Nothing is what it seems. It seems to me that this one statement explains the world we are currently experiencing. When you have “leaders” with no morals you wind up in a situation like we are seeing now. This is not a “D” or “R” thing. I believe that the whole lot of them have been selling us down the river for decades.

Some of the “leaders” can’t help but spewing out the truth now and then like:
“Don’t let a crisis go to waste, it’s an opportunity to do things you once thought were impossible” (Rahm Emanuel-Obama Administration, ex Chicago Mayor)

Just like right now I guess with the economy shut down and people cowering in fear over a virus that was successfully overcome in Sweden without any lockdowns. Shh- make sure the sheeple don’t hear THAT story.

Or how about Neil Ferguson, an advisor to the British government whose input started the lockdowns going globally, meeting up with his married lover 2 days after testing positive for the Coronavirus. Those meetings went on for the next week or so and her family also contracted the virus. If this clown was even remotely concerned about the severity of this disease can you imagine acting like this? Obviously, he was spreading fear but had NONE with regards to his own health.

“I appear on National TV and I have to look good” Mayor Lightfoot of Chicago as it was revealed she got a haircut which the millions of others in Illinois are forbidden to get because of her and the governor’s illegal lockdown orders. I say illegal because the governor was sued by a downstate legislator and the court determined that Pritzker (governor) had no right to extend his 30-day emergency declaration. Hmm!

“We had 3.5% unemployment prior to the Coronavirus” Yes, if you conveniently leave out 95 million people who could be working but have been discouraged and gave up looking for a decent job. The REAL unemployment rate prior to this was 20% (John Williams -Shadow Government Statistics) Right now, we are to believe the rate is 14% or so while 36 MILLION more people lost jobs in the last 8 weeks. The real unemployment rate may be nearing 50%. How can I say that?

The BLS and WolfStreet .com report that there are 260 million working-age people in the USA. 127 million (or 49%) are not working. This is probably the easiest way to understand the numbers without the financial chicanery taking place to make the numbers appear better. However, it actually gets worse. 19 million of those who are employed are employed in government positions so there is no actual contribution to the economy from these people. Also, of the 127 million workers 23 million are only working part-time. I don’t know of many part-time jobs that can support a person let alone a family.

“JP Morgan didn’t need help in 2008 and has a fortress balance sheet”. According to a GAO audit the bank received over $1.4 TRILLION in “no help” after the 2008 crisis. There is a lot of speculation that the carnage in the repo market originated with this firm. Just prior to the first interventions three JPM traders were indicted for turning its precious metals trading desk into a criminal enterprise under the RICO statute.

“Gold is a barbaric relic” For banks and central banks that have been saying that for years to be buying this exact same “relic” in record amounts for the past few years should give you a clue. They are suppressing the price with words and deeds to keep the price low so they can buy it low. ALWAYS watch what they DO- not what they say. Why would entities that can get trillions with a mouse click be buying gold in record amounts? I guess what I have been saying for years is becoming apparent to most. If you can get a trillion of anything with virtually no cost it is most likely worthless. I believe the central banks and major banks are well aware of that and are just preparing for when the rest of society wakes up.

If you go to the USDebtclock.org you can get an eyeful. If you go back to 1913 when the Fed was formed you can see that there was $29.00 for each ounce of gold in the USA. The gold price was fixed at $20.67 until 1932 when gold was confiscated and revalued to $35.00 in 1934. There was also $2.67 for each ounce of silver. The point here is that there was a direct correlation between the dollars in circulation and the price of metals. Contrast that to today where gold sells for around $1730.00 per ounce (5-14-2020) and there are 21,784 dollars for each ounce of gold. Silver trades for less than $16.00 per ounce but there are a stunning $2627.00 for each ounce of silver. Let’s also not forget that silver hit $50.00 per ounce in 1980 and again in 2011. With all of the “printing” that has taken place since then you would think the price would be orders of magnitude higher right now. I believe it will be shortly.

This takes me back to the “leaders with no morals” because the CFTC has been aware of this price suppression scheme for quite some time but fail to do their job which is to protect investors from the thieves at the bank who rig prices.

“The markets are up because of … take your choice- China talks, vaccine success, etc.” Forget it all. Gregory Mannarino called our economy the “casket economy” dead and buried- this morning in his podcast. I thought that was a great explanation. If it weren’t for the Fed pumping trillions into this “market” and other “markets” around the world stocks, bonds, and all other paper assets would have collapsed already.

They would likely have collapsed in a manner that would have no historical precedent. NO news from anywhere can make up for hundreds of millions of jobs lost globally, economies locked down and experiencing contractions that already have no historical precedent and we are still likely in the first inning of this game. Unemployment in the great depression reached 25%. We are a few weeks into this and we are near 50% unemployment. GDP is collapsing with no historical comparison. Tax receipts are falling more than at any time in history. Corporate profits are collapsing at the same time corporate debt is at its highest reading of all time. This is a toxic combination.

This takes me back to 2008 when I knew some hedge fund managers that won BIG betting against the market at the time. Unfortunately for them there is a winner and a loser in every trade. Many losers lost so much they couldn’t pay. This meant that the euphoria of making tens of millions was replaced with the uncertainty of getting paid at all. This is the epitome of counter-party risk. If your counterparty can’t pay you may win and still lose.

Are things more stable now than in 2008 or less stable? Is there more debt or less? Are counterparties more stretched today than they were in 2008? Are the morals of your counterparties any better than they were in 2008- or are they even worse?

There is no counterparty risk with gold and silver. There is an active price suppression scheme that likely has an expiration date in the near future. Who knows what the actual price should be! Having said all that, gold is walloping the stock markets this year even though the “markets” are being artificially propped up with an equally likely nearing expiration date. What would the “markets” be without the fake money being used to buy up virtually all paper assets?

Silver is still lagging and I am not the only one who calls silver the most undervalued asset on the planet.

Times are not only changing- they have changed for good. Many see it- many don’t. Those who see it would be well served to take a look at how you have been investing for the past 30 years or so and see if it makes any sense in this environment. CLUE- If you think things will go back to “normal” anytime soon I believe you are sadly mistaken. If you think the “markets” will save you or the Fed has your back- good luck with that!

You really need to think about becoming your own central bank.

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.

Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.

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.

Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.