There is a famous quote by Henry Ford “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

This quote was from nearly 100 years ago when people were educated and understood that real money was something that had intrinsic value and was not a computer blip or a piece of paper that, at one time, was a claim on real money like gold.

Today, one of our largest problems is that with all of the propaganda and misdirection we see on the “news” and financial game shows, this has managed to rewire the thinking of the majority not only of Americans but virtually everywhere else on earth also.

One of the main reasons I put this article out every week is to try and enlighten some people on why things are spiraling in the wrong direction and give some ideas on what may help us survive what history says is headed our way.

First of all, many people think linearly. What this means is that they look at the direction of prices or events and conclude that the current path will continue indefinitely, or at least too long for their comfort zone.

One of the problems with this type of thinking is that it is generally short-term. A good example would be our cost-of-living problem right now. Many are concerned about rising prices and the inability for their wages to keep up. Because of the propaganda and sound bites many are being complacent because they are being told that this is a temporary condition and that when the war ends (if it ever does) prices will fall. What they fail to mention is that only because the world’s reserves of food, oil, diesel, etc., have been released and for the most part depleted, prices have not spiked as they may have if this were not the case. In addition, MANY experts in the oil, gas and minerals arena are saying it will take years and trillions of dollars to get production back to where it was. This is assuming no further damage. Let’s hope!

This does not bode well for those who are counting on a miracle price reduction.

My opinion is that the “money printing” which creates more currency units but NOTHING OF VALUE is the root cause of all of our problems. In the beginning everyone is fat and happy. It appears the “printing” allows for something for nothing. Eventually, we get to where we are today when all those currency units (UNITS OF DEBT) have created so much interest expense that the current debt can’t even be serviced without more “printing” to not only pay the interest but also to redeem maturing debt and pay for services which can’t be maintained because of the interest expense.

A famous Gerald Celente quote is “When all else fails they take you to war.” The resources are needed mainly because the money “printing” creates NOTHING and causes prices to rise because there is FAR more “money” than goods. This not only explains prior wars but also sheds light on Europe wanting a war with Russia.

Anyone who thinks a war like that could be won is delusional. The losing side would likely use nuclear weapons if their existence were threatened and we would all lose. In fact, the Russian Duma voted last year to allow for the use of nuclear weapons in just that scenario.

The economic problems in Europe and in almost all developed nations are so severe that those “in charge” would rather risk nuclear annihilation rather than be blamed for the coming economic disaster, which is already showing signs of starting in bonds, commercial real estate, real estate, private credit, defaults, banks, etc.

Another major problem appears to be rising in the AI buildout. I have already warned about many problems like community pushback, China’s open platforms, rising interest rates and corporate debt downgrades because of ballooning debts that appear to be getting harder not only to fund but also to service going forward. Now, it appears that so much capital is going into this buildout that companies are laying off major portions of their workforce.

Some current headlines:

American Express cuts 5% of jobs (3500), Barclays cuts 5000 jobs, Netflix lays of 1000 workers, Oracle cuts 21,000 jobs in the past year, eBay cuts 800 positions, Electronic Arts cuts 400 jobs, Uber cuts 3300 jobs, Xbox to lay off 1800+, Amazon lays off 1000 white collar workers. Apple, TikTok, Zillow, Etsy, Visa, Patreon, Lucid, Rackspace, Rivian, Robinhood, Salesforce, Groupon, Wix, Click Up, Intuit, Meta, NPR, LinkedIn, GM, Cloud fare, PayPal, Coinbase, Nike, SNAP, Disney, T Mobile, Epic Games, Atlassian, have all announced large layoffs. Hey- do not worry, AI will not lead to any job losses. (Another fib)

It appears to me that every trick in the book is being used to keep people complacent at least until the elections are over next week.

Another issue is that the price (not the VALUE) of gold and silver has contracted since the war started. Many believe that this will continue. That may be for a while yet, but the upside looks explosive to me while the downside appears to be either here or near as central bank buying has appeared to put a floor around $4000.00.

Wars create a need for FUNDING. Since we, and most other nations, do not have a piggy bank the “printing” is likely to not just increase but go parabolic. In addition, gold, in particular, thrives when there is international tension and global chaos as we are currently seeing. We know those “in charge” have been suppressing the PRICE for decades (or more) but eventually all of that manipulation will have to be accounted for. In gold and silver’s case- likely a resolution at FAR higher prices and the artificially debt-based propped up assets at stunningly lower prices that many will be shocked to see.

What is the VALUE of a promise that cannot or will not be kept?

Those with hard assets do not have to worry about someone else’s promises. They hold actual WEALTH as opposed to a claim that may or may not be honored in the future.

If we had an honest monetary system as opposed to the current debt-based debacle that steals our labor and manipulates “markets” to enrich the few at OUR EXPENSE, we would have FAR fewer wars and a FAR more prosperous population. We also might just be able to get back to win-win situations rather than annihilate the enemy mindset that seems to currently exist.

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 dependable, 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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