Inflation has been rampant for years but it is now getting so far out of hand that even massaging the numbers lower only manage to make it painful rather than stunning. Of course, where energy prices are up over 100% and there are shortages of fuel- leading to shortages of many other products that are either manufactured with that fuel (ex: oil/plastic) or the fuel is needed in production- the price rises may just be in the early stages.

Using the rule of 72 you can see what a difference just a little change in the inflation rate can make. If you have 2% inflation your money will lose half of its value in 36 years. If you have 6% inflation you will lose half of your value in 12 years. If you have 12% inflation you will lose half of your purchasing power in 6 years.

Most people aren’t too worried about 36 years from now but far more are concerned about the next 6 years.

It is imperative that those in charge keep everyone blissfully unaware of what is actually happening to their currency. This is the reason for massaged numbers like changing the way the reporting is done. Luckily, there are people out there like John Williams  of Shadow Government Statistics who  reconstructs the government’s own numbers and reports them as they used to be reported when they were actually useful in giving us a real look at the economy. According to John Williams inflation is north of 12% and has been for some time. They can massage numbers and try to make us believe that what we are experiencing is not real but the reality we all see is too obvious to ignore.

Rates are being artificially repressed, inflation numbers are being mis-reported and assets, like gold and silver, which would reveal the real loss of purchasing power of our fiat currency, are being artificially repressed also.

In addition, the economy is contracting at an accelerating pace. From growth projections from the Atlanta Fed in May of 13.6% (May 4) to 7.4% on July 27th. to 1.3% on October 5th. to 0.2% on October 27th. Keep in mind these “growth” rates include debt being counted as “growth” so the actual numbers, if the massive debts were excluded (as they obviously should be) would show an economy in freefall with no end in sight.

Of course, with tens of millions unemployed we are also supposed to believe that the unemployment rate is 4.2%. The actual number is north of 30%. (ShadowStats). Is the 30% number easier to believe or 4.2%? Look around and I am sure you know the answer.

For anyone thinking that this is a conspiracy theory, in an interview with the Mises Institute a Fed governor named Christopher Waller laid out ways that they manipulate the numbers and keep repeating the “transitory inflation narrative”.

Adding to the economic malaise is that many workers who are tired of being treated as non-entities are just walking away from jobs. The VAX mandate is another nail in our economic coffin that is totally man-made and likely being done on purpose to destroy small businesses even more than has already been done since the plandemic began. Large companies can, in many cases, afford higher salaries and sign-on  bonuses while most small mom and pop businesses can be destroyed by having to pay higher wages.

It always astonishes me how businessmen who find success are vilified in the mainstream media or by people in government who said “Your business-you didn’t build that!”

In my opinion these people obviously have NO CLUE about hard work and building a business. Many clients and friends who are extremely successful have stories about taking out loans to make payroll and paying employees while forgoing their own pay because there were too many delinquent accounts or business was just slow.

Hard work and entrepreneurship are seemingly being dismantled right before our eyes. It is much easier to control a population that is dependent upon those in charge than a public that can stand on its own and values the freedoms that we have become accustomed to.

For anyone still under the illusion that all of the “values” we see aren’t fake keep in mind:

The Fed keeps talking about “taper” and rising rates. Notice they don’t actually do it but are threatening. Take a look at Australia where their central bank didn’t offer to buy 2-year treasuries and the yield DOUBLED from .25% to .5% in MINUTES. Imagine if rates were to double here. Imagine if purchasing stops or even slows down- what happens to asset prices if bond yields rise? I believe it is likely they collapse.

I have said many times before if they stop “printing and buying” expect an immediate collapse. If they don’t- prepare for FAR higher prices and ultimately a whole new monetary regime- likely by 2025.

The real important thing to take away from all of this is that the entire economy and “markets” are based upon an illusion. The promises that APPEAR to be being kept (paying dividends and interest) are more and more likely to be being conjured up out of nowhere rather than actually being earned.

The promises that are being kept with keystrokes rather than labor and production have an expiration date. That date is above my pay grade to try and figure out but if you are planning a decent retirement for any period of time you better get to work figuring out who can keep promises and who cannot. It would also likely  be wise to get some assets that don’t count on anyone else’s promises to repay. Hard assets like gold, silver, uranium, platinum, oil, etc. If you own these things without leverage you actually have an asset rather than a liability-Think about that.

Do you want to hold an asset (gold, silver, etc.), fiat currency  or liability (US dollar, euros, yen, bonds, etc.)*

Be Prepared!

*Fiat currency is a government issued currency that is not backed by a commodity such as gold.  All fiat currencies are debt-based and owed back to the central bank. (Federal Reserve Note)

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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