17 Reasons To Avoid Gold

(Warning: Satire and sarcasm alert!) Central bankers are managing paper currencies for the benefit of the people, not the financial and political elite. Consequently consumer prices are stable and there is no reason to own gold as protection from currency devaluations. Time Magazine confirmed that Greenspan, Rubin and Summers saved the world in 1998. Bernanke did it again after the last crisis. In 2012 he was called “The Hero” by The Atlantic. Our economic world is now stable and secure and central bankers will not need to “save” it again. Because we live in a safe world, there is no […]

Read More

Titanic Parallel to the Federal Reserve

Thinking about the 105th anniversary of the sinking Titanic, the Titanic-sized debt in the world, and the role of central bankers… The RMS Titanic departed Southampton, England at noon on April 10, 1912 and struck an iceberg in the North Atlantic just before midnight on April 14. She sunk less than three hours later. Her maiden voyage lasted about 110 hours. The Federal Reserve, the central bank of the United States, was created by congress late in 1913. Her “maiden voyage” devaluing the dollar has lasted over 103 years. (All quotes and Titanic facts come from Wikipedia. Opinions are my […]

Read More

Russian Roulette, Central Banks, and Gold

Grab your ultra-reliable 357 magnum revolver and load the cylinder with six, not one, rounds of ammunition. Point the gun at your head if you are a member of the struggling middle-class. Imagine pulling the trigger and hoping … Do you feel lucky? The Six Loads of Ammunition for your 357 revolver are: #1: Central banks and commercial banks exert a huge influence over all aspects of our financial lives. Paper currencies issued by central banks, digital currency units, credit card debt, pension funds, retirement accounts, checking accounts, Quantitative Easing, bond monetization, congress, regulators, Presidents, and the list goes on. […]

Read More

Depression, Stagflation, Stag-Depress-Flation

The United States suffered through a deflationary depression in the 1930s. Stock prices crashed, currency in circulation declined, commodity and real estate prices fell hard and human misery prevailed. President Roosevelt revalued gold from $ 20.67 to $ 35.00 per ounce in 1933 – a substantial devaluation of the dollar. Make-work and government spending programs were implemented. War followed the depression. Then the United States suffered through the “stagflation” of the 1970s. The economy stagnated and inflation rose to previously unheard of levels. The Vietnam war, inflation and social protests dominated the news, gold shot upward from $ 42.00 to […]

Read More

Silver Prices for the Year 2017

How low and how high will the price of silver range on the PAPER markets during 2017? Knowing the influence central bankers, politicians, HFT algos, bullion banks and JPMorgan exercise over increasingly managed markets … it is impossible to answer the question, and it is probably the wrong question to ask. Instead, what do we know with a high degree of certainty? The U.S. national debt will substantially increase as it has almost every year since 1913. We can trust politicians and central bankers to act in their best interests to spend in excess of their revenues and increase total […]

Read More

Silver Prices and the Russian Connection

Silver prices nearly reached $ 50.00 in April of 2011. They crashed to a low under $ 14 in December of 2015 and currently (December 2016) sit at about $ 16. Silver prices, in our increasingly unreal debt based fiat currency world, streak higher and subsequently crash to unbelievable lows. Option One: Silver prices are near the end of their correction and will rally substantially higher. Why? Exponential increases in debt and total currency in circulation lift the prices for nearly everything, including college tuition, cigarettes, the S&P, housing, health care, silver and gold. We have heard this before and […]

Read More

A New Dow High?

While the global bond markets have begun to correct their 35 year bull market, the major U.S. stock indices, including the Dow, NASDAQ, Russell and S&P, have rallied nicely. Official U. S. national debt is approximately $ 20 trillion as of December 2016, and has approximately doubled every 8 years at a 9% compounded rate for over a century.        Year         Official Debt 2016          $ 20 trillion 2024          $ 40 trillion 2032          $ 80 trillion 2040        $ 160 trillion […]

Read More

Interest Rate Turn?

Interest rates have bottomed and will rise substantially during the next decade. OR: Interest rates CAN’T rise because rising rates will crash governments, economies, derivatives, equity markets and more. ********************** Consider the chart below for the monthly 10 year T-Note Index of Interest Rates. Date                         Rate             Rate Jan. 2000                  6.82%                       High Nov. 2001                     […]

Read More

Post-election Mathematics

The U.S. Presidential election is over. One candidate won, one lost, but the mathematics did not change. Mathematics of What? US government debt has grown far more rapidly than GDP for decades. This is unsustainable. US government revenues increase about 4% per year while the official debt has grown at 9% per year, on average, since 1913. Official debt doubles in eight years regardless of which borrow and spend party and politicians are supposedly running the country and that is unsustainable. Official debt is currently about $ 20 trillion. Does $ 40 trillion in official debt sound plausible in the […]

Read More

Silver and the Train Wreck

The U.S. National Debt is a “train-wreck.” The official debt is nearly $ 20 trillion and the unfunded liabilities are $ 100 – $ 200 trillion, depending on who is counting. It can never be repaid. Implications are dire. Official debt doubles about every 8 years. Does $ 80 trillion of official debt in the early 2030s sound viable? Per Krugman there is no problem. Consider the source. Denial is not a winning strategy, but it does prolong the period before the crash. The losers in the crash will probably not be the financial or political elite. That leaves the […]

Read More