Today
the man who counsels prominent hedge funds, investment banks,
institutional money managers, mutual funds, pension funds, and high net
worth individuals across the globe, told King World News that he
believes we are facing a 1987 type scenario where the markets will get
badly shaken. Belkin, President of Belkin Limited, also believes we are
eventually headed for a destructive hyperinflation where gold will have
an extended upside move.
Belkin also discussed government counterfeiting of money: “I used to work for a top three government securities dealer, Salomon Brothers, back in the 80s and 90s....
So when Salomon Brothers
bought $5 billion of the 2-Year Notes at the auction, and then the Fed
came in and did a coupon pass and bought $2 billion of that, they
credited Salomon’s account with $2 billion. That’s counterfeited
money. That’s brand new, high-powered money. I had some mentors that
were former Fed officials so I have a pretty cynical view on this whole
process.
Here is what Michael Belkin had to say in this powerful interview: “Back
in 2009, in the spring, I was extremely bullish. Back in late 2002
when the stock market bottomed I was bullish on the economy and on
markets. The time to buy is when blood is in the streets. We are so
far from that.”
Michael Belkin continues:
“The markets are so
overextended. The markets have been going up since 2009, for almost 4
years now. We need to have a selloff, that’s a healthy thing for the
market. The other thing I would like to say is sell rallies. When the
market is going up you buy the dips and the trend bails you out.
When the market is going
down you sell aggressively into these brief, two to three day rallies
that we’ve had, and that’s what I’m telling my institutional investors
to do.”
“How this works is the Treasury issues
debt, the government securities dealers buy the debt at auction, and
then the Fed comes in and buys the debt from the government securities
dealers. That’s what debt monetization is.