Nothing is as it seems. First of all, we have a “Congress” that would like us to believe that as they spend an extra $400 Billion that inflation will somehow miraculously go down. This, even as the Fed President has acknowledged that inflation is “always and everywhere a monetary phenomenon” which, in English means that as they conjure up cash out of nowhere it creates inflation. Since the government doesn’t have any money of its own it needs the Fed to “print up” that cash- creating the exact opposite of reducing inflation and creating MORE inflation instead. I have to wonder how many people actually believe that spending more with cash conjured up out of nowhere could create lower prices.

Of course, the midterm elections are coming up so the politicians need to make things look far better than they are. Keeping that in mind lets see some other whoppers we are supposed to believe:

  • Inflation is going down. While it is true that gas prices are falling (most likely a result of the government trying to make things look better before the elections) and that will help with the numbers how can anyone believe that inflation is falling when food prices are rising faster than at any time in 43 years? The last time I looked most people can cut way back on driving and travel but most of us have become accustomed to eating every day. As a matter of fact over 41 MILLION People are relying on food stamps to survive. Ask yourself a question: Is what they are telling me is happening what I am seeing with my own eyes?
  • The economy is strong. This has to be the biggest slap in our face that there could be. All of the economic news has been terrible for years. Right now, according to Bloomberg, we have the highest initial jobless claims since November 2021. While inflation “moderated” in July to “only” 8.5% (fake number anyway) real wages are tanking at one of the fastest rates in history. (Wages are not keeping up with price increases). Many people are living off of credit. According to the Fed US household debt was up 2% just in the second quarter of 2022 to 16.15 TRILLION. That is a lot of future income pledged to debt payments! This is likely because the lifestyle that many have become accustomed to is not sustainable with prices where they are today. Auto loan delinquencies are rising exponentially. Rents are rising uncontrollably. Home prices are still rising even though sales are cratering. They are rising slower than they were but- still rising. Don’t fear though- we are NOT in recession even though we have met EVERY criteria even with the abundant “printing” that has masked our true weakness for over a decade.
  • The Fed cares about inflation. Actually, I believe they do but not in the way that you and I may think. They NEED inflation. In a debt-based system debt needs to keep growing exponentially so the entire edifice doesn’t collapse. If the Fed did actually care about our consumer inflation, interest rates could be 5-7 times higher than they are today. Unless the Fed gets rates higher than the REAL inflation rate (15-20%)  (Shadow Government Statistics) inflation will likely not be tamed- and they know it.
  • We have Full employment. I would laugh if this one wasn’t so tragic. The “full employment” narrative is thrown around as fact even though to come up with this outrageous lie they have to OMIT 99,894,932 working age Americans from the rolls. ( As I write this there are 1.4 MILLION FEWER workers in the USA than there were in the year 2000. This would be bad enough if our population didn’t grow BUT there Are over 50 MILLION more citizens now than in the year 2000- do THAT math!
  • Everybody is RICH! This is one that started with our last president and is being carried on by our current president and many others. This is like when in Zimbabwe they were ALL billionaires in their home currency.  Many would think it would be a country of magnificence and elegance. Unfortunately for the Zimbabwe population it cost a trillion Zimbabwe dollars for 3 eggs a few years ago. I am sure that many had dreams of becoming a billionaire but the dream turned into a nightmare.

The fact of the matter is that we have already run up a tab that cannot be repaid with our currency retaining its current “value”. We are already conjuring up cash to pay interest, current bills and new spending projects- not to mention the off balance sheet stuff like wars, mercenaries, etc.

I believe that the world sees the precarious situation and most of the world’s population is looking to distance itself from the US dollar and from the West overall.

There is a treasure trove of information on what is coming if you look at BRICS (Brazil, Russia, India, China, South Africa (Now also Iran, Ireland, Saudi Arabia, most of Africa and the Middle East). SCO (Shanghai Cooperation Organization).

There are well-documented actions taking place to move the world out of western domination and put the power back into the hands of those that produce hard goods. To me, it only makes sense that if you are producing the goods we all need you should be able to determine how much and in what manner you will be paid. Putin started it and now the developing world- which has been held down by the money-changers for centuries is now starting to follow suit.

The prices we are paying today will look like massive bargains in the days ahead if the US dollar loses its spot as the world’s reserve currency. I believe that it is not a question of if- but when.

This is why I think it is important to stock up on the things you need today. I believe that hard assets and the companies that produce those goods will far outperform the high-flying companies that produce nothing and few, if any profits going forward.

I also believe it couldn’t hurt to have assets that have held “value” over time- like gold, silver, platinum, etc.  Assets do not rely on someone else’s promise to repay. Dollars, Euros, Yen and all bonds DO rely on the entity issuing the debt to repay. Can they?

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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