It is amazing that many people can watch the same mindless conversations day after day on the financial game shows and America’s propaganda networks. Day after day it is the same stuff. Borders, Trump tweets, trade wars, illegal immigration, markets bouncing around all over the place and “experts” confused about all of the great things happening (LOL!) and yet the economy is slowing down.
In the greatest economy of all time how could that be?
I have watched many “experts” bemoan the fact that with all of the “great” economic numbers the economy is not acting as it has in the past. Many are “confused” about why the wages are not rising even though we have “full employment”. Of course, they don’t mention the 96 million people NOT COUNTED to come up with the less than honest unemployment rate. (USDebtclock.org)
Could it be that the numbers that these people are looking at is nothing but propaganda and the scripts they are reading are more of the same?
As I have said many times in the past the economic numbers are bad and getting worse month after month. Just today some of the headlines on Zerohedge are: “Largest Correction Since The Great Recession” US home-buying by foreigners sees record plunge.
“New Home Sales Miss As Mortgage Rate Collapse Fails To Bring Buyers Back”
US Manufacturing PMI Slumps to 10-Year Low (Anyone still remember what 10 years ago looked like?)
“ECB Rate Cut Odds Jump After “DISMAL” PMIs”
“Greek Comedy: 10 Y GGB Yield Plunges Below 2% For First Time Ever”.
“Richmond Fed Unexpectedly Crashes To Lowest In Over 6 Years As Order Backlogs Disintegrate”
Fed’s National Activity Index Contracts For 7th. Straight Month- Longest Streak Since 2009”
As part of this article “Meanwhile, the actual Fed survey shows collapsing orders, shipments and employment”. (Sounds like things are booming right?) Only if “booming” means blowing up.
These headlines are from July 23-24th. There are many, many others that point to some dismal economic activity taking place at this time.
Many of these reports are coming directly from the Fed!
We keep hearing that “all is great” but the economic evidence points to that being nothing but propaganda. How dumb must they think we are? In real life there are people who are putting up with the consequences of this “print and buy” scheme. Many are finding it hard to get by even though working full-time or more.
Doesn’t it seem odd that the central banks are all talking about how great things are but their actions are communicating that all is ANYTHING but well? I believe that they are well aware that they have to keep “printing and buying” in ever increasing amounts to stop the entire system from seizing up- as I wrote about at the end of 2018. They are all telegraphing MAJOR “printing and buying” schemes in addition to all of their interventions to date- which are totally unprecedented.
It appears that central banks, major banks and companies themselves are the buyers of last resort right now. It appears that soon it will be that central banks will likely be the lender, buyer and owner of last resort. I wrote 8 years ago that this would be the endgame- central bank ownership of ALL assets- at virtually NO COST to them and at great cost to the rest of us.
In the meantime we are seeing gold and silver moving up in a meaningful manner. This, while the central banks, major banks and possibly others are still actively suppressing the price. In my opinion, it is so that, as they buy the gold and silver in record amounts, they get it for the lowest price possible.
One piece of information that makes it clear to me that the manipulation is likely alive and well is that on a day when the US Congress voted to increase the debt limit (like there really has been one) the price of gold goes down? Basically, they are telling us that they are going to be totally irresponsible with our debt going forward, that will likely lead to tremendous amounts of “printing and buying” by the Fed, and that the sky is the limit. This should be bullish not only for gold and silver but for virtually ANY asset that has to be produced with real labor rather than being keystroked into existence.
It appears to me that every aspect of the “markets” are being managed similar to the way the USSR had a managed economy prior to its collapse in the 1990s. All of the numbers were “wonderful”- right up to the day the entire economy imploded under its own weight.
For anyone who thinks I may be exaggerating look at the numbers. While we live our lives spending in hundreds and thousands of dollars while our “Leaders” have us on the hook for hundreds of trillions. Anyone who can do basic math can see that we can never repay that debt with our US dollar maintaining its current level of value. As a matter of fact, we are going ever deeper into debt with not even an attempt to slow down spending. Our current budget deficit for fiscal 2019 is over $1 trillion according to our government. However, the US debt will rise about $1.5 trillion because of off-balance sheet expenses and if we use GAAP accounting principles (as all US companies must) our annual deficit will clock in at over $6 TRILLION just for fiscal 2019! (Usdebtclock.org)
I hear many people on the internet that say “become your own central bank”. I believe what they are saying is to get some assets outside of what is being controlled by the central banks so you can maintain a certain level of independence if the day of reckoning arrives.
In my opinion that means having extra food and supplies that may be hard to get if financial markets seize up- even if only for a short period. It means having cash in your hand, articles to barter with and having some gold and silver will likely come in handy also.
If the US dollar loses a lot of its value- which I am expecting in the next few months and years- it is likely that gold and silver will help you maintain your purchasing power as time goes on. I also believe it may afford you the opportunity to buy assets that you can’t imagine owning today. That can only happen if you have purchasing power at the time it is needed.
Even if I happen to be wrong and the dollar maintains its strength, I believe having gold and silver as a part of a diversified portfolio makes a whole lot of sense. Generally, it moves in the opposite direction (non-correlated) to traditional asset classes like stocks and bonds.
With those stocks and bonds at near all-time highs and the underlying economy appearing to be contracting meaningfully it seems to me that some pre-emptive planning makes a lot of sense right now.
When things don’t seem right- like the mantra that we have “the greatest economy of all time” the truth is readily available to anyone who cares to look. The poor souls who are counting on getting their information from the “Baghdad Bobs” in the media will be shocked if the implosion that is hiding in plain sight reveals itself. Don’t let that be you!