is something 
that can be related to the country’s performance,” 

Mohamad went on to say that with the global market being tied to the 
USD its prone to manipulation, all of this coming literally a day after the 
US added Malaysia to its watchlist of currency manipulation along with 
Singapore, China, Germany, Japan, South Korea and Vietnam. 

Ok moving onto overall economic outlook we turn to two recent reports 

released by both JP Morgan (liquidity insights Q1 Review) and the IMF 
(Global Financial Stability Report). Essentially what they show is a drop 
in liquidty which can lead to flash crashes as they haven’t tested that 
liquidity level yet, sovereign vulnerabilities are rising in both advanced 
and emerging markets, and essentially it all leads back to you! 
 
Summary of report above, its only 60 pages, well worth the read! 

This is a quick shot of declining portfolios aka liquidity… 

Lastly, all roads lead back to households, which is you and I… 
  

Now, I will be breaking both the above reports down in greater details 
along with other data points in the Q1 Global Reset report that will be 
uploaded to EIA members. 

So at a macro level things are seeming rocky right? Let's add to this, you 
should already be aware of the Trade Tarrifs war with US & China, Also 
now Mexico, Australia, India and Iran could be next. 

What about the stock market, well in case you missed all the other alerts 
and emails about that, this headline should summarize well enough… 
  

What about Bonds? 

 
Bonds flash economic warning as 3-month yield tops 10-year rate by 
most since financial crisis. 

What about RE in the US, that should be fine right? While no specific 
cities are starting to show pullback, we are seeing a surplus of inventory 
in many cities and in Hollywood alone, a back surplus of mansions for 
sale. There are close to 100 homes on the market asking over $20M in LA 
county, 35 of which could be classified as spec homes. 

There are about 50 ultra high-end spec houses under construction in the 
area from Beverly hills to Bel-Air and Brentwood. 
Now, there are simply too many, and not enough buyers to go around. 
“It’s created its own monster,” says Stephen Shapiro of Westside Estate 
Agency. “We have an enormous oversupply of these white boxes. There’s 
years of inventory out there.” 

Just today as the DOJ mentioned Anti-trust lawsuits on both Apple and 
Google, stocks dove 4-7% across the boards. This tells me we have a soft 
market with low liquidity, expect more flash crashes on S&P, expect 
more tightening at least over the next few months while we all wait to 
see the shakeout of all these trade negotiations. 

So what can you do? 

Well, first off you should’ve been following this up till this point and 
already started to make plans accordingly- not like this just popped up 
today. It's safe to assume better plays are to hold metals (gold, silver) 
because it seems like thats where things are going to a larger degree 
than right now, digital currencies will continue to rally as fiat falls, RE I 
would wait on the sidelines with cash for the market to soften up, people 
to capitulate and finally start selling rentals and primary residence for 
downgrades. I would not be buying stocks and bonds unless it's a longer 
term hold. 
If you’re confused by all this, probably should take about an hour and 
cruise through ​the Bulletproof Portfolio, its just $17 bucks. 

That's it for now, if you a premium subscriber, you will be getting access 
to full report soon! 

-Jameson Brandon 

www.EmpireResearch.net  

Sources: 

https://www.bloomberg.com/news/articles/2019-05-31/a-bond-market-exodus-was-actually-inter
nal-fund-move-at-fidelity 

https://www.msn.com/en-us/money/realestate/l-a-developers-have-a-big-problem-too-many-new
-megamansions/ar-AACbCpv?ocid=ob-fb-enus-894&fbclid=IwAR0i9VQD3ytcEahJPm1UfkS8Hg
Nku0wqGy0QjR_PxT0DsjTJX1YxbKmlkX0 

https://www.cnbc.com/2019/05/29/corporations-were-the-biggest-buyers-of-stock-during-the-bul
l-market-but-now-they-are-selling.html