I received a text from a company that has been trying to get me to promote their gold today. He was giddy about gold going up so much again this morning and chided me for not “cashing in” on the opportunity.
It was disgusting for three reasons. First, we already have a fellowship-driven precious metals sponsor that I recommend to my readers. He knows that and has been trying to coax me with higher commissions based on their higher profits. Second, the reason that gold and silver prices are going up is because the worldwide trust in the U.S. Dollar is going down. Any American that celebrates the failure of this nation’s economy is not worth talking to in my book.
Third, and this is the big one, is that the continued rise in gold and silver prices that many are predicting will be based on events that will cause massive economic hardships for tens of millions of Americans. Moving wealth and retirement to precious metals is a defense against financial apocalypse, so being right about this one is not something that makes me want to high-five my sponsors.
Being right about this one means grim times are ahead, and that does not make me happy.
There really are so many true slimeballs in the precious metals industry. Over the past two years, during which I’ve vetted out nearly three dozen precious metals companies to find those who are truly America First, I’ve talked to some of the sleeziest people imaginable. Now, they’re getting even happier as economic doom rears its ugly head. I’ll happily stick with my guys for self-directed IRA’s backed by physical precious metals.
Switzerland-based Egon von Greyerz is one of the other good guys in the precious metals industry. His article from earlier this week about “The Everything Collapse” is worth a read and highlights how the “good news” about gold and silver is bad news for the vast majority who don’t own much of it. Here’s Egon…
The Everything Collapse
Sadly, gold is now on its way to heights which are unthinkable for most people. To all the people who have asked me over the years why gold doesn’t go up, I have replied:
“Don’t wish for gold to go up substantially for when it does, your quality of life will deteriorate remarkably.”
And we are now at the point in the world when this is likely to happen. Let me be clear, now is the time to protect whatever assets you have in order to avoid the total asset destruction that is coming next. More about this later in this article.
The Financial System Will Not Survive
I came to the conclusion early in this century that a sick financial system was not going to survive the infestation of vermin in the form of debt that started just over 50 years ago.
Nixon’s closing of the gold window in 1971 was the signal that this currency system was going to end like all currency systems in history. And for the ones who haven’t studied the history of money, let me tell you that NO FIAT MONEY HAS EVER SURVIVED IN HISTORY IN ITS ORIGINAL FORM. So with all money going to ZERO, it has never been a question of if but only of when the dollar based currency system would die.
Dalai Lama said:
“If there is a solution to a problem, there is no need to worry. And if there is no solution, there is no need to worry”
But in this case my view is THAT WE REALLY NEED TO WORRY. So sadly, his wisdom doesn’t apply to the global problem that the world is now facing.
Is the Ukraine War Coming to an End?
In early January this year I wrote an article called “OMINOUS MILITARY & FINANCIAL NUCLEAR THREATS COULD ERUPT IN 2023.” I have covered the threat of a major war in many articles in the last 12 months for example “Will nuclear war, debt collapse or energy depletion finish the world”
Although it is too early to be really optimistic, it now looks like my prediction that Russia will never lose this war is getting closer. Ukraine is making the Battle of Bakhmut into their Stalingrad last stand (WWII 1943).
Ukraine has committed the majority of their remaining forces to winning this battle against Russia. If they lose in Bakhmut, even Zelensky believes that this could be the end for Ukraine. Here is the Associated Press (AP) article in which Zelensky is hinting that Ukraine could lose this war – “Ukraine’s Zelensky: Any Russian victory could be perilous.”
If Bakhmut fell to Russian forces, Putin would “sell this victory to the West, to his society, to China to Iran” Zelensky said in the AP interview. “If he will feel some blood – smell that we are weak – he will push, push, push!”
Scott Ritter, the former intelligence officer and UN weapons’ inspector just gave this interview in which he believes that Ukraine is on the point of losing the war:
The End of US Hegemony
At the beginning of the Ukraine conflict I and some others made the analogy with the Cuban Missile Crisis in 1962 (which I remember well) when Kennedy gave an ultimatum to Khrushchev to withdraw the nuclear missiles pointing towards the US or face war.
In the same way as with Cuba, Russia was never going to accept Ukraine becoming a NATO country. But sadly the US Neocons have seen this conflict as the last chance to save the US military, political and economic hegemony from total collapse. Defeating Russia was the last stand for the US. But it now looks like they will fail which seals the fate of the US empire.
The US neocons forced a much too willing Europe to not only agree to the sanctions against Russia but also make direct contributions to the war both with money and equipment.
This fatal mistake by Europe and especially Germany is totally crushing the European economy. But what the US neocons never understood is that the US sanctions would affect the whole world and in particular the debt infested US and the West.
At the end of an economic era, unexpected events take place which will seal the fate of a crumbling empire.
The End of the Central Banker
The script for the first 22+ years of the 2000s couldn’t be more perfect as the final glutinous feast of Gargantua The Central Banker (Gargantua – book by Rabelais 1543). Central bankers have been the principal creators of the current crisis which had its beginnings over 100 years ago.
Significant events in the 2000s created by fallacious Central Bank policies:
- 2000-2 Market collapse: Tech stocks down 80%
- 2006-8 Subprime banking crisis: Dow down 54%, massive money printing
- 2009-21 Stocks & asset markets exploding: Dow up 6X, Nasdaq up 16X
- 2006-20 Manipulation of rates: US 10yr treasury down from 5.4% to 0.5%
- 2000-23 US Debt explosion: Up 3.5X from $27t in 2000 to $95t in 2023
- 2000-23 Global debt explosion: Up 3X from $100t in 2000 to $300t in 2023
- 2020-23 Real inflation US EU: Up from 0% in 2020 to 10%+ in 2023
The extreme moves and volatility exemplified in the table above has nothing to do with free markets. They are the manifest consequences of shameless manipulation of markets and market conditions by Central Banks. Such extreme moves could never happen if markets followed nature’s laws and the laws of supply and demand.
For example, in an unmanipulated market it would be totally impossible for credit to expand exponentially and interest rates to remain at zero. The basic principle of supply and demand would force the cost of money up when demand for credit expands. And if there was no demand, the cost of money would obviously come down to the level where demand resumes.
If markets were allowed to follow the natural rhythm of nature, they would be self-correcting without extreme tops and bottoms. This is so basic that a 7 year old would understand it. But the Central Bankers choose to ignore it.
The obvious consequence of markets flowing naturally without intervention would mean that we could get rid of Central Bankers. How wonderful! No Central Banks, No Manipulation and No Extremes in the economy or markets.
Sadly, such simple solutions are the exception in history with greed and power driving man rather than reason and logic.
The bankers clearly knew what they needed to do when they met on Jekyll Island in 1910 in order to control the US and global monetary system. At this meeting they schemed to create the Fed in 1913 and followed the axiom of Mayer Amschel Rothschild a German banker in the late 1700s: “Let me issue and control a nation’s money and I care not who writes the laws.”
From the Amschel Rothschild to Jekyll island to Nixon closing the gold window in 1971, the Central bankers and bankers have successfully taken control of issuing exponentially larger amounts of money and debt for their own benefit as well as for a very small elite who could take advantage.
Having created a structure that was above the law as Amschel said, they have so far been in total control of their own destiny with governments being dictated to by the central bankers and bankers. Thus in 2008, the Fed and a number of virtually bankrupt banks, including JP Morgan, Goldman, Morgan Stanley, Bank of America, Barclays etc dictated their own rescue terms to the US and other governments.
But we must remember that 2006-9 was just a rehearsal. The finale is starting now. The debt which has built up has now reached levels which means the financial system is now too big to survive.
Three US banks and one Swiss went under 2 weeks ago although two of the four were rescued temporarily at a high cost. The Swiss government could not afford to let Credit Suisse go under and is supporting the UBS takeover of the Credit Suisse at a potential extraordinary cost of CHF 209 billion.
Central banks are on standby to stop the next bank run. Many expected Deutsche Bank to be next. Governments will stop major banks from going under for as long as they can, to stop global contagion. But they will of course fail.
The FDIC (Federal Deposit Insurance Corporation) currently has a capital of $128 billion dollars to support a total of $18 trillion deposits. So with 0.7% cover, it is guaranteed that the US government will soon need to step in as the next lot of US of banks fail. Same in Europe where the most EU banks and the ECB are in a terrible shape.
Total central bank assets are $25trillion which is less than 10% of global debt before derivatives. Default rates in coming years are likely to exceed 50% which means much more money printing to come.
All Assets Are Priced at the Margin — Protect Yourself
As the current asset bubbles are coming to an end, the exit doors will be totally blocked by panicking sellers.
All assets are priced at the margin and even more so since the current asset bubbles have been created by the most gigantic debt bonanza. To take an extreme example, if there is one seller and no buyer in the housing market, the price of all houses will go to zero. The same is true for the stock market.
But as investors run for the exit, most will not get through since there will at some point be no buyers at any price.
This is how the price of stocks, bonds or property can go down by 75% to 100% in real terms. Some market observers say that this has never happened in history so it won’t happen today either. Yes, of course I can be wrong, but what we must remember is that nor have we ever in history had a global debt and asset bubble of this magnitude. So we are in unchartered waters and conventional wisdom doesn’t apply and is just conventional without any wisdom.
In any case, investors shouldn’t worry how much their assets could decline. Instead they should worry about protecting themselves against the risk of this happening.
First, investors should go as liquid as possible. Second, debts must be repaid. Nobody will want the bank to take their assets at a bargain price.
Short term government bonds could offer adequate protection. But medium and long term, governments will at best destroy the value of the currency and at worst also default. Tangible assets are undervalued and a good investment to own.
Physical gold and silver held outside the banking system is the ultimate protection just as in any crisis.
It is absolutely critical to buy gold and silver now before investors panic into these metals. There is very little gold and silver available to buy. Currently all production is absorbed and any increase in demand cannot be met by increased supply but only by much higher prices.
But remember that gold and silver are also priced at the margin, so as demand increases, we could reach a situation when there is no silver or gold available at any price.
So my very strong advice is not to wait for the herd since you then are likely to be left with no silver or gold and no protection. But in the end, as I have stressed, the $2 quadrillion debt and derivative liabilities, cannot be saved.
In the next few years the financial system will crash under its own weight in spite of and also due to the coming biggest money printing avalanche that the world has ever experienced.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
