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Trump Prophecy: 7 Prosperous Years!

Christian Prophet Kim Clement accurately prophesied God would choose Donald Trump to be the next President of the United States. As early as 2007, he prophesied that God had chosen a “Hot Blooded Man” to be President, to lead the United States. As early as 2007, 2011, and 2013 Kim Clements called Donald Trump by name a “Trumpet for God”. The Prophet Clements consistently and steadfastly preached God has chosen Donald Trump to lead the United States to 7 years of prosperity and two terms: “says the “Lord”. Trey Smith’s video on Trump: and Prophet Clement’s YouTube Videos filmed while he was in “The Spirit of God”: and are a must view. Kim Clements was not alone as many others heard God’s message as well. Prophet John Paul Jackson said “God has chosen a “Bulldozer” to clear the mess and implement God’s Plan. The Prophet Jeremiah Johnson on July 15, 2015 had a vision proclaiming Trump would be a “Trumpet of God and be like Cyrus of Isaiah 45, the Lord would raise up Trump”.   Donald Trump has been chosen for the United States; he seems to have been chosen to clear the trash.

The Ancient Cycles of Business have not yet completed their entire rotation. The Central Banks and Governments of the World have distorted and manipulated these Cycles to extend this Debt driven Prosperity. As Fall follows Summer, Winter follows Fall. The Commodity Cycle, the Stock Market Cycle, and the Bond and Credit Cycle are all attempting to follow their respective course. These Cycles have been distorted and extended to Historically unsustainable levels. However, they have not been eliminated; they will complete their inevitable rotation soon. The Real Estate Cycle is only at a Mid-Point of it’s 18 year Cycle which is thought to extend until 2024-2026; a correction in an ongoing Bull Market may occur as other markets experience severe turmoil.

Commodities will soon bottom in their 15 year Cycle rotation; 7.5 years up and now completing 7.5 years down to a low. Walter Zimmermann of United-Ipec, a World Renown expert in Elliot Wave and Cycle Analysis, expects the Commodity Cycle to bottom in the 1st Quarter of 2017. However, the coinciding 16 year US Dollar cycle is not expected to top until July of 2017, which will affect the Commodity Cycle. A strong Dollar suppresses commodity prices such as Oil, Coal, Corn, Wheat, Gold, Silver, etc., as Global pricing of many Hard Assets are in US Dollars. A Strong Dollar results in weak Commodity Prices. By mid-2017 the US Dollar should peak causing more turmoil to Commodity producers as they hit bottom. After the Low is established, Commodities will then start their 7.5 year rising wave; perhaps a very good entry point for a long trend. However, the Stock Market is also weary; 9 years into a cycle that completes in 7.5 years. All time highs in an old, over-valued Asset Class should be a warning and a very good reason to re-allocate! The 60 year Interest Rate Cycle topped in 1981-1982 and the consistent decline in rates has been distorted and extended years beyond the Historical wave’s natural bottoming. The Central Bankers have created one of the largest, most dangerous, and unsustainable Debt Bubbles in History. Sovereign Debt may be the most risky asset of all.

Martin Armstrong of Armstrong Economics has stated that interest rates have fallen to 5000 year lows; rising rates are imminent. Trillions of Dollars and Euros have been lent at Zero and Negative Interest Rates; such has been the fear in the Credit Markets. Rates seem to have finally bottomed in July of 2016 with 10 year Treasuries falling to 1.366% on July 8th, 2016. Currently, January 1, 2017, the 10 year rate is 2.446%; almost double in 6 months. The week following the Presidential Election witnessed rates suddenly rising causing $1.5 Trillion in losses. The Credit Market is one of the largest markets in the world; losses will be Massive!!

Losses in the Credit Market will not only be caused by rising rates, but also Creditworthiness as rising rates pressure Corporate Entities as well as Sovereign Entities. They will experience higher and higher Debt servicing costs straining Revenue Resources. Estimates are as high as 73% of existing debt is extremely short term crowding the short duration to reduce costs as much as possible. Rates of Zero, 0.1 to 0.2%, or even the estimated $15 Trillion in Negative rates will be rolled over into longer durations in 2, 5 or 10 year Bonds. Not only will rising rates result in Huge losses to Principal, but conceivably, debt service could easily explode to 20, 30, or more times current Debt Service straining and then exploding budgets. Debt service is almost negligible at 0.1%. The cost to borrow a $ Billion Dollars at that rate is $1 Million dollars: at just 3%, the lower end of the range, the cost is $30 Million. Multiply that by $20 Trillion and you have some very serious obligations! Rates will “Normalize” to the 4-7% range. For perspective, Civil War Bonds carried coupon rates in the 5-6%; the 10 Year Bond for Jan 2007 was 4.76%, rates just 20 years ago were 6.58%. Central Banks have taken the range of rates to the ridiculous in order to maintain the Social Programs, Float the Banks, and retain Power! Sovereign Debt Interest carry will explode Government Budgets easily becoming the largest line item. The Debt burden will be onerous crowding out other programs such as Welfare, Healthcare, and Pensions causing Civil Unrest across the Globe. The US will not be immune, but will be the best of a very bad bunch!

Martin Armstrong Research states that all Sovereign Debt eventually defaults. The Politicians involved all wring their hands and profess the desire to “do the right thing” and protect the Bondholder who has lent the State money. However, as Puerto Rico realized in 2016, if there are not enough funds, then the State cannot pay. During the collapse of the US Housing Bubble, debt burdened, over leveraged Homeowners were initially embarrassed and extremely reluctant to “Short Sell” their homes and negotiate a settlement.   Credits scores were considered very important and there was a Social Stigma attached to negotiating a sale with the Lender for less than what was owed. However, as more and more Homeowners took advantage of the process, the reluctance and stigma evaporated into expedience and a Stampede to alleviate Homeowners of Bad Loans filled the Real Estate Market eventually setting the ground work for a strong recovery. In just a few short years, Billions of dollars of Non-performing Loans were liquidated.

Politicians will profess horror at a Bond default. However, Cash strapped Sovereign Entities will behave in the same manner as the over-extended US Homeowners did. Reluctance to default will become Acceptance of Default as the Debt Market collapses. Donald Trump understands Debt. He understands re-structuring of Credit. Donald Trump’s pick for Treasury Secretary: Steve Mnuchin bought the Sub-Prime Mortgage Lender IndyMac during the Financial Crisis and profited by again re-structuring debt; a lesson he also learned during his years at Goldman Sachs. Another key to the puzzle!

Iceland Repudiated and Defaulted on it’s National Debt during the US Housing Bust which lead to the Great Recession. Icelandic Bankers had leveraged Credit beyond the GDP of Iceland investing in the “sure thing” of the Global Housing Bubble. Tough choices were presented; even tougher decisions were made. Bankers were arrested, tried, and jailed. Debt was Defaulted. A few years later, Iceland is not only stable, but thriving as the Debt Default relieved the burden of Debt Service.

The Credit Market has grown beyond what is reasonable and now is asserted to be Dangerous, Onerous, and Unsustainable; over 252% of total Global GDP. The Central Bankers may be able to extend this precarious market indefinitely; maybe not! A Debt Default or Debt Jubilee would have immediate devastating consequences; a deflationary climax. It would however, quickly lead to prosperity beyond belief. Financial Assets would collapse, but “Real Assets’ of Grain, Gold, Oil, Coal, Iron Ore, Grains, etc would explode in value. My favorite Asset Class: Cash flowing Rental Real Estate would not only cash flow unabated, but may serve as a “Safer Haven” for Wealth. Please consult your spouse, Financial Planner, or your Uncle Eddie before taking action.

Should a Global Debt Default be a possibility, then Trump and his team are the right choice! A Debt Jubilee would initially devastate the Financial Assets of the Stock and Credit Markets including the Global Economy; like a Forest Fire clears the dead wood to allow new growth. However, the following years would be quickly and unbelievably Prosperous; perhaps leading to 7 prosperous years out of a possible 8!

Author: Michael Douville

Mr. Douville has been in the Real Estate Business since 1974, over 41 years. He started his career during the 1974 recession in the Southwest suburbs of Chicago, where he experienced an inflationary period followed by the crash.

In 1981, having experienced enough cold and snow, he and his wife of now almost 36 years moved to beautiful Scottsdale, Arizona. For the last 34 years, Mr. Douville has advised clients, coached Basketball at the YMCA and Boys and Girls Club, participated in innumerable Boy Scout outings, and played Golf three times.

From 1982 through the early 1990’s, the Douville’s executed their well-thought-out business plan to accumulate income producing single family homes; the strategy has now been published. Michael currently represents and consults with investors for Acquisition, Wealth Management, and Asset Preservation while overseeing a portfolio of investment properties.

Michael has traveled with his family extensively within Australia and New Zealand, has journeyed on numerous occasions to the South Pacific, Europe, Mexico, Canada and the Caribbean, and of course throughout the US.

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