We are bombarded day by day about how great the economy was before the virus even though I have been reporting the government’s own numbers which have been terrible for over 18 months and were falling hard long before February 2020.
We are being told that our major banks are “well capitalized” even though over $9 trillion has been sent to them to keep them solvent since just September of 2019. Add to that the $24 Trillion that was reported in April of 2019 since 2009 and those “well capitalized” banks seem to be an oxymoron. Actually, Wall Street on Parade reports $29 Trillion was sent to the banks prior to September of last year.
Just yesterday I heard our President say that the American economy was fundamentally strong. HUH? What economy Mr. President?
Let’s look at how “fundamentally strong” things are.
US Retail Sales crashed 8.7% month over month- despite hoarding. Retail sales dropped 6.2%- the most since 2009. According to Bloomberg the retail sales collapsed over 50% if you take out the surge in food and beverage sales.
Javier Blas, Chief Energy Correspondent at Bloomberg reports that oil demand will collapse by 29 MILLION BARRELS PER DAY in March. This is likely why the “great deal” the President touted is not lifting oil prices. THERE IS NO DEMAND.
According to Sven Henrich of Northman Trading the stock market is now at 131.1% to GDP after this latest rally- the most expensive of all time and, in my opinion, likely FAR worse than it actually looks because there are numerous signs that GDP will collapse just like all of the other economic numbers are.
Empire State Manufacturing Survey Collapsed to -78.2. (King World News)
US retail Clothing/ Accessories sales collapsed 52% (King World News)
Association of American Railroads shows a collapse that started in 2018 has gone into hyper-implosion mode as the economy is virtually shut down.
US Industrial Production Down 5.4% Month over month- Most since WW2.
As I reported last week- after only a few weeks of shutdown those not able to pay their mortgage was up 1064% in the latest report.
Yet, somehow, the geniuses on the financial game shows and their masters at the banks and in government are trying to lead everyone to the idea that when the economy is unlocked all will go back to normal. I believe this is HIGHLY unlikely. If we opened up tomorrow fully, many would not have a job to go back to, others will be taking large pay cuts, and the damage has already been done to those who were barely making it before all of this.
Auto loan delinquencies were hitting record after record since 2018. Student loan delinquencies have been rising steadily for the last few years. There were reports that 50% of Americans were earning less than $32,000.00 per year in “the greatest economy of all time” and a full 40% could not come up with $400.00 in an emergency without using credit or selling an asset. How GREAT does that sound. Of course, the President tells us “We are all rich!”
I guess his buddies at the Fed, the banks and his CEO buddies who are feasting at the Fed’s free-money trough ARE all doing great.
Let’s see. $9 Trillion to the banks (so far). Why would “well capitalized” banks need $9 trillion in 6 months? Could it be the $7.4 Trillion in off balance-sheet assets that the 6 major banks have are blowing up? By the way, why are these assets (reported by Wall Street on Parade) off balance sheet to start with if not to hide what is going on? Is this $7.4 Trillion propping up possibly a half-trillion dollars worth of derivative exposure or more? In 2013 I reported that the world banks had $572 TRILLION in derivative exposure JUST TO INTEREST rates.
$1.5 trillion to bail out companies- many who are requesting near the same amounts that were used to repurchase shares in the past few years and pork spending like an increase in pay for congress and Kennedy Center funding to name a couple. This, while the American public can take out loans (if they can get one) and 300 million people will share $450 billion.
It certainly appears that the Fed, Treasury and our government are FAR more concerned about buying out companies rather than the welfare of its citizens.
At the end of the day it appears that the Fed will “print” hundreds of trillions of dollars and will buy all sorts of assets like Munis, Corporate bonds, Stocks, ETFs, Treasuries, etc.
The pace that this is moving at is staggering. I expect $30 Trillion minimum in admitted (on the books) debt- up from $24 trillion right now by the end of this year. The actual number is likely north of $250 Trillion if not more.
I expect that tens of trillions of all currency units will be produced and spent THIS YEAR and still may not be enough to prop up a shut-in global financial system.
It appears to me that the final solution has been determined. Keep “printing and buying” until it simply won’t work anymore. At that time, those in charge will have massive assets (bought at our expense and with nothing but a click of a button) and we will be sitting with massive debts and a currency that nobody will want to take as a payment for anything of real value.
The time to prepare was the last few years and I have been imploring you to do just that. It is now crystal clear just how fake this economy is and has been for the last 12 years. Right now it is easy for everyone to see. The curtain has been lifted and we can all see the old man pulling levers. This story will not end like the Wizard of Oz however. It will likely end with the Fed owning our economy and tyranny like we have never seen on a global basis.
The US dollar will likely lose most of its purchasing power (only 3% more to go to zero since 1913)
Shortly, we will likely be seeing an electronic currency of some kind taking over. This will allow the authorities to monitor, tax and control your spending. It will also allow for those in charge- like in China now- to turn your ability to spend off if you upset them in any way.
Sounds just great doesn’t it? And what are our “leaders” in government doing? Baffling most of us with BS and allowing this great country to be destroyed from within.
Anyone who hasn’t already made some provisions such as extra food and water, a way to protect yourself from civil unrest and hard assets I believe your time is running out- and fast.
Already you will wait weeks for many essentials if you can find them at all.
The same is true for gold and silver. Large premiums and wait times are the current reality.
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