I have had MANY people express the opinion that nothing economically makes sense. Join the club!
We have an expanding war in the Middle East, wars throughout the world and central banks conjuring up massive amounts of “money” (DEBT) to fund it all.
This sounds like a classic case of currency debasement with a large side of supply disruptions added in.
It would only make sense to most that oil should be FAR higher than it is and with all of the geopolitical uncertainty gold and hard assets should also be FAR higher in price. I know many will say that since the economy is falling apart that is why oil is so cheap. While I agree that the economy is in freefall, the facts are that energy use is GROWING globally.
While this has many stumped, I believe that I have an explanation that is more than just plausible- it is VERY likely what is happening.
Think about it. This appears to me to be a warning to the BRICS, who are de-dollarizing and buying gold in record amounts, to stop it- or else! Has anyone noticed that not one member of our “coalition” is a BRICS member or any country that has expressed an interest in joining BRICS?
What I believe to be happening is that central banks and the major western banks are doing what they do- manipulating prices. I believe they are doing this at this time to let the producers know that we can move prices and hurt them, economically as well as by dropping bombs.
Of course, the central banks have other reasons for keeping gold and silver down- so they can buy it all and keep the illusion of a strong US Dollar alive. The Fed wants the dollar to look strong- the other central banks want GOLD.
The problem with all of this is that it will be temporary. Let me ask a question. Why should the banks which produce NOTHING but take a piece (many times a lions share) of what is produced be allowed to set the price?
For centuries our banks have kept many nations in abject poverty by stripping them of their natural resources and treating them as slaves as opposed to partners. The BRICS are allowing those with abundant natural resources to have a chance to get paid in real goods in exchange for their real goods and not send most of the profits to foreign central banks.
The reason I believe that this will be temporary is that, as the wars in the Middle East escalate, the chance of a major supply disruption goes WAY up. In addition, all the producers must do is create a situation where there is a lack of supply, and it will be checkmate on those who are manipulating the prices lower. They keep the price low by shorting (selling). If the price rises there is no limit to the losses so there would likely be a lot of short covering that would make the price shoot even higher. Keep in mind that the banks have different rules than you and I. If we sell assets that we do not own (naked shorting) we would be arrested. The banks pay a fine and keep on doing it. This would also likely lead to even more pressure upward on the price as they would be forced to BUY the real asset to exit the trade.
I have said many times that with each currency unit (dollar, euro, yen, etc.) that is conjured up from nowhere the VALUE of hard assets rise. With all the games being played to mask the VALUE by manipulating the price, the chasm between VALUE and PRICE is likely at all-time highs.
If it comes down to a contest between the producers and the price manipulators, I am aligning myself with those who produce real goods and not just digits on a screen or pieces of paper that are quickly becoming monopoly money.
As a matter of fact, if you google US money vs Monopoly money you will see that our currency is aligned in color with monopoly money. Why is this important? I believe that there are clues in the “money”. After 9/11 there was a way to fold a $20.00 bill that showed the twin towers on fire and collapsing. Other denominations had other things like the Pentagon getting hit. I can’t remember which denomination that was. Could it be that this is our clue this time? My guess is that the actual VALUE of our currency will not be any more than monopoly money soon. Of course, this would be necessary to roll out the CBDC that those “in charge” have planned.
I think it is important to understand that we ARE at war. Whether declared or not- it is happening. We have also been invaded on our Southern border by millions of people from around the world with many, in my opinion, here to do us harm.
I just saw a Youtube video where in Denver they have arrested over 50 known terrorists and the police have been told not to speak about it. How many have avoided detection?
This war will not be fought on the battlefield as much as in cyberspace, disabling critical infrastructure and possibly disabling the functioning of critical systems like the internet, utilities, and even financial transactions.
What will be the VALUE of real goods when the “money” no longer has any?
What is the VALUE of ANY digital currency if the utility grid is offline for any period of time?
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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