Everybody laughed when I was writing for the last 10 years that the banks were manipulating the prices of everything- particularly manipulating the price of gold and silver lower to protect the US dollar and government bonds. If there was actually a canary in the coalmine (gold rising uncontrollably like Rhodium that has no paper market to suppress the price with) those same bonds and US dollar would likely be FAR less appealing to our foreign benefactors who have been funding our deficit spending for decades. Many thought I was crazy to suggest such a thing … until the billions in fines started being paid.

Too bad for us those “fines” appear to be nothing more than a minimal cost of doing business because the manipulation is likely greater right now than at any time in history. As I write this on Wednesday afternoon rhodium is trading at $27,500.00 per OUNCE. Anyone care to guess how gold could possibly be at a paper price of $1725.00 (Around $1900 if you want a one ounce real coin)?

In the meantime the US admits to over $28 Trillion in debt for the first time ever and that, of course, doesn’t include the possible $200 trillion in unfunded liabilities and “missing” $100 trillion that Katherine Austin Fitts (Former Asst. HUD Secretary) mentioned in an interview.

The “printing” must really be off the charts right now as on the USdebtclock.org the US debt is rising at $4.3 billion per day and the amount of dollars in relation to gold and silver continue to skyrocket. Currently, there are $4911.00 for each ounce of silver and $35,169.00 for each ounce of gold in the world.

Everybody laughed when I wrote that we have likely been in a depression since the year 2000 and we have almost certainly been in a depression since the year 2008 but because of so much “printing and buying” most people are totally oblivious to it.

I really believe that the masses are still oblivious to what is actually happening around them. Most people are constantly bombarded by propaganda spewed out by the mainstream media. Most people believe that if the stock market is doing well the economy must be ok. It appears to me that NOTHING could be further from the truth. The economy is in freefall with no end in sight while the money “printers” and gamblers are moving prices and valuations to heights we haven’t seen in US history. Of course, we HAVE seen this type of action in Weimar Germany, Zimbabwe, Argentina and Venezuela. This could be a warning rather than an “all clear”.

Even more ominous is our unemployment situation. This is also a fabricated tale that we are near full employment when, if you just pretend that over 100 MILLION people of working age just don’t exist, we are at 6%. The real unemployment rate is likely near 35% or more and was NEVER this high in our nation’s history. Not even in the great depression!

Peter Schiff wrote an article last week where he wrote that all the “markets” have going for them right now is the Fed. I don’t believe it could have been any more obvious than when the ten-year yields started to spike and “markets” started to crash the Fed stepped in. I believe they are already practicing yield curve control (at least buying 10 year treasuries) without announcing it yet.

On Thursday and Friday the DOW lost nearly 1000 points. Over the weekend the 10 year yield dropped and stabilized and BANG- DOW up 600+ on Monday. Amazing!

The bad news for all of us here is, as I have also written, once you go down this path the interventions have to get exponentially larger to have the same result. We are seeing that in spades today. The numbers we are seeing for new debt, new fiat currencies being conjured up out of nowhere, “assets” being bought by central banks, hedge funds and debt being piled on to all of our backs is stunning to say the least.

This leads me to believe we are entering a stage where the banks and central banks will be making moves that SHOULD be stunning to us but many will not even realize it is happening. The Fed and other central banks have unlimited power. UNTIL their “product”- debt, has no value.

You may ask how could debt have no value. It is actually VERY simple. If you are to be repaid in US dollars and hundreds of trillions get “printed” and the value is zero- or close to it- what is the value of that debt?

If you bought a $100,000.00 treasury note and at the time you bought it you could have purchased a small home but 10 years later you can buy a nice meal at a nice restaurant you got your “money” back but what value did you receive? If that sounds kookie ask the folks in Venezuela, Argentina and Weimar Germany if this is an exaggeration.

It appears that the economy is truly running off the rails as yet again over 750,000 people filed for first-time unemployment claims last week. Actually, this is an improvement which is sad since it is 3x higher than pre-Covid numbers. It is also sad because fewer and fewer people are actually in the workforce making these numbers even worse than they appear.

This is leading to more “stimulus” (money conjured up out of nowhere to buy assets and rig prices and now cash payouts to the public) which will likely lead to higher prices and less availability of goods going forward as production and thrift is being replaced by “money printing” and spending. This will give a short-term illusion of normalcy and will likely lead to inflation that many cannot fathom today.

I guess many will laugh today also when I say that the “markets” will collapse for the third time in 20 years and that those assets being artificially propped up (to save the banks) will likely fall far further than anyone can imagine- particularly since there is a portion of “investors” (I use that term loosely- more like gamblers) who think “The market only goes up!”. It is likely the genius today is exposed as a dope tomorrow.

On the other hand, the inverse bubbles in metals and hard assets are likely to rise far further than anyone can imagine today.

If we truly want to have good long-term gains in our portfolios we need to buy low and sell high- not the other way around. I am afraid that with all of the euphoria in the “markets” most are missing the obvious mispricing of all assets.

While the gamblers and techies are rushing headlong into the most overvalued market of all time investing legends like Warren Buffett and Charlie Munger are sitting on loads of cash. These are the same two who were clueless in 1999 because technology left them behind. As it turns out, those ridiculing Buffett and Munger were the ones that lost their fortunes while those two have grown assets for over 50 years.

It is NEVER really different this time. There is usually just some good stories to make it appear that way. To me, this “market” is eerily similar to what I witnessed between 1995-2000. It wasn’t pretty from 2000-2002.

At this point, our situation is orders of magnitude worse than it was in 2000.

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.

Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.

Precious Metals, including gold, are subject to special risks including but not limited to: price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.

Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.