Why Precious Metals Are Better LONG-TERM Over Bitcoin

Many precious metals investors are starting to question whether gold and silver are still the best store of wealth in the future. The reason Alternative Media community is starting to have doubts about their gold and silver investments is due to the rapidly rising value of the cryptocurrency market. Also, a number of precious metals analysts have jumped ship and are now only supporting the cryptocurrencies as the next best thing since sliced bread.

While some precious metals analysts now believe that Bitcoin and cryptocurrencies are the better assets to own in the future rather than gold and silver, I do not belong to that group or mindset. I differ from these analysts based upon my energy analysis. Unfortunately, these analysts that promote cryptocurrencies as the “New” digital assets of the future, are ignorant about the Falling EROI – Energy Returned On Investment, or are clueless to the dire energy predicament the world is facing.

I’ve received many emails from followers who wanted to know my opinion on the matter of “Precious Metals vs. Cryptos.” So, I thought it would be a good idea to discuss the fundamental reason why I believe the precious metals are still the KEY ASSETS to own in the future.

GOLD vs. BITCOIN: Price & Monetary Traits

While the gold price has increased significantly since 2000, Bitcoin’s price has gone up exponential in a short period. The amount of gold that can be now purchased with one Bitcoin has increased dramatically from less than a half ounce at the beginning of 2017, to 3.4 oz currently:

Bitcoin vs Gold: How many ounces of Gold can Bitcoin Buy?

(chart courtesy of xe.com)

Normally, exponential price rises do not last. However, Bitcoin might be the one asset that is an exception to the rule….. FOR A WHILE. Many cryptocurrency analysts are forecasting a $ 10,000+ price by early 2018. I have no idea if Bitcoin will reach $ 10,000 next year, but I am more concerned about what happens in the next 5-1o years. Even though the Bitcoin price might shoot higher, it could also correct much lower and trade flat for several years as it did after its spike in 2013.

Now, how does gold, fiat currency, and Bitcoin compare as “traits of money.?” I came across this table in an article, but could not find the source to give credit. However, I find this chart on the monetary traits of gold, fiat currency and Bitcoin interesting. The individual who put this chart together is showing that Bitcoin has the larger number of “High” ratings compared to gold and fiat currency:

Traits of Money

On the other hand, gold, the king monetary metal, suffers the lowest overall score in the group. The reason gold has a lower rating that fiat currency or Bitcoin is due to advanced technology. It’s much easier to buy groceries with $ 20 Federal Reserve Notes than using gold or silver coins. Furthermore, the supply of Bitcoin is more scarce than either gold or fiat currency (especially fiat currency as it has been printed into oblivion).

While the table shows fiat currency and Bitcoin enjoy higher traits of money than gold, some factors in the graph above are misrepresented. Let me explain. First, the table shows that Bitcoin is highly durable. This is true only if the electric grid and internet remain in a highly functional state. Just look what happened to Puerto Rico after Hurricane Maria hit the island. An astonishing 95% of the island is still without power…. and it will take months to restore power to the island. How does Bitcoin or electronic money function in Puerto Rico today?

Even though Cash is king in Puerto Rico today, what would have happened if the U.S. Dollar went into hyperinflation at the very same time that Puerto Rico lost its power? Instead of using cash, people would be bartering and using gold and silver for trade.

Second, the “predictable supply” category gives Bitcoin a “high” ranking while gold receives a “moderate” rating. Bitcoin can only accomplish a predictable supply if the electric grid, internet, and energy supply continue to provide the power for bitcoin mining and transactions. For Bitcoin to continue mining and providing transactions in the future, the world needs a cheap and growing energy supply. Unfortunately, a cheap and increasing power supply is not in the cards.

The situation will only get worse going forward. Thus, advanced technology will come under a great deal of stress as energy production starts to decline. The problem with the money traits shown in the gold-fiat-bitcoin table above is that the ratings are based upon a highly advanced technical system that is assumed will continue for the next 2-3 decades. I disagree.

Gold and silver have been stores of “Economic Energy” (coin termed by Mike Maloney) for thousands of years. They will continue to provide this function even as energy production and advanced technology suffer in the future.

Gold Still The Key “Safe-Haven” Asset To Own

While Bitcoin and the cryptocurrency market cap has increased over the past year, it is still 20 times less than total global gold investment:

Total Global Investment Value: Gold, Cryptos, & Silver

Currently, the total value of all gold investment is $ 2.9 trillion versus $ 143 billion for the crypto market and $ 47 billion for silver. Thus, the value of all gold investment is 20 times higher than the cryptocurrency market and 61 times greater than the entire global silver investment.

Yes, it’s true that the cryptocurrency market may still experience a huge increase in its total market cap to $ 1 trillion or more. However, the crypto market cap could also suffer a massive collapse in value, especially as the world’s energy situation disintegrates.

We must remember, physical gold and silver will still provide a store of “economic energy” in a post-industrialized world, as it has for thousands of years. Again, I will discuss this in more detail in future articles.

Lastly, the U.S. Stock Market continues to increase even as a barrage of negative news hits the press. James Kunstler wrote about his in his article, Kunstler: “Nothing Can Faze This Mad Bull, Apparently…”:

Nothing can faze this mad bull, apparently. Except maybe the $ 90 trillion combined derivatives books of CitiBank, JP Morgan, and Goldman Sachs, who have gone back whole hog into manufacturing the same kind of hallucinatory collateralized debt obligations (giant sacks of non-performing loans) that gave Wall Street a heart attack in the fall of 2008.

Europe’s quaint doings must seem dull compared to the suicidal potlatch of life in the USA, but, believe me, it’s a big deal when the Spanish authorities start cracking the heads of Catalonian grandmothers for nothing more than casting a ballot.

Evidence of the Mad Bull Market is shown in the following chart:

Dow Jones Industrial Average INDX

The Dow Jones Index continues to move higher, disregarding any bad news in the press. After the horrific mass shooting in Las Vegas, the Dow Jones added another 130 points on Monday. Today, it is up another 76 points to a record 22,633.

As we can see in the chart above, the normal correction phase takes place about every seven years. If a healthy correction took place, the Dow Jones would be at least 10,000 points less than what is its today. However, if the Dow Jones Index suffered just a 20% correction, it would gut the U.S. Retirement Market and Pension system. If the U.S. Pension System isn’t in enough trouble already, a 20% decline in the Dow Jones Index would most certainly push it over the edge.

The Dow Jones Index and other assorted Ponzi stock markets will likely continue higher as that is the only way they can go. Unfortunately, stock market valuations are now reaching insane levels as Americans suffer from increased BRAIN DAMAGE or over-prescribed FRONTAL LOBOTOMIES.

Precious Metals News & Analysis – Gold News, Silver News




What If It’s the 1990s All Over Again?

The 1990s were fun.

The internet was new, as was high-end coffee for most Americans.

You can say what you want about Starbucks, but do you even remember what pre-1990s canned Folgers tasted like? They wouldn’t serve that to prisoners on death row today. It would be inhumane!

The Cold War had just ended, gasoline was dirt cheap, and rock music was in the midst of its most creative decade since the 1960s.

The federal budget was balanced for the first (and last) time in decades. And, best of all, we had the turn of the millennium to look forward to.

So, yes, the 1990s were fun…

But the most fun of all was to be had in the stock market. It was the biggest stock bubble since the Roaring 1920s, and cheap online brokers made the market accessible to the masses. A lot of people got rich in the 1990s…

Let’s flash forward to today. After eight years of nearly uninterrupted bull market, it’s starting to feel a little like the late 1990s again.

To show you what I mean, let’s take a look at the Cyclically-Adjusted Price/Earnings Ratio (CAPE), or the Shiller P/E, named after Yale professor and economist Robert Shiller. The CAPE compares current S&P 500 stock prices to a 10-year average of companies’ earnings.

Today, the S&P 500 sits at a CAPE of just over 30, putting it at the level of 1929… right before the Great Crash. The CAPE has only been more expensive one time in the entire history of the stock market: the 1990s tech bubble, when it topped out at 44.

To put that in perspective, today’s CAPE is 83% higher than the long-term average…

Of course, before the CAPE hit 44 at the end of 1999, it had to pass through 30. That happened in mid-1997. So, for nearly two and a half more years, the market went from being “crazy expensive” to “even crazier expensive.”

I written for over two years now (see “Flat Returns for the Next 8 Years?”) that stocks are not priced to deliver good returns over the next decade. In fact, if history is any guide, they’re priced to lose money.

 

But that doesn’t mean they can’t go higher first.

So, what if…

What if we have a repeat of the 1990s and stocks just keep getting more expensive for another couple of years?

Sure, it would be irrational. But it was irrational back in the ‘90s too, and yet it still happened. And it would be just like Mr. Market to do what no one expects him to.

So, again… what if?

Should we just throw all caution to the wind, and buy and hold on for dear life?

Well, you could do that, but I wouldn’t recommend it. After all, we all know how the 1990s bubble ended. The tech bubble burst, and in the ensuing bear market the S&P 500 lost more than half its value.

My recommendation is to ride the market higher but keep your stops relatively tight. That’s the approach I’m taking in both Boom & Bust and Peak Income, and it’s working.

As I write, four positions in the former are sitting on double-digit gains, including one with over a 70% profit. In the latter four of our 22 income-generating positions have gained more than 19%, with six others in double-digits.

I’m talking about total returns, which include dividends, rather than just price returns. Whether the market goes up, down, or sideways from here, getting paid a regular stream of dividend income can help smooth out your returns.

And, perhaps most importantly in these market conditions, try taking a more nimble approach to your trading.

Adopt a strategy that can make money whether the market goes up, down or sideways, and gives you an opportunity to profit from any sudden changes. That’s where my friend Lance comes into play.

He’s got a solution to my “What if?” scenario, whether I’m right and it’s the 1990s all over again, or even if I’m wrong. Click here to sign up for his special event next week where he’ll explain all the details.

Charles Sizemore
Editor, Peak Income

The post What If It’s the 1990s All Over Again? appeared first on Economy and Markets.

Charles Sizemore – Economy and Markets ()




It’s A National Bonfire: Fans All Over America Are Burning Jerseys To Show Their Anger With The NFL

Does the NFL actually think that it can go to war with the national anthem and the American flag and win?  Many are trying to frame this controversy as a “protest against Trump”, but the truth is that owners, coaches and players can speak out against President Trump any time that they want.  They have huge platforms and the mainstream media would soak up every word.  So there is absolutely no need to “take a knee” when our national anthem is being played and the American flag is being honored.  As I explained a couple days ago, the national anthem and the American flag are symbols that represent the entire country.  When someone disrespects those symbols, they are disrespecting our great land, everyone that lives here, and everyone that ever fought, bled and died for America.

Everyone involved with the NFL that participated in that absolutely shameful display on Sunday needs to apologize to all of the rest of us immediately.  In 2017, many Americans no longer understand the importance of the national anthem and the flag, but there are still millions of us that do.  And the outrage that has been unleashed as a result of this controversy is off the charts.  If you go on to YouTube, you will find dozens of videos of fans burning their NFL jerseys.  There is even a new hashtag (#NFLburnnotice) that has gone viral over the past couple of days because so many people are doing this, and many mainstream news outlets are publishing reports on this phenomenon

Outraged fans around the country are taking a stand as protests during the national anthem spread across NFL games.

Hundreds of players have taken the knee, locked arms or just stayed in the locker room to call attention to racial inequality in the nation. That’s offended many football fans, who see the act as unpatriotic. Some threatened to burn their team merchandise if protests continued, and now some are making good on that promise.

Yes, owners, coaches and players may have a First Amendment right to do what they did, but we also have a right to let them know what we think about what they just did.

As the weeks and months roll along, millions of former fans are going to be turning the games off and finding other ways to spend their Sunday afternoons.  And once these fans are gone, do you think that they will come back?

One Pittsburgh fan was so outraged that he burned “more than $ 1,000 worth of Pittsburgh Steelers merchandise”

Robert Smith posted a video of himself on Sunday burning more than $ 1,000 worth of Pittsburgh Steelers merchandise, the Daily Mail reported. Earlier that day, the Steelers had not participated in the anthem, with the exception of offensive tackle Alejandro Villanueva, who served three tours of duty as an Army Ranger in Afghanistan before beginning his NFL career.

“We have morals in this country. We stand for this country,” Smith says in the video, which has more than 50,000 views as of Monday afternoon. “My great-uncle’s bones are lying in the bottom of Pearl Harbor for this country, for this flag, for your freedom to play in the NFL.”

“Super Bowl, right? As if I care,” Smith continues, pouring lighter fluid on the gear. “I care about our country. I care about our freedom.”

And of course now it is inevitable that “taking a knee” will start spreading to other venues as well.

Sadly, a member of Congress has even decided to do this on the floor of the House of Representatives.  According to Texas Rep. Sheila Jackson Lee, she did this in order to “stand against racism”

“There is no regulation that says that these young men cannot stand against the dishonoring of their mothers by you calling them ‘fire the son of a b.’ You tell me which of those children’s mothers is a son of a b. That is racism. You cannot deny it. You cannot run for it, and I kneel in honor of them,” Jackson Lee said.

“I kneel in front of the flag and on this floor,” she said as she took a knee behind the podium.

“I kneel in honor of the First Amendment. I kneel because the flag is a symbol for freedom. I kneel because I’m going to stand against racism. I kneel because I will stand with those young men, and I’ll stand with our soldiers. And I’ll stand with America, because I kneel.”

I have been fighting against racism for many years too, but this is not the way to do it.

It is never appropriate to disrespect our flag or our anthem, and this is a point that White House Press Secretary Sarah Sanders made on Monday

“This isn’t about the president being against anyone. This is about the president and millions of Americans standing for something,” White House Press Secretary Sarah Sanders said Monday. “Honoring the flag, the national anthem, and the men and women who fought to defend it.”

She added: “It is always appropriate for the president of this country to promote our flag, to promote our national anthem and ask people to respect it.”

It will be very interesting to see what the public opinion polls say in the coming days, but up to this point it has been exceedingly clear that most Americans do not support these kinds of “protests”

In 2016, a Quinnipac poll found that only 38 percent of those supported NFL players kneeling during the National Anthem. A Reuters poll found that 72 percent found the protest to be unpatriotic but also that 64 percent agreed there should be no punishment or fine.

When you disrespect the anthem or the flag, you are disrespecting all of us and everything that this country is supposed to stand for.

If you want to make a political point, find some other way to do it.  Treating our national symbols with contempt is never appropriate, and those that have done so should be utterly ashamed of themselves.

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

The Economic Collapse




China Won’t Roll Over Until Liquidity Tightens

This year on October 18th The Communist Party of China will kick off their 19th National Congress and set the leadership for the next five years.

It’s an extremely fragile time for incumbents. During this Congress a group of party representatives will review a report from President Xi on what has been achieved in the past five years as well as what he believes the party should work on going forward.

If they like what they see, Xi and his administration will stay. If not, then it’s onto the next guy…

President Xi has done well for the Chinese people, at least on the surface. (Nevermind the megaton debt bomb that’s bound to explode at some point.)

He’s been able to somehow navigate the country through the Mundell-Fleming Trilemma without setting off a full blown banking crisis. And he has the positive growth numbers to point to as evidence.

GDP growth has been humming along in the 6-7% range with uncanny consistency.

Chinese GDP Growth

President Xi absolutely loves power and the last thing that he wants is an economic meltdown before this important Congress.

So what can a power hungry politician do to guarantee his seat for the next five years?

Well he can turn on the liquidity taps.

If you’ve been reading Macro Ops for awhile you know that the single most important fundamental to markets is liquidity. Nothing else comes close, which is why the investing legends like Soros, Druck and PTJ kept a close watch on how central bankers and government officials used the liquidity spigot.

In China’s case, Xi has made sure that spigot has been running at full bore going into the end of the year. Year over year loan growth to non-financial companies has been cranked up to near 16% — the highest levels seen in nearly 5 years.

China Y-Y Loan Growth to Non-Fin

All of this extra credit creates a huge wall of demand that creates a bunch of economic activity and elevated prices.

This liquidity injection is the reason why China A-shares have caught a nice rally over the last three-months.

We’ve been on for the ride during the entire breakout because we watch liquidity like a hawk. One of our own Chinese liquidity indicators has been signaling looser liquidity conditions since mid-2016. And right now it’s actually hitting new all time highs!

Liquidity AS

Yes, China has a bunch of long-term debt problems that will inevitably lead to a blow up. But with liquidity conditions this strong it’s suicide to play for the implosion. We need to wait until liquidity tightens up before we see any real financial stress.

And our guess is that won’t be happening until President Xi has secured his presidency for the next 5-years.

If you aren’t monitoring liquidity conditions around the world you’re really missing out on an extremely effective market timing tool.

We check liquidity conditions on a monthly basis in every major market.

Click here if you want to see how we monitor U.S. liquidity.

 

 

Macro Ops




12 Critical Events That Are Going To Happen Over A 40 Day Period From August 21st To September 30th

We are about to witness an extremely unusual convergence of events that many believe could represent a major turning point for our nation.  By now you have probably heard that on August 21st a total solar eclipse will move across the entire continental United States for the first time in decades.  In fact, we have not seen a total solar eclipse cross from the west coast to the east coast in 99 years.  And it will be the very first total solar eclipse that is only visible in this country since the United States first became a nation.  Starting with that event, there is going to be a whole lot going on until we reach the end of September.  The following are 12 critical events that are going to happen over a 40 day period from August 21st to September 30th…

August 21 – The “Great American Eclipse” will sweep across portions of Oregon, Idaho, Wyoming, Montana, Nebraska, Iowa, Kansas, Missouri, Illinois, Kentucky, Tennessee, Georgia, North Carolina and South Carolina.  Seven years later, another very unusual total solar eclipse will move across our nation, and when you plot the paths of both eclipses on a map, they form a giant “X” right over the center of the United States.

August 23 – A FEMA exercise known as “EarthEX2017” will simulate “catastrophes such as mega earthquakes, cyber terrorism or high altitude electromagnetic pulse attacks”

An exercise sponsored by FEMA and the U.S. Department of Energy set to take place on August 23 called EarthEX2017 will wargame responses to catastrophes such as mega earthquakes, cyber terrorism or high altitude electromagnetic pulse attacks.

The exercise will simulate a “subcontinent-scale, long duration power outage, with cascading failures of all other infrastructures,” according to the official Earth Ex website.

“Black sky events” are defined as, “Catastrophic occurrences caused by man or nature that bring society to its knees.”

September 1 – This marks the start of FEMA’s annual “National Preparedness Month“.

September 1 – The U.S. State Department’s ban on U.S. citizens traveling into North Korea goes into effect.  Many are concerned that this is yet another sign that we are moving toward war with North Korea.

September 11 – This will be the 16th anniversary of 9/11.

September 20 – Rosh Hashanah begins at sunset.

September 21The UN International Day Of Peace

September 23 – This is the date of what has become known as “the Revelation 12 sign”.  If you are not familiar with this alignment yet, the following is a very brief summary

On September 23rd a unique astronomical alignment of the Sun, Moon, constellation Virgo, constellation Leo, and planets Jupiter, Mars, Mercury, and Venus is going to fulfill this passage from the book of Revelation:

And a great sign appeared in heaven: a woman clothed with the sun, with the moon under her feet, and on her head a crown of twelve stars.  She was pregnant and was crying out in birth pains and the agony of giving birth.

September 24 – Very important national elections will be held in Germany.

September 29 – Yom Kippur begins at sunset, and it concludes on September 30th.  Of course September 30th will be the end of a 40 day period that began back on the day of the Great American Eclipse on August 21st.

September 29 – U.S. Treasury Secretary Steven Mnuchin says that the debt ceiling will be breached on this day if Congress does not raise it by then.

September 30 – If Congress does not pass a budget by the end of this day, there will be a government shutdown just like we witnessed in 2013.

On top of everything else, the month of September is when the Federal Reserve is scheduled to begin unwinding  their 4.5 trillion dollar balance sheet

The other big market force that could ruffle markets is clearly the Fed, which is expected to begin the untested task of unwinding its $ 4.5 trillion balance sheet in September.

In addition, it is very interesting to note that a large asteroid will come within 4,200 miles of our planet on October 12th…

The asteroid has not been seen since its 2012 discovery, when it sped past Earth at about one-fourth the distance from Earth to the moon. It’s been too distant and too faint to be detected over the last five years. As it starts to approach Earth this summer, large telescopes will be used to detect it and re-establish the asteroid’s precise trajectory.

The asteroid, known as 2012 TC4, could come as close as 4,200 miles to Earth, NASA said. That’s actually fairly close, when you consider that the moon is about 239,000 miles away.

So what does all of this mean?

I don’t know, but I am sure that I will receive even more criticism for putting this list together.  Those of us that monitor global events and warn about where things are headed are often highly criticized.  But in this day and age, we desperately need independent thinkers that are willing to challenge the system.  Way too often people just go with the herd and will believe whatever the mainstream media tells them to think.

Never let someone else do your thinking for you.  Investigate things for yourself and come to your own conclusions.  Learning to think critically is one of the most important skills that you can have, and you will find that it is one of the most common traits among those that are truly “awake” to what is going on in the world.

The truth is out there, and if you diligently seek it you will eventually find it.

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

The Economic Collapse




What Should Be Done To RINOs Like John McCain That Betray Us Over And Over Again?

By destroying the last chance that the Republicans in the Senate had to repeal Obamacare, John McCain has ensured that he will go down in history as a backstabbing traitor that cared nothing for true conservative values.  For decades, RINOs like McCain have promised to uphold conservative values while campaigning, but once they have gotten into office they have betrayed us over and over again.  How much more are we going to take before we say enough is enough?  I hope that you will join me in my effort to remove every RINO from Congress.  What John McCain has just done should make all of us absolutely sick.  Thanks to him, Obamacare is going to remain the law of the land for the foreseeable future even though the Republicans have control of the White House, the Senate and the House of Representatives.  If I go to Washington, I am going to declare war on RINOs like McCain, but the only way that will be possible is if thousands of good conservatives help fund this campaign.  So far my campaign has created an enormous amount of buzz all over the state, but the only way that we are going to be able to capitalize on all of that buzz is if you all stand with me.

If what John McCain did on Friday does not make you angry, I am not sure what will.  Together with Lisa Murkowski of Alaska and Susan Collins of Maine, McCain killed the very last chance of repealing Obamacare in the Senate.  The following comes from the Washington Post

A convergence of contentious issues, as well as embarrassing infighting and shake-ups at the White House, have a number of Republicans suddenly in open resistance to President Trump on a number of fronts.

The most dramatic moment came in the early-morning hours Friday, when Sen. John McCain, an ailing war hero and onetime Republican presidential standard-bearer, joined two other GOP dissidents, Sens. Lisa Murkowski of Alaska and Susan Collins of Maine, to cast the deciding vote to kill a scaled-back plan to dismantle tenets of the Affordable Care Act — and with it, perhaps, Trump’s promise to repeal Obamacare.

McCain had specifically campaigned on repealing Obamacare in 2010 and in 2016.  In fact, just last year he was running campaign ads in which he boldly proclaimed that he was “leading the fight to stop Obamacare”.

Now he has done this.

And it was quite a dramatic moment when he finally cast his vote.  Some even believe that it is going to go down as the most famous “thumbs-down” in Senate history

The clerk read the Arizona senator’s surname in the microphone of the tense Senate chamber. The two words were met with silence — John McCain had stepped out of the room minutes before.

But moments later, he reappeared. By then, the alphabetical roll call had reached Sen. Gary Peters of Michigan. McCain walked over to the front of the chamber, raising his right arm. He held it up in the air until he had the attention of the clerk.

“No,” he said, with a swift thumbs-down.

In response, we need to give our own “thumbs-down” to every RINO on the federal, state and local levels all around the country.

If you are sick and tried of RINOs like McCain, then I would like to ask for your support.  My team has set up a brand new website called Help Michael Win where you can help us raise $ 3,000 to print more than 20,000 brochures.  We have volunteers that are ready to get brochures into the hands of potential voters, but the only way that we can do this is if the funding comes in.  If 300 of you were to donate just 10 dollars each, we will be able to meet our goal.

But if we all sit back and do nothing, RINOs such as McCain will continue to rule Washington.  Just before he cast his decisive vote, McCain actually went over to the Democrats to tell them what he was about to do.  The following comes from the Washington Post

Shuffling across the chamber, Mr. McCain convened with Democrats, informing them of his choice. “They can read my lips,” he said to laughs, fearing his hand would be tipped ahead of time from inside the gallery.

At one point, the senator joined Ms. Collins and Ms. Murkowski, telling them they had done the right thing.

“We talked about how if anyone knew about doing the right thing it was John McCain,” Ms. Collins recalled. “It was very moving.”

I am the only candidate in this race that is openly going to go to war with McCain and others like him in Congress.

Since there is no incumbent, my race is totally wide open, and it will ultimately be decided by the enthusiasm of people like you.  If everyone in my district that is familiar with my work ends up voting for me in the Republican primary next May, I will win and it won’t even be close.

I am so tired of just sitting back and doing nothing while RINOs like McCain slap us in the face over and over again, and other conservative authors feel the exact same way.  Here is just one example

“For American voters expecting their Republican-dominated House, Senate and White House to honor their years of repeal promises and actually, well, repeal Obamacare, McCain’s thumbs-down was a face-slap moment that will be remembered in history as a textbook classic case of political betrayal. McCain may feel liberated. But his name will go down in conservative history books as a traitor to the cause.”

If I am elected, I promise to work very hard to defeat John McCain and every other RINO in Congress.  I know that won’t make me very popular with the Republican establishment, but I don’t care.

And if you believe in what I am trying to do, I hope that you will visit HelpMichaelWin.com and MichaelSnyderForIdaho.com.

It isn’t going to be easy, but together we can change the way that things are done in Washington.

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

The Economic Collapse




Environmental Nightmare! Dozens Of Highly Toxic Substances Have Been Found In Tap Water All Over America

After reading this article, you will never look at tap water the same way again.  Most Americans have generally assumed that the water coming out of our taps is perfectly safe, but the Flint water crisis and other similar incidents are starting to help people to understand that there are some very dangerous substances in our water.  In particular, I am talking about things like arsenic, lead, atrazine, perchlorate and a whole host of pharmaceutical drugs.  According to an absolutely stunning NRDC report, close to 77 million Americans received their water from systems “that violated federal protections” in 2015.  And even if you get your water from a system that meets federal standards, that still does not mean that it is safe.

Let’s start by talking about arsenic.  Earlier today I came across an article that talked about how levels of arsenic in the water at some schools in the San Joaquin Valley “exceed the maximum federal safety levels by as much as three times”

Reef-Sunset Unified School District Superintendent David East is worried about water. Not because of the drought—record rains this past winter ended five years of dry times. Rather, East, whose district encompasses the small towns of Avenal and Kettleman City on the San Joaquin Valley’s west side, is worried about the safety of the water that the 2,700 students in his school district are being given to drink.

That’s because arsenic levels in the drinking water at some schools in the San Joaquin Valley exceed the maximum federal safety levels by as much as three times. And arsenic is not the only threat to schoolchildren. High levels of pesticides, nitrate, bacteria, and naturally occurring uranium also contaminate groundwater in many rural parts of the state.

The International Agency for Research on Cancer says that arsenic is a “group 1 carcinogen”, and if you get too much of it in your system it can kill you.  Sadly, the EPA has estimated that 36 million Americans are drinking tap water that contains dangerous levels of arsenic.

In addition to arsenic, a very nasty pesticide known as “atrazine” is often found in tap water supplies.  The following information about atrazine comes from the NRDC

This endocrine-disrupting chemical is one of the most commonly detected pesticides in U.S. waters. NRDC studies have found its contamination is most common in drinking water across the Midwest and the southern United States.

Perchlorate is another very dangerous substance that is commonly found in our drinking water.  According to the NRDC, perchlorate has been discovered in water supplies “in at least 26 states”…

This widespread toxic chemical, used in rocket fuel, explosives, and road flares, can interfere with thyroid hormone production. Perchlorate has been detected in the water in at least 26 states, yet there is no federal standard for its presence in drinking water.

Of course lead in the water has been getting a tremendous amount of attention because of what happened in Flint, Michigan.  The lawsuits that will come out of this case could take decades to resolve

Flint’s water problems began in April 2014, when the city, in an attempt to save money, switched the town’s water source from Lake Huron to the Flint River. In the switch, officials failed to add a $ 200-per-day anti-corrosion agent that would coat the city’s antiquated pipes. The omission would prove disastrous as lead from the pipes began to leach into the water that flowed out of the tap, endangering thousands of children. Officials asserted it was “safe to drink,” above the outcry of residents who suspected the brown, odorous water was contaminated.

The first outbreak of Legionnaires’ disease — a serious type of pneumonia caused by Legionella bacteria — hit by summer. According to the water crisis interim investigation report released last week, Lyon and others knew about outbreaks for nearly a year before the public was notified and an emergency was declared. In all, a dozen people died from Legionnaires’ disease, though residents suspect there may be other victims who were never tested for the bacteria.

But Flint is far from alone.  In fact, this week there have been headlines about serious problems with lead in the water in Chicago.

Wherever there are old pipes, lead in the water is potentially a massive problem.

On top of everything else, our water systems are becoming increasingly polluted by pharmaceutical drugs.  An EPA study actually found traces of more than two dozen pharmaceutical drugs in more than half of the water systems that were tested around the country…

Conducted by the Environmental Protection Agency, it is the largest study of water coming out of wastewater treatment plants.

It looked at samples from 50 large-size wastewater treatment plants nationwide and tested for 56 drugs including oxycodone, high-blood pressure medications, and over-the-counter drugs like Tylenol and ibuprofen. More than half the samples tested positive for at least 25 of the drugs monitored, the study said. High blood pressure medications appeared in the highest concentrations and most frequently.

“We were surprised to find that many drugs occurring across all the wastewater plants,” said Mitchell Kostich, the EPA research biologist who led the study. “We were also surprised to see so many drugs of a particular class—the high blood pressure medications—appear at those levels across the board.”

So those that drink tap water coming from these polluted systems are actually ingesting small amounts of dozens of different pharmaceutical drugs every single day.

No wonder so many of us are walking around like zombies.

So how did all of these drugs get into the water?  The following comes from WebMD

According to the investigation, the drugs get into the drinking water supply through several routes: some people flush unneeded medication down toilets; other medicine gets into the water supply after people take medication, absorb some, and pass the rest out in urine or feces. Some pharmaceuticals remain even after wastewater treatments and cleansing by water treatment plants, the investigation showed.

Are you starting to understand what an environmental nightmare we are facing?

But in addition to everything that you just read, many water systems around the country actually add toxic substances to the water purposely.

Of course the most prominent example of this is fluoride.  We are told that fluoride “reduces cavities” even though this has never been scientifically proven.  But what we do know is that fluoride is a highly dangerous neurotoxin that can have a very serious impact on early childhood development

Scientific investigations have revealed that fluoride is an endocrine-disrupting chemical,1 and a developmental neurotoxin that impacts short-term and working memory, and lowers IQ in children.2 It has been implicated as a contributing factor in the rising rates of both attention-deficit hyperactive disorder (ADHD)3,4 and thyroid disease.

And we also know that fluoride can cause a condition known as “fluorosis”, and the introduction of fluoride into our water systems has coincided with a dramatic rise in fluorosis all over the nation.  In fact, more than half the children in the entire country have now been affected…

According to research presented at the April 2017 National Oral Health Conference in Albuquerque, New Mexico, 57 percent of youth between the ages of 6 and 19 years have dental fluorosis, a condition in which your tooth enamel becomes progressively discolored and mottled, according to data from 2011 to 2012.1

In addition, studies have shown that fluoride can also contribute to “cancer, heart disease, diabetes, obesity and neurodegenerative disease.”

Because of such overwhelming scientific evidence, fluoride in the water has already been completely banned in many industrialized countries, and if I end up in Washington I will push for a complete national ban on fluoride in the water in the United States.

All of us should be able to agree that we need to do whatever we can to keep the water that we are drinking clean and safe.

But until we can get this done, I would encourage everyone to either filter their drinking water or to get it from a source that they know is pure.

By drinking such polluted water, we are literally poisoning ourselves and our children, and we have no choice but to get this problem fixed.

The Economic Collapse




Car Sales Were Always Going Over This Cliff

The Retail Apocalypse.

Carmageddon.

Same story.

Different industry.

And we called both decades ago!

Autos are the last splurge for aging Baby Boomers. Their kids leave the nest and finally the parents can buy the car they wanted, not that damned minivan to taxi kids around.

But as we age, we don’t drive nearly as much and those luxury or mid-life-crisis sports cars last a long time.

So, even though Baby Boomers followed the pattern and bought better cars, they rebuy as often, which causes a decline in auto spending, especially after age 48.

At least, that’s what our research has shown us for years…

We just recently got updated data from the Consumer Expenditures Survey. This allows us to predict not only the broader economy in human life cycle spending, but every consumer sector as well.

Our previous data suggested that new car sales would peak around age 53 to 54.

The new data, from 1996 – 2015 (blue line in the chart), and more recently from 2006 – 2015 (red line) says that auto sales peak closer to age 48 – earlier than we previously thought – and then continue sideways before surging one last time around age 62. Then it’s straight downhill from there.

Notably, car sales first collapse between age 51 and 60.

Guess where the bulk of the Baby Boomers are heading!

Let’s walk through the predictable car buying cycle…

Auto sales first surge into around age 32, along with first-home buying. They peak around age 41, again, along with trade-up home buying. Then they have another surge into around age 48, as their kids leave the nest and they buy the luxury Lexus or sports car that they really wanted (as I said earlier).

But then they don’t drive it nearly as much as they previously spent their time driving around their kids from school to soccer practice to “ecstasy” parties… or whatever.

So that “best car” lasts for 10 or more years instead of four years for the typical soccer mom.

Now the new data shows there’s a final surge into the early 60s, before people retire.

The truth is that car sales tend to plateau between 32 and 62 and lean towards the higher-end sectors, with the sharpest decline between age 51 and 56.

What has kept car sales going after they should have peaked around 2012?

The same thing keeping our economy going: QE or near-free money and lower interest rates.

But that seems to have run its course because the auto industry has only kept its growth going through more liberal lending policies based on lower interest rates and an accommodative Fed…

Did they learn nothing from the last subprime crisis?

Of course not!

Look at this chart…

Total loans for autos are much higher than they were into 2007, and growing exponentially.

Subprime loans, at the lowest credit ratings, are now at $ 280 billion and rising. In 2007, they reached only $ 205 billion. When you add in the next red zone of near-subprime borrowers, it’s $ 405 billion!

Can anyone else smell that?

Yup, it’s the stink of defaults and a worsening downturn in auto sales coming!

Car inventories are piling up on the borders of Mexico. Manufacturers are trying to hide their growing inventories.

GM plans to extend its typical summer shutdown at certain U.S. factories to deal with slumping sales and its bloated inventory.

In fact, car sales were down 0.5% in May, part of a five-month decline. The experts keep guessing things will improve and have been wrong.

They don’t understand that demographic trends are going against this last durable goods market to peak after housing and furniture. And they don’t understand how much this sector has been hyped up by liberal lending, like housing was into early 2006.

This is another sign of the beginning of the end, like plummeting retail sales and big brand failures in department stores and apparel…

Two very smart investors, Buffett and Soros, invested in major retail auto chains in the last few years… we could have told them not to bother.

Harry
Follow me on Twitter @harrydentjr

P.S. We have other advice for Buffett and Soros: They should register to watch our special online event – The Switch Than Can Make You Rich – on Monday, June 26 at 1 p.m. EDT. Our inhouse Quant – Adam O’Dell – will be explaining how he’s been able to identify profits and avoid losing money during EVERY three-, four-, and five-year holding period since 2005… how he achieved an average five-year gain of 1,043% (enough to turn every $ 10,000 invested into over $ 100,000)… and how he was able to get a 25-to-1 advantage over a simple “buy and hold” strategy with the S&P 500! Buffett and Soros may not listen to what Adam has to say, but you should. Register now.

The post Car Sales Were Always Going Over This Cliff appeared first on Economy and Markets.

Harry Dent – Economy and Markets ()




Over The Last 10 Years The U.S. Economy Has Grown At EXACTLY The Same Rate As It Did During The 1930s

Even though I write about our ongoing long-term economic collapse every day, I didn’t realize that things were this bad.  In this article, I am going to show you that the average rate of growth for the U.S. economy over the past 10 years is exactly equal to the average rate that the U.S. economy grew during the 1930s.  Perhaps this fact shouldn’t be that surprising, because we already knew that Barack Obama was the only president in the entire history of the United States not to have a single year when the economy grew by at least 3 percent.  Of course the mainstream media continues to push the perception that the U.S. economy is in “recovery mode”, but the truth is that this current era has far more in common with the Great Depression than it does with times of great economic prosperity.

Earlier today I came across an article about President Trump’s new budget from Fox News, and in this article the author makes a startling claim…

The hard fact is that the past decade’s $ 10 trillion in deficit spending has produced the worst economic growth as measured by Gross Domestic Product in our nation’s history.  You read that right, in the past decade our nation’s economy grew slower than even during the Great Depression. This stagnant, new normal, low-growth economy is leaving millions of working age people behind who have given up even trying to participate, and has led to a malaise where many doubt that the American dream is attainable.

When I first read that, I thought that this claim could not possibly be true.  But I was curious, and so I looked up the numbers for myself.

What I found was absolutely astounding.

The following are U.S. GDP growth rates for every year during the 1930s

1930: -8.5%
1931: -6.4%
1932: -12.9%
1933: -1.3%
1934: 10.8%
1935: 8.9%
1936: 12.9%
1937: 5.1%
1938: -3.3%
1939: 8.0%

When you average all of those years together, you get an average rate of economic growth of 1.33 percent.

That is really bad, but it is the kind of number that one would expect from “the Great Depression”.

So then I looked up the numbers for the last ten years

2007: 1.8%
2008: -0.3%
2009: -2.8%
2010: 2.5%
2011: 1.6%
2012: 2.2%
2013: 1.7%
2014: 2.4%
2015: 2.6%
2016: 1.6%

When you average these years together, you get an average rate of economic growth of 1.33 percent.

I thought that was a really strange coincidence, and so I pulled up my calculator and ran all of the numbers again and I got the exact same results.

The 1930s certainly had more big ups and downs, but the average rate of economic growth during that decade was exactly the same as we have seen over the past 10 years.

And of course the early 1940s turned out to be a boom time for the U.S. economy, while it appears that our rate of economic growth is actually slowing down.  As I noted yesterday, U.S. GDP growth during the first quarter of 2017 was just 0.7 percent.

But you don’t hear any talk like this on the mainstream news, do you?

Instead, they tell us that everything is just peachy.

I often wonder what things would be like right now if Barack Obama and his minions in Congress had not added more than 9 trillion dollars to the national debt.  By stealing all of that money from future generations of Americans and spending it now, Obama was able to artificially prop up the U.S. economy.  If we were able to go back and remove 9 trillion dollars of government spending from the economy over the past 8 years, we would be in a rip-roaring economic depression right now.  For an extended analysis of this, please see my previous article entitled “The Shocking Truth About How Barack Obama Was Able To Prop Up The U.S. Economy”

But even though we have been adding more than a trillion dollars to the national debt each year, and even though the Federal Reserve pushed interest rates all the way to the floor during the Obama era, the U.S. economy has not grown by three percent or more on an annual basis since 2005.

When you take an honest look at the numbers, there is no way that anyone can possibly claim that the U.S. economy is doing well.  The best that you can say is that we have been staving off a complete economic meltdown and another Great Depression, but of course the measures that our leaders have been taking to do this have just been making our long-term problems even worse.

I feel bad for President Trump, because he has inherited the biggest economic mess in U.S. history.  When we finally reach the point when it is impossible to artificially prop up the U.S. economy any longer, he is going to get most of the blame, but he won’t deserve it.

It is not going to be possible for Trump or anyone else to fix our system, because it was fundamentally flawed from the very beginning.  The Federal Reserve was designed to create an endless spiral of government debt, and since the day it was created the U.S. national debt has gotten more than 5000 times larger and the value of the U.S. dollar has declined by about 98 percent.

If we truly want to fix the economy, the Federal Reserve must be abolished.  If I was President Trump, I would look to start issuing debt-free U.S. currency just like President Kennedy did in 1963 as soon as possible.

In addition, we need to push tax rates as low as possible.  Personally, I would like to see the day when the personal income tax is completely eliminated and the IRS is shut down.  The greatest period of economic growth in all of U.S. history was when there was no income tax and no Federal Reserve.  America once thrived in such an environment, and I believe that we can do it again.

Of course we need to also dramatically reduce the size and scope of the federal government.  Our founders intended to create a very limited federal government, but instead the left has just kept pushing to make it larger and larger.

Businesses all over America are being strangled to death by mountains of federal regulations, and if we could just get the government off of their backs the business community could start thriving again.  There are quite a few government agencies that could be shut down entirely, and I think that the EPA would be a good place to start.

Once upon a time the United States showed the world the power of free markets and capitalism, and if we want to make America great again, we should go back and do the things that made America great in the first place.

But would the American people be willing to go down that path?

The Economic Collapse




Michael Snyder Is Calling For An Army Of Pro-Trump Activists To Run For Office All Over America

It is really easy to sit back and complain about the direction of this country, but what America really needs at this hour are men and women that are willing to step into the fight to save our constitutional republic.  As I have said before, getting Donald Trump elected was the greatest miracle in U.S. political history, but he should not have to wage this battle alone.  Trump has very few friends in Congress at this point, and so it is absolutely critical that we get him some during the 2018 mid-term elections.  So I am calling for an army of pro-Trump activists to run for national, state and local offices all over America in 2018.  Donald Trump started this revolution, and now it is our job to continue it.

My father was in the U.S. Navy, and so sometimes I like to put things in military terms.  When an amphibious invasion is being conducted, it is the troops that hit the beach first that take the most fire.  To me, that is a perfect picture of what is happening to Donald Trump right now.  He has established a beachhead, and now the rest of us need to rush to shore to back him up.

If we are not willing to try, what is going to happen?  Our political system on the national, state and local levels will continue to be dominated by Democrats and “progressive Republicans”, and our once great nation will continue to fall apart all around us.

We need patriotic men and women to challenge every available seat in America in 2018.  Some of us will win and others will lose, but at least we will have given the American people a choice.

We are never going to have a true political revolution if we don’t at least try, and this election cycle represents a tremendous opportunity.  I really like how Rush Limbaugh made this point during one of his programs

Do you realize what a nothing burger the Democrat Party is? Do you realize the Democrat Party literally has nothing virtuous, positive, uplifting to run on? In all of this, the Democrat Party dares not ask people, “Hey, take a look at us. We got better ideas. Hey, take a look at us. We can fix this.” None of that. The only thing they’ve got is this insane, invisible, nonexistent, so-called connection between the Russians and our election. They have no ideas. They have no optimism. They have no leaders. They have no vision. They are ripe for being smoked for generations! This is the time to move in politically and wipe them out. …

Don’t misunderstand here, folks. I’m not saying the Democrats don’t pose a threat. I’m not… Look, two things here. The Democrats are in deep trouble, electorally. The Democrats are not running the left; the media is. And the media is clearly not inconsequential. Don’t misunderstand. I’m not saying that what’s happening here is obviously to everyone. I’m saying the Republican Party has a golden opportunity here to continue to hammer the nail into the coffin of the Democrat Party.

Our founders intended for us to have a constitutional republic with a limited central government, but the globalists have turned the federal government into an absolute monster.  We need to tame that monster and restore the constitutional republic that our founders originally designed.

The easy route would be to sit back and wait for someone else to do something.

But I have decided not to do that.

Earlier today, I announced on the Alex Jones Show that I am “strongly considering” running for Congress in 2018…

On Tuesday, U.S. Representative Raul Labrador announced that he will not seek another term because he plans to run for governor in Idaho.

Labrador represents the district in which my wife and I live, and when I heard this news I realized that this represents a truly unique opportunity.

Congressman Labrador has been doing a wonderful job, and if he had run again he would have won by a landslide.  But now that he is not running, there is no incumbent and the race is entirely wide open.

If I decide to run, and I am very strongly leaning in that direction, the key to the race will be to win the Republican primary.  Hillary Clinton got only 27.5 percent of the vote in Idaho last November, and Labrador won his last election by more than 120,000 votes.  So whoever wins the Republican primary will almost certainly win the general election.

Donald Trump has shown us that nothing is impossible in politics.  When he first declared his candidacy, liberal pundits literally laughed at him on the air because they thought his candidacy was such a joke.  But his bold message struck a chord with conservative voters all over the country, and now he is the president of the United States.

If he can do it, why can’t we?

If I run, I plan to continue the absolutely outstanding work that Congressman Labrador has been doing, and I plan to be a key ally for President Trump in Congress.  Right now Trump has very few friends in Congress, and that desperately needs to change.

In recent years, the House has lost some tremendous conservative voices.  I plan to continue the legacy of Ron Paul, Michele Bachmann and so many others that stood strong for conservative causes at a time when it was not always popular to do so.

But if I am going to do this, I am going to need lots of assistance.  If you have experience with campaigns on a state or local level, or if you just want to help out any way that you can, please feel free to drop me an email or contact me on Facebook.  I have never run for office before, and so I have a lot to learn, and I greatly value the advice and counsel of others.

Also, if there are other pro-Trump activists out there that plan on running in 2018, we should definitely connect.  If we all work to promote one another, we can create a giant groundswell of momentum which could sweep a whole bunch of pro-Trump activists into political positions all around the country.

For a long time I have been writing about the great problems that this nation is facing, and now I am trying to be part of the solution.

It has been said that life is like a coin.  You can spend it any way that you want, but you can only spend it once.

As for me and my house, we are going to spend our lives doing things that really matter.

The Economic Collapse