Remember, for Fed stimulus to work, the money has to be borrowed into existence. Under the circumstances, it is both predictable and inevitable that some change in our lives will make people suddenly shun borrowing.
Over the past year and a half, the biggest damage to the 8 big shorts has come from gold, but more recently silver has begun to add to the loss mix. At current prices, silver accounts for as much as $3 billion of their total losses
This will be a decade to focus on absolute returns as opposed to relative returns. Passive index investing is a relative return strategy and I think it will be a very poor choice in the coming years. As my dad used to say, every dog has its day. Passive investing had the last decade. Active investing is getting ready to take the lead.
COVID Games have devastated large sections of the economy, as well as state and federal budgets. Gold and silver prices will rise. A currency crisis is possible.
At a peachy-pink palace that remained from a bygone era beside the sea in a land of decaying swamps, the king of Deep State gathered with the richest of his rich subjects to celebrate his former accomplishments and greatness.
Currency depreciation through an expansion in the money supply in excess of the marginal output wealth (increase in real GDP) is a slow and silent cancer to any financial and economic system.
With the mainstream media still obsessing about the January 6th “violent coup attempt” at the US Capitol Building, the incoming Biden Administration looks to be chock full of actual purveyors of violent coups. Don’t look to the mainstream media to report on this, however.
To top it off, at half-a-trillion dollars, the US budget deficit for the first fiscal quarter just came in 61% higher than the already scorching previous year … and it’s about to rise even faster as Joe manages to pass all the stimulus under the new Demo-run congress that Trump wished he could.
Imagine when that tower of debt falls!
The $4.5 trillion increase in the U.S. national debt in 2020 was so large as to be almost incomprehensible for the average person. Yet, every dollar of the new debt was entirely real. It will likely be with us for the rest of our lifetimes, and may profoundly change every aspect of our financial lives.
I have never seen America less great than it looks today! As of January 2021, days before Trump leaves, America looks to me like the fall of the Roman Empire.
