In a recent paper put out by the European Central Bank it was stated that “CBDC, like a digital Euro would be the only solution to facilitate a smooth continuation of the present monetary system”. They even go as far as to say that cash is not fit for the digital age. In addition, they also addressed cryptocurrencies and stable coins, calling them a threat to monetary sovereignty.

Well, what would we expect from one of the entities that currently has a monopoly on “printing” money? Of course they are going to view any competition to their monopoly as a threat.

I believe that, as they unveil what they have in mind, it will become crystal clear that there will be no competition allowed in the currency creation space. I also believe that there will be far more calls for central banks to hurry up in introducing these “currencies” with the excuse that we have to keep up with China.

Actually, just this week a bipartisan group in congress- led by Maxine Waters have called on the Fed to increase its speed in setting up the digital dollar.  Waters: “With countries around the world competing to deploy digital versions of their own currencies, America can’t be left behind”.

Personally, I believe that all the CBDC talk is all about control. We already have a currency that can be conjured up in the trillions with just a few clicks on a computer screen. So why a “new” dollar, euro or yen?

Probably because this “new currency” will be full of new innovations like expiration dates- if you don’t use- you lose. If you upset those “in charge” they can just cancel the currency with a click of a button. They will also be able to reward those who “follow the rules” and credit you with more CBDC because you are toeing the line.

While many might be thinking I must be way out there let’s keep in mind that in China they have social credit scores that can limit your ability to travel, work and may even impact where you live. In Sweden they are rolling out their own social credit system that they describe as a “modern public rewards system”. Also in Italy they are launching a system similar to the Chinese that rewards points to those who have “virtuous behaviors”.

I’ll bet those “virtuous behaviors” have nothing to do with virtue or doing good but doing as your told and thinking as your told.

So why am I writing about this? What does this have to do with investments? In the longer-term it could change everything but in the short-term if we have some clue what those “in charge” may do it may help us better plan for what is coming.

Since many people are VERY wary of this new planned system I believe that those “in charge” need a crisis so big that the masses will be begging for a solution. Any solution.

What better way to accomplish that than to destroy economies, transport systems, manufacturing and farming all at the same time? Between Covid, money “printing” and mandates that stop people from producing needed supplies we are well on our way to severe shortages and FAR higher prices- likely right after the first Tuesday in November.

Oil and gas will likely go higher and the results of an expected sad harvest will make our grocery prices of today look like bargains.

I hope I am wrong here but all of the tea leaves are pointing in this direction. It will be extremely difficult for prices to come down when all of the input and transportation costs are surging.

Already, before any of these prognostications take place MANY are suffering already. Keep these stats in mind:

  • 20 Million (or 1 in 6) US homes are behind on their power bills.(Over $15 BILLION) (Zerohedge)
  • Food banks are being overrun even with 40.7 MILLION on food stamps (USdebtclock.org)
  • Companies are announcing MAJOR layoffs
  • Manufacturing is collapsing
  • Retailers are suffering supply chain disruptions, rising costs for goods and delivery and the lower-end consumers are already tapped out
  • Credit cards are being maxed out so people can get by.
  • 85 MILLION Americans are on Medicaid- that is OVER 25% of the population with NO ASSETS (USdebtclock.org)
  • 40% of US small businesses could not pay their full rent or pay rent on time in August (Zerohedge)

This is certainly not a full list but enough to show that we are in deep already. If the current outlook for crops globally comes to pass the situation could get drastically worse in the near future.

The answer we get from our “leaders” is that we have to sacrifice. I believe this whole thing is a smokescreen and that this is a man-made collapse to starve the masses into submission to these same “leaders”.

Another major clue of what may be coming shortly is that China imported 80 TONS of gold from Switzerland in July. Central Banks and major banks are draining physical supplies of gold and silver globally. All this while banks like JP Morgan and others crush the price down allowing their buddies to load up cheaply while scaring others (most people) away because the “price” is volatile. Since the paper (or fake) price is determining the price paid the VALUE- which is what is really important is skyrocketing with the instability in the world and money “printing” globally on an unprecedented scale.

Since it is virtually impossible to figure out what may be coming next I believe it is imperative to have assets everywhere but in particular to be well overweight in energy, food, water, gold, silver and companies that produce the same. I firmly believe that only those that plan diligently will have a chance at avoiding becoming dependent upon those “in charge”.

Personally, I believe that it pays to look at what large banks and central banks are doing and try to copy their actions. It is also important to know that I believe you should never listen to what they say but look at what they do which is, many times, the exact opposite of what they tell others to do.

They are buying REAL stuff. I believe they know the expiration date has nearly arrived for all fiat currencies and they are preparing. Are you?

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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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.

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