Two economic reports were released which demonstrate that the money printing is not helping the economy. In the fourth quarter of 2019, U.S. household debt pushed over $14 trillion, reaching an all-time record high. This was fueled by a surge in mortgage and credit card debt. Much of the the new mortgage debt consisted of cash out” refis, which helped exacerbate the last housing bubble/collapse.
Second, the U.S. Treasury announced that the Government spending deficit for January was $32.6 billion. This was considerably worse than the $11.5 billion deficit expected. The cumulative deficit for the first four months of the Government’s Fiscal 2020 year (which starts in October), surged to $389 billion, or an annualized rate of $1.16 trillion. The four month cumulative total was 25% higher than a year ago and was the widest since the same four month period of time in 2011.
Make no mistake, the Fed is printing money to keep the fragile financial system glued together and to monetize new Government debt issuance. The economy will continue to contract with or without the help of coronavirus. The Fed knows this, which is why several Fed officials including Jay Powell are already telegraphing more money printing.
The good news is that you can benefit from this – or at least protect your wealth – by moving a significant amount of your investible money into physical gold and silver that you safekeep yourself. I joined up with Arcadia Economics to discuss why the Fed is compelled to further crank up the printing press:
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I think I know a short seller who will like this gold lined headline: ‘Tesla’s stock tumbles toward biggest-ever weekly drop’ https://www.marketwatch.com/story/teslas-stock-tumbles-toward-biggest-ever-weekly-drop-2020-02-28?mod=mw_latestnews
Looked at gold futures price and LOL, the fuckers are at it again.
I also think that there must be some folks that need to raise some
“Green Paper” for margin calls. The same scenario occurred in
2007-08 and we all know how that ended. This time it will truly
be epic, vaporizing the unprepared.