Sometimes I get the information I use in these articles in the strangest places. I had to do an annual training about ethics and other topics and I found this:

Negative Effects of Bribery and Corruption

Wealth Inequality. It increases wealth inequality, supports corrupt regimes and damages faith in democracy. My take: It is so obvious now that almost anyone can see the unlevel playing field in almost all aspects of our society. Those at the top have a different set of rules for criminality, access to nearly free “money” and all forms of manipulation.

Stifled Innovation. Innovation is stifled because potential entrepreneurs do not trust the legal system to defend their intellectual property. My take: Many entrepreneurs are cut off at the knees by legislation passed to keep those in charge insulated from competition. This cuts off the lifeblood of our economy- small business which creates most of the new jobs in a functioning economy. It also causes us to lag behind our international competitors who don’t have the same barriers to entry for new businesses.

Public Safety Risks. Poses risk to public safety. Where corruption is rampant, shadow economies flourish, and businessmen are disincentivized to play by rules that are not enforced. My take: Look at the banks that are able to manipulate virtually ALL prices and skim profits for themselves- while producing NOTHING by the way. If you or I did that we would be imprisoned for a LONG time but it seems no top bankers ever get anything more than a fine and a smile on the way out. Of course, they go right back to what they were doing because the consequences of what they were doing were inconsequential in the scheme of things. It appears they view this as just a cost of doing “business”.

Artificial Price Inflation. It impacts everyone by creating artificial price inflation, reducing public spending and encouraging monopolies. Without fair competition, corrupt actors can raise prices and control supply. My take: I believe that the closing of small businesses was done with the intent of removing ALL competition for those in charge. When small businesses are closed by decree and large businesses remain opened you can be assured that there is NOT fair competition.

Extremes of Rich and Poor. Wealth tends to be distributed in extremes of rich and poor, with a sparse middle class and little opportunity for small businesses to grow. A crippling cycle. My take: We have record homelessness- and that is BEFORE all of the actions taken to hide this fact by postponing payments of rents and mortgages ends. We have billionaires traveling to space while hundreds of thousands are wondering where their next meal is coming from. There are millions wondering if they will have a roof over their heads in the next year.

All of the above evidence seems to confirm what I have been writing about for years. The corruption is off the charts. All prices are being rigged for the benefit of the few. Most messages we get from the media cannot be trusted as facts that have been researched but a regurgitation of the company line. It is no surprise that the mainstream media has a reputation about as good as a used car salesman. My apologies to any honest used car salesmen or women out there- it’s just to make a point.

An example of this would be retail sales. The auto sales were a disaster so they were deleted from the report. Retail sales were reportedly much higher than the prior months. The only problem is that people bought the same amount of goods (or less) BUT the prices were higher. A couple of examples would be:

1)       Gasoline, which rose 2.5% in price in June and gasoline sales increased 2.5%. Same amount sold but at a higher price.

2)      Food and Beverage Sales increased by 0.6% in June. Too bad PRICES rose 0.8% meaning LESS product was sold but at a higher price.

It appears to me that the recovery is fake but the inflation is real. It also appears that inflation is much higher than is being reported and I see no end in sight.

Inflation is an insidious tax that impacts the poor the most and not one in a million can really understand what is happening until it’s too late.

It appears to me the only way to stop inflation now would be to raise rates (virtually impossible because of the record debt at all levels of society), stop “printing” money (impossible because rates would likely rise uncontrollably leading to a crash of all artificially supported assets like stocks, bonds and real estate) along with all of the derivatives that have been created for leverage. This would likely lead to an economic ice age like the world has never seen.

It seems pretty obvious that our “leaders” will take the same path that our ancestors took and keep “printing” our currencies into oblivion. We are WELL on the way.

Richard Russell (Deceased of Dow Theory Letters) once said and I agree 100%:
“The only currency that cannot be destroyed is gold. When investors realize this we’ll have the makings of the greatest bull market in gold ever seen”.

I don’t know what other information we could possibly need. Many countries, including our own, are issuing new debt and conjuring up cash out of nowhere to pay current bills, roll over current maturing debts and pretend we are still solvent. We are creating more debt to treat the disease of being over-indebted. This was taking place LONG before any virus showed up. It is a convenient excuse for those in charge to not take the blame for what is coming our way.

In looking at history it appears the most likely outcome is some form of centralized government with likely a tyrant in charge. It will probably take an outcome like that to quell the violence that is likely to take place when those wronged by the few (Mostly every person outside the 1%) realizes what has happened.

Central banks and major banks are buying EVERYTHING from gold, silver, companies, real estate, bonds- you name it. In many cases they are buying and concealing their ownership with complex shell company schemes like I wrote about last week. Our country is being sold to the highest bidder (usually those that can conjure up cash out of nowhere or some person or entity closely tied in) and in all likelihood the outcome they want is for us to “you will own nothing but you will be happy” Klaus Schwab- World Economic Forum.

If we don’t do something to prepare for this now we will likely not have much of a chance in the future.

HARD ASSETS that cannot be conjured up out of nowhere should be on your radar in my opinion along with the companies that produce such things. Gold, silver, oil, food, uranium, energy, etc.

Many of these companies have balance sheets that many high-flying stocks could only dream of. If inflation is indeed not “transitory” this narrative could be in the early innings.

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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