Vote Early, Vote Often

• It is an election year. Expect promises, voter fraud, and a shortage of truthful statements.
• Some people will claim it’s the most important election in modern history, like they claimed for the elections of 2016, 2012, 2008 etc.
• Others are certain the only difference between Party #1 and Party #2 is which group of scoundrels will be first in line to collect the swag.
• People have noted that if voting were important, it would be outlawed.
• Some will inform us we must vote, a sacred duty.
• Others will not vote, claiming it only encourages politicians.
• H. L. Mencken reportedly said:

“Every election is an advance auction for the sale of stolen goods.”

And from Joseph Stalin:

WHAT DO WE VOTE FOR?

1.           Going to war? Nope. Even congress seldom votes for war.

2.           Federal Reserve policies? A privately owned central bank makes its own policies. Our input is not needed.

3.           What Americans use for currency? We use a debt-based currency backed by nothing. Nobody voted to circulate fake dollars or mini dollars.

4.           Interest rate policy? The Fed and Wall Street decide. We have no vote.

5.           Government employee salaries? No votes here.

6.           Welfare, assistance, food stamps, and other giveaways? Not up to the voters. Government employees and lobbyists decide.

7.           Social Security, Medicare, Medicaid, congressional pensions? Trust congress to take care of themselves first, citizens second.

8.           Military budgets, military retirements, and which companies are first at the trough for contracts? No votes here.

9.           The President and Vice President and members of congress? Most members of congress are reelected. Yes, we vote for the President in the popular vote. Members of the electoral college are supposed to vote based on the popular vote. The electoral college decides the election.

People can vote for the President, VP, and congress. Committees, congress, unelected bureaucrats, the Deep State, and others largely hidden from the public make most decisions. We see the smiling candidates who distract us from observing:

•  Ever-increasing debt. Who believes debt can increase forever? We act as if $26.5 trillion or $265 trillion in national debt are unimportant.
• Devaluing dollars, higher prices for necessities, and planned crashes.
• Blame the pandemic instead of failed fiscal and monetary policies. If blaming the pandemic cannot convince, blame the Russians.
• Institutionalized corruption. 
• Never-ending wars that benefit military contractors and few others.
• Payoffs to members of congress for favorable legislation.
• Expanding surveillance and control over citizens.
• Coming nonsense like MMT, Fed Coin, a cashless economy, and a Universal Basic Income.

SUMMARY:

• Control over most important decisions is concentrated in a few people. Voting is an interesting distraction, but government employees, Wall Street, lobbyists, The Fed and huge corporations run the show.
• Unelected individuals make most decisions that affect our daily lives. But presidents sometimes make important decisions—and most of those are strongly influenced by politicians, lobbyists, and bankers.
• The primary way we can vote is with our feet. Escape to or from New York, Los Angeles, urban centers, high-tax states, bad climate states, poor cities, whatever. If we dislike the way a city or state is being run, hopefully, we can leave.

 WHAT CAN WE DO TO EXERCISE MORE CONTROL OVER OUR ECONOMIC LIVES?

1)  Recognize that most decisions are made by others who probably don’t care about your needs.

2)  The Fed wants inflation, lots more inflation, but NOT deflation. Powell’s Jackson Hole speech confirmed what everyone knew.

3)  If the Fed wants more inflation, expect low interest rates and QE4ever. Inflate or die!

4)  The Fed will levitate stock and bond markets. The top 10% own most of the stock market, and the Fed supports the wealthy.

5)  “Leave no billionaire behind” is the unofficial mantra of Fed policy.

6)  Gold and silver will preserve purchasing power. They increase in price as dollars are devalued.

7)  Some stocks will rise faster than silver and may crash deeper. Tesla comes to mind.

8)  The dollar was worth 1/40^th of an ounce of gold 50 years ago. Today the dollar is worth 1/2000^th of an ounce of gold. The DOW and S&P 500 have increased similarly. Dollars will buy less in 2030, a lot less.

 What is expensive or inexpensive in late August 2020? Examine monthly charts of Tesla, Apple, the S&P 500, NASDAQ 100, gold, silver, and the Goldman Sachs Commodity Index.

Unsustainable!

Too far, too fast…

Gold and silver are over-bought, but their fundamentals and strong and supportive.

IS SILVER EXPENSIVE OR INEXPENSIVE COMPARED TO THE S&P 500 INDEX?

The above chart shows that silver, which has doubled in price from a few months ago, remains inexpensive compared to the price of the S&P 500 Index.

OVER-BOUGHT AND OVER-SOLD?

Average the (14 period) monthly, weekly, and daily RSI (relative strength index) to create a mixed long and short-term indicator of over-bought (OB) and over-sold (OS) conditions. An OB market can become more OB, so tops are likely but not guaranteed. Tesla is an OB stock that has not yet corrected or crashed.

The RSI ranges between 0 and 100. OB is considered 70 or higher. OS is considered 30 or lower. It is a good indicator, but it’s not magic. Form your own conclusions.

Market                   Mixed 14 period RSI (8/28/2020)

Tesla                                            85.1

Apple                                            80.7

NASDAQ 100                               76.8

S&P 500                                       71.0

Silver                                            70.5

Gold                                              69.1

Goldman Index                             57.7

CONCLUSIONS:

• Tesla stock entered the stratosphere weeks ago. Its market cap exceeds the sum of GM, Ford, Chrysler, Toyota, and several others. Look out below, but we don’t know when…
• Apple is OB and could fall any time. Nothing new here.
• The NASDAQ 100 Index is OB. The NASDAQ flies higher and falls harder than the S&P. Remember that after the 2000 crash, the NASDAQ 100 fell over 80% from high to low.
• The S&P 500 Index is OB. A correction could begin here, but the Fed and other central banks are pouring trillions of dollars into the market to support stocks.
• Silver is OB, like gold. Prices refuse to collapse, but a correction is possible. Long term, $100 or $200 silver are likely.
• Gold is OB. The QE4ever dollars that boost Apple and Tesla also support gold and silver. I expect a correction, but who knows. Long-term, $10,000 gold is coming.
• The Goldman Sachs Commodity Index is neutral. Commodity prices are rising.
• Silver prices compared to the S&P 500 Index are low and inexpensive. The next major move in that ratio will probably be a correction higher as silver rallies.
• Stocks might hold up for a while longer, but they look dangerous, even with Fed support.
• If the Fed could prevent crashes, what happened in 1987, 2000, 2008, and early 2020?
• Expect much larger gold and silver prices toward the end of 2020 and into 2021.

Buy gold and silver to protect your purchasing power from the predatory actions of non-elected bureaucrats who seek inflation, higher prices, devalued dollars, and more power over individuals.

Vote with your feet, by trusting precious metals, and by expressing skepticism regarding current narratives and election year promises.

Miles Franklin is a trusted dealer in gold and silver, but not Tesla stock. Call them at 1-800-822-8080.

Gary Christenson