The Nikkei is down 3.7% right now, the dollar index is below 93 and the U.S. seems bound and determined to start World War Three. The U.S. is collapsing and everyone in the world knows it but the majority of the U.S. population. Hubris rules the day in the Democratic Party as Obama is going on a farewell tour around globe to tell everyone he saved the world and Hillary Clinton feels confident enough to commit any kind of crime under the sun and get away with it.
Doc and Eric Dubin – The News Doctors – invited my onto Silver Doctor’s Weekly Metals & Markets show sponsored by SD Bullion.
“This Thing [the Comex paper short interest] Could Get OUT OF CONTROL to the Upside Quickly!” – Dave Kranzler, Investment Research Dynamics
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My latest on a more saner age: https://antoniusaquinas.com/2016/05/01/feudalism-was-it-so-bad/
As I post this, about noon Eastern, silver is down about 10 cents.
Is this the big smackdown some predicted?
It is amazing to me how many people are totally delusional or in denial of the true state of the global economy. It seems that based on the stock market’s behavior, that investors believe the market will continue to trend higher and are chasing equities up in spite of what is clearly a global recession and a down right depression in many corners of the world. Or is it really the central banks buying up equities like was recently admitted to in Japan?
Paper currencies and paper profits are transitory. But it seems that belief in fiat currency has captured the majority of the global population. In fact, paper currencies and instruments (or electronic ink on paper) probably have more “believers” than all of the religions in the world combined. This in spite of the fact that fiat currencies do not reign forever (historically the last about 40 years or so). What is left when they fail are the hard assets. And the USD is pure fiat since Nixon took us off the gold standard in 1971, 45 years ago.
Fiat currencies do have their limits. Just ask a resident of Zimbabwe or Argentina how their currencies are working out for them. Of course you can maintain your belief that the dollar is somehow different.
I’m afraid it will take a significant event to wake people out of their slumber; and then it will be too late for most to scramble for rapidly disappearing hard assets. Is it not better to buy insurance before your house catches fire? Good luck finding an insurance salesman that will sell you fire insurance after your house has caught fire.
I know it is impossible to predict the future. But I do think we can make predictions about what is not going to happen. We are not going to see a financial renaissance in 2016 or 2017. We are not going to see income inequality diminish any time soon. If we do see an episode of helicopter money dropped before the election, any positive effects are likely to be short lived (which may be the intent, to postpone the pain till after the election to keep the current party in power). I don’t believe we will see inflation remain near 2% over the next few years. (I’m not talking about official numbers which are not believable except by the brainwashed; I’m talking about the real rate of inflation reported by the Chapwood index or shadowstats.com.)
The world’s central banks are at the limits of their effective tools. All time high debt levels are not going to permit the economy to grow, or permit median income to rise to levels last seen in 1999. I think I can predict that negative interest rates and more aggressive money printing are not going to solve the debt problem. Solving a debt problem by issuing more debt is not an effective strategy. That doesn’t mean they won’t try it.
To believe in the fiat currencies of today, especially the dollar, is equivalent to believing that fraud and corruption can save your soul. That believing in lies is all it takes to get on the path to financial recovery and financial freedom. Choosing to ignore reality, and instead placing unshakable faith in central banks to make everything well with their manipulation and fraud, is not a strategy to protect oneself if/when an economic crisis takes hold.