Are we being distracted by “news” such as Justice Kavanaugh while money is being created and there is a false demand? What are you doing with your finances and investments? Get advice and guidance from financial consultant Mike Savage in Pocono Summit.
As I speak to many friends and clients I am noticing a pattern of behavior that I find to be truly amazing.
My wife included, along with many clients and friends, appear to be addicted to the news of the day. Whether it be the attempted takedown of Justice Kavanaugh or the Stormy Daniels news, et al.
I can’t help but believe that this is how it must have been in Rome’s last days with their bread and circus economy. It appears that all of the irrelevant mindless stories get reported as “important” while many of the stories that just may affect our way of life and our standard of living get brushed off like they are not important at all.
If you watch non-main stream media it is likely that the stories you may (or may not) hear about in a few weeks on regular news channels will be presented in far closer to real time. This is important if the information may impact your investments or even your life.
I don’t care whether you watch Fox, CNN, CNBC or whomever — the stories are all the same but just presented in a different way. Of course, we now know that conservatives were targeted by the IRS under the Obama administration and in a report by Investors Business Daily on 2/13/2014, along with many other articles, it was revealed that the Obama administration was putting monitors in all of the major newsrooms to- as they said- find out why the USA was a staggeringly sad 46th. on the list of media’s coverage of the government. We were right between Rumania and Haiti- what great company!
It is probably worse today because the news today appears to be a bunch of baloney to keep people occupied as the USA, along with the rest of the world, continues to have a slow-motion economic train wreck. Of course, the only reason it is going in slow motion is that the authorities are conjuring up “money” out of nowhere and creating false demand where far less actually exists. Of course, not one in a hundred people could answer me about why this is so wrong- mainly because they are worried about irrelevant stories that are portrayed as important. By the way, I remember President Obama actually saying that the newsrooms needed to know which stories were “important”. I don’t know who else remembers that but I thought at the time- “Great, now they’re taking over the airwaves. I can’t put in print the rest of what I thought!
Even with financial reporting, I see all the time that the focus is always on this stock or that stock. The mindless dribble I hear on the financial game shows makes me keep the volume off and just look at the numbers. You’ll never hear the reason certain stocks are up is because the Japanese Central Bank or the Swiss National Bank was buying them — there is always another reason.
You’ll never hear that a mysterious entity has been stepping in with billions daily to keep interest rates from rising. As Greg Mannarino said — “Who in their right mind would buy bonds knowing rates will be increased tomorrow?” My answer — anyone who can get the money for free and whatever it’s worth tomorrow will be higher than what it cost to keystroke it into existence. Nobody else would make a buy when it is apparent that the rates will go up and the value of the bond will go down the next day.
As subtle as it may seem- when gold is down it is reported on far more frequently (on CNBC anyway) than when it is up. I notice these things. Just like I noticed that when Reagan was President the Republicans were the blue team and the Democrats were red. Of course, they probably wanted the red because it is generally viewed as a more exciting color. Of course, red is also the color of communism and that probably struck a little too close to home so now the colors of the parties were switched.
Just a few notes that I have that generally does not get reported.
From many reports that I have read in the Russian Times and Zerohedge the Russians and Chinese have developed weapons that our military may not be able to handle. One example would be the Russian plane that used (it appears) a mini EMP device to disable an American warship. It lost all communications and weapon systems. The same happened to Israeli planes in Syria. This was before the new Russian missile defense system was installed which, according to reports, can shoot down our best jets. The Chinese and Russians have both announced- and supposedly tested- hypersonic missiles that we can likely not defend against- at least not yet.
Could it be that with all we have spent on the military our weapons are inferior? I can only guess that with the cronyism and nepotism in government that those connected likely got contracts whether their products were the best or not. This is how an empire dies- it plays favorites and ingenuity and technological advancement are thwarted to pay off those already in the game while others, trying to catch up, latch on to the latest technologies.
To me, this is important because our military- which besides the US Dollar is our most important asset – may be a little more vulnerable than we are led to believe. This is one less deterrent we have to anyone who chooses to trade outside the US dollar system. It appears to me that Russia, China and many of their allies have no fear of being confronted by the US anymore. Just today, it is reported on Zerohedge that Venezuela has ceased using the US dollar for international trade in favor of the Euro.
I have reported in the last few months about Russia, China, India, and many other countries buying up physical gold. In an article by Ronan Manly at bullionstar.com it was reported that the Hungarian Central Bank bought 28.4 tons of gold in the first two weeks of October. This is interesting because prior to that they held only 3.1 tons.
They (Hungarian Central Bank) wrote in a press release:
“In keeping with the historical role of gold, gold remains one of the safest instruments in the world, and, even under normal market conditions, provides a stability and confidence-building function”
“The role of gold reserves in the nation and in the nation’s economy strategy is becoming more and more appreciated while both possession and the increase of nation’s precious metals holdings appears to be decisive international trends”
Usually, I say watch what the banks do- not what they say but in this case you can both see and hear a clear expression that this central bank is following the lead of neighbors like Poland, Germany, Australia and the Netherlands boosting their gold holdings.
As Ted Butler has reported JP Morgan likely has over 750 million ounces of silver and over 20 million ounces of gold. HSBC and Goldman Sachs have added tons of gold to their vaults also but still the media will portray gold as an afterthought. It is obviously top of mind in central banks around the world.
You will likely also not hear about record insider selling at companies or the fact that, according to Blackrock institutional investors removed $24.8 in this years third quarter while retail investors continued to pile in. It makes me recall the old saying- if your playing cards and you don’t recognize the mark- it’s you!
Many have NO idea the risk they are taking at this point in time. Stocks, bonds and real estate- without continued free money buying those assets would likely collapse in value. The lack of free money would also likely free the markets being shackled by paper manipulation like gold, silver and other assets to find their true value also- likely FAR higher than where they stand today.
The only idea I have for you here is that the BTFD crowd will be right until they are not. That will likely be a painful day for all of us but it is long overdue.
A few other headlines of note:
European car sales tumbled 23% in September
Netflix stock price is way up after outperforming new subscriber estimates (while losing $10 million per day!)
Mortgage applications collapse to 19-year lows. (When rates rise this is no surprise)
Listening to Bloomberg this morning I heard that IBM has bought back over $10 billion in their own stock in the past few years. This while their revenues continue to drop (Lower sales) to keep the stock price propped up.
Anyone taking the reported numbers, whether they be unemployment, inflation, or corporate earnings at face value and not taking into account the manipulation of the numbers- which in all fairness 99% of people don’t have the time nor inclination to look into- you are being grossly deceived. This is why I believe the rosy numbers don’t add up to the economy that we are seeing and living in every day.
I have had people actually say to me that these posts sometimes seem off-base. Of course, since I am aware of how many numbers get reported I know that the numbers that we are fed over and over again by a compliant media are pretty much made up to fit the stories of the day, week and month.
Again I will bring up unemployment. They don’t count 96 MILLION people who COULD be working but are not. This is why you have the lowest unemployment rate of our lifetimes but we all know many people who haven’t been able to find a decent job for years. Of course, they are not counted. (USdebtclock.org).
I could go on and on with headline after headline about warnings from the IMF and economic news that flies in the face of the mainstream media’s mantra that it is always “time to buy”. Suffice it to say a little planning today may help a lot tomorrow!
If you are interested in some sites where you can get better information call me and we can go over it.
Mike Savage, ChFC, Financial Advisor
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