No Change

07 Nov
voting booths

No Change

Gold Market Discussion

You may be cheered or dejected by the results of this week’s election. Certainly, there is something for everybody on the political spectrum to find either encouraging or discouraging in the outcome of Tuesday’s voting.

But our beat is money:  the dollar, spending, debt, the Fed, and the monetary system.  In short, all the things that impact precious metals and your financial future.  And with that focus, we see nothing about Tuesday’s election that changes our trajectory in the least.

  • The dethroning of the dollar as the world’s reserve currency will continue apace.  The implications for the value of the dollar and the American standard of living are enormous.
  • The trajectory for wars around the world is unchanged by the election.  Almost nothing was said about the general thrust of foreign policy by candidates of either party.  The outbreak of hostilities in the Persian Gulf, the South China Sea, or anywhere along Russia’s frontiers would be unquestionably bullish for gold.
  • As conspicuous in its absence as any real national debate about the Establishment’s foreign policy is the absence of any show of concern among the contenders about America’s trillion-dollar deficits and the national debt that is now closing in on $22 trillion.
  • America’s socialist drift has continued year after year, under both Republican and Democratic majorities.  If anything, the crony capitalism best captured in the bankster bailouts beginning ten years ago – and supported by R’s and D’s alike – has left a sense of betrayal and disgust among the middle class in its wake that has been diligently exploited by the growing socialist movement.  It should go without saying that socialism destroys prosperity, and that it usually begins that task by destroying the value of the currency.

There are other important items we could cite in evidence that the election changes none of the economic fundamentals:  sky-high corporate debt, unpayable student debt, and a precarious stock market propped up by Fed interest rate machinations and stock buybacks.

Those of us who hope for more substance in our politics and more wisdom from the voters will cynically remember the old line, that if elections really changed anything, they’d make them illegal.

We take some comfort, however, in also remembering that gold and silver are the best protection from the financial and monetary folly of governments.