Three Founders Publishing has been promoting a presentation made by Graham Summers with the heading “America’s Death Spiral.”
It is based on a prediction Graham makes about a “$5.1 trillion financial extinction event” that he expects to happen on April 14, 2021. And, unsurprisingly, he has a solution that you can implement to avert disaster.
In this article, I give you an overview of the presentation by highlighting the main talking points. I also reveal what “extinction event” he is talking about, so stick around for that.
Before we start…
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Table of Contents
What is America’s Death Spiral?
In America’s Death Spiral, Graham Summers explains how the country is headed towards disaster. He calls it a “financial extinction event” that is slated to happen, leading to social unrest and economic destruction.
He predicts bank failures, a 70% stock market crash, a 25% unemployment rate, and the implementation of martial law to keep the social unrest at bay.
He blames the Federal Reserve for all that he is predicting to happen.
This feels familiar because we have seen analysts like Robert Kiyosaki (in America’s Final Wealth Transfer) also blame the fed for all our economic problems.
According to Graham, the Fed has been implementing bad monetary policies that have favored the rich and hamstrung Main Street. He gives the example of the Fed setting interest rates at zero in the wake of the Global Financial Crisis in 2008 and describes it as a move that reduced the cost of money for Wall Street banks but wasn’t beneficial to ordinary folks. He also points out that the Fed bailed out banks and big corporations while people’s savings were eroded.
Graham goes on to say that while that money was intended to spur the economy, the banks and corporations kept most of it to themselves and even used it to acquire more debt. Meanwhile, economic growth lagged behind stock market growth and the ordinary people who bore the brunt of the failed policies.
He tells us that all these forced people and small businesses to take on more debt and it is this trend that will lead to a financial meltdown aided by a catalyst: the pandemic.
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He expects the “death spiral” to unfold in stages:
- Stage 1: The first stage of the spiral has already happened. It was the economic downturn caused by widespread lockdowns and the first symptoms were the stock market crash, the high unemployment rate, and the reduced industrial input.
- Stage 2: The second stage was the response to the recession. This is mainly the fiscal and monetary policies put in place to alleviate the effects of a slowing economy. The Fed resorted to quantitative easing through stimulus. Graham doesn’t think these will avert the economic crisis.
- Stage 3: Since people and businesses will not be in a position to pay their debts, banks will start to feel the pinch of the crisis. This will lead to a financial extinction event because Graham expects two major banks, JP Morgan Chase and Wells Fargo (both with $5.1 trillion in assets), to report their earnings on the same day. Since he expects them to report bad numbers (due to bad debts), panic will ensue just as it did in 2008 when Lehman Brothers and Bear Stearns revealed how bad the situation was. This is when he sees the stock market crashing and big funds and corporations losing money.
- Stage 4: Once the economic fallout happens, he expects social unrest to follow because people will be in dire need of financial help when none will be forthcoming. The Fed will print more money and cause inflation putting essential goods out of people’s reach and this will lead to violence.
Graham pulls back a bit when he says that these horrific events may not happen but the overall impression he gives is that things won’t be so great either.
Having said all that, he offers a solution; a way for you to protect yourself from the doomsday scenario he just painted. His solution is in the form of “bulletproof” strategies of avoiding the ill effects of the “Death Spiral.”
He wrote a report called Crash Proof: Four Invincible Asset-Protection Strategies for the Coming Collapse that details those strategies. Here is a quick summary of the four strategies:
- Invest in precious metals. We have seen other analysts like Bryan Bottarelli agree that gold is a reliable way of hedging your portfolio against the ill effects of a crisis.
- Avoid banks that may not survive the crisis to protect your money.
- Invest in what he terms as “crisis-proof stocks.” He has a list of those stocks in the report.
- Invest in certain ETFs that can earn you huge gains a few years down the line.
To get a copy of the report, you have to subscribe to his advisory service called Strategic Impact.
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Who is Graham Summers?
Graham Summers is the chief market strategist of Phoenix Capital Research, an independent financial research firm in Alexandria Virginia. He is also the founder of Phoenix Press, which is a publishing imprint of Three Founders Publishing.
For the past 15 years, he has been sharing insights with his clients and has made a name for himself as someone who predicts major financial events like the Subprime Mortgage Crisis and The Greek Sovereign Debt Crisis.
He has been featured on Fox Business, CNN Money, and MoneyTalk Radio.
Overall, his strategy focuses on market outperformance and generating risk-adjusted returns.
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What you get when you join Strategic Impact
Strategic Impact is published by Three Founders Publishing. Graham is the main editor and each month he uncovers “little-known” investment opportunities that generate massive shifts in the financial system.
In addition to monthly issues of the newsletter, here is what you get as a member of Strategic Impact:
- Weekly updates
- VIP text message alerts
- Access to the members-only website.
- Free access to a daily e-letter called Money & Crisis.
- A free copy of his book, The Everything Bubble: The Endgame For Central Bank Policy.
Subscription Fee
$49 per year
Refund Policy
It has a 6-month, money-back guarantee.
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Is America’s Death Spiral a legit presentation?
America’s Death Spiral is a legit presentation.
I have to admit that he is going to attract a lot of skepticism for his doomsday-like predictions meant to get people to listen to his message and sign up for his newsletter. But that seems to be the trend in newsletter circles; editors are making all sorts of “bold” predictions and sensational claims to get people to listen to them.
However, there is nothing wrong with that as he is merely expressing his opinions. It is up to you to look past the hyperboles and see whether you agree with the underlying investment philosophy.
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My Final Word on America’s Death Spiral
If you scare easy, Graham Summers’ tone in America’s Death Spiral will have you worried for your future. To put it mildly, he sees the economy going down the tubes and he wants you to sign up for his newsletter to help you navigate it.
He draws parallels between the economy during the pandemic with how it was during the 2008 Financial crisis but goes the extra step of warning us that there will be anarchy on the streets. While there has been unrest due to political issues so far, it is unlikely that we will see unrest for economic reasons in the manner that Graham puts it.
That being said, if you are to subscribe to his newsletter, don’t do it out of fear of impending tragedy. Instead, focus on his investment philosophy and his track record.
Don’t leave yet…
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