Burning Down the House to Keep Warm

This is far from over and it is going to get ugly. [Outsider Club logo] Burning Down the House to Keep Warm [Adam English Photo] By [Adam English]( Written Sep 22, 2020 The numbers are coming in and they are grim. We already went through the second-quarter earnings results. They were horrific but we got the “better than expected” bumps. Third-quarter numbers will probably cause the same thing. It’s absurd when profits are plunging into steep losses, but earnings hype has always been a charade. What I want to highlight are the “big picture” numbers emerging and, boy, are they scary. 🔥 [PAYDIRT 2020 REBROADCAST!]( 🔥 TODAY is the day! You deserve to live a truly wealthy life... If you missed our exciting online event that happened on Thursday, you can still see what all the buzz is about... And Gerardo Del Real can show you to the front of the line. With so much money sloshing around in the $189 billion gold market (which is already WAY UP from just a few months ago!), gold investors can’t help but make a lot of money. It’d be a shame if one of them wasn’t you! TODAY is the first time ever that Gerardo is making the Paydirt Profit Cycle available to the general public... But we're keeping his video up for just a little while longer... Click here to view the [PAYDIRT 2020 rebroadcast!]( While we’re talking about what corporations are up to, we can look at the first nightmarish number. $1 trillion. That’s how much new global corporate debt is expected to grow this year, equivalent to a 12% jump, according to a new corporate debt index of 900 companies created by Janus Henderson, a major global asset management group. It would be one thing if this was a reversal of a trend. Instead, it represents an acceleration. Last year saw an 8% rise driven by M&A and share buybacks fueled by debt. Companies in the corporate debt index already owe almost 40% more than they did in 2014 and debt growth is far outpacing profit growth. Debt relative to shareholder finance is up to a record 59% for 2019’s figures. The percentage of profit devoted to servicing debt hit a new record high with it. This is a wildly unsustainable trajectory, and any reversion means painful cuts to everything from dividends, to profit margins, and that wonderful thing that actually leads to long-term growth — capital expenditures. Remember those? The Federal Reserve is creating an asset and debt bubble directly related to this new borrowing surge. It geared up for panic mode back in March as lenders froze new issuance, but the Fed didn’t react to corporate lenders reverting back and lending money to just about anyone who wanted it. Now debt is virtually free for all but companies that can’t even muster enough free cash flow to cover their interest payments, and even then debt for these so-called zombie companies is cheaper than it was for top-rated companies in decades past. The number of zombie companies is growing, and it will get far worse with any increase in interest, effectively trapping the Fed into allowing the debt bubble to endlessly grow. The effect will spill over into the burgeoning asset bubble. Best Kept Secret of America’s Elite Exposed For decades, the country’s billionaires have been cashing in on a little-known income stream. Forbes calls it, "the biggest investment opportunity you’ve never heard of," and Business Insider describes it as, "one of the ‘very best’ income sources." But most Americans have no idea it even exists... until now. [Click here]( to learn how you can gain access to this income stream and start collecting $1,273, $3,127, or even $5,372 every single month. How does all this look for the Fed then? Its balance sheet, and thus ours as lowly taxpayers in an indirect way, jumped from $4 trillion to $7 trillion so far this year. Speaking of what we owe, we just learned that the U.S. government debt jumped in the second quarter by over 25%, the most ever. This year's deficit will probably hit $3.7 trillion without any additional spending commitments. A total of $7 trillion has been added to the debt since President Trump took office. All of this is strong evidence that we’re being locked into a death spiral. One that the market is concealing. [sp500 vs us gdp 14 july 20 chart] [CDC Backs New COVID Technology (20-cent stock to soar)]( The CDC just greenlighted an anti-COVID technology for reopening schools and businesses. Dr. Fauci says it merits “serious consideration.” He even uses it himself. Tech giants Apple, Microsoft, and Facebook are investing $3 billion. But they don’t own this technology. One tiny tech stock does. For a brief window, you can buy it for $0.20 per share. [Click here for the full story.]( While stocks haven’t been as expensive since the Dot Com bubble, sitting at a forward price-to-earnings ratio of about 22, we’ve never seen such a massive divergence between economic reality and valuation. I’m not here to talk politics or policies. We’re all adults and make up our own minds. If anyone has a solution there are some Nobel prizes waiting for them. They’d have earned it. One thing is for sure though. If we need to or not, this is the equivalent of burning down our home to keep warm. The trends we are seeing now are virtually guaranteed to be locked in for years to come. However, it is not just the dire negative ones. There are positive trends we can use to our advantage. Gold has been surging up and all the data points to it being the start of a multi-year, if volatile, trend. [Get some exposure to the best gold investments now](. This is far from over and it’s going to get ugly. Take care, [Adam English] Adam English [follow basic]( [@AdamEnglishOC on Twitter]( Adam's editorial talents and analysis drew the attention of senior editors at [Outsider Club](, which he joined in mid-2012. While he has acquired years of hands-on experience in the editorial room by working side by side with ex-brokers, options floor traders, and financial advisors, he is acutely aware of the challenges faced by retail investors after starting at the ground floor in the financial publishing field. For more on Adam, check out his editor's [page](. *Follow Outsider Club on [Facebook]( and [Twitter](. Enjoy reading this article? [Click here]( to like it and receive similar articles to read! Browse Our Archives [Dollar Up, Gold Up?]( [Heat Rays, Laser Weapons, and an Emerging Profit Trend]( [Gravity, Fraud, and Prostitutes?]( [Gold's Multiplying Effect Comes Roaring Back]( [Gold Bull Run: The Fun Is Just Getting Started]( --------------------------------------------------------------- This email was sent to {EMAIL}. It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here](, and view our privacy policy and information on how to manage your subscription. To ensure that you receive future issues of Outsider Club, please add newsletter@outsiderclub.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance. [Outsider Club](, Copyright © 2020, [Angel Publishing LLC]( & Outsider Club LLC, 304 W Pacific Avenue, Suite 210 Spokane, WA 99201. For Customer Service, please call (877) 303-4529. All rights reserved. [View our privacy policy here.]( No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. Angel Publishing and Outsider Club does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. This letter is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be – either implied or otherwise – investment advice. Neither the publisher nor the editors are registered investment advisors. This letter reflects the personal views and opinions of Nick Hodge and that is all it purports to be. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. Neither Nick Hodge, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in this letter. The information contained herein is subject to change without notice, may become outdated and may not be updated. Nick Hodge, entities that he controls, family, friends, employees, associates, and others may have positions in securities mentioned, or discussed, in this letter. No part of this letter/article may be reproduced, copied, emailed, faxed, or distributed (in any form) without the express written permission of Nick Hodge or the Outsider Club. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. ---------------------------------------------------------------