Inflate or die. Print or collapse. Say it anyway you would like but the die is cast.

It is obvious that any pause in the “printing and buying” schemes would result in a massive repricing of all assets. Without central bank support the yields on all bonds would likely go through the roof as the main buyers step aside leading to far higher rates and far lower bond values. People and entities that have to earn their capital rather than conjuring it up out of nowhere will demand a return for the risk they are taking- which in my opinion- is massive at this time. This would also serve to hamstring over-indebted cities, states, companies., individuals and nations who are reliant on low rates to carry their massive debt loads that are getting larger by the minute.

Any meaningful rise in rates would also put quite a damper on real estate as not only are millions not working and not paying mortgages and rents but the affordability that those who CAN buy have would go WAY down with higher rates. We have become a society that doesn’t figure out if we can afford an object by its price but by its monthly payment. This can be a dangerous way to conduct business as many have seen with the lockdowns and massive layoffs. If that debt can’t be serviced, you lose all of what you have invested so far.

This is also an important point for stocks. The real losses in the stock market will not come with economic collapse. If that were the case it would have collapsed already. The real losses- some that many will never recover from- will come when the debts of the corporations can’t be serviced and the company defaults. This is why so many are worried about the growing number of zombie (can’t even pay the debt service with operating income and have to borrow to service current debt) companies.

It is only a matter of time before either rates rise and new debt cannot be added or the accumulated debt becomes too much to bear.

On the other hand, when this likely scenario takes place, those conjuring up paper contracts to manipulate the price of the precious metals lower will most likely be unable to pull that trick off anymore. They need two things. Cheap money and at least the appearance that they have access to enough of the metal that they are manipulating to make their schemes plausible in the eyes of market participants.

I will never forget around March 2014 when gold was starting to rise after a major correction the US took around 33 tons of gold from Ukraine for “safe keeping” and the rout was on again. This was reported first by ISKRA (Russian News) and followed up on by GATA and King World News.

Since there has been a shortage of physical palladium- even though there is a paper trading market- the price has gone from $600.00 per ounce to over $2400.00 per ounce. Palladium has historically been platinum’s cheaper cousin but since there is not a perceived lack of platinum it is now about half the price of palladium. The real TELL comes from rhodium- where there is NO paper market and there is physical buying and selling. As I write this rhodium is selling for $24,500.00 per ounce. That is the only fair price being quoted and I believe that it gives a glimpse of just how big the manipulation actually is since gold should be more valuable than rhodium.

With silver- there are actually no words. It is 40% less than it was in 2011, it is 40% less than it was in 1980 and in my opinion it is the most undervalued asset on the planet. There are rumors flying everywhere that there is precious little silver available anywhere and that a short squeeze is imminent.

Whether it is imminent or not, it appears that the writing is on the wall.

I was listening to a webcast by Catherine Austin-Fitts (Former HUD official) and she brought up the $21 TRILLION missing from the Department of Defense and HUD from 2000-2015 that Dr. Mark Skidmore of Michigan State University discovered. In a shocking statement she said that she is now aware of $100 TRILLION “missing”. She also brought up the fact that congress passed a law making all of their spending “private”. In other words, we who pay the bills cannot demand to know where all of our “money” is being spent. Gee- I wonder why?

To me, this is the greatest fraud in history. The congress spends “money” that has to be created out of nowhere by a private bank and we get to pay interest on an ever-increasing pile of debt. Most of this “money” has already been consumed and now we are left with staggering debts.

Anyone who thinks there will be a debt jubilee or that the central banks will just write off those debts is likely delusional. We have gotten a glimpse of the game plan in 2008. As assets collapsed the big players stepped in and acquired assets at bargain basement prices. This included stocks, bonds and real estate. Many of the hedge funds and major banks are gearing up for another shearing of the sheep (3 times in the last 20 years) and most people are still in the FOMO (fear of missing out) phase.

While many are chasing bitcoin, tesla and gamestop higher those in the know- like Bill Gates have been quietly acquiring real assets like farmland. Mr. Gates is the largest owner of farmland in the USA today.

I believe thinking people should be worried about taking gains, reducing debt as much as possible and getting ready for some turbulence ahead. All history points to a bad outcome when you fall away from production and rely on services and money “printing” to keep the illusion of a strong economy going when it has been on life support for over a decade.

My opinion is that the cure “printing” will become the disease VERY shortly. The reason I am pretty sure we are near the end is that the numbers are EXPONENTIALLY growing- and that is only what they let us know about. If there is $100 trillion MISSING how much more could there be that we have no clue about.

Actually, the numbers they put out are scary enough, but our actual problems may be orders of magnitude higher than we are aware of.  My guess is that it is almost a certainty.

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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