I was shopping the other day and ran into a WW2 veteran who was present at D-Day in 1944. I couldn’t help but ask him what he must be thinking about what is happening in our country. His answer: “All of those white crosses we left back there- they are all turning over in their graves”.

After 4 years of hope that just MAYBE some justice would be served to those who are destroying our country the truth has come out. The swamp has won and are now back to taking things over again. Of course, many believe that the president and others in the government are nothing but a show to hide those truly in charge- the money “printers”.

For those who take this as a knock on our former president- it may be- but don’t take that to mean that Obama or the current shell of a man there now would have been any better.

Regardless of who is sitting in the White House the die has been cast. The debt is exploding and there can literally be no end in sight without a collapse of our current system. It took 204 years and multiple wars to get to our first trillion in debt in 1980. Now, just last year alone we went over $4 trillion deeper into debt in JUST ONE YEAR. Of course, using GAAP accounting it was likely closer to $10 trillion but what is a few trillion here or there? A collapse will likely come anyway but the path of least resistance is to keep “printing and buying” and kicking the can as far as possible.

My main complaint about our former president was that he was obviously lying about the “greatest economy of all time” while most of the economic indicators were collapsing LONG before anyone heard of COVID.  The entire “boom” was created not by production and economic activity but by DEBT. A lesson that we will ALL learn very shortly is that DEBT IS NOT WEALTH. It is a claim on your assets. Keep that in mind when Klaus Schwab says in the great reset they have planned “You will own nothing, and you will be happy”. How do you think they will pull that off? I believe it is called foreclosure or repossession when the debtor can no longer service the debt and forfeits the asset.

It appears to me that the lockdowns, which have impacted small business Far more than larger ones, were executed to exterminate those small businesses and landlords to make way for the seizure of their assets and a monopoly for the government, the central bank and large corporations. (Fascism).

It appears to me that Bob Unger was correct when, in 2017, he told me that Mr. Trump was “one of them” and playing a part. Sadly Bob- it appears you have been proven correct again.

Now that we have Mr. Biden sitting in the chair (who knows who is actually calling the shots) it is obvious that there will be a major change of direction in taxes, regulations, immigration, etc. and none of the changes look positive for the economy.

The only “winners” may be the politicians who have buried their cities and states in unpayable debt and are actually bankrupt but are likely to get a Federal bailout to let them off the hook- for a short time. I believe this will likely be done so that the banks and central banks will have a claim on local and state assets as well. Already, the state of Illinois has taken direct loans from the Fed to keep the illusion of solvency going as they slip further down the debt drain.

The appearance that economic activity may be stifled even more than it has been will likely lead to far more conjuring cash up out of nowhere and even more asset purchases by the central bankers.

Since the economy is in freefall and the stock markets are again at all-time highs it is rather obvious that “investors” are expecting a lot more stimulus (conjure up money out of nowhere and buy assets). There is nothing else that makes any sense with stocks at valuation levels NEVER seen in the past.

As “markets” continue to all-time highs another 900,000 + people filed a first-time unemployment claim last week. Biden better get those UBI checks moving!

With few other options it appears that there will likely be more payments directly to individuals, more bond buying to keep rates low, and asset purchases of all kinds. This type of action leads me to believe that the US dollar will come under tremendous pressure and likely very soon.

Over $7 Trillion in US government bonds come due this year. Unless a miracle buyer shows up the Fed will be buying a WHOLE lot of bonds this year. Remember, there will likely be a $4 trillion or more budget deficit this year. Add that to the $7 Trillion that may have to be “printed up” to roll over the maturing debt and the actual budget deficit (not including non-funded liabilities so not using GAAP accounting which would make the number FAR higher) and they will likely acknowledge $11 Trillion. I have to wonder where the Fed’s balance sheet will wind up this year. My guess is FAR over $10 Trillion.

If what I am laying out here is correct, then it would be prudent to have an asset that is not reliant upon someone else’s promise to repay you. It would also be likely that something tangible would be desired since, at some point, it may not matter how many dollars an asset is worth because the unit of measurement (US dollar) may itself be worthless at some point.

When trillions of dollars are being created and there is virtually no cost to do so it becomes pretty obvious that an “asset” that can be produced in unlimited amounts with no cost and no backing (except our promise to repay) will soon be worthless if some fiscal restraint is not shown.  Personally, I believe the fiscal irresponsibility is so far off the charts there are no words to describe it.

There are signs everywhere that the dollar is in trouble. It is not only that the DXY is weak- that just compares US dollar value versus other fiat and depreciating currencies also. The real clue comes from the commodity sector where even though economic activity is still stunted by lockdowns, and there are still supply chain disruptions, commodities of all kinds are hitting multi-year highs. This may be signaling that all currencies are being debased and that “things” are going to cost more going forward.

As I always say gold and silver are assets-not someone else’s liability. Hard assets like oil, gas, water, etc. and the companies that produce them may be worth a look at this time.  I believe it is apparent to anyone with a brain that the times are changing and the pace of that change is also accelerating.

This can either be a time of great turmoil for those that are unprepared or just may be the greatest opportunity in the lifetimes of those who can read the tea leaves and be positioned to profit from the changing of the seasons.

Be Prepared!

Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.

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