If there was ever a time that we should all be preparing for our futures, now is that time. I have written numerous times about the massive personal, municipal, corporate, state and national debts that we have rung up over the past 50 years or so but there is increasing evidence that many (probably most) of these future “promises to pay” will be revealed as “promises that cannot be kept”.
If we needed any more proof that this is true just look at our political ads that are filling our airwaves. There is VERY little about how any politician would fix any of our massive problems but PLENTY of demonizing the opponent.
There is not even any discussion about our finances or how our economy is crumbling. As I have written about for the last 10 years or so – we are living in a banana republic. I believe it has been this way for quite some time but now it is so obvious that it can’t be hidden any longer.
From the political attacks on the former president to the “printing” of “money” in astronomical amounts to pretend that all is well, the writing is on the wall. As a matter of fact, if it weren’t for the MASSIVE “help” for the states during the Covid lockdowns, many states would likely be in BIG trouble as we speak. Actually, they ARE in big financial trouble, but it is being hidden from the public with even MORE DEBT to give the appearance of solvency where not much exists (if any).
As all of this is unfolding, we seem to have a political class that believes the we are its slaves. They conjure up cash out of nowhere to “fight inflation” and have parties at the White House while the “markets” are crumbling, patting themselves on the back. Let me be perfectly clear here. The ONLY way this bill could possibly reduce inflation is if those 87,000 new IRS agents start attacking middle-class Americans and tax them to death. This could possibly slow down inflation because many people would spend their earnings feeding the debt monsters of the Federal and state governments. The more that is paid in tribute the less regular folks have to spend on things THEY would like to have.
In the meantime, as the masses are all distracted by the mainstream media with stories and opinions that will likely have VERY little impact on their lives the major stories get buried or you are fed a line that is repeated by most, if not all of the mainstream media (project mockingbird) to produce and distribute a narrative (propaganda).
How many are aware of the suffering taking place around the world and the civil unrest taking place because of it? How many are aware of the many military operations that are taking place globally right now? How many are deceived by the blatant lies about our economy and standing in the world?
I believe there are a few outlets that strive to show the truth by putting on real people from real places who are not spouting an opinion but giving us facts on the ground. A couple that I have come across recently would be Gerald Celente who puts out a magazine called the Trends Journal. He has exposed the propaganda coming out of Ukraine by actually interviewing people THERE. He also exposes our military industrial complex and how they are deeply involved in our many (mostly failed) foreign wars. Another is Redacted on YouTube. They have a show where they pick 4 top stories and dig deep- again exposing the misinformation about a LOT of topics.I like this show because instead of opinions they give facts that are backed up with proof- not opinions. From the investment standpoint there is Gregory Mannarino, who has been exposing the propaganda that the financial game shows put out. I particularly like how he shows how the paid shills come out and almost deliberately mislead those who are gullible enough to believe what they are watching- like “The economy is strong!” while all of the numbers are collapsing- all except inflation that is. He also gives easy to understand principles that can help regular people understand what they are facing right now.
I am sure that there are many other great venues out there that can help you understand better why things are so messed up. I believe the more informed you are the better chance you will have to survive the impending economic shock which has been building for decades and appears ready to manifest itself very soon.
To make this real simple there is a lot of misinformation out there and most of it is put out by those “in charge”. Keep in mind these are the same people who can’t define a male or a female. Anything that exposes the truth or challenges the narrative (propaganda) is crushed by the “helpers” in the media and social media. Sounds an awful lot like the Gestapo to me.
When corruption is rampant the truth becomes the worst enemy of those engaged in the corruption.
I know I am ranting a bit and I am sure that many are wondering what this has to do with investing. It has a LOT to do with investing in our current situation.
The world is moving away from the dollar because it is backed by NOTHING but the full faith and credit of the USA- which is the most indebted nation in the history of the world. The only way we pay our bills now is to conjure up increasing amounts of “money from nowhere” to give an illusion of stability and solvency that doesn’t exist. It also doesn’t exist in Japan, Europe and many other places. All of these areas have made “promises to repay” that, looking at the numbers, there is NO WAY that those promises to repay can be kept with the currencies retaining any where near their current value. This means there are two choices- a hard default (don’t pay) or a soft default (Keep “printing” and pay with a greatly devalued currency- the promise is kept but the VALUE is FAR less than what was expected). Since we are in a debt-based system option A is off the board because a default would prevent new debt from being issued so I expect the “printing” to continue until virtually all of the value is sucked out.
What this comes down to is that the world is involved in an intricate ponzi scheme where new “money” is conjured up out of nowhere to pay previous promises (therefore reducing the value of the payout).
This really is no different than taking money from a new investor and paying old investors with the newly found money.
All of the fiat currencies only have value to the extent that they can be trusted. I opine that few, if any fiat currencies can be trusted at this time. As debts go bad you can bet that many stocks will go bad and it is likely that fiat currencies will also likely implode as central banks “print and spend” to avoid an implosion in the debt “market” which would be toxic to all other debt-based assets- which is just about everything EXCEPT HARD ASSETS which are actually ASSETS rather than liabilities.
This, in my opinion, is why major banks and central banks are buying gold and silver in massive – all-time record amounts. I also believe that is why they are buying companies that produce necessities. I believe they realize we are getting dangerously near an inflection point (led by Russia and China) that could put the entire financialized world on its head. In its place there is likely to be currencies that are backed by hard assets rather than thin air. As I write this there are meetings taking place in Eurasia to make this transition. Do you have a plan to take advantage of this sea-change or are you content to keep a 60/40 portfolio?
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