Ridiculous! I can’t think of another word that is more appropriate to explain our entire financial system right now. I could use words like fake, fraudulent, illusory but ridiculous kind of sums it up.

While many are feasting on their $1400.00 stimulus checks pretty much everyone is blissfully unaware that this pork-filled bill will be adding $15,188.00 to each taxpayers share of the burden of this bill.

What those “in charge” aren’t telling us is that this is a bailout bill alright. It is bailing out entities like states, unions and failed enterprises that, if allowed to fail, would expose just how rotten our finances actually are.

Starting right at the top the US government is, in my opinion, a zombie country. Like zombie companies that can’t pay interest on the debt they owe without more debt the USA is in a similar situation. REMEMBER that each dollar that is created IS a unit of debt- created out of nothing BUT with interest attached. Some of this debt is then used to purchase more debt- like treasury bonds and bills adding again to the debt.

“Money” is being conjured up out of nowhere to give the illusion of normalcy (which a great majority buy) while our national balance sheet spirals downward as tax collections fall and funding costs rise.

Just last week we AGAIN saw 770,000 people file first-time unemployment claims and over 18 million are still collecting Covid-related payouts. BUT- things are GREAT- those “in charge” say so!

The trillions of dollars that have been thrown at this problem is bad enough but in an interview on USAwatchdog.com Dr. Mark Skidmore (person who originally found $21 Trillion missing from the Dept of Defense and HUD from 1998-2015 and Professor at Michigan State University) made the startling claim that he can prove that over $140 TRILLION IS MISSING. In the interview Greg Hunter who is the host wondered aloud if this “money” was funneled into the derivatives market to stave off a collapse there that would make 2008 look like the good old days. Personally, I can’t think of anywhere else you could “hide” $140 Trillion and not have major implications. I cannot say for sure that this is true but, if so, it would justify my belief that we are only being allowed to know what “they” want us to know. I have written many times about the fact that I can’t guarantee much in my business but I can guarantee there is PLENTY going on that we are not allowed to know.

Shifting to the states- the most corrupt and bankrupt states are being rewarded the most. Those that have been the most irresponsible for decades are getting the most “money” out of this bill. $350,000,000,000.00 (that is 350 BILLION) is being given to the states supposedly to make up for losses of revenue (that was mostly self-inflicted)  but many of these states were on the verge of default years ago. I have written many times about Illinois and many other states drowning in debt and grossly underfunded pension promises that may be one market event away from extinction. Of course, $86 Billion is also in this bill to kick that pension can a little further down the road too.

$128 Billion is in there for K-12 education. What in the world are my sky-high property taxes paying for?

I guess at least we are not funding gender studies across the globe like in the last joke on us bill in January.

Let’s not forget about those who are counting on the stimulus payments to survive- many who still have roofs over their heads because of loan deferments and mortgage abatements that at some time have to end.

Basically, a grotesque amount of debt is being created and deployed to mask the fact that we are no longer solvent. If we continue on this course (exponential debt growth) it won’t be long before my $100.00 happy meal prediction becomes reality.

In the meantime, the CTFC, who couldn’t find any wrongdoing by the major banks who were rigging the metals markets for decades, are now going after Robin Hood traders. If you know the right people it appears you can do just about anything BUT if you are not part of the clique- look out!

Speaking of Robin Hood they were fined $65 MILLION for not getting the best prices for their investors. I would say “clients” but Citadel (fined 22 million for mishandling orders) is their major client as they sell the trade information for a piece of the bid/ask spread and that has apparently been more lucrative than charging commissions. Of course, if something is “FREE” people are more likely to do it more often. Investing many times requires patience. This is frowned upon by those who make money on each trade whether it is a winner or a loser.

The deck is stacked against the small investor. It couldn’t be more obvious than it is now as the large players get away with just about anything and the small guy gets hammered for the smallest of infractions or infringement on the big guys turf.

I believe the big banks, central banks and their hedge fund buddies all know that this will not end well.

This is likely why the big banks and central banks have been loading up on gold and silver for years.

So many are complacent because it has appeared that the central banks could “print” whatever amount they wanted to with few, if any repercussions. It is too bad that history is littered with similar tales where the collapse seemed to start slowly and then happened all at once- one of the most famous was Weimar Germany about 100 years ago. I am expecting a similar outcome here as the collapse has obviously started and it appears all it will take to expose it is some sort of black swan event- which is likely already planned- since you can’t impose a solution without a problem.

For those who are awake and planning for this it may be a tremendous opportunity to buy assets on sale. For those who are counting on ever-higher prices for artificially manipulated assets like stocks, bonds and real estate it may be a painful realization when reality sets in that there is NEVER anything for nothing. Certainly by pushing a few keys and conjuring up trillions in currency units which have no value and create NOTHING has to be worth NOTHING regardless of what someone may believe for a period of time. If an asset has no productive asset backing it- it is likely worthless. In the case of fiat currencies they are backed by the full faith and credit of the issuing governments. Actually, central banks are issuing the “money” and charging US the interest but we (the public)  are on the hook to pay off the debt.

Using basic math, it is easy to see that there is NO WAY our current debt could possibly be paid without a drastic decrease in its value. I’m not talking about 10-20% but more likely 90-95%. How sure are you that the company, city, state or nation that you lent your hard-earned money to will pay you back? Even if they do pay you what value will you actually be receiving? My guess is FAR less than you bargained for.

Just one more reason for hard assets such as gold, silver, energy, etc. These assets have to be produced with labor. They can’t be conjured up at will AND most importantly I don’t have to count on someone else to honor their promise to pay because there is NO DEBT attached. In gold’s case it has a 5000 year history as money while ALL paper currencies have failed over time and manias come and go- from tulip bulbs to bitcoin. Whatever I could purchase for an ounce of gold 100 years ago I can purchase that or more today while I can’t say the same for our US dollar which has LOST 97% of its value in that time.

While it may be lucrative for a while to “invest” or trade in manias most end in tears. Enduring wealth has been transmitted through the centuries with art, real estate and gold. At this time the only item on this list that is on sale is gold. I am expecting a sale on the other items shortly. We’ll see.

Be Prepared!

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