As everyone knows, I have been bullish on gold since about 2003. The main reason for my bullishness on gold and now on most other hard assets is that throughout history the same game plan has played out time after time.
History has shown that not one currency has held its value over time. Obviously, it is human nature that “printing” money leads to some boom times that most don’t want to see end. The “printers” then conjure up far too much cash- with NO VALUE attached to it- no labor, no energy, no food, etc. The temptation is too great to stop.
This leads to too much cash and too few real goods and HIGHER PRICES. The only difference I see this time is that this is a worldwide phenomenon. That fact makes it easier to hide the loss of purchasing power because the measure of a currency’s worth is against other fiat currencies which are also bleeding VALUE. This is another reason that those “in charge” want to see gold artificially repressed so that our dollar looks strong.
Another way to mask our reality is to make the numbers say whatever those “in charge” want them to say. One example is California. According to John Moorlach, one of the ONLY CPAs to serve in the California senate- even though the governor boasts of a $97 billion surplus the numbers run by the CPA say that the state has the LARGEST unrestricted net deficit of $222 BILLION. Liabilities exceed assets by that amount. In addition, California’s state and local liabilities are over $1.6 TRILLION- and they can’t “print” their way out of it. The State Office of Legislative Analysts latest report is projecting- not a SURPLUS of $97 Billion BUT a DEFICIT of $73 BILLION in the next fiscal year.
The Federal government uses all sorts of accounting gimmicks to mask our true state of affairs. The old Soviet Union was famous for the same. Unemployment, inflation, debt to GDP are all massaged to make things seem ok. The reality is that our debts are growing exponentially, that debt is being counted as growth in GDP which makes our fiscal situation FAR more concerning than they are letting the masses know. If it weren’t for our debt growing EXPONENTIALLY our GDP would be imploding- just like the economy.
I believe that this is no coincidence. There have been many currencies that have served as the world’s reserve currency, and each has been debased into oblivion. While currencies, like the pound Sterling, still exist they only have a SMALL fraction of their original VALUE.
It appears to me that since the world’s reserve currency is used in trade it stands to reason that many more currency units are needed. Since fiat currencies are actually units of DEBT and OWED back to the issuer (in our case the FED) it is easy to see why countries go bankrupt. At some point you get to a place where even the interest payments can’t be made without more debt which leads to monetizing (buying most if not all) of the debt by the central bank. This leads to a debt death spiral as spending goes out of control to maintain the fantasy of normalcy. One day it implodes, and a new system is born. I am not saying this would be an event that happens all at once- although it may- if we look at history these events take place over years. I believe we have already entered the debt death spiral phase and we need to be aware of the dangers that could show up at any time.
Since this has happened over the last 4 or 5 CENTURIES, we have a pretty good size sample of the plan that I believe is in the process of being carried out once again right before our eyes.
Remember that around 250 years ago Thomas Jefferson warned us of this “plan”. He said if we allow a central bank in the USA, we will be renting back the land that we conquered. They will do it first with INFLATION and then DEFLATION. As a student of history, I am sure he was aware of the many times this took place in the past from the Greek Drachma to the Roman Dinari to the Dutch Gilder. (You will own NOTHING and be happy) Klaus Schwab-WEF. Coincidence?
The Central Banks are the ones who conjure up cash out of nowhere, buy assets and charge us interest on the “money” they created from nowhere. Who gives these people the license to do this? Our governments. Why would they allow a private entity to conjure up cash out of nowhere (the definition of counterfeiting) and then charge us INTEREST for the privilege? My guess is that they were bought off by the bankers. Why the bankers? Because the large banks OWN THE FED. The barrier of entry is so high to be a Fed shareholder that ONLY the large banks can join the club. This explains why there is no “money” for infrastructure, veterans, or any other need that benefits us, but there is UNLIMITED capital to save the banks and fight endless wars- which creates even more need for “cash from nowhere” with even more interest to be paid by me and you.
How many wars do you think we would have if the public had any say? Particularly if we had to be taxed to fight it? My guess is few or none.
I carry around a paper that was gotten from the Fed in a freedom of information act filing that shows over $16 TRILLION was made available to the banks in 2008. The latest numbers that I have seen- from at least a year ago says $41 TRILLION has been made available to the banks. By the way- this does NOT show up in the national debt numbers.
It appears to me that the central banks are like locusts. They maneuver to put a dominant country in a position of financial power and allow them to stay on top long enough to be basically insolvent. I believe they encumber their assets with massive debt and eventually foreclose. This allows the bankers to seize ASSETS like real estate, companies, infrastructure, etc. with nothing more today than mouse clicks. In the old days they had to put lesser metal into coins or print up paper notes.
Once this happens their military might falters, (check), their financial stability is called into question (check), they do all they can to hold on to power but eventually another upcoming entity takes over and the process repeats.
Unlike in the past it appears to me that this time it will be a bloc of nations that will eventually take over economically and there may NOT be a single reserve currency. Or there may be. Time will tell but the BRICS- along with most of the global south are all planning on trading with local currencies backed by physical assets which has throughout history provided FAR more stable prices and exchange rates. Of course, the IMF has a system that allows all national digital currencies to communicate and trade in real time. My opinion is that this gives the illusion of national currencies but is, in fact, a one-world currency run by the IMF.
I even surprised myself when I researched buying the Dow in August of 1971 in gold. I anticipated the returns would be FAR less than if measured in dollars, but I was actually stunned when I found out that you would actually be DOWN 30% in gold terms over that time. In other words, there would be NO GAINS if our “money” held its VALUE like gold. It has actually regressed while the illusion caused by a falling dollar is that there have been massive gains.
The lesson here is that gold is just a hunk of metal that holds its value over time. It is not that gold goes up or down- that is traders playing games with futures contracts. The reality is that all fiat currencies are being debased in record amounts and that leads to the illusion that gold is going up. Actually, currencies are going DOWN.
As currencies fall the gold price can rise exponentially. Take the Japanese Yen as an example. Today (April 3, 2024, at 2:15) it takes 347,995 YEN to buy 1 ounce of gold. In October of 2023 it took 278,000 Yen to buy an ounce. In just 6 months the price of an ounce of gold has risen against the Yen by 25% or over 69,995 more to buy 1 ounce.
With the level of our “printing” and the all-out effort at price suppression is it hard to believe it when I say gold should be over $20,000.00 per ounce right now?
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. The 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.
