The Cardinal Sin of Investing: Permanent Impairment of Capital

Last week we presented a parade of indicators published by Grant Williams and Lance Roberts that warned of an approaching market correction as well as a coming economic recession.

The key message was: When smart analysts independently find the same patterns in the data, it's time to take notice.

Well, many of you did, by participating in this week's Dangerous Markets webinar, which featured Grant and Lance.

In it, both went much deeper into the structural fragility of today's financial markets and the many reasons why economic growth will remain constrained for years to come.

The excessive build-up of debt in the system -- and the absolute dependence on its continued expansion to keep the economy from imploding -- is, of course, seen as the prime risk to future growth.

As Lance demonstrates here with several of his excellent charts, so much leverage has been taken on that its servicing is increasingly stealing capital that would otherwise go to savings, consumption and productive investment. Going forward, the demands of the debt service will simply result in less and less capital available left over to grow the economy:

As financial assets are (supposed to be) valued on future growth prospects, lower forecasted growth demands lower valuations. Grant calculates that, should the US see another decade of 2% average annual GDP growth (and it has averaged less than that over the past decade), stock prices should be roughly half of what they are today to be considered fairly valued:

And Lance builds further on this, explaining how this moribund growth, coupled with America's aging demographic trend, will simply savage the nation's (already troublesomely underfunded) pension and entitlement systems:

But there are a number of other destabilizing risks to fear beyond our terminal debt addiction. One that Grant believes is not getting enough attention right now is the de-dollarization trend becoming notably apparent across a number of America's strategic trading partners:

These clips are merely several minute's worth of the excellent discussion and insights from the full one hour-and-a-half long Dangerous Markets webinar. Those interested in watching the full webinar can learn more here.

It's little surprise that, given this multitude of concerns and systemic risks, both Grant and Lance advise investors to prioritize caution. They see extremely few undervalued -- or even fairly valued -- asset classes at today's prices, perceiving nearly everything else at dangerously elevated levels.

In a situation like this, moving your capital to the sidelines may be the best move available. The risks of remaining long are obvious. But betting against the market has been a losing proposition for years -- no one knows how many months/years the central planners may be able to hold reality at bay.

Grant and Lance wrestle every day with market allocation decisions on behalf of their clients (and they discuss a number of potential options in the webinar). But both agree that, since the math is clear a major-to-massive correction will happen at some point, having dry powder set in reserve to deploy at much lower prices is a low-risk/high-reward strategy.

In Part 2: Smart Strategies For Building & Managing Your Cash Savings, we address many of the most frequently-asked questions involved in holding cash right now, including strategies for preserving purchasing power, avoiding bail-ins, fees and other threats to cash savings.

As Grant concludes on the webinar: Permanent impairment of capital is the cardinal sin of investing. Well, today's markets present a clear and present danger of coming capital impairment for those who don't take prudent action in advance of a market downturn. Don't be guilty of inaction.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

Critical Race Theory: A special brand of evil

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Part of what makes it hard for us to challenge the left is that their beliefs are complicated. We don't mean complicated in a positive way. They aren't complicated the way love is complicated. They're complicated because there's no good explanation for them, no basis in reality.

The left cannot pull their heads out of the clouds. They are stuck on romantic ideas, abstract ideas, universal ideas. They talk in theories. They see the world through ideologies. They cannot divorce themselves from their own academic fixations. And — contrary to what they believe and how they act — it's not because leftists are smarter than the rest of us. And studies have repeatedly shown that leftists are the least happy people in the country. Marx was no different. The Communist Manifesto talks about how the rise of cities "rescued a considerable part of the population from the idiocy of rural life."

Studies have repeatedly shown that leftists are the least happy people in the country.

Instead of admitting that they're pathological hypocrites, they tell us that we're dumb and tell us to educate ourselves. Okay, so we educate ourselves; we return with a coherent argument. Then they say, "Well, you can't actually understand what you just said unless you understand the work of this other obscure Marxist writer. So educate yourselves more."

It's basically the "No True Scotsman" fallacy, the idea that when you point out a flaw in someone's argument, they say, "Well, that's a bad example."

After a while, it becomes obvious that there is no final destination for their bread-crumb trail. Everything they say is based on something that somebody else said, which is based on something somebody else said.

Take critical race theory. We're sure you've noticed by now that it is not evidence-based — at all. It is not, as academics say, a quantitative method. It doesn't use objective facts and data to arrive at conclusions. Probably because most of those conclusions don't have any basis in reality.

Critical race theory is based on feelings. These feelings are based on theories that are also based on feelings.

We wanted to trace the history of critical race theory back to the point where its special brand of evil began. What allowed it to become the toxic, racist monster that it is today?

Later, we'll tell you about some of the snobs who created critical theory, which laid the groundwork for CRT. But if you follow the bread-crumb trail from their ideas, you wind up with Marxism.

For years, the staff has devoted a lot of time to researching Marxism. We have read a lot of Marx and Marxist writing. It's part of our promise to you to be as informed as possible, so that you know where to go for answers; so that you know what to say when your back is up against the wall. What happens when we take the bread-crumb trail back farther, past Marxism? What is it based on?

This is the point where Marxism became Marxism and not just extra-angry socialism.

It's actually based on the work of one of the most important philosophers in human history, a 19th-century German philosopher named Georg Wilhelm Friedrich Hegel.

This is the point where Marxism became Marxism and not just extra-angry socialism. And, as you'll see in just a bit, if we look at Hegel's actual ideas, it's obvious that Marx completely misrepresented them in order to confirm his own fantasies.

So, in a way, that's where the bread-crumb trail ends: With Marx's misrepresentation of an incredibly important, incredibly useful philosophy, a philosophy that's actually pretty conservative.

We've heard a lot about critical race theory lately, and for good reason: It's a racist ideology designed to corrupt our children and undermine our American values. But most of what we see are the results of a process that has been underway for decades. And that's not something the mainstream media, the Democrat Party, and even teachers unions want you to know. They're doing everything in their power to try and convince you that it's no big deal. They want to sweep everything under the rug and keep you in the dark. To fight it, we need to understand what fuels it.

On his Wednesday night special this week, Glenn Beck exposes the deep-seated Marxist origins of CRT and debunks the claims that it's just a harmless term for a school of legal scholarship. Newsweek opinion editor Josh Hammer joins to argue why we must ban critical race theory from our schools if we want to save a very divided nation.

Watch the full "Glenn TV" episode below:

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To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

On the radio program Monday, Glenn Beck blasted the Democrats — and anyone else on the left — who have been so eager to open our southern U.S. border for the past several months, but also willing to turn a blind eye to the Cuban people in need of help today.

"While we are welcoming people from any country, all over the world, without any kind of information, and setting them into our country, putting them on American planes paid for by American taxpayers," Glenn began. "And our Coast Guard Cutters are turning these [Cuban] people away. Shame on you! Shame on you!"

Glenn said that he's "sick and tired" of hearing about "brave" leftist activists like Colin Kaepernick, who protest the America flag while wearing Che Guevara and Fidel Castro t-shirts. Meanwhile, the Cuban people are risking their lives by taking to the sea to escape their oppressive regime and come to America.

"Anybody who glorifies Che doesn't know their ass from their elbow. You can't call them a human rights activist. You're protesting the American flag, because you so deeply believe in the right to be free? And yet, you wear a Che T-shirt?" Glenn said.

Glenn went on to argue that, even though the left has "bastardized" the meaning of our country, he still believes America is the best nation on Earth. In fact, he'd give up his citizenship "in a heartbeat" if another country could prove to be better, more noble, and more free. But no other nation exists like ours, he said, which is why it's so imperative we fight for freedom here, in Cuba, and around the world.

Watch the video clip below to hear Glenn explain:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

There's a new "reality" spreading, and the mere act of questioning it has become incredibly dangerous, Wall Street Journal investigative journalist Abigail Shrier told Glenn on the most recent episode of "The Glenn Beck Podcast."

Shrier's book, "Irreversible Damage: The Transgender Craze Seducing Our Daughters," exposes the radical gender activism that — like critical race theory — has overtaken our children's schools and culture. But even worse, she warned, it could end your parental rights for good.

Shrier made it clear she is by no means "anti-trans," but simply speaking up against the extremes of this new "reality" has made her enemy No. 1 to many activists. Her book has been bashed so hard by the Left that Target has stopped selling it twice, Amazon once banned ads for it, and the American Booksellers Association even called sending it to others "a serious, violent incident."

In the clip below, Shrier explained why she believes "there may be no hope for the public school system."

"You have teachers behaving like activists across the country who have no interest in actually teaching. They believe their job is to remake your child," she asserted. "We're seeing so much evidence of that, I think it's fair to say that it may be too deeply rooted in the ideology being taught in public school. I'm not sure that the public school system is redeemable at this point."

Watch the video clip below for more or find the full podcast with Abigail Shrier here:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.