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Gold is going through the roof because the already unpayable US debt is, too!

After all, if there is no hope for US debt at $34 trillion today, how about when it reaches $141 trillion in 2054?  And that is where the Congressional Budget Office says we are headed!

$141 trillion is a lot of money!  How does a national government even begin to pay the interest on a debt that big?  You know the answer:  money printing!

Former Federal Reserve Chairman Ben Bernanke was both candid and shameless about it just a few years ago:  “The US government has a technology, called a printing press, that allows it to produce as many dollars as it wishes at essentially no cost.”  

Look, from 2024 to 2054 the annual deficits will average 6.7 percent of GDP.  That is almost double their average over the last half-century!

By 2054 the deficit will hit 8.5 percent of GDP.

Says the CBO, apparent master of understatement, “Such large and growing debt would have significant economic and financial consequences.”

Among its other effects, it would slow economic growth, drive up interest payments to foreign holders of U.S. debt, heighten the risk of a fiscal crisis, increase the likelihood of other adverse outcomes, and make the nation’s fiscal position more vulnerable to an increase in interest rates.

When we want to print something, we have to buy inkjets, make sure there is plenty of paper in the printer and hit Control P.  Today the Fed’s legalized money printing is mostly digital.  It’s so easy now!  They don’t even have to cut down all those trees for paper like they used to do!  They must be environmentally friendly!

Make sure you have plenty of US gold coins, Maple Leafs, Krugerrands, other favorite coins, and gold bars!  And don’t forget the silver – bars and coins!  You’ll need it!

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Here’s a story we have told before, but with gold hitting so many all-time highs lately, it is one that deserves to be told again.

It begins with a serious economic crisis that is fast approaching.  Here’s a snippet from Fred Hickey (The High Tech Strategist) on April 2 that highlights just how fast things are spinning out of control.  In just the last 20 days, he writes, US government debt increased by $168 billion.  That is equal to the entire US deficit in 2002!  

This unrelenting gusher of red ink ensures that something like a “Crack-Up Boom” is fast approaching today.  

That is the name the great free-market economist Ludwig von Mises coined to describe the last stage of a currency breakdown:  The Crack-Up Boom.  In German, it is “Katastrophenhausse,” a catastrophe boom.

Because we think our friends and clients will need to know very soon, from his work Human Action, here is Mises’ description of the breakdown of a currency:

The characteristic mark of this phenomenon is that the increase in the quantity of money causes a fall in the demand for money…. The monetary system breaks down; all transactions in the money concerned cease; a panic makes its purchasing power vanish altogether. People return either to barter or to the use of another kind of money.

The course of a progressing inflation is this: At the beginning the inflow of additional money makes the prices of some commodities and services rise; other prices rise later. The price rise affects the various commodities and services, as has been shown, at different dates and to a different extent.

This first stage of the inflationary process may last for many years. While it lasts, the prices of many goods and services are not yet adjusted to the altered money relation. There are still people in the country who have not yet become aware of the fact that they are confronted with a price revolution which will finally result in a considerable rise of all prices, although the extent of this rise will not be the same in the various commodities and services. These people still believe that prices one day will drop. Waiting for this day, they restrict their purchases and concomitantly increase their cash holdings. As long as such ideas are still held by public opinion, it is not yet too late for the government to abandon its inflationary policy.

But then finally the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears. Everybody is anxious to swap his money against “real” goods, no matter whether he needs them or not, no matter how much money he has to pay for them. Within a very short time, within a few weeks or even days, the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against them.

It was this that happened with the Continental currency in America in 1781, with the French mandats territoriaux in 1796, and with the German Mark in 1923. It will happen again whenever the same conditions appear. If a thing has to be used as a medium of exchange, public opinion must not believe that the quantity of this thing will increase beyond all bounds. Inflation is a policy that cannot last.

“Inflation is a policy that cannot last.”  

That is why gold has broken out for new higher ground at the same time Federal Reserve Chairman Jerome Powell has admitted once again that the Fed doesn’t really know what it is doing.

China, once America’s leading creditor, is fleeing US government bonds like they have the plague.  It is doing so at the same time that the governments need to borrow more money than ever.  

The Crack-Up Boom is nearing.   Do you have all the gold and silver you need?

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Washington is squirting red ink out from every pore.  The budget year is half over, finishing with a deficit of more than a trillion dollars.  

This will end badly.

We have been sounding an alarm in these posts about US debt and the fear that it would get away from us.  A few recent examples:

Another Ominous U.S. Financial Update

Time to Take a Look at the U.S. Fiscal Situation!

Uncle Sam’s Credit Score Keeps Falling

We believe the price of gold is confirming that Washington’s debt is every bit as bad as we have said.

Our opinions don’t have the force of law, but to us the US national debt is a matter of criminal negligence.  Washington has been indifferent to the debt as it grew, and now it is too late:  the national debt has gotten away from us!

From the Wall Street Journal: 

The Congressional Budget Office reported Monday that the federal budget deficit for the first six months of fiscal 2024, ending in March, was $1.064 trillion. Enjoy it, because you’ll eventually pay for it in higher taxes.

The problem isn’t a shortage of tax revenue, which rose 7% from a year earlier to $2.19 trillion. Individual income-tax and payroll-tax revenue both rose 6%, while corporate income taxes rose 35%. Is a 7% increase what President Biden would call a “fair share” increase? Probably not, because he wants to raise taxes even higher if he’s re-elected.

Interest on the national debt is now a trillion dollars a year.  That will go up as older debt, money borrowed at lower rates, matures and is refinanced at today’s and tomorrow’s higher rates.  

If Washington has to borrow more and more and more to keep itself afloat, it will have to attract borrowers at much higher interest rates, especially now with the world already beginning to express skepticism about the US dollar.  Jaime Dimon at JPMorgan Chase is talking about rates rising to 8 percent.  That’s nothing, but financing today’s US debt at 8 percent would cost $2.75 trillion a year,

There is no solution to the debt overhang.  Except legal counterfeiting.  The debt can only be paid by printing money.

It is a critical situation, one best met by owning gold and silver.  A US debt crisis and the soaring interest rates that will accompany it will crash banks, financial markets, real estate, small businesses, and consumers around the world.

As we wrote about the worsening debt situation last year, “Gold and silver are the only monetary assets that are not someone else’s liability. They are not dependent on someone else’s solvency, promises to perform, or honesty. Their value does not depend on the endorsement, propriety, or honesty of any State or institution. They are not like empty government promises.  They have no counterparty risk, no risk of rule changes, nonpayment, default, or bankruptcy by individuals, companies, financial exchanges, institutions, and banks—quite apart from being insulated from the risks of the Fed’s fiat dollar as well.”

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Lew Rockwell Explains it All!

“The power to create money is the most ominous power ever bestowed on any human being. This power is rightly criminalized when it is exercised by private individuals, and even today, everyone knows why counterfeiting is wrong and knavish. Far fewer are aware of the role of the federal government, the Fed, and the fiat dollar in making possible the largest counterfeiting operation in human history, which is called the world dollar standard. Fewer still understand the connection between this officially sanctioned criminality and the business cycle, the rise and collapse of the stock market, and the continued erosion of the value of the dollar.”

Those are the words of one of the most important champions of sound money in this age.  

Lew Rockwell has been extraordinarily effective in the fight, on the front lines of the battle, and always in key positions.  Lew was a former editorial assistant to the great free-market economist Ludwig von Mises, and later chief of staff for Congressman Ron Paul who was for many years the most knowledgeable monetary expert and gold standard supporter on Capitol Hill.  In addition, Lew is the founder and chairman of the Mises Institute, executor for the estate of Murray N. Rothbard, and editor of www.LewRockwell.com.  He is the author of Against the State and Against the Left.

Quite a resume. 

We want to share a few words from Lew’s recent piece on LewRockwell.com called Bring Back Gold!:

I would venture to guess that a sizeable percentage of even educated adults would be astounded to discover that the Federal Reserve does more than manage the nation’s money accounts, that, in fact, its main activity consists in actually creating money that distorts production and creates inflation and the business cycle. In fact, I would go further to suggest that many educated adults believe that gold continues to serve as the ultimate backing of our monetary system, and would be astonished to discover that our money is backed by nothing but more of itself.

We have our work cut out for us, to be sure, mainly at the educational level. We must continue to state the obvious at every opportunity, that the fiat system is exactly what it is, a system of paper money backed by nothing of real value. We must continue to point out that because of this, our economic system is not depression proof, but rather highly vulnerable to complete meltdown. We must continue to draw attention to the only long-term solution: a complete separation of money and state based on the commodity that the market has always chosen as money, namely, gold…

What has been true for hundreds of years remains true today. The clearest path to the restoration of economic health is the free market undergirded by a sound monetary system…. 

We want to tip our hat to Lew Rockwell, a great spokesman for both real money and free people.  As Lew says, “Let’s do everything we can to end the Fed and restore the real gold standard!”

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As Zimbabwe’s latest attempt at a currency collapses – this would be the sixth one since 2008 – the country’s leaders are watching it fall and hinting that the next Zimbabwe dollar will be gold-backed.

Riiiight!  Of course it will!!!!

Bloomberg News:

The country’s local dollar has weakened against the US dollar every day in 2024, sending the price of a single loaf of bread from Z$6,105 to Z$19,357 in a mere 11 weeks. Such a loss of purchasing power has historically pushed the central to intervene bank and arrest the slide, but this time, there has been no action….

President Emmerson Mnangagwa announced this February his government will introduce a “structured currency.” Then, Finance Minister Mthuli Ncube said it may be backed by gold and the central bank postponed its monetary-policy statement to give final touches to the plan.

There are no gold-backed government currencies anywhere in the world.  None.  It is a symptom of the dishonesty of our age.  While it is inevitable that people – given enough government currency debauchment – will start to trade in gold among themselves around government’s monetary systems – there is zero chance that Zimbabwe will introduce a gold-backed currency.  

Of course, Zimbabwe is a stunning case history for the brazenness of its monetary crimes, its policies are only different in degree and not in kind from those of the US.  And for the same reasons that economist Peter Earle with the American Institute for Economic Research identified in the above epigram:  inflation is a tool for giving favors to cronies and buying votes, and because the people don’t understand it, governments and politicians can blame it on outside forces.

Bloomberg:

Even when people want to use it, the Zimbabwe dollar can hardly buy anything. The highest denomination, the Z$100 note, must be carried in large wads to carry out the smallest of transactions….

Zimbabwe suspended publishing inflation figures after July 2008, when the measure reached an annual 231,162,000%.

If you want to read the story of the currency inflation that made Zimbabwe the world’s laughingstock, read my book REAL MONEY FOR FREE PEOPLE!  The American Gold Story.   It’s an important guide to wealth protection and profit in these troubled days.  Stop by our office, we’ll give you a complimentary copy.

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It’s time again to update our friends and clients on the financial situation of the US government.  

We are neither surprised nor pleased with what we have to report.  While no one likes to be the bearer of bad news, despite what the lapdog press tells you the situation is growing grim.

We have already shared the headline story with you, that US debt is growing by a trillion dollars every one hundred days.  

The deficit, just for February alone, was $298 billion, up $36 billion, or 14 percent over February 2023.

Meanwhile, as we write, a $1.2 trillion 1,012-page omnibus spending bill covering an estimated 70% of discretionary government spending, is before the House of Representatives.

Michael Shedlock, MishTalk, calls it a Republican humiliation:

• Republicans said no more omnibus massive bills: Failure
• Republicans demanded budget cutbacks: Failure
• Republicans said they would restore order: Failure
• Republicans said they would pass bills without Democrats: Failure
• Republicans said no more continuing resolutions: 3 Failures

It is a legislative horror story, loaded with leftist pork, woke spending, and transfers overseas of wealth from the American people.  It is simply impossible to describe in a short space what an outrage it is.  Here are a few details reported by Jesse Waters:

• $850k for a gay senior home
• $15 million to pay college tuition for Egyptians.
• $400k for a gay activist group to teach elementary kids about being trans
• $500k for a DEI zoo
• $400k for a group to give clothes to teens to help them hide their gender.  That includes giving 13-year-old children chest binders, tuck equipment, and “counseling” without parental consent.

Go here to see some additional details.

As if that is not enough, the new fiscal year, FY2025, is only about six months away, with a White House budget proposal that increases federal spending to $7.3 trillion, a jump for 4.7 percent over the current year.

Q.  Does Washington think money grows on trees?

A.  Yes.

The Congressional Budget Office projections that the debt will reach $50 trillion by 2033 and $60 trillion in 2034.  Former Reagan budget Director David Stockman is more realistic.  He expects the Washington UniParty to drive the debt to $100 trillion in the early 2040s. 

Other indicators:

The cost of auto insurance is skyrocketing, up 21 percent last year.  The Wall Street Journal reports that credit card interest rates are near record highs.  Delinquencies are rising.

At the same time, home affordability has collapsed to the lowest level on record.

One other dirty little secret is the situation at the Federal Reserve.  After the private chefs and limousines, the palatial offices and private jet travel, an incredibly bloated staff of bureaucrats, and the money it throws at the economics profession to keep them all endorsing its fiat monetary fraud, the Fed is supposed to send to the Treasury the money it makes in its monetary operations.  How is it doing on that front?  Not well.  As economist Judy Shelton wrote recently, it is actually helping to widen the deficit:

The Fed’s main tool for raising its target interest range is to increase the “administered rates” it pays to commercial banks and money-market mutual funds on the roughly $4 trillion they hold in cash accounts at the Fed. Last year the Fed’s interest expense amounted to an unprecedented $281 billion—exceeding its $164 billion in interest income—with the difference paid out of funds that would otherwise be remitted to the U.S. Treasury.

To appreciate the fiscal effect of the Fed’s operating losses: The Biden administration’s budget for fiscal 2023 projected $516 billion in Federal Reserve “earnings” to be included as receipts for the 2023-32 period.

How America’s financial situation has been allowed to deteriorate so fast is a story for future historians.  But the story for today is how can so few people see how fast it is falling apart.  

For now, buy gold and silver.  And hold your breath.  Things are moving very fast.

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Some are leaving the dollar.  You might want to think about it, too!

Charles de Gaulle, the former Premier of France, called the global dollar system America’s “exorbitant privilege.”  Or maybe he didn’t.  Maybe with was a French finance minister.

But if de Gaulle hadn’t said it himself, he could have because he understood that it would end up fleecing the rest of the world.  In fact, de Gaulle sent his navy to pick up the French gold that was being stored by the United States.

The dollar’s exorbitant privilege of being the reserve currency of the world made Americans a little better off in some ways than they might have been.  It created an artificial demand for dollars, allowing the US treasury to borrow more cheaply than it otherwise could have done.

But such privileges don’t last more than a couple of centuries.   And now our privilege is expiring in half the usual lifespan.  Why?  Because the Deep State has weaponized the dollar.  Instead of being a neutral unit of accounting and trade, like gold, the US freezes, appropriates, and confiscates dollars belonging to other countries.  It prohibits them from using, spending, or disposing of dollars they own.  

To the extent foreign nations hold dollars, they are vulnerable to the whims of Uncle Sam and its often senseless foreign policy.  And they know it.  A “substantial percentage” of foreign central banks surveyed by Invesco reported concerns about the way the US and its minions froze almost half of Russia’s $650 billion gold and foreign exchange reserves.   

No country wants to keep wealth in a currency that can deprive it of its use unilaterally.  Like the dollar.  Imagine agreeing to keep money in a bank or brokerage account that can suddenly just shut you out.

Now Federal Reserve chairman Jerome Powell is being cagey with one congressman, Alex Mooney, R-W.Va., who is asking specific questions about foreign nations’ repatriating their gold and how much gold the Fed is holding.

We’ll let HeadlineUSA tell the story:

The Fed chairman told Mooney that the Federal Reserve does not own gold but holds it as a custodian for other entities—a fact the congressman presumably already knew. Powell also said that the Fed serves as a custodian for a “small portion” of the U.S. government’s gold, telling Mooney that “any questions you may have about such gold are best directed to the Treasury Department.” Rep. Mooney’s questions were not about the Treasury’s gold [emphasis added].

To Chris Powell, secretary-treasurer of the Gold Anti-Trust Action Committee, the Fed chairman’s responses to a sitting member of Congress are not only unacceptable but also telling.

“The refusal of the chairman of the Federal Reserve Board even to acknowledge, much less reply to, the questions of a member of Congress about the repatriation of gold from the Federal Reserve Bank of New York confirms that something really big is going on with gold internationally,” Powell said in an email to Headline USA.

President Biden recently announced the imposition of an additional 500 financial sanctions on Russia.  Altogether the US has some 4,000 sanctions in place against Russia.  Russia has developed workarounds for most of them.  It is clear that sanctions have hastened the development of alternatives to the US-controlled, dollar-based SWIFT account settlement system.  The effect of the American sanctions being wielded so promiscuously makes it appear that the global dollar standard is not so much failing as it is committing suicide.  

Washington is killing American prosperity.  It long ago killed the good-as-gold US dollar.  It is doing untold harm on many other fronts in addition to now destroying the dollar reserve standard.  It has declared foolish wars on the internal combustion engine, free trade, individual meritocracy, financial privacy and much more.  

Our political classes have the Midas touch in reverse.  They are turning everything they touch into toxic waste.  They will bring the dollar down and impoverish the American people.

We are in the business of helping people like you protect your wealth and yourself from their madness. Let us help.

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“You know the Founders wrote the Constitution “to bind down the government from mischief,” said Jefferson.  Then they added the Bill of Rights, and you know what those ten amendments say:  The government shall not… shall not… shall not… shall not… all the way up to the marvelous Tenth Amendment that said if we forgot anything, you can’t do that either!”

– John F. McManus, speaking at the Ron Paul Presidential Campaign 
“Rally for the Republic,” 2008.

It is with great personal sadness that we note the passing of John F. “Jack” McManus on March 4.

Jack was a friend of more than 50 years.  He was also a great patriot, a mentor, a client, and a personal inspiration. 

Upon graduating from Holy Cross with a degree in physics, Jack served his country proudly as an officer in the US Marine Corps.  In 1966 Jack took a position with the John Birch Society as a teacher, a writer, and a speaker.  He rose to become the organization’s President from 1991 – 2015 and President Emeritus thereafter.

The John Birch Society is one of the most misunderstood political advocacy groups in modern American history.  It is sufficient here to say that when you see American sovereignty subordinated to multinational organizations, and promiscuous and unconstitutional American regime change wars around the world that cost the American people their future well-being, you are seeing something the JBS fought valiantly against for many years.  When you note the ascendency of a few powerful corporate entities exercising undue influence over Washington and seeking always to suppress the free speech rights of Americans, you are noting the very crony capitalism that the JBS warned of.  When you watch the Federal Reserve’s long-term destruction of the US dollar and the bailout again and again of the influential money center banks at the people’s expense, you should remember that the JBS stood firmly against all of this corruption and abuse long before others began to awaken.

Jack McManus was at the forefront of all of these battles.  He was the right man for the job.  He was a tireless champion of American freedom and prosperity, and he was – as they say in the area around  Boston where he lived – “wicked smart.”

I last talked with Jack some months back when his wife of 65 years, Mary, passed away. It is a reminder to me and perhaps to others not to allow the busy activities of daily life to prevent us from being in more regular contact with those we love.  

In addition to our long friendship, I will always be grateful to Jack for his supporting me in devotion to the traditional Roman Catholic faith we shared.  At the same time, Jack often said, when a fellow patriot preceded him in death… “America has lost one of its sons”.  I echo his sentiments of him.

Please pray for the repose of the soul of John F. McManus, who entered into eternity this week.  

St. Ambrose once wrote:

“We have loved him in this life; let us not abandon him in death but rather by our prayers, let us conduct him to the bliss of eternal glory.” 

O Gentlest Heart of Jesus, ever present in the Most Blessed Sacrament, ever consumed with burning love for the poor captive souls in Purgatory, have mercy upon the soul of Thy servant. 

Be not severe in Thy judgment but let some drops of Thy precious Blood fall upon our beloved departed and do Thou O merciful Saviour send Thy angels to conduct the soul of Thy servant to a place of refreshment, light, and peace.

May the angels lead you into Paradise.

May the martyrs receive thee at your coming and take you to the holy city.

May the choirs of angels receive you and may you have rest everlasting. 

V. Eternal rest grant unto him, O Lord.

R. And let perpetual light shine upon him.

V. May he rest in peace.

R. Amen.

V. May his soul and the souls of all the faithful departed, through the mercy of God, rest in peace.

R. Amen.

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Global debt is soaring!  Up $15 trillion last year!

Uh oh!  Unpayable debt leads to money printing.  That’s just the government playbook.

 The Institute of International Finance, a global association of financial institutions, tracks and analyzes global capital flows and debt trends.  It reports that “over $15 trillion of additional debt was added to the global debt mountain just last year.  That brings total global debt to a new record high of $313 trillion.”

Let us remember J.P. Morgan’s words, that gold is money. Everything else is credit. 

All of this debt, not to mention other undisclosed leverage like derivatives that can come topping down in a crisis, represents a lot of precarious credit resting on a tiny amount of real liquidity, gold.

Economist Daniel Lacalle calls this a “ticking time bomb for the global economy.”  He writes:

Bloated public debt is a burden on the economy, making productivity stall, raising taxes, and crowding out financing for the private sector. With each passing year, the global debt figure climbs higher, the burdens grow heavier, and the risks loom larger…

Citizens are led to believe that lower growth, declining real wages, and persistent inflation are external factors that have nothing to do with governments, but this is incorrect. Deficit spending is printing money, and it erodes the purchasing power of the currency while destroying the opportunities for the private sector to invest. The entire burden of higher taxes and inflation falls on the middle class and small businesses.

Lacalle concludes, “The end of the United States dollar will not come from external threats but from the irresponsible actions of its own government. Cheap debt is always exceedingly expensive.”

At the risk of repeating ourselves, they can’t print gold.  

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The following graphic is from Visual Capitalist.  It displays the top 11 countries by gold reserves as of September 2023, based on data from Central Banks, the Federal Reserve Bank of St. Louis, the International Monetary Fund, the World Bank, and the World Gold Council.  It says, “In 2023, amid uncertainty about US interest rates and continued geopolitical risks, the metal once again demonstrated its importance by hitting a new record in December.”

These are the conventionally accepted numbers.  We want to note our reservations.  First of all, the Federal Reserve strenuously resists auditing.  Similarly, the US government’s gold holdings, such as those at Fort Knox, go unaudited.  We find that especially peculiar since by law every public company in the US must submit financial statements each year audited by certified auditors.

Shouldn’t the same be required of the government?  If it is sauce for the goose, it should be sauce for the gander.

Secondly, the is a widespread belief among knowledgeable people that China goes to a great deal of trouble to conceal its gold holdings.  For more on that see our post from the past year CHINA KEEPS BUYING GOLD!

We think the reason China and other nations are turning to gold in the waning dollar economy are also good enough reasons for individuals to do the same!

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And then stake out a long-term gold and silver position!

“Any way you look at it, interest costs on the national debt will soon be at an all-time high!” 

So says the Peter G. Peterson Foundation, a nonpartisan organization dedicated to addressing America’s long-term fiscal challenges.  They provide the following illustrations of the problem Washington has created.

Other major items in the 2023 national budget were easily bypassed by rising interest expenditures which totaled $659 billion.

As outsized as that interest expense is, the Congressional Budget Office says that this year, 2024, it will rocket 32 percent higher, to $870 billion. 

Interest expense will soon be the single largest US budget item – even bigger than Social Security, Medicare, or the war budget.

The Peterson report on rising federal interest expenses concludes with this warning: “By any measure, interest costs as part of the federal budget are at an all-time high, and trending even higher in the years ahead.  Securing our nation’s fiscal and economic future will mean getting these interest costs under control.

We simply do not believe that the federal budget will be reined in.  Period.  We have no way of knowing exactly what Washington will do other than by looking at the propensities of the governing classes today.  We are sorry to report that we see little but fiscal and monetary irresponsibility at every turn.  There simply is no meaningful coalition for fiscal rectitude in Washington at all.

Under the circumstances, informed people will want to protect themselves now with a substantial position in physical gold and silver.  It is the prudent thing to do at the end of an empire. 

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PICK ONE:  Central bank purchases, stagflation, or a deep global recession!

You could see gold surge by 50 percent according to Aakash Doshi, Citi’s North America head of commodities research.  He and other Citi analysts wrote in a recent note to clients that among the pathways to $3,000, gold would be a ramp-up in de-dollarization by central banks.

That could lead to a US dollar crisis.

And that is not the only avenue to much higher gold prices in the next 12 – 18 months, he said.  

Reporting on an interview with Doshi, CNBC says another trigger that could drive gold to $3,000 would be a “deep global recession” that could spur the U.S. Federal Reserves to cut rates rapidly.

“That means the brakes have been cut, not to 3 percent, but to 1 percent or lower – that will take us to $3,000,” Doshi said.  

More from CNBC’s report:

Stagflation — an increasing inflation rate, a slowing economic growth and rising unemployment — could be another trigger, though Doshi said there’s a “very low probability” of such a scenario….

These three potential triggers aside, Citi maintains that their base case for bullion is $2,150 in the second half of 2024, and the price of gold to average a little over Doshi added.

A widely followed J.P. Morgan analyst, Marko Kolanovic, and his team have also raised the prospect of a return to 1970s-style stagflation.  “There are many similarities to the current times,” they write.  “We already had one wave of inflation, and questions started to appear whether a second wave can be avoided if policies and geopolitical developments stay on this course.” 

We think Citi’s calls are fine as far as they go, but that they don’t go nearly far enough.  Other forces on the immediate horizon include a move by Washington to create a central bank digital social credit surveillance currency, a widening of America’s many wars, serious civic strife over the election and its manipulation, an implosion of China’s economy, and banks tipping over the brink here in the US.

The ducks are lining up for much higher gold prices.  If you are not sufficiently prepared, come see us at Republic Monetary Exchange.

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It was not quite a year ago that banks started tumbling down.  You remember the names:  Silicon Valley Bank, Signature Bank, and First Republic, all American banks.  But it wasn’t just an American problem as the presence of Swiss banking giant Credit Suisse and Deutsche Bank on the troubled list attested.

Rising interest rates were tanking the banks’ holdings of US Treasury debt instruments and mortgage-backed securities.  Many Americans – although not most – made withdrawals from their banks.  It was only prudent.  Why keep your money parked in troubled institutions?  It’s your money.  Protect it!

Even though the Fed’s balance sheet is upside down (that’s another story!), the central bank rode to the rescue with another Big Bank Bailout Bonanza.  Don’t be surprised.  The Fed was created by the Big Banks in the first place to do Bailout Bonanza whenever Big Banks needed them.

The Fed said, “Even though as a matter of law, accounts at Big Banks are only insured to $250,000, we will create a new program known by the acronym BTFP to create the impression that the Fed will bail out all the banks – or at least the Big Banks that are in on the Bailout Bonanza!”

So, bank depositors started moving money to Big Banks that would be the beneficiaries of the Bonanza Bailout.  That was not good for small banks, but they didn’t create the Fed, so tough!

None of this fixed anything.  It was just designed to forestall the en masse withdrawals of deposits from banks (and into gold, by the way).

Now the other shoe is dropping, one we have been warning about:  Commercial Real Estate.  The delinquency rate on office building mortgages is climbing at a fast clip, putting the screws to private leaders and banks alike. 

New York Community Bancorp is in such bad shape that its picture belongs on the back of milk cartons.  

WolfStreet.com:

A lot of these CRE loans are coming due this year and next year, and need to be refinanced, or extended, but interest rates have jumped, and many of these office properties are dealing with the structural collapse of demand for office space, so refinancing is going to be tough, and extending-and-pretending is going to be tough, and banks are going to have to deal with losses.

The problem is structural and won’t just vanish when the mood changes or rates drop.

Appearing on CBS 60 Minutes recently, Fed Chairman Powell said there will be losses, but he thinks they are manageable (of course he does!):

You know, we’re working with them. This is something we’ve been aware of for, you know, a long time, and we’re working with them to make sure that they have the resources and a plan to work their way through the expected losses.

Right.  Where do the resources come from to manage their losses?

They come from you.  It’s not magic.  They devalue the people’s money.  It is what they have always done.  That’s how the Big Bank Bailout Bonanza works!

Last year, people wanting to move assets out of banks and into gold and silver were waiting for us when we opened the doors in the mornings.   Our lobby was crowded from early to late.  

This year we think you would be wise to beat the rush!  Speak with a Republic Monetary Exchange specialist today.

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Their financial situation is worse than alarming!

“Twitching like a finger
On the trigger of a gun.”

-Paul Simon

Uh oh!  China is making things feel twitchy!

We are always on the alert for the most likely trigger of the coming economic calamity.  The thing that ends the made-up, manipulated money system and remonetizes honest money.  There are many candidates today.  War.  US banks.  Bidenomics.  A debt crisis.  A Fed screwup.  

But if we had to guess, it looks like China.

We are very concerned that this could be the one.  The block in the Jenga tower that makes the whole thing tumble.  The straw…

There is generally a trigger, a single event that sets the whole house of cards collapsing.  It was the failure of Creditanstalt 1931, Austria’s largest bank, that was the first major bank collapse of the Great Depression.

Today it looks like China.  

For some background, please review our recent article China’s Coming Collapse.

Kyle Bass notes that Chinese real estate developers Evergrande and Country Garden together have $500 billion in debt.  

Think about that.  Two real estate companies, both in default, a half trillion dollars in debt!  “Every single property developer in China, listed property developer, is in default today,” says Bass.  “This is just like the US financial crisis on steroids.  They have three and a half times more banking leverage than we did going into the [2008] crisis.”

“China has 20 plates spinning and all the plates are crashing right now!” 

This looks like the trigger event.  It looks far too big to contain.  It has the prospect of bringing the global economy to its knees!

The seriousness of the situation has China scrambling for gold.  The people in China seem to know it and are trying to prepare themselves.  Here’s one Japanese newspaper’s headline and lead:  

China gold purchases soar 30% on economic anxiety

Chinese gold purchases rose 30% in 2023, as the country’s central bank bought the commodity to replace its dollar holdings amid tensions with the U.S. and individual investors sought a haven for their assets as the economy stumbled….

As China acquired more gold, the country cut its holdings of U.S. Treasurys to around $782 billion as of November, about 10% less than the previous year, the U.S. Treasury Department reports. The figure is roughly $230 billion less than China’s holdings immediately after Russia’s invasion of Ukraine.

China is a hot mess.  There’s not much they can do about the popping of their real estate bubble.  But they want to land on their feet.  They want to have some real enduring assets on the other side of the mess.  That’s a good idea for individual American investors right now, too.  Especially since this looks very much like the trigger!

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First the NY Times!  Now Chase Bank?

If you aren’t panicking about the US debt picture, you may not be paying attention!

Now even the most establishment of establishment figures are starting to show signs of panic.  Including the most establishment banker of America’s most establishment bank.

Jamie Dimon is the chairman and chief executive officer of JPMorgan Chase, the largest bank in the US.  They like him a lot.  He’s been in that role since 2005, a job that has made him a billionaire.  

Maybe Dimon isn’t panicked, but he sure as heck is worried that we are at the brink. “It is a cliff. We see the cliff. It’s about 10 years out.”

The US national debt is currently more than $34 trillion.  Throughout its history, US debt has averaged 30 percent of total US economic output. Today, it is 123 percent, more than four times the average. It is more than the entire annual productivity of China, Japan, Germany, the United Kingdom, France, and Italy combined. 

Dimon says the US is going to face “a rebellion” around the world when our debt trajectory turns straight up. 

Dimon underestimates the debt-to-GDP ratio at 100 percent.  It is 123% of GDP which means the cliff is much closer than he says.  And while everyone is trying to act like there is no panic, the panic is beginning to spread even at central banks around the world. 

Dimon is not the only establishment voice to express concern about uncontrollable US debt.  As we reported recently, even some at the reliably big government, big spending New York Times are getting religion.  And that tells us that the crisis is about to boil over.

From the lead of a recent Times piece: “For years, many economists believed the country’s debt was not a problem. Interest rates were low, which held down debt payments. Inflation was also low, which suggested the debt wasn’t hampering the economy.

“But times have changed, and federal deficits now look scarier.”

We prefer “unpayable,” but “scary” is a good word for the debt as well.  After all, the national debt amounts to $102,400 per person.  How can retirees, fast-food workers, and the American middle class manage that kind of debt burden?  They can’t.

Here’s the “Debt out the Wazoo” chart from WolfStreet.com:

Call our debt spiral a death spiral.  That’s what Nassim Taleb calls it.  We don’t accuse Taleb, the author of The Black Swan, of being an establishment today.  Far from it.  

Here’s his take: 

So long as you have Congress keep extending the debt limit and doing deals because they’re afraid of the consequences of doing the right thing, that’s the political structure of the political system, eventually you’re going to have a debt spiral.

A debt spiral is like a death spiral.

Nassim Taleb

What do you do when the issuer of your currency is in a death spiral?  You protect yourself with gold and silver as people around the world have learned to do for thousands of years.

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Forget what the Fed chairman says.  Forget the Consumer Price Index and the Producer Price Index.

Pay no attention to core inflation and the Personal Consumption Expenditures (PCE) price index.  Pay no attention to any of Washington’s price indices.  

Instead, trust your own living experience.  Is your cost of living going up or down?  Does feeding your family cost more or less?

Here’s just one example among millions of what is actually happening.  Take a look!

Skrinkflation strikes again, this time at the Raceway. Being this case of shrinkflation occurred at a sporting event, does this border on Funflation? Funflation is a recent economic trend that is hitting concert and sporting eventgoers hard. Have you noticed the face value of a concert ticket recently? The cost to attend a ballgame? Remember when taking the family to a baseball game was somewhat affordable?

Forget the Super Bowl, as it gets closer and closer to only being affordable by either the super-wealthy or the super fiscally irresponsible. A single ticket for next week’s Super Bowl is averaging close to $10,000. This is up almost 70% from last year’s big game! The crazy part? It will still be sold out!

Shrinkflation and Funflation are merely tactics by greedy corporations to fight the pressure inflation is putting on their profits. Instead of raising the price and risking consumer backlash, companies are hiding this behind inferior products, smaller sizes, and lower quantities.

It’s everywhere.

Remember how when you were a teenager you could easily attend a concert with a little money saved up? It sure is unfortunate, but today’s teenager has to (have their parents) pay hundreds or even thousands of dollars to go and see their favorite act.

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See for yourself, it’s US against them!

Having ignored the Constitution and subverted our once good-as-gold dollar, the American elites hope to complete their betrayal with Soviet-style policies (for you, not for themselves, of course).  

That includes eliminating freedoms (yours that is), gas stoves (yours that is), air travel (yours that is), parental rights (yours that is), and more.

They have benefitted from the era of debt-driven government growth, unprecedented money printing, and government power grab.  They are better off because of it.  And they know it.  

The rest of us have not similarly benefited.  And we know it.  

None of this is just made-up argumentation.  These are not mere assertions.  Thanks to survey research by the Committee to Unleash Prosperity, we can show you the real numbers, what the American elite believe, and what they support.

You won’t like it.  They don’t care.

First, who are the elite whose views we are about to share?

The American Elite is defined as people having at least one post-graduate degree, earning at least $150,000 annually, and living in high-population-density areas (more than 10,000 people per square mile in their zip code).  They represent one percent of the population.  

To zoom in a little closer, the survey also includes a sub-sample of elites it calls “Ivy League Graduates.”  About half of the “elites” attended these schools. 

Their views are then compared to those of all voters.

Now if you have a qualifying income and went to an Ivy League school, it doesn’t mean that you are a leftist, socialist, woke, or delusional.  But many of your peers certainly are.

But they are doing well, and they know it.

We recommend you view the entire eye-opening report  Them vs. U.S.  But here are just more charts of their findings, about your freedom and rationing.

Those described in this survey as elites cluster in places that have an outsized impact on public policy:  in government, media, and academia.  They run the show.  They run monetary policy.  As we pointed out recently, for every Republican economist at the Fed there are 10 Democrat economists.  

That is why you have to protect yourself from them.  

Speak with a Republic Monetary Exchange gold and silver specialist and make sure you are prepared for more government control and more monetary shenanigans run by the elite.

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Once again Republic Monetary Exchange’s Jim Clark joins Robert Kiyosaki’s panel of experts to complete the four-part series that Robert calls “the most important show ever!”

The Rich Dad Poor Dad radio show panelists – all veteran gold professionals – have been called together to explore the significance of gold as a timeless form of currency and a safeguard against economic turbulence. 

They discuss gold’s unique properties, its historical role as a reliable medium of exchange, and the dangers of relying on fiat currency. The conversation also addresses central banks’ gold acquisitions, the possibility of government gold confiscation reminiscent of the 1933 U.S. event, and the diverse views on its probability and consequences. 

The episodes offer a comprehensive analysis of gold’s value in the face of contemporary financial challenges and its importance in investment portfolios for wealth preservation.

Here are all 4 episodes that make up the series…

Part 1 of 4:

Part 2 of 4:

Part 3 of 4:

Part 4 of 4:

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In our effort to make sure our friends and clients are always well-informed, we work our way through mountains of information.  We were surprised and happy a few days ago to see that The Market Oracle was quoting our friend and colleague Charles Goyette from his New York Times bestseller The Dollar Meltdown:

The Market Oracle:  Consider that fifteen years ago Charles Goyette author of “The Dollar Meltdown” (2009, Penguin Group) came to a conclusion with respect to the repayment of our national debt when, by comparison, it was only $11.9 trillion.  He states then: “The gross federal debt is 80 per cent of GDP.  That’s the highest it’s been since the 1950s.  But that percentage of debt was much more manageable then because fifty years ago America was a creditor nation, now America is a debtor nation. Fifty years ago, it maintained a trade surplus, now our trade deficit, having grown for a generation, is immense.  Fifty years ago, America was the world’s manufacturing hegemon, now America’s manufacturing base is being lost to the world.  Fifty years ago, Americans were savers. Now the Chinese have shown us what it means to defer consumption and save.”

He continues: “America’s debt at any level – $12 trillion, $59 trillion, or $99.3 trillion – won’t be paid.  They will simply be rolled over again and again until America’s creditors are unwilling to loan any longer. To recapitulate, inflation in the United States is a result of the Federal Reserve turning government debt into money. The Federal Reserve is central to America’s most devastating bubbles and is responsible for almost a hundred years of criminal-scale dollar destruction.  By debt monetization, government acquires money to spend without debate, legislation, or vote, by commensurately devaluing the currency held by the people.  No wonder critics say, this amounts to nothing less than taxation without representation.  In truth, the nature of the U.S. debt is so enormously understated that it amounts to accounting fraud.

Today, the US debt remains an accounting fraud.  The only difference is that today the numbers are so much bigger, and that time is running out on the US government’s fiat money Ponzi scheme.

The following chart for the fourth quarter of the last fiscal year makes our point, illustrating that the federal took in more money from borrowing than from any other revenue source.

If you believe Washington can borrow America’s way to prosperity, then there is nothing to worry about.  If you are not that naïve, you will want to own gold and silver.  Speak with a Republic Monetary Exchange precious metals specialist today to create a sensible plan to protect yourself from Washington’s mounting and unpayable debt.  

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Rich Dad Poor Dad author Robert Kiyosaki presents a four-part program that he calls “the most important” show ever.

Today we present Part 1, The Good News and Bad News about Money.  It features Jim Clark on a panel with other veteran precious metals experts including RME associate Charles Goyette.

The discussion addresses the historical context of the US dollar and explores how global economic shifts could influence personal wealth.  Robert’s guests share their knowledge and personal experiences, emphasizing the role of precious metals in safeguarding assets.

Enjoy Part 1 of this very important 4-part series.  We will post Parts 2, 3, and 4 as they are released. 

Harry Dent Warns about the Stock Market:

Since 2009, this has been 100 percent artificial, unprecedented money printing and deficits: $27 trillion over 15 years, to be exact.  This is off the charts, 100 percent artificial, which means we’re in a dangerous state.

I think 2024 is going to be the biggest single crash year we’ll see in our lifetime…. If I’m right, it is going to be the biggest crash of our lifetime, most of it happening in 2024. You’re going to see it start and be more obvious by May.

“Gold is “Practically a Steal” at these Prices!” – Jim Rickards:

When this panic hits and the dollar is deemed no longer reliable, the world will turn to gold…. Investors should consider today’s gold prices a gift to acquire gold at bargain prices before markets, and the mainstream media, wake up.

Even at $2,052, gold is so cheap right now, it’s practically a steal.

Ernest Hemingway – First Inflation, then War:

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.

Back in August, Ron Paul Foresaw Presidential Politics at Work in Fed Policy.  Right as Usual:

The Fed will likely pause its rate increase next year in the hope of boosting economic activity to help President Biden’s reelection campaign. Former President Trump gave Powell an additional incentive to keep rates low next year by promising not to re-appoint him if he returns to the Oval Office. 

Jim Clark from Real Money for Free People – The American Gold Story:

The founders created the conditions for an explosion of human prosperity. Our governing classes and monetary authorities are their opposites. They have created the conditions for an explosion of impoverishment. They are the big spenders and reckless borrowers of both parties. They are the grand councilors and academic advisors of the almighty State. They and their statist epigone and media servitors are the inevitable offspring of connivers like Franklin Roosevelt and Richard Nixon, who stole the people’s gold and betrayed the nation’s good-as-gold dollar. They are a generation of trousered apes who do not know the difference between ditchwater and champagne, and of like-minded Fed officials who conflate empty paper promises with the real, enduring monetary wealth of the ages, who trade the real money of free people for a mess of monetary pottage.

By their own logic, there is no turning back. They must now continue to print money until the system crashes. It is the endgame of their folly.

Up, Up, and Away!  From David Stockman, a Chart that Shows US Debt from 1966 to Now:

First They Destroy the Money!  Ayn Rand Calls Out the Destroyers:  

Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the basis of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account that is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked: “Account Overdrawn.”

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One really easy lesson… here’s what’s going to happen to your money!

The current inflation rate (CPI) is 3.1 percent.  What does that mean for your money?  Jim Rickards at the Daily Reckoning sums it all up in just a few words:

How damaging is 3.1% inflation? That rate will cut the value of the dollar in half in 22 years. It’ll cut the value of the dollar in half again in another 22 years.

Put differently, if you start your career at the age of 21 and retire at 65, the dollar you earned at age 21 will only be worth 25 cents by the time you retire. That’s 75% wealth confiscation by government-caused inflation.

There’s nothing benign or comfortable about 75% wealth confiscation. But that’s where we are today.

And that is the story in a nutshell.

“There’s nothing benign or comfortable about 75% wealth confiscation.  But that’s where we are today.”

We grow very wary when it appears almost everyone is thinking the same thing.  It often means there is not a lot of real thinking going on.   The view that Chairman Powell and the Fed are going to be able to drive interest rates lower in the New Year is nearing unanimity.  

But no one is bigger than the markets.  Even the Fed.  And the markets may produce quite a different outcome.

Consider:  The Fed can diddle with short-term rates, but its rate manipulations cannot control long-term rates.  And even its artificial distortions of short-term rates are ephemeral.  We are living today through the reckoning for years of the Fed’s interventions.  Stated otherwise, there ain’t no such thing as a free lunch.  Milton Friedman used that phrase repeatedly to make clear that a price would be exacted for the government’s manipulations, cronyism, and giveaways.

That is why we have inflation.  The Fed makes up money to give to some entity or to pretend it can control interest rates.  But the money it prints takes on value to the degree that the rest of the money in the economy – your money – loses value.  Having inflated the supply of money and credit to buy down interest rates, bail out banks, or “stimulate” the economy, prices everywhere else go up. 

It is also why we have recessions.  Washington and the Fed create malinvestment with made-up money, booming some recipients or sectors with liquidity only to have financial reality and monetary reality eventually assert themselves.  Remember the housing boom and bust?

Having created 8 trillion dollars in the years after the housing bubble, the Fed has fraudulently distorted the economy with years of this legalized counterfeiting.  The most massive monetary distortion in US history has yet to be assimilated.  It is bound to cheapen the dollar’s value much more than the bothersome inflation we have already experienced over the last two years.

And don’t even ask us about the money printing that is needed now to manage the otherwise unpayable US debt.

Oh well, go ahead and ask.  We happen to have a chart that tells the story.  

Interest on the national debt has climbed to a trillion dollars a year.  It was less than half that just a couple of years ago.  As older government bonds bearing lower rates come due, the Treasury will have to roll that debt over into higher interest rate issues.  And in the face of furious money printing to pay for that interest, rates will climb to offset the accompanying inflation.  At least market rates will climb.  

As Rep. Thomas Massie told Tucker Carlson recently, the Fed was sold to us on the basis that it would be the economy’s firefighter; instead, it is the arsonist!

So, whatever plans that Powell and the Board have for interest rates, all the money printing that has gone before will have its say.  And people tend to abandon made-up currencies in times of crisis, preferring gold.  

Wouldn’t it be wise to expect much higher gold prices with all that money printing headed our way?

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Now is the time to buy gold according to Marc Faber, a leading French bank, and others!

When is the right time to buy gold?

If you don’t have enough for what’s coming, right now is the best time to buy gold… whenever right now happens to be.

Who has enough gold?  We’ve never met anyone who has enough.  Certainly not Marc Faber, a Swiss investor based in Thailand.

Faber is the editor of the Gloom, Boom, and Doom report.  At a recent precious metals summit in Zurich, Faber said he believes that the long-term trend for the next 20 years or more is for inflation to move up.  “I have been advising investors to own gold and other precious metals, silver, platinum, for the last 40 years.  I buy continuously every month some gold.”

“Central banks’ function in the long run is to print money.  Never forget that.   A central bank exists to print money.  In view of that I think that gold and other precious metals are still a good investment from a long-term perspective and also from a safety aspect.”  

Analysts at Société Générale, the French-based multinational financial services company, share a bullish view. They expect gold to climb to new all-time highs in the new year, based on lower Fed interest rates.  

“Unlike oil, gold prices have increased since the start of the Israel/Hamas conflict,” they write in their latest report.  “Gold has continued to ignore the rising real yields headwind, as demand has remained robust.”

A good deal of that demand continues to come from dollar-wary foreign central banks.  “The heterogeneous coalition of countries in the Global South should continue to de-dollarize and give a further boost to gold,” the analysts note.  They expect gold to hold around $2,200 throughout 2024.

Do you have enough gold to weather the storm ahead?  It is a gathering storm consisting of the following:

The wild growth of US government spending and debt that we have recounted many times. 
See The Money Madmen Keep Printing for a quick refresher.

A wildly inflated stock market. 
Thanks to the Fed’s stove-piping of made-up money to Wall Street, between 1991 and 2022 the Nasdaq Composite Index has outpaced American’s real wages by 40 times!

A wildly wobbly wealth gap. 
David Stockman reports that over the last 22 years, “annual wealth gains for the top 1% were 4,250X larger than the median real wage gain and 17,000X larger for the top o.1%.”  It is in the nest of such disparities that revolutions are hatched.   And gold always shows up on top in revolutions.

If you don’t have enough for what’s coming, right now is the best time to buy gold… Make an appointment with a Republic Monetary Exchange precious metals consultant today.

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Who are you going to believe?  The Swamp media or your lying eyes?

With less than a year before the presidential election, a Swamp public relations agent named Taylor Lorenz, who poses as a reporter at the Washington Post, is hard at work on the newspaper’s relentless mission to explain that prices, inflation, and the nation’s “economic woes” aren’t really that bad under Biden.

Is that so?  

No.  In fact, the claims of the Bidenista’s about the great economy can be refuted with a few simple charts.

Someone triggered things by posting a TikTok of a dressed-up novelty Big Mac that cost $16.  That was enough to bring a swift response from the people at the WaPo, the Washington establishment’s house organ.  A regular Big Mac is up only 10 percent, they protested.  As though a 10 percent increase in prices is no big deal.   It’s just not fair, was the tone of the piece.  “Voters still don’t like the economy, and they blame the president.”

The folks at ZeroHedge were quick to cut through the nonsense with graphs that illustrate what the American people are actually experiencing under Bidenomics.

First, consumer prices under four years of Trump and 35 months under Sleepy Joe:

When Swamp economists try to convince you that inflation isn’t really all that bad, they generally pivot to something called “core inflation,” the CPI figures calculated without including food and energy.  So here is the way that looks:

And finally, this chart of disposable incomes over the Trump and Biden years.  A majority of Americans have seen their disposable income fall – and fall hard – under Bidenomics.  

That last chart finally showed up in the article, “buried towards the bottom of the WaPo report,” writes ZeroHedge. 

That’s the way with the Swamp media.  When they do finally add the salient information that reveals the rest of the story, it is usually not until the 16^th or the 31^st paragraph since they know full well that most of their readers don’t go that far into the story.

For us, the story isn’t complete until it explains that an honest, reliable monetary system based on gold would have prevented most of the problems of rising prices and falling incomes that we are experiencing today.  But since the monetary system is in the hands of the banking cartel, you must protect your wealth with the enduring and reliable money our founders recommended:  Gold and silver.

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All Eyes are on Argentina!

It’s an upset!  Javier Milei’s landslide win in Argentina has toppled – at least for now – the country’s inflationary Peronista left-wing rule.  

“Freedom goes forward!  Hail freedom, dammit!” shouted Milei.

Milei will be sworn in as president in December.  He has promised to end central banking and the cronyism that has characterized Argentina.  The free-market champion is said to have won the admiration of both Donald Trump and the leader of Great Britain’s Brexit movement Nigel Farage.  

Economic commentator Michael Shedlock wrote, “Congratulations Argentina for electing the world’s first libertarian president.”  

Reuters summed up the new Argentine president’s economic agenda like this:

Milei is pledging economic shock therapy. His plans include shutting the central bank, ditching the peso, and slashing spending, potentially painful reforms that resonated with voters angry at the economic malaise.

Milei’s challenges are enormous. He will have to deal with the empty coffers of the government and central bank, a creaking $44 billion debt program with the International Monetary Fund, inflation nearing 150% and a dizzying array of capital controls.

Milei’s win shakes up Argentina’s political landscape and economic roadmap, and could impact trade in grains, lithium and hydrocarbons. Milei has criticized China and Brazil, saying he won’t deal with “communists,” and favors stronger U.S. ties.

The presidential term is four years, which gives Milei time to return Argentina to the prosperity that it enjoyed a century ago.  In 1913 it was richer than Germany and France.  Military rule and socialism killed the goose that laid the golden egg after World War I.  

Writing in the Wall Street Journal, John Fund cited a remark by a worker there who said, “Imagine someone born 25 years ago in Argentina. For your entire life, you have seen nothing but misery and little chance to get ahead unless you emigrate. We simply want to be a normal country again.”   

Milei is nothing if not dramatic.  He brandished a chainsaw about as he promised to eliminate useless government ministries.  No doubt his fiery and outspoken style was indispensable in his electoral victory.  But now he will face all the forces of political cronyism and leftism arrayed against him, not just the entrenched financial interests who have profited from the inflationary central banking regime, but the useful idiots of the left in the media and education.  

Grab your popcorn!  The show is about to begin!

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RME’s Jim and Charles join friend Robert Kiyosaki to Talk Precious Metals, the Economy, and the Hunt Brothers

This past week, RME’s Jim Clark and Charles Goyette were guests on friend Robert Kiyosaki’s Rich Dad Radio Show. Below you can watch the entire interview. In addition to the topics of the U.S. going bankrupt, precious metals, and more, Jim shares the incredible story of his historic silver trades with the Hunt Brothers from October 1979 to January 1980!

The Hunt Brothers Segment

During the show (at 31:08), Jim and Charles share an incredible story about how they first met Bunker Hunt, and how they eventually aided in the historic Hunt Brothers Silver purchases in 1979 and 1980.

You can jump straight to the Hunt Brothers portion of the show by clicking here.

Who were the Hunt Brothers?

The Hunt Brothers, Nelson Bunker Hunt and William Herbert Hunt, were Texas oilmen who gained notoriety in the early 1980s for their ambitious attempt to corner the global silver market. Starting in the late 1970s, the brothers began accumulating large amounts of silver, driving up its price to unprecedented levels. By early 1980, the price of silver had surged to nearly $50 per ounce. However, their plan eventually collapsed as the Commodity Futures Trading Commission implemented new regulations, and the Hunt Brothers’ financial empire crumbled which eventually led to bankruptcy and legal troubles. Their story remains a cautionary tale of the risks associated with attempting to manipulate commodity markets on such a massive scale.

Jim Clark and Charles Goyette were right in the middle of it all as the dealers who were able to acquire and deliver over 14,000 bags of silver for the brothers between October 1979 and January 1980. With inflation adjusted, that is almost $1 billion worth in today’s money! As Jim tells in the Rich Dad Radio Show video, when the Hunt Brothers took delivery of the silver in April of 1980, they sent seven armored tractor-trailers to haul it away. You can also read more about the Hunt Brothers in Jim’s book “Real Money for Free People: The American Gold Story”

Order a complimentary signed copy of “Real Money for Free People: The American Gold Story” here.

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Central Banks all over the world are buying gold. Are you?

Because central banks around the world sold so much gold in the post-WWII era – to hold US dollars in their currency reserves instead – we believe the reversal of that practice represents the biggest monetary megatrend of our time.

In other words, these days central banks are buying gold.  They are de-dollarizing.  

The World Gold Council reports that in September global central banks were net purchasers of 77 tons of gold!

Leading the way in gold acquisitions is the People’s Bank of China. 

Asia’s hunger for gold is manifesting in other ways.   Of course, China has distinguished itself as the world’s leading gold producer.  Now Asia is emerging as a powerful and growing hub for old trading and commerce.  Russia, the world’s second largest gold producer, has recently moved its gold trading from Dubai to Hong Kong.  According to Bloomberg News, “Hong Kong imported 68 tons of Russian gold this year, four times as much as the whole of 2022.”

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End users of industrial silver will experience surging output totaling 46 percent between now and 2033.  The surge is expected to be especially rapid in the electrical and electronics industries which are forecasted to grow by 55 percent over the decade. 

That is the finding of a new study by Oxford Economics, a leading global economic forecasting and econometric analysis consultancy based in London.  The report “Fabrication Demand Drivers for Silver in the Industrial, Jewelry and Silverware Sectors Through 2033,” was commissioned by the Silver Institute.  

The study reports:

Between 2023 and 2033, we forecast the output of end users of industrial silver will increase by 46% in real terms. This partly reflects two thirds of the usage in 2022 was by the electrical and electronics applications industry, which is forecast to exhibit the fastest growth in output at 55%, rather than the slower growing smaller segments.

Our forecasts suggest that the demand for silver for jewelry manufacturing will increase by 34% between 2023 and 2033.

Silverware fabricators’ output is forecast to increase by 30% over the next decade. Some 43% of the growth in output between 2023 and 2033 is forecast to occur in India, although this is less than the country’s 73% share of the market in 2022. • 

Combined, the output of industrial, jewelry and silverware fabricators is forecast to increase by 42% between 2023 and 2033. This is roughly double the rate of growth of their demand for silver over the previous decade.

Earlier this year the Silver Institute forecast investment demand for 2023 to reach 295 million ounces, the second highest on record.

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Newsweek reports that China is gobbling up gold on the international market.  China is already the world’s largest gold producer, but it’s buying more gold hand-over-fist.  And it has been doing so every single month for almost a year.

For thirteen years central banks have been socking away gold.

The Financial Times headlines its account of China’s aggressive gold buying this way:

China leads record central bank gold buying in first nine months of year

Central banks in emerging markets look to reduce reliance on US dollar for reserve holdings

Describing China’s appetite for gold as “voracious,” FT reports, “China has stood out as the largest purchaser of gold this year as part of an 11-month buying streak. The People’s Bank of China has reported snapping up 181 tons this year, taking gold holdings to 4 percent of its reserves.”

Are you wondering why China is so serious about gold?

It is because China is preparing for a crisis, a monetary meltdown.  

They see more bank and bond market trouble on the horizon, uncontrollable US spending, and unpayable US debt.  And maybe even more war.  A lot more war. 

When it comes to monetary affairs, China knows the Golden Rule:  He who has the gold makes the rules! 

So, China is aggressively buying more gold to protect itself from both financial and geopolitical risks.  Shouldn’t you be doing the same thing?

At Republic Monetary Exchange, we advise our friends and clients to do what people have done for thousands of years, especially when the handwriting is on the wall!  Preserve your wealth with gold and silver.

See us today.  If you don’t have a gold and silver professional at Republic Monetary Exchange, simply call or stop buying and you will be connected with an experienced consultant who will help you achieve your wealth preservation and profit objectives with precious metals!

Republic Monetary Exchange—  stop by on Camelback, just east of 40th Street.  Or call 602-955-6500 Monday-Friday anytime between 9 am-5 pm!

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Here are a Few Answers!

Someone asked us, “Why does the Federal Reserve destroy our money with inflation?  Don’t they realize what they are doing to this country?”

No answer we give will be complete.  There are too many things going on and too many different interests at work for an all-encompassing response.   But we’ll provide a couple of the leading components in our response.

Let us answer the second part of the question first.  Some of the people inside the Fed do realize what they are doing to this country.  And they keep doing it because what it is doing to the country is what they want done.  You might think of them as believers in George Soros’s new world order:  They don’t like America and they want it changed.  They want to level the world into a uniform socialist mediocrity (with a special class of rulers, to be sure:  themselves!)  These are members of the Davos crowd who want you to eat bugs and own nothing.

Others don’t know any better.  Although she seems to have a foot in both camps, both among those who intend what they are doing, as well as a leading figure among those hopelessly without a clue how things work, we give you Janet Yellen.  

Why does the Fed do it?  It destroys our money for a number of reasons.  It serves the governing classes, giving them “free” paper or digitally printed money) for vote-buying giveaways, and to win elections.  The central bank’s power to create and destroy money is the power to boom and bust the economy at will.  It is the power to support and sustain the banks and the crony classes that created the Fed in the first place.  

There can be no doubt that the orgy of “galloping central bankism” that we have seen over the last generation or so has profited the crony classes enormously.  Just take a look at the following chart.  It depicts an explosion in the net worth of the wealthy, the top one percent versus the entire 50 percent of the population at the bottom.

That chart is provided and explained by David Stockman in his newsletter Contra Corner.  He writes:

On the eve of the Greenspan money-pumping era in Q4 1989, the net worth of the top 1% was about $5 trillion, while the bottom 50% held about $800 billion of net worth. But thereafter came the great Greenspanian bubble, perpetuated with even added gusto by his successors.

Accordingly, during the last three decades the top 1% have gained an additional $40 trillion of net worth, while the bottom 50% have picked up just $2.9 trillion. So the math of central bank fueled asset bubbles is impossible to deny: To wit, the wealth of the top 1% was 6X that of the bottom 50% in 1989, representing reasonably honest capitalism at work. But since then that figure had soared to 12X— owing to the Fed’s relentless flooding of Wall Street with easy money and repeated bailouts.

Of course, the founders of this country knew that given the power over the creation of money, that power would be used to profit the few at the expense of the many.  That is why they intended to create a gold and silver-based monetary system, prohibiting the “creation” of money out of thin air.

Too bad we didn’t follow the founders.  But you can still get off the paper money and digital printing trains before they arrive at their destination: a place called The Crack-Up Boom!  

That’s when everyone realizes at once that the paper and digital money are going bad, and they all try to get off the train at once. That’s usually too late.  Better to own gold and silver, especially at today’s preferred prices.

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We say be prepared for an inflation resurgence!

Some sectors of the markets along with some analysts believe that the Federal Reserve has declared victory over inflation.

That would be like General Custer encountering one lone Sioux on his way to Little Big Horn and patting himself on the back.

Still, stocks roared higher the day after Powell’s latest press conference.  The Dow was up 564 points; the S&P rose 80 points; the Nasdaq index took off, climbing 232 points.

So is their verdict correct?  Has the inflation bogeyman been vanquished?  Did Custer vanquish the Sioux? 

Not hardly.

Of course, the Fed doesn’t want to raise rates.  It doesn’t want to be blamed for a collapsing housing market, bond market, and stock market.  But it should have thought of that when it prints the last few trillion dollars.  No, with the Fed it is never forethought.  It is always an afterthought.

So, it doesn’t want to raise rates.  However, it did not want to raise them when it began raising rates in 2022.  Consumer anger over rising prices forced their hand.

So that’s two meetings in a row that the Fed has punted, leaving rates unchanged.  And it gave no indication that another rate hike would be forthcoming at its December meeting.  “The stance of policy is restrictive,” said Powell, “meaning that tight policy is putting downward pressure on economic activity and inflation, and the full effects of our tightening have yet to be felt.”

And that was enough for some participants to conclude that the Fed’s bias is to hold rates where they are.  Until something else happens.

Something about this is uncannily familiar.  Other central banks, who know the inflation racket better than anyone since they are the inflation racker, keep buying gold. 
Central bank gold demand so far this year is 14 percent ahead of the same period last year.  But it also reminds us of when the Fed prematurely assumed inflation was under control in the 1970s.  

It wasn’t.

Here’s a chart from Jeffrey Kleintop, Jeffrey Kleintop, Chief Global Investment Strategist at Charles Schwab that we ran during the summer.

The chart shows the CPI from 1966 to 1982 in blue.  That includes the inflation decade of the 1970s.  Clearly inflation roared up in 1973 – 74, eased off, and took off again in 1978 – 79. 

The yellow line overlaying it is the CPI from 2013 until now.  It is almost uncanny how closely the patterns align.   Most economists today understand that the Federal Reserve concluded it had won the war on inflation in the mid-70s.  But they declared victory too soon and price inflation roared back even stronger than before.

Kleintop says, “It’s funny how history rhymes!”

It is funny.  Remember that four other members of his own family were killed along with General Custer at the Battle of Little Big Horn: his 18-year-old nephew, his brother-in-law, and two younger brothers.  

Protect your family and your wealth.  Take advantage of today’s gold and silver prices and be ready for inflation’s resurgence.  Speak with your Republic Monetary Exchange precious metals professional today.

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Read ‘Em and Weep! Or Buy Gold and Laugh!

At least we’re not the only ones writing about the US Treasury’s debt crisis now.  The story is starting to play far and wide now.  That’s because it is becoming impossible to ignore!

Here are three consecutive headlines from the Drudge Report on Wednesday, 11/1.  The links are all active so you can – and probably should – read the stories yourself.  Nevertheless, we will comment briefly on each.

Treasury to step up size of bond sales to manage growing debt load and higher rates…

SUMMERS: U.S. fiscal deficit more serious problem ‘than ever before’…

Druckenmiller says govt needs to stop spending like ‘drunken sailors’…

The Treasury’s borrowing needs (so that Washington can continue to spend money it doesn’t have) are exploding.  The first story reports that it needs to borrow more than Three-quarters of a trillion dollars in the current quarter.  It needs $776 billion this quarter (Oct-Nov-Dec, and even more in the following quarter, $816 billion.

In the last fiscal year ending September 30, federal red ink totaled $1.7 trillion.  Former Treasury Secretary Larry Summers, who in our memory has never been a meaningful advocate of Washington restraint, says that today’s deficits are probably the biggest economic challenge in US history.

Summer’s first avenue of attack on the deficit would be to step up collections, which is what that $80 billion in new IRS funding in the so-called Inflation Reduction Act is all about.   Despite Washington’s denial, you can expect the middle class to be hounded at new levels of intensity by the IRS. In other words, the taxman is coming for you!  This will result in barely concealed hostility setting the people even more in opposition to the government.  

 Hedge fund billionaire Stanley Druckenmiller has some choice words about Treasury Secretary Janet Yellen lately, as have we.  (See our recent post Head for the Safety Zone.)  Before Covid, notes Druckenmiller, Washington spent 20 percent of GDP.  Now it spends 25 percent.  How does he propose to fix things?  He has Social Security and seniors in his crosshairs.  Sure, go after old people, while the Deep State and Yellen think we can afford two and three-front wars.  

In any case, the spending will leave America a hollowed-out hulk, a shadow of what we were.  On CNBC the other day, Druckenmiller accused Washington of spending “like drunken sailors.”  His appearance was virtually an emotional plea for us to get a handle on spending.  “We’ve got to stop, guys. We’re drunk. We’re digging this deep hole. What are we doing here?”  More than forty years ago Ronald Reagan said comparing Washington to drunken sailors is a slur on drunken sailors!

What is the net-net-net of all these stories? Simple.  It’s every man and woman for him or herself.  The Washington institutions do not have your well-being at heart.  The ship of state is a ship of fools.  They have run it into the shallow reefs.  

Get off the sinking Washington monetary ship while you can.  Protect yourself with gold and silver today.

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Gold’s next stop is $3,700!  Silver to $68!

It’s time now to wake up!   And to tell your friends!

Rich Dad Poor Dad author Robert Kiyosaki doesn’t issue a wake-up call like that very often.  When he does, he means it!

We follow our friend Robert closely.   And since he says we should tell our friends to wake up now,  we are sharing his dramatic warning and gold and silver price calls from his most recent “X” (Twitter) alert:

Gold will soon break through $2,100 and then take off. You will wish you had bought gold below $2,000. Next stop gold $3,700….  Silver from $23 to $68 an ounce. Savers of fake dollars F’d. Please tell your friends to “Wake up.” Take care.

We agree.  We are at a very important monetary crossroads with spreading wars, debt spiraling into the stratosphere, and Washington as badly run as we have seen it in our lifetime.

That’s why we have advised our friends and clients to head to gold and silver – to the Maximum Safety Zone – now.  

Please review Robert Kiyosaki’s warning carefully and his target for gold to take off and hit $3,700 and his silver target of $68.

Then reach out to us and speak with a Republic Monetary Exchange gold and silver professional today!

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The gold picture is coming into view, and it is very bullish according to one of our favorite commentators, Michael “Mish” Shedlock from MishTalk.com.

We’ve known “Mish” for a very long time, dating all the way back to when he was a small, still voice warning about the housing bubble.

Gold Massive Cup and Handle

Mish points to the classic technical pattern, the “cup and handle” in the gold chart, and says that gold “is flirting with a major breakout having undergone a huge three-year consolidation.

“If the next major move is higher, as I suspect, the move rates to be explosive.”

Mish is not alone in expecting an explosive move in gold.  We have shared elsewhere Rich Dad Poor Dad author Robert Kiyosaki’s call for gold and silver.  He expects gold to break above $2,100 and then take off with its next stop at $3,700.  A move like that would be consistent with the technical picture, especially with Gold’s repeated interim tops at just over $2,000. 

Kiyosaki expects silver to share in the move, racing up from $23 to $68.  He urges you to tell your friends to wake up. 

Robert is watching the fundamentals.  Mish is looking at the technical picture.  Both are talking about an explosive move up in gold!

Make sure your portfolio is up to date.  Speak with a Republic Monetary Exchange gold and silver professional without delay!

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Gold is Much More Than Just a Metal!

Paul Tudor Jones is one of those billionaire hedge fund managers.  We caught him on CNBC the other day and wanted to share a few of his observations.

Put simply, Jones says, “I believe gold’s value will continue to rise as more people recognize its importance in the financial system.”

After all, gold is “not just a metal!”

We cited Jones a little over two years ago when he made it clear that he didn’t think inflation was transitory as the Federal Reserve insisted.  At about the same time, he charged the Fed with “the most inappropriate monetary policy that I’ve seen maybe in my lifetime.” 

 That’s easy to agree with.  

And it is not just monetary policy that has his attention.  Fiscal policy – Washington’s spending and debt – has him equally concerned.  Jones says the US today “is probably in its weakest fiscal position since certainly World War II” with our debt was 122 percent of GDP.  

At the same time, the debt-t0 GDP ratio is back in the nosebleed section where it was after World War II, higher interest rates will make funding all that debt — $33.5 trillion – much more difficult.” 

Says Jones, “As interest costs go up in the United States, you get in this vicious circle, where higher interest rates cause higher funding costs, cause higher debt issuance, which cause further bond liquidation, which cause higher rates, which put us in an untenable fiscal position.”

But our challenges are not just fiscal and monetary.  Jones describes us as living in the most threatening geopolitical environment he has ever seen.  We have geopolitical challenges that could ultimately erupt into nuclear war, he says. 

We now have possibly three theaters where we’re going to have geopolitical challenges. We’ve got the Middle East and Israel, obviously, Ukraine and Russia and then at some point down the road, Taiwan and China.

You have four nuclear powers, three of whom are led by sociopaths, and that would be China, Russia and North Korea.

It is at times like these that people begin to realize that gold is not just a metal!

Here’s a link to a portion of Jones’s CNBC interview.  It is worth a view. 

Be sure to speak with a Republic Monetary Exchange gold and silver specialist now.  Don’t wait until everyone realizes the necessity of owning gold!

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We’ve Been Talking About ‘Shrinkflation’, But This is Ridiculous!

We’ve written many times about the Federal Reserve’s destruction of the US dollar’s purchasing power.  We’ve written about shrinkflation, businesses concealing price increases with smaller package sizes. (See HERE and HERE.)  

And we have even joked about what we call “The Incredible Shrinking Candy Bar.”

But now shrinkflation has gotten completely out of hand as you will see in this clip.  

Our advice is to keep your money in real money, money that can’t be devalued by Washington.  And that means gold and silver.

Now, watch this!   It’s a sign of the times!

We’ve been following the Shrinkflation sub on Reddit- and we’ve been seeing these posts get more and more ridiculous month by month! Check out the latest of what the kids could be getting north of the border this Halloween…

https://www.reddit.com/r/shrinkflation/s/2mLc9BIr0H

Here We Go Again!

It’s been a while since we last wrote about the Stagflation Decade, the 1970s, but some of the parallels are so eerie that even one of the world’s biggest banks has started to notice!

The 1970s era was characterized by oil price shocks, the Soviet war in Afghanistan, and high inflation.

Deutsche Bank, a leading multinational investment bank, is now pointing to those and other ominous parallels.  

Deutsche analysts Henry Allen and Cassidy Ainsworth-Grace write:

Inflation remains above target across the major economies; we have witnessed severe spikes in energy prices over recent years; and there’s been growing industrial unrest.

Over the weekend, the attacks on Israel showed how geopolitical risk can return unexpectedly. And we are also seeing an El Niño event this year, which echoes a similar event in the early 1970s that put upward pressure on food prices.

It’s not time for complacency they warn:

Inflation is still above target in every G7 country, and the 1970s showed how unexpected shocks could rapidly send inflation higher once again. History also suggests that the last phase of returning inflation to target is the hardest.

And given inflation has already been above target for the last two years, a fresh inflationary spike could well lead expectations to become unanchored.

The costs of the Vietnam War played a huge role in the stagflation that plagued the American people in the 70s.  So far, the Biden gang has thrown $100 billion in taxpayer money into Ukraine.  Never forget that war leads to larger fiscal deficits, more debt monetization, and higher inflation on a persistent basis!

All the numbers are much bigger now, the amount of spending and debt, the prices of oil, and the costs of war.  A brand-new stagflation decade will mean a gold and silver bull market that will be much bigger than the one your grandparents remember.  Speak with your Republic Monetary Exchange professional advisor about stagflation.  Prepare yourself now without delay.

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“We Need Strong Fighters Like Kari” Trump Endorses Kari Lake for Senate. And So Do I!

Great News!  It’s official!  Kari Lake is running for the US Senate.  She kicked off her campaign on Tuesday, 10/10, with a blockbuster personal endorsement from President Trump.

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Some of President Trump’s remarks:

“A Republican must win and we must win very, very big…“

“I will need a majority in the House and in the Senate. We have to have a big, strong majority to help me push our America First agenda through.“

“That starts right here tonight by helping Kari Lake win in Arizona.  And she will win, too!  She’s an amazing woman respected by everybody.  Kari is one of the toughest fighters in our movement, and I am proud to give her my complete and total endorsement for the United States Senate.“

“With people like Kari fighting for Arizona in the Senate, with me in the White House, we will make America great again!“

“God bless you!   God bless Arizona!  And Kari, God bless you!“

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Are you ready to make a difference in our country?  Are you ready to send Kari to Washington?  

Many of you know something of my commitment to Kari Lake when she ran for Governor.  As a lifelong Arizonan who cares deeply for our State, I rolled up my sleeves and went to work, raising money for her campaign and spreading the message day and night, wherever I could.

Now I am delighted for this new chance to join President Trump in the fight to make America great again!  And I join him in his enthusiastic endorsement of Kari for US Senate! 

Help us make Kari Lake Arizona’s next US Senator.  Help roll back the bankruptcy of Bidenomics and the chaos and confusion in the White House.  

We will have to work harder than ever, but we can send President Trump back to the White House with an incredible Senator in his corner – Kari Lake!

Thanks to all our friends and clients for joining us in this fight!

– Jim Clark

President Trump is proud to endorse @KariLake, the next U.S. Senator from Arizona! Make America Great Again!pic.twitter.com/ZFE98mR7FW

— Team Trump (Text TRUMP to 88022) (@TeamTrump) October 11, 2023

Here is the link to Kari’s campaign if you would like to donate and get involved!

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Robert Kiyosaki warns!

We’re not alone in pointing to cracks in the US banks!  We’ve been running around like our hair is on fire warning about trouble ahead.  But if anything, we might be accused of understating the case.  Wait until you hear what Rich Dad Poor Dad author Robert Kiyosaki says!

Here is his tweet from just days ago:

The FDIC has over 725 US banks on death watch list.  What does that mean?  It means America does not need enemies. America has bankers. Our criminal bankers  start with Jerome Powell of the Fed, Janet Yellin of our Treasury and  Jamie Diamond of our banks. God help us. USA does not need criminals. We hire them as our bankers.

Robert Kiyosaki , 10/1/23 Twitter/X https://x.com/theRealKiyosaki/status/1708677114470314258?s=20

And that is why our friend Robert’s Rich Dad Poor Dad is the number one biggest-selling personal finance book of all time.  It’s because he doesn’t pussyfoot around.  He calls things straight.  

We came very close to a bank meltdown in March, as banks like Signature and Silicon Valley Bank toppled.  Higher interest rates exposed the cracks in those banks.  But as Kiyosaki points out, there are hundreds more banks in deep water, in number greater than just a visible few like Signature and Silicon Valley.  Hundreds more.  And in addition to rising interest rates decimating their bond holdings, there is the additional problem of the fast-growing commercial real estate crisis.  The Wall Street Journal reports that banks have $3.6 trillion in exposure to commercial real estate, about 20 percent of their total deposits.

How does the central bank respond to a bank crisis?  We know the answer from long experience.  It prints money to bail them out.  So you pay to bail out the banks from their own mismanagement!  You pay with inflation.  You pay because the dollars you have, the dollars you have saved, lose purchasing power.  That purchasing power is transferred to the crony banks!

That is why you need to own gold and silver.  That is why Robert Kiyosaki recommends his followers protect themselves with gold and silver.  The cracks in the banking system have already begun appearing.  Don’t wait.  Take advantage of today’s advantageous gold and silver prices!

And our thanks to Robert Kiyosaki for the straight talk!

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Those of us who follow these things carefully (a minority enthusiasm for sure!) are so totally mesmerized by the rickety position of the banks and the government, that we might be accused of ignoring a story as big, if not bigger.  So let us assure you that the prospects of war are not going unnoticed.

In fact, few things are as capable of sending precious metals prices off and running as war.  It was more than a generation ago when the Iranian revolution and the Soviet invasion of Afghanistan helped drive gold prices to what were unthinkable new highs.   

Today international tension persists at levels not seen since the Cuban Missile Crisis, a showdown with nuclear prospects 61 years ago this month.  Today we note that, seeing the US and NATO as aggressors continually encroaching on its frontiers, Russia has embarked on a nationwide – that is across eleven time zones, by the way – nuclear attack exercise.  

At the same time, President Putin is calling up 130,000 conscripts for Russian military service this fall, raising the age for conscription to 30.  For its part, British Defense Secretary Grant Shapps set off a firestorm in Russia when he talked last week about sending troops from the UK to Ukraine.  The imbecility of such an escalation was enough that Britain’s Prime Minister tried to walk it back, but the truth is that the UK already has special operations forces in Ukraine.

For his part, Biden wants to keep the escalation going, no matter how dicey things get.  But the youth of America, as well as their parents, should know that the Deep State always has the plan to restart the draft.  Here’s a single line from an Army War College journal, an article entitled, Casualties, Replacements, and Reconstitutions: “Large-scale combat operations troop requirements may well require a reconceptualization of the 1970s and 1980s volunteer force and a move toward partial conscription.”

That’s not all.  The other day this story appeared from Washington:  “The U.S. military on Thursday shot down a Turkish drone that had come in too close to U.S. troops on the ground in Hasakah, Syria, a U.S. official told The Associated Press.”

US troops in Syria?  

Sure.  Troops are everywhere,  just enough to act like a tripwire and ensure we get drawn into future conflicts everywhere.

Two other notes.

First, Goldman Sachs points out that the US strategic petroleum reserves are at a 40-year low.  Open warfare would scream for the reserves to be replenished quickly at any cost.  Unfortunately, “any cost” is today a much higher cost.  Too bad Biden didn’t think about that when he was milking the reserves for political advantage.

And secondly, this observation from David Stockman puts our burgeoning war spending into perspective:

“In 1980 the comprehensive national security budget for DOD, international operations, and veterans cost $175 billion per year, which figure now stands at $1.304 trillion. But even that is deemed woefully deficient by the Uniparty war caucus and is therefore heading dramatically higher as Washington’s warhawks and neocons push America ever closer to a needless but cataclysmic war with Russia and China.”

Gold is the world’s unparalleled wealth protection in times of chaos and war.

At today’s prices, it is clear the geopolitical risk is being almost completely ignored.  That is an advantage for our friends and clients that will not last. 

Word to the wise.

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Where Does the U.S. Rank Among Other Nations?

Most of the gold that has been produced throughout history remains in human hands.  As much as 86 percent of it has been produced in the last 200 years.  Our thanks to Visual Capitalist for the below chart illustrating the history of gold production.

The World Gold Council believes that 2023 gold production could surpass the production record set in 2018.   We note, however, that inflation has not just struck consumers.  It has substantially increased the costs of mine production.  Gold production is energy-intensive, which means higher costs, while higher interest rates mean higher costs of equipment leasing and so on.  These cost increases with eventually translate into higher gold prices.

China surpassed South Africa in gold production in 2007.  It remains the world’s largest producer today, followed by Russia and Australia.  The U.S. comes in at #5, lagging behind its northern neighbor Canada.

Get Gold Before They Hit!

No one knows exactly how close we came to a US bank holiday last spring, but it was too close for comfort.  None of the problems banks faced then have been solved. In fact, both have gotten worse.

Here’s what’s in the mix.

The banks are up to their eyeballs in the deeply troubled US commercial real estate market.  They are on the hook for as much as 40 percent of commercial real estate loans.  The Wall Street Journal reports that banks have $3.6 trillion in exposure to commercial real estate, about 20 percent of their total deposits.

But higher interest rates have tanked commercial real estate, especially office properties, and vacancy rates are hitting all-time highs.  Economist Mohamed El-erian points out that commercial real estate has massive refinancing needs next year.  “There are things that have to be refinanced in this economy that cannot be refinanced in an orderly fashion at these rates,” says El-Erian.  “So that’s the point of pain which starts to happen.” 

Commercial real estate is one problem.  Higher interest rates that are decimating the value of the banks’ bond portfolios is another problem.  It is the one that brought down Silicon Valley and Signature banks earlier this year.  As long as the bank isn’t hit with withdrawals, they can continue to hold those low-interest-rate bonds, holding out for their maturation down the road when they can be redeemed at full value.  But if they are forced to sell lower-rate bonds before maturity, they get pounded.  

No one wants to pay much for bonds that yield two or three percent when newer bonds pay five and six percent and maybe soon more.  The Federal Reserve suggested last week that it could keep interest rates ”higher for longer” than anticipated.  That’s why one of America’s leading bankers is advising clients to “batten down the hatches.”  

Jaime Dimon is the CEO of America’s biggest bank, JPMorgan.  He says we’ve all been on a sugar high from artificially low rates, and now we’re unprepared for rates to climb another two percent.  A move to seven percent interest rates will be much more painful than the prior two percent rate increase.

Dimon also points to the obvious incapacity of Washington to show any fiscal responsibility.    Increasing deficits cannot go on forever and mean that no one knows where America is headed.

 So there you have it:  commercial real estate stresses on banks as well as the stress of their collapsed bond portfolios.  Both are problems that will grow as interest rates rise further.

And for good measure, we’ve even tossed in yet another reference to Washington’s deficits.  

If you would like to be out of the line of fire from these crises, we suggest you reach out to us at the Republic Monetary Exchange at once and begin to develop a sensible plan to tuck assets away in real money, gold, and silver.

It is the sensible thing to do.

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$33 Trillion Federal Debt!  How did that happen?

US Federal debt has now roared above $33 trillion.  It has rocketed up by $2.16 trillion in just the past year.  This is an increase of an unthinkable $1.58 trillion just since the debt ceiling was lifted in June!

How did this happen?  

A new Heritage Foundation article, “The Road to Inflation: How an Unprecedented Federal Spending Spree Created Economic Turmoil,” has some specific details.  It explains that a “politically opportunistic spending spree has left the U.S. with a weakened economy, an inflation crisis, and a looming debt crisis. The volume and nature of the spending spree helped to create skyrocketing inflation and interest rates and created a labor shortage, reducing real household incomes and leaving store shelves bare and supply chains broken. A looming fiscal crisis has shifted from a long-term concern to a current event.”

It details spending initiatives between March 2020 and December 2022, roughly $7.5 trillion in new spending, which comes out to $57,400 per household.

So Washington has given us more debt in a 27-month blow-off than it did in the first 200 years of America’s existence.

Let that figure sink in.

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(…For Unpayable US Debt!)

Joe Biden is proving himself a master participant of one of the world’s oldest disastrous routines.

It’s always the same cycle.  Governments spend money they don’t have.  They then have to resort to borrowing or printing or a combination of the two.  The more they borrow and the more they print, the higher they drive interest rates to offset the loss in the currency’s real or constant value.  

The higher the interest rates, the faster the debt compounds.

Until one day…

Disaster.

Although he has been in public office since 1972, Biden seems quite unacquainted with the vicious cycle, although it has been on display over and over again around the world during the past half-century.   Indeed, Biden has set a new world indoor record for debt accumulation.   It has become quite serious, although the mainstream news media doesn’t seem to have taken much notice.  

Here are the facts:

Federal debt has spiked under Bidenomics.  It is now over $33 trillion dollars.  That is an increase of $2.16 trillion in the past year.  It is an increase of $1.58 trillion since the debt ceiling was lifted in June.

Wolf Richter, WolfStreet.com, famously calls it “Debt Out the Wazoo!”

As portions of the debt mature, it is rolled over at ever higher interest rates, which worsens the debt load without any new spending at all.  That’s why it’s a vicious cycle.  Bidenistas and other Washington wizards added debt upon debt while rates were at historic lows.  It apparently never occurred to them that rates would eventually rise.  As of the end of August, most of it is still being serviced at low rates, an average of 2.92 percent.  However, the Federal Reserve has been raising interest rates since March 2022.  Rates are now 5 percent higher than they were then.  The cost of servicing the federal debt will therefore keep climbing.

The outlook for the dollar is not good, but for now, the mainstream media is taking no notice, while government economists and Fed officials are whistling past the graveyard.  But the rest of the world does notice.  That’s why gold is running up in foreign currencies and why other countries, especially China, are grabbing all the gold they can get their hands on.

Make sure you have enough to see you and your family through the monetary disaster now in development by the Biden gang.

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We’re talking about the breakdown of American prosperity!

We do things no normal person would want to do, all as part of our pledge to keep you up to speed on the dollar, the Fed, the economy, gold, and silver.

We follow money supply and Fed asset numbers closely and listen carefully to Fed officials as they lurch from one misshapen policy to another.  We dive deep into reports about bank solvency and watch the frightening congressional budget process…

As we say, things no normal would want to do.   

But sometimes there’s no need to go looking.  The story just smacks you in the face.  Like this one.

The Drudge Report (9/12/23) ran the following stories in a row on its front page: 

Incomes Fall For Third Straight Year…

Average household now has $10,170 credit card debt…

More Baby Boomers Sliding Into Homelessness…

Adults ordering from kids’ menus to save money…

Incomes keep falling, credit card debt keeps rising, baby boomers are finding themselves homeless, and adults desperate to save are forced by rising costs to order kids’ meals.  The links above are all live if you would like to know more about any of those stories.

We don’t even have to look to find more stories like this.  We just got this new one that says pet owners are trading down from expensive gourmet brands to less expensive brands of pet food.

Nothing is too good for Fido and Fifi, except when the currency begins to go bad, These thing are bellwethers for those of us who track the breakdown of the unbacked, irredeemable paper money currency scheme.  They are provided by us, Republic Monetary Exchange, as a free public service for our friends and clients who want a sense of how critical things are getting.

They are getting pretty damn critical.  More soon.  Watch this space. 

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None of our clients or friends will be surprised to learn that price inflation in August took its biggest jump in over a year.  

The Wall Street Journal:

The consumer-price index rose 0.6% in August from the prior month, the Labor Department said Wednesday. More than half of the increase was due to higher gasoline prices. So-called core prices, which exclude volatile food and energy items, rose by 0.3% last month after even lower readings in June and July.  

We warned that inflation was about to tick up, writing last month: 

Gasoline prices have been climbing in August.  That will show up in the next CPI report next month with higher prices factored in.  

Furthermore, low inflation months (July ‘22 – 0.0 percent; August ’22 – 0.2 percent) that have been holding the 12-month numbers lower the last couple of months, will be dropping out of the 12-month average, with mostly higher monthly numbers replacing them.  

So, there are still higher inflation numbers headed our way.   And now the problem is compounded.  After all, Biden took a break from stumbling up the stairs of Air Force 1 to drain America’s strategic petroleum reserves.

So those emergency reserves will have to be replenished at higher prices.

It should go without saying that rising energy prices are exactly like a tax on American households and businesses.  

Crude oil is about $90 a barrel.  Some observers, among them JPMorgan Chase CEO Jamie Dimon, think we may be headed to $150 a barrel.  It all calls to mind the Stagflation Decade.  Oil prices quadrupled in 1973 and nearly tripled in 1980.  

The Keynesian and Modern Monetary Theory economists who have been in charge of monetary policy in this country for most of a century have tried to blame rising oil prices for the Stagflation Decade.  The truth is quite the opposite.  OPEC producers clearly warned in advance that selling their appreciating oil, recovered from the earth at great effort and expense, for US dollars that were depreciating and could be reproduced endlessly at no meaningful cost, made little sense.  If the US dollar kept losing purchasing power, they warned, it would certainly lead to higher oil prices.  

Indeed, it did.  Then the vicious cycle got underway in which the Treasury tried to cushion the effect of higher energy prices by printing money to make the OPEC price increases illusory in real terms.

Of course, you know what also performed profitably in the Stagflation Decade?  Gold and silver.

We’ll leave you with two thoughts.  First, a suggestion is that you update your gold and silver holdings for what is headed our way.  And secondly, a line from comedian Steven Wright:

“Right now I’m having amnesia and déjà vu at the same time. I think I’ve forgotten this before.”

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It’s bad.  Very bad.  When it hits the fan, gold will be there, as it always has!

We know what happened to a handful of big banks earlier this year.  Banks like Signature and Silicon Valley suddenly were forced to realize their unrealized losses.  And that was the end of the road for them.

As you know the value of bonds goes down when interest rates go up, so those banks with their reserves all parked in bonds suddenly found themselves in deep trouble as the Federal Reserve raised interest rates.

But the rest of the banking industry is just fine, right?

Wrong.  Double wrong!

Here’s a link to a Wall Street on Parade article that pulls the curtain bank on the banking industry.  It reports that at the end of the first quarter, banks were sitting on more than a half trillion dollars in unrealized losses!

That’s deep kimchi!

The academic study the story draws on describes the banks shamelessly gambling on being bailed out by us:

Banks with the most fragile funding… sold or reduced their hedges during the monetary tightening. This allowed them to record accounting profits but exposed them to further rate increases. These actions are reminiscent of classic gambling for resurrection: if interest rates had decreased, equity would have reaped the profits, but if rates increased, then debtors and the FDIC would absorb the losses.

Only 6 percent of the total bank assets were protected from rising rates with interest rate swaps.  At the end of the first quarter, March 31, 2023, the banks had unrealized securities losses of $515.5 billion.  And the Fed has raised rates two times since then!

Wall Street on Parade:

The use of the phrase “classic gambling” to describe 75 percent of the U.S. banking system by highly credentialed academics might be something that the U.S. Senate Banking Committee might want to hold a hearing about with some sense of urgency.

Not to put too fine a point on it, but this is the year in which banking regulators were left scratching their heads at the dizzying speed at which multiple banks collapsed. In the span of seven weeks this spring, running from March 10 to May 1, the second, third, and fourth largest bank failures in U.S. history occurred. In order of size, those were: First Republic Bank (May 1), Silicon Valley Bank (March 10) and Signature Bank (March 12). The largest bank failure in U.S. history, Washington Mutual, occurred in 2008 during the financial crisis.

With all due respect, we don’t think the suggested Senate Banking Committee hearings are worth the bother.  For two reasons.  First, it is too late to fix anything.  The cows are already out of the barn.  And secondly, the Senate will inevitably make the taxpayers fork out to paper this over.

The other day Bill Bonner summed up our present predicament this way: “Oblivious to the rising tide of debt, deficits and defaults, mankind stumbles toward disaster…”

If you are still trusting the government and its institutions, the Fed, the FDIC, Congress to look out for your welfare, you are putting your trust in the wrong place.

Gold and silver are not dependent on trust some unknown party.  Unlike banks, securities, bonds, and paper money, they have no counterparty risk.  That means that there is no risk that some party to the transaction will fail to perform and leave you with the loss.

In times of trouble, it is imperative that you protect yourself, your family, and your money with gold and silver.  We’re Republic Monetary Exchange.  We’re here to help.

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Buy gold before the next gusher of Fed funny money!

The US government deficit has exploded!

What’s up?  The Wall Street Journal cites a deadly conjunction of two things at once: “: a steep drop in tax revenue related to capital gains” and at the same time “an increase in interest payments on old debt.”

Wolf Richter describes it this way:  

“The gigantic US government debt is now approaching $33 trillion, amid a tsunami of issuance of Treasury securities to fund the mind-blowing government deficits and roll over maturing securities.” 

None of this stuff is very complicated.  As long as Washington keeps spending money it doesn’t have, it will have two choices for funding its deficit spending:

A. It will have to borrow the money.  But interest rates are screaming higher thanks to massive government borrowing.  And funding that borrowing at ever higher rates is already a fact of life as the following chart illustrates.

B. Or it will have to print the money to fund the deficit.  That is by definition inflationary.

Meanwhile, the cost of energy is soaring.  That will show up in the price indices in no time.  It is the equivalent of a tax on American households and businesses.  

Let’s look at this like adults.  The spending game should have been brought under control many years ago.  Instead, the political classes learned to buy votes by making promises to people and to reward its cronies for their campaign funding by letting them feast at the Capitol Hill hog trough.  Now we suffer the consequences of generations of irresponsible governments.

The Bidenistas and the left are hiding behind something called Modern Monetary Theory, which holds that the government can spend whatever it wants because it owns the printing press.   Any country that will believe such nonsense probably deserves its fate  —  bankruptcy! 

We can’t tell you the exact day and hour of the next massive Fed money printing spree, but the trajectory is clear.  It is very soon.  Possible triggers include the snowballing financial stress in China and a global economic downturn, a stock market breakdown, a disastrous US Treasury debt auction, more energy price hikes, and advancing trade wars.  

That is why foreign dollar holders are de-dollarizing their reserves.  That is why you would be wise to de-dollarize as well with the enduring money of the ages worldwide:  gold and silver.

We’re here to help.   Republic Monetary Exchange is a market leader in gold and silver, real money you hold in your hands.  Real money for free people.  Contact us today.

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Take a look at this!  You’ll want to own more gold!

Larry Summers, Former Director of the National Economic Council, tweeted (or X’ed) this chart the other day, noting the similarity between price inflation’s rise and slowdown and rise again in the 1970s and today’s chart.

“It is sobering,” he says, “to recall that the shape of the past decade’s inflation curve almost perfectly shadows its path from 1966 to 1976 before it accelerated in the late 1970s.”

Sobering indeed!

If the next leg of today’s movement, the yellow line, tracks what happened after 1976, we could reexperience what was one of the greatest gold and silver bull markets in history.   

Stephen Moore comments on the chart, “Twelve years of inflation was finally smothered by the Reagan-Volcker era of tight money, falling tax rates, and deregulation. 

“Past isn’t always a prelude. But if the 1970s and early 1980s taught us anything, it is that the solution to Bidenflation (just as was the case with Carter inflation) isn’t just higher interest rates. It’s growth policies that expand the supply side of goods and services.”

Resistance to the Fed’s interest rate policies is growing.  Already some are arguing for the Federal Reserve to abandon or raise its two percent interest rate target.  As funding US and corporate debt grows more difficult, that resistance to higher interest rates will grow as well.  

The digital money printing presses haven’t been disabled.  They are just idling.

For now.

Be prepared!

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Why they’ll have to crank up the money printing!

The mountain of debt is not just big.  It is ridiculously large!  Unpayably huge!  

It is unpayable unless the authorities inflate the currency to near worthlessness.  Unfortunately, that seems to be the preferred alternative for central banks that find themselves in a debt squeeze like ours.

From a New York Federal Reserve Bank press release:

TOTAL HOUSEHOLD DEBT REACHES $17.06 TRILLION IN Q2 2023; CREDIT CARD DEBT EXCEEDS $1 TRILLION

The Fed, which drove this bubble of unsustainable debt with the misleading signals it sent to businesses and consumers from decades of interest rate suppression, is now driving this debt mountain into crisis territory.  That is because, having hiked interest rates 11 times since March 2022, debtors are beginning to find that higher interest rates are eating them alive.  

At the same time, the Fed’s inflation has raised the price of consumer staples to a new plateau.

Although few of them had that much, Americans used to believe that they needed $1 million to fund a comfortable retirement, according to a Yahoo! Finance article.  But now thanks to the depreciation of the dollar, the piece reports that Americans now believe they will need $1.9 million:  

A million bucks isn’t what it used to be. It was once thought a retirement savings milestone, but 401(k) plan participants now believe they’ll need nearly twice as much, according to a Schwab Workplace Financial Services survey.  

The problem is much bigger than higher consumer prices and credit card debt.  Government borrowing faces the Fed’s higher interest rates as well.  In fact, US debt will rise by $5.2 billion — every single day for the next decade!

We have an idea for you.  How about liberating yourself from the failing monetary system, one that will have to massively inflate the currency to make nominal payments of its debts?  How about protecting yourself with money that can’t be printed?  

Actually, it is a time-tested idea, one that has protected the wealth of people throughout the centuries and from reckless government and their mountains of debt everywhere around the world.  Gold and silver are the world’s preferred money in times of government failure and monetary crises.

Remember, they can’t just print more gold and silver!  Speak with a Republic Monetary Exchange precious metal professional today.  Don’t procrastinate.  Behind the curtains, things are moving very fast!

And that should be driving you to gold and silver!

The world isn’t looking skeptically at the US dollar because it doesn’t like green.  That would not be enough to drive de-dollarization.  Nobody cares what color the money is as long as it functions adequately.

Nor is de-dollarization driven merely because the world is eager for a change – a change for change’s sake.  

Not at all.  In fact, if the problems with the US dollar were bearable, they would be borne.  Remember how Thomas Jefferson put it in the Declaration of Independence, “Mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed.”

If people are moving away from the dollar, to which they are long accustomed, it suggests that dollar problems are no longer sufferable.  

Leading drivers of the de-dollarization movement are the weaponization of the currency on the global stage, and the refusal of Washington to get its fiscal house in order.  Today we offer up a snippet from the news about each.

First, the dollar on the global stage.  At the BRICS Summitt in South Africa, Russian president Vladimir Putin summed up dissatisfaction with the weaponized dollar this way:

We are all united in our commitment to shaping a multipolar world order with genuine justice, based on the international law and in keeping with the key principles set forth in the UN Charter, including sovereignty and respecting the right of every nation to follow its own development model. We oppose hegemonies of any kind and the exceptional status that some countries aspire to, as well as the new policy it entails, a policy of continued neo-colonialism.

Let me point out that it was the attempts by some countries to preserve their global hegemony that paved the way to the deep crisis in Ukraine….

We are grateful to our BRICS colleagues who are active in trying to end this situation and achieve a just settlement by peaceful means.

Colleagues, what matters is that we all unanimously stand in favor of a multipolar world order that is truly fair and based on international law.

The unconcealed subtext is that Russia and other countries will move to a non-dollar global currency to avoid America’s geopolitical hegemony.

For the refusal of Washington to manage its affairs prudently, we turn to former Congressman and presidential candidate Ron Paul.  His latest weekly column, “Growing US Debt Menaces Liberty and Prosperity,” offers Dr. Paul’s insider take on why nothing substantive is likely to be done to get a handle on US debt:

The sad fact is both parties, along with a majority of the American people, are addicted to welfare-warfare spending. What little resistance there is to big government within the Republican party is likely to be further weakened by the rise of a new form of “conservatism” that advocates the use of government power—including deficit spending and increasing the federal debt — to advance conservative political and social goals.

The failure to take seriously the threat to the American economy caused by reckless federal spending is illustrated by the reactions to the credit rating agency Fitch’s downgrade of the US government’s credit rating. Instead of treating it as a wake-up call, government officials like current Treasury Secretary (and former Federal Reserve Chair) Janet Yellen dismissed the downgrade as “arbitrary and based on outdated data.”

So, there you have it.  Much of the rest of the world has grown resentful of the US.  That is why there is a long line of nations seeking entry into the BRICS group.  And why they are seeking alternatives to the dollar standard.

And as for the US, it will be more spend and spend from Washington.  Never mind that the average American household is spending $709 per month more on living expenses than they were two years ago.  

Ron Paul concludes, “Eventually, the Fed-created debt-based economy will collapse as the dollar loses its reserve currency status. This will increase political divisions and may even lead to political violence.”

Before that happens, make sure you have taken the necessary steps to protect yourself and your wealth with gold and silver.  Speak with a Republic Monetary Exchange specialist about silver for personal protection and gold for wealth protection.

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Gee, you don’t suppose it would be a good idea to take money out of the bank and put it into gold?

Banks aren’t getting any safer!  More are getting creditworthiness downgrades; more are being put on troubled bank watch lists.

It was only a couple of weeks ago that we shared the news that leading credit rating agency Moody’s cut the credit ratings of 10 banks.  At the same time, it put 4 of the 15 largest US banks on a watchlist for possible downgrades.

Well, move over Moody’s.  Because now one of the other major credit rating agencies, S&P Global, has cut the credit rating of five banks, and cut its outlook on other banks to negative.   More details from Wall Street on Parade here.

So, it looks like the problems we saw with Silicon Valley Bank and Signature Banks last March may be just the tip of the iceberg.

It’s not just that deposits are pouring out of banks as investors seek higher and safer yields.  There is also the spreading commercial real estate problem that we have warned of.  S&P says, “Banks with material exposures to commercial real estate, especially in office loans, could see some of the greatest strains.”  

And we should not forget that Fitch just downgraded the sovereign debt of the US government as well.  In fact, Bank of America analyst Michael Harnett points out that US government debt will rise by $5.2 billion every single day for the next decade!

Ron Paul says the latest downgrade of US debt should be a wake-up call:  

The failure to take seriously the threat to the American economy caused by reckless federal spending is illustrated by the reactions to the credit rating agency Fitch’s downgrade of the US government’s credit rating. Instead of treating it as a wake-up call, government officials like current Treasury Secretary (and former Federal Reserve Chair) Janet Yellen dismissed the downgrade as “arbitrary and based on outdated data.”

The consumers are not in great shape either, at least judging by their skyrocketing credit card debt.

Troubled banks.  Troubled government.  Troubled consumers.  That’s pretty much a trifecta!

What can you do?  Steer clear of banks.  Don’t get lulled to sleep by government assurances that it will get things under control.  And don’t expect to get bailed out if you get into debt trouble.  Bailouts are for Washington’s cronies only, not for you.

You must take steps to protect yourself.  The place to begin is with silver for personal protection and gold for wealth protection.  Take advantage of today’s prices to establish a sensible gold and silver portfolio.   Speak with a Republic Monetary Exchange precious metals professional today!

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Just a reminder to own gold and silver in times like these!

The sign in the bank window reads, “Due to emergency conditions and to accommodate all customers, today’s daily cash withdrawal limit is $1,000.00”

Here’s a similar sign from a British bank.  It is notifying depositors that it may want to know why they are withdrawing money and may ask for documentation.

One of the so-called “fact checkers” online disputes the authenticity of the notice limiting withdrawals.  And an American Bankers Association spokesperson says, “The safest place for your money is in a federally-insured and highly regulated bank where your accounts are secure and deposits are protected.”

We note that an influential organization like the American Bankers Association has the clout to have objected and even stopped the Federal Reserve from devaluing their customer’s deposits with inflationary practices.  We would even venture that it has a fiduciary responsibility to speak up on behalf of depositors while their money is being debauched.  

Meanwhile, we note that the banking crisis is not over yet and refer you to our blog posts on the matter including this one: Large Banks are Bleeding Deposits!  And this one:  Banking Crisis?  What Banking Crisis?

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Rich Dad Poor Dad author:  “America is broke!”

You don’t have to spend much time with Robert Kiyosaki, the author of the bestselling financial advice book of all time, Rich Dad Poor Dad, to be convinced that you should own gold and silver.

Now Kiyosaki’s warnings are growing louder!  

“Brace for a crash landing,” he says.  We agree and for the reasons he says.

“Don’t they know,” he asked in a recent tweet, “the stock market is up because Biden raised debt ceiling?  America’s debt is going up … so stock market going up!” he wrote. 

“America is broke,” he said, cutting to the chase. 

It’s true.  $32.658 trillion is official US debt is only part of the story, the visible part of the debtberg.  The hidden part of the US debtberg is much, much bigger.

“They’re smoking fantasy weed!”

Yahoo! Finance writes, “The author’s concern about America’s escalating debt was echoed by Fitch Ratings. Shortly after that tweet, Fitch downgraded the United States’ long-term foreign-currency issuer default rating from its highest AAA rating to AA+. The credit rating agency pointed to ‘expected fiscal deterioration over the next three years,’ a ‘high and growing general government debt burden’ and an ‘erosion of governance’ as reasons behind the decision.

Fitch’s downgrade of US debt was followed by Moody’s downgrade of ten banks with others on a watch list.

Now Fitch is warning that it may be forced to downgrade the creditworthiness of dozens of banks.

With all of that, forget a soft landing for the economy, says Kiyosaki.  “First shoe to drop. Fitch rating services downgrades U.S. credit rating from AAA to AA+. Brace for crash landing,” he tweeted. “Sorry for the bad news yet I have been warning for over a year the Fed, Treasury, big corp CEOs have smoking fantasy weed.”

As we said, you don’t have to spend long with Robert Kiyosaki to realize you much protect yourself with gold and silver!

Robert Kiyosaki says Mom and Pop are in trouble!

Our friend Robert Kiyosaki warned about it, and now US sovereign debt has been downgraded by another one of the big three credit rating agencies.  

In a major development, Fitch cut the US AAA credit rating last week.  And this is just the first shoe to drop says the author of the biggest-selling personal investment book of all time, Rich Dad Poor Dad.

In this interview on Fox Business News, Kiyosaki cuts to the chase:  “Life is getting harder and harder.  Mom and Pop are in trouble!”  

As Kiyosaki says, paper money is fake.   Only gold and silver are real money.

Make plans to visit with a Republic Monetary Exchange precious metals specialist before the next shoe drops!

Watch the video here.

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Bad news for the U.S., good news for gold

In a major reassessment of US creditworthiness, Fitch, one of the leading credit rating agencies has downgraded the U.S. credit rating from AAA to AA+. 

Fitch based its downgrade on “expected fiscal deterioration over the next three years, and a high and growing general government debt burden.”

Fitch isn’t the first of the three leading rating agencies to downgrade US debt.  The US lost its S&P AAA rating in 2011, shortly after then-Treasury Secretary Timothy Geithner said the US would “never” lose its triple-A rating.

Underscoring the significance of the move, Treasury Secretary Janet Yellin is throwing a fit: “President Biden and I are committed to fiscal sustainability.”

Right

 “Fitch’s decision does not change what Americans, investors, and people all around the world already know: that Treasury securities remain the world’s preeminent safe and liquid asset and that the American economy is fundamentally strong,” said Yellin. 

But no matter how hard it tries, Washington can’t spin this as a good thing.

From Fitch’s statement:

“In Fitch’s view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025. The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management. In addition, the government lacks a medium-term fiscal framework, unlike most peers, and has a complex budgeting process….”

The downgrade was announced on Tuesday.  On Wednesday the Treasury Department announced plans for record new borrowing.  Wolf Richter writes about the “shocker of an announcement” by the Treasury Department “that it would have to borrow $1 trillion in the quarter through September and another $852 billion in the quarter through December, on top of the $32.6 trillion the government already owes.”

It’s another leg up in what Richter calls “Debt Out the Wazoo!”

To add insult to injury, Fitch says, “Everybody who reads the newspaper knows that the United States has a very serious long-term fiscal problem.”

It’s a good point, except that newspapers don’t cover the news as they once did.  Take a look at this ironic snippet from Wall Street on Parade: 

There is a website where one can look at the front pages of newspapers across America on any given day to gauge the concerns of our fellow citizens. Yesterday, we checked small and medium size newspapers across the country to see if any newspaper reported the Fitch downgrade of the U.S. credit rating on its front page. Of the two dozen newspapers we sampled, we couldn’t find any mention of the credit downgrade.

The US losing its Triple A debt rating is a seismic even in the financial world.  That’s why foreign central banks want gold.  For protection against the dollar.

And that is exactly why you need to protect yourself as well with gold and silver.

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This is an excerpt from Jim Clark’s important book REAL MONEY FOR FREE PEOPLE…

This selection is especially relevant for these times, with recent bank failures and ongoing solvency concerns.

Because the book describes the entire American gold story in a clear and easy-to-understand way, and because it is information you need for the challenging times coming our way, we want you to have a copy absolutely free!

Just stop by Republic Monetary Exchange and let us give you a copy of REAL MONEY FOR FREE PEOPLE.

No cost.  No obligation.

Gold and silver are the only monetary assets that are not someone else’s liability. They are not dependent on someone else’s solvency, promises to perform, or honesty. Their value does not depend on the endorsement, propriety, or honesty of any State or institution. They have no counterparty risk, no risk of rule changes, nonpayment, default, or bankruptcy by individuals, companies, financial exchanges, institutions, and banks—quite apart from being insulated from the risks of the Fed’s fiat dollar as well. 

It is a wonderful thing for people’s promises to be reliable, and for institutions to be vigorous fiduciaries of their client’s interests. The modern world with all its miracles is built on the assurance that people will meet their obligations, fulfill their contracts, and respect others’ property…. 

When this environment of trust begins to fray, sophisticated civilization itself is at risk. 

Now, with the elimination of gold from our monetary system at the hands of Franklin Roosevelt and Richard Nixon, along with the abandonment of silver, the US dollar has remained unmoored, unanchored, and untied to anything real ever since. Unlike fiat currencies that have gone before, the dollar is the ultimate fiat currency. It is global in scope because it is the world’s reserve currency. At the same time, the United States is the biggest debtor in history….

By now you should have realized that central banks and fiat money are managed for the greater glory of the State and for the special advantage of the State’s cronies, and not for the benefit of the people. Inflation is the means by which the State enriches itself by subterfuge, quietly eroding the purchasing power of the currency for its own benefit. And while inflation itself is actually the State’s increase of the supply of money and credit, it is the effects of that increase—higher prices because of the currency’s failing purchasing power—that people call inflation.

The destruction of a currency’s purchasing power is evidence of the currency system’s failure. 

Today we do not have real money, a redeemable currency that is actually backed by gold and silver, a monetary system that could have served as a bulwark against the usurpations of the State. And after several generations of being under assault by the State on every front, it is safe to say that the light of liberty has dimmed and that the fires of freedom do not appear to burn brightly in the hearts of many of the American people. 

And so, the monetary system of fraudulent, legalized counterfeiting has now been allowed to reach its logical extreme and will now collapse of its unrestrained excesses and deceit.

To some, it may appear melodramatic to announce that we are at a monetary endgame. But it is clear-eyed realism that follows from the historical precedents. And from the hard accounting.

To learn more, speak with one of the Republic Monetary Exchange’s gold and silver professionals.  Get all of your questions about precious metals answered, and learn how to protect yourself, your family, and your retirement with real money, money of enduring value that can’t simply be printed.

Stop by Republic Monetary Exchange and let us give you a copy of REAL MONEY FOR FREE PEOPLE!

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Shrinkflation is everywhere these days.  That’s when retailers try to disguise price inflation by shrinking the package sizes instead of hiking the price.

One of our friends mentioned that his toothpaste tube used to be 8.2 ounces.  Now it is 5.2 ounces instead.  Of course, the new smaller tube brags that it is new and improved in some way, but the product has bragged about being new and improved for most of our lives.

The half-gallon of ice cream container is now only 1 ½ quarts.  

You’ve probably noticed the price of postage going up.  Someone joked that they had to raise prices to cover the additional cost of storing your mail for the week before they actually get around to delivering it.  

In any case, a First-Class Mail Forever stamp now costs 66 cents.  That’s up from 58 cents a year ago.  That’s a hike of more than 10 percent in a year.   In fact, just three months ago, a First-Class Mail Forever stamp cost 53 cents, so it has gone up about 5 percent in just three months.

That may be a better way to judge the real inflation rate than all the carefully massaged government indexes like the CPI, the PPI, and the PCE.

Shrinkflation is so widespread there is even a sub-Reddit for shrinkflation with 78,000 members.  Here are a couple of shrinkflation photos people have posted there:

Businesses have other ways of trying to conceal price increases as we have noted before.  Materials may get cheaper.  Furniture that was once made of solid wood begins to be manufactured in particle board.  If the installation of a purchase was free, now it becomes an extra charge.  Did you use it to get a two-year warranty?  It may be only a year next time.

Businesses may be hiding price increases, but prices are rising because our money is being ruined by money printing.  It buys less.  We aren’t happy that businesses are trying to conceal price increases with inflation.  Maybe they think it’s all they can do to lessen the pain, but nobody is fooled by the incredible shrinking candy bar.

The problem is the monetary system.  The authorities know as well as we do that they are cheating people, stealing from them when they depreciate the dollar.  It is a dishonorable practice that reminds us once again of H.L. Mencken’s observation that every decent man is ashamed of the government he lives under.

You need to invest in gold and silver because the government continues to erode the purchasing power of the dollar and steal from you.  

And they aren’t even close to being finished!

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Civil War Era Stash Includes Rare $20 Gold Liberties!

They are calling it “The Great Kentucky Hoard!”

A Kentucky man whose name has not yet been revealed is suddenly very rich, thanks to the discovery of a lifetime.  While digging in his cornfield, he uncovered a stash of Civil War-era gold coins.

The stash consisted of more than 800 gold coins altogether.

The treasure includes 18 $20 Gold Liberties as well as $10 gold Liberties, and more than 600 US $1 gold Indians, with dates ranging from 1854 to 1862.

The National Post reports that one of the coins is an 1863 $20 Gold Liberty, a coin that has sold in the past at auction for more than $100,000. 

“This is the most insane thing ever!” said the lucky finder.

Better to have gold coins buried in your backyard than to try to negotiate the monetary turmoil ahead with unbacked, fiat paper dollars.  If you have not prepared for the dollar’s eventual demise from its current iteration, then you should consult a Republic Monetary Exchange gold and silver professional right away!

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The Two Countries Make Up Nearly Half of the World’s Gold Demand!

The gold rush is on.  If you don’t see it, it is because it is taking place in Asia.  

 India and China together are gobbling up the world’s gold.   The two nations are responsible for half of the world’s total gold demand.  In fact, Asia taken as a whole is responsible for 60 percent of the world’s demand, while both China a Japan are reducing their US dollar holdings.

That is a gold rush, in our view. 

While the US has a long and foolish track record of suppressing gold ownership by its citizens, China has a different outlook.  It has liberalized gold ownership and reduced restrictions on its people.  The result is a five-fold increase in gold consumption since the 1990s.  China is today the largest gold producer in the world as well as the largest net acquirer of gold.  (India is the second largest acquirer of gold.)  If history is any guide – and it is – this means that China (and perhaps eventually India) will become more influential in the affairs of mankind.  The West, which is dis hoarding gold, will wane in influence.  

Here is a link to an October 2022 Bloomberg News article headlined, The Gold Market’s Great Migration Sends Bullion Rushing East!”  

The People’s Bank of China added to its gold reserve again in June, increasing its holdings by 23 tons.  That is the eighth consecutive month of the central bank gold growing its gold stock.  These increases are a strategic move, one that coincides with China reducing its dollar reserves held in US government bonds.  The promiscuous application of dollar sanctions and trade restrictions are making the dollar into a toxic asset in the eyes of many foreign nations.

We expect the global flight from the dollar and into gold to continue.  It is not just a sound strategy for nations, it is a wise strategy for individuals.

Your Republic Monetary Exchange gold and silver specialist is available to guide you in protecting yourself and your wealth with precious metals.

With big banks tumbling last March – First Republic Bank, Silicon Valley Bank, Signature Bank, and Credit Suisse – people were lining up to get their money out of banks.  Many of them, foreseeing more financial and monetary stress ahead – turned to gold and silver.

It turns out, as they suspected, that like a ticking time bomb, more banks are finding themselves in deep trouble.  As Wall Street on Parade puts it, “The banking crisis has pretty much disappeared from the headlines but the smoldering remnants of the crisis are very much still with us.”  The website decided to see how much stock prices have plunged for the nation’s 15 leading banks.  This would signal the assessments of the banks’ woes by those who follow the banks most closely.

It’s not a good picture.  Wall Street on Parade reported on those performances from the end of 2021 until last week:

Among the 15 largest banks, the following five banks have performed the worst in terms of share price declines since December 31, 2021: Truist Bank (ticker TFC), Citizens Bank (CFG), U.S. Bank (USB), PNC Bank (PNC), and Bank of America (ticker BAC).

Bank of America is the second largest bank in the United States with $2.5 trillion in consolidated assets and 3,804 domestic bank branches. It has lost 37 percent of its market value (market capitalization) in a year and a half.

As uninsured depositors, those with assets above the FDIC’s $250,000 insurance cap limit, began to make withdrawals, the runs began to snowball.  $42 billion was pulled from Silicon Valley Bank in a single day.

First Republic Bank, Silicon Valley Bank, and Signature Bank were the second, third, and fourth largest bank failures in history.  And yet, as Wall Street on Parade pointed out, those banks were not even on the FDIC’s “Problem Bank List.”

The moral of this story is that the banking crisis is far from over.  The Fed continues to promise higher interest rates to come, which will exacerbate troubles for banks that have mismatched deposits and loans, or in bank speak “have borrowed short and lent long.”  

Those that began moving to gold in March were just ahead of the curve, which is far better than being behind the curve.

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Are we headed to “a very dark place?”  Be ready!

“It is clear as day that Xi Jinping is planning to move militaristically over Taiwan. We’re hoping it doesn’t happen. History is rhyming right now. I think we’re heading to a very dark place,” said Kyle Bass just days ago on CNBC.

Bass is the founder and chief investment officer of Hayman Capital Management.  He made half a billion dollars disregarding government economists like Alan Greenspan and Ben Bernanke.

He was also an important voice challenging the Federal Reserve’s assertion that the inflation it created was transitory.  Those are just a couple of reasons we keep track of Bass’s analysis.

Now we would like you to watch his take on the China/US standoff.  Pay attention to the correlation of naval forces he cites, and bear in mind the long supply lines the US has in the event of engagement over Taiwan, versus China already in position. 

"It is clear as day that Xi Jinping is planning to move militaristically over Taiwan. We're hoping it doesn't happen. History is rhyming right now. I think we're heading to a very dark place," says @jkylebass. "China needs to act as a responsible global actor." pic.twitter.com/TsmM2PHMd4

— Squawk Box (@SquawkCNBC) July 5, 2023

China is already lightening up its US dollar exposure.  From more than a trillion dollars a year ago, it is down now to about $860 billion in Treasury bonds.  A kinetic war with China will see the US dollar tank and send gold prices to the moon.  

We conclude on the evidence that the Biden administration is entirely capable of getting the US into at least a crippling trade war with China.  We conclude that the Biden administration is capable of escalating its proxy war with Russia.  And we conclude that the Biden administration is capable of lurching blindly -into a two-front war, with Russia in Europe and with China in the Pacific.  

If you haven’t prepared yourself for the damage the Biden administration can inflict on this country, you are risking a lot.  Speak with a Republic Monetary Exchange gold and silver specialist today about self-preservation and wealth preservation.

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But the record says differently!

President Joe Biden recently tweeted that America is not a deadbeat nation. 

 “We pay our bills,” Biden said in a related press conference.   “America has never defaulted on its debt.  And we never will.”

Well.  The President should be expected to know better.  He was so very wrong that he even got blasted by fact-checkers on Twitter’s Community Notes.

One linked to a story in the San Francisco Examiner headlined, “A short history of U.S. credit defaults (You didn’t know it’s happened multiple times before?)”

According to the report, “Only a few months after Congress created the dollar, the government defaulted on the new currency. Happened in 1862.

“Five months after what was then called the “Greenback” was created in 1861, President Lincoln’s Treasury Department failed to redeem them in January 1862.”

Another linked to a Mises Institute article called, “A Short History of US Credit Defaults.”  Among others, it points to defaults during Franklin Roosevelt’s administration including the Liberty Bond default of 1934.  Better known and even more outrageous was Roosevelt’s decision “to default on the whole of the domestically-held debt by refusing to redeem in gold to Americans and devaluing the dollar by 40 percent against foreign exchange.”

Another response linked to a piece in The Hill that read, “The US has never defaulted on its debt — except the four times it did.”

It cited another default in 1968 when the US government defaulted “by refusing to honor its explicit promise to redeem its silver certificate paper dollars for silver dollars. The silver certificates stated and still state on their face in a language no one could misunderstand, ‘This certifies that there has been deposited in the Treasury of the United States of America one silver dollar, payable to the bearer on demand.’ It would be hard to have a clearer promise than that.”

The same article cites the severing of the dollar’s ties to gold in 1971 defaulting on “the U.S. government’s commitment to redeem dollars held by foreign governments for gold under the Bretton Woods Agreement. Since that commitment was the lynchpin of the entire Bretton Woods system, reneging on it was the end of the system. 

It was, said President Nixon at the time, a temporary measure.  This was 52 years ago… which reminds us of Milton Friedman’s observation that nothing is as permanent as a temporary government program.

If it were only Biden who is uninformed, that would be one thing.  But we have seen a continuous flow of government officials who are utterly detached from reality.  Janet Yellen testified in Congress that, “The U.S. has never defaulted. Not once.”

President Obama was shown to be utterly clueless on national TV when asked about the size of the US national debt.  

If the American people keep sending people manifestly incapable of knowing or caring about their stewardship obligations, then maybe old H.L. Mencken was right when he said that democracy is the theory that the common people know what they want and deserve to get it good and hard.

As for us though, we prefer to be protected from inept politicians and the calamitous results of their policies.  

That’s why we invest in gold and silver.

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Circle August 22 -24 on your calendar.

That is when the BRICS nations gather for a key summit meeting in Johannesburg, South Africa.  

The US dollar will be in their crosshairs.  And a BRICS currency tied to gold is expected to be a part of the discussion.  It is not a coincidence that a move to re-monetize gold is on the table.  More and more of the world’s central banks have independently been moving reserves away from the dollar and into gold.  

It may be early in the development of a BRICS gold currency.  There are steps along the way.  But to be clear, an unbacked, irredeemable, made-up fiat currency like the US dollar cannot possibly compete with an honest gold currency.

The BRICS is a consortium of five nations – Brazil, Russia, India, China, and South Africa – that together are responsible for 31.5 percent of global productivity.

That means the BRICS have now surpassed the total productivity of the G7 nations consortium, which includes the US, Canada, France, Germany, Italy, Japan, and the United Kingdom.  Together the G7 is accountable for only 30 percent of total global production.

To put it poetically, you could say the BRICS are waxing, while the G7 is waning.  Here is a chart that illustrates the changing dynamics.

The BRICS have not been shy about the need for a challenge to the US dollar as a weaponized tool of US imperialism.  They represent a revolt against the economic interventionism in their internal affairs, the unilateral global military hegemony, and the regime change wars of the US.  

Other nations have similar views about the US, so the ranks of the BRICS are bound to grow.  Among the nations that have expressed an interest in affiliation with the BRICS are Egypt, Nigeria, Mexico, Iran, Indonesia, Turkey, and others.

From a recent Fortune magazine article:

The BRICS summit comes as countries across the world are confronting a changing geopolitical landscape that is challenging the traditional dominance of the West. And while the BRICS countries have been seeking to reduce their reliance on the dollar for over a decade, Western sanctions on Russia after its invasion of Ukraine have accelerated the process.

Meanwhile, rising interest rates and the recent debt-ceiling crisis in the U.S. have raised concerns among other countries about their dollar-denominated debt and the demise of the dollar should the world’s leading economy ever default.

e BRICS have called for a new global currency that can challenge the dominant role of the US dollar in the international monetary system. 

As the world seeks to reduce its dependency on the dollar, gold appears as the best, most confidence-inspiring and reliable store of value.  We will be watching the BRICS summit closely and reading between the lines of their official announcements.

When gold is remonetized, we believe its price in dollar terms will skyrocket higher.  

Be ready.

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It was only a few weeks ago, on June 3, that President Biden signed the bill suspending the US national debt ceiling.  At that time the national debt was $31.4 trillion.

Now, less than three weeks later, it has climbed $700 billion.  The national debt is now $32.1 trillion.

And that is why investor Ray Dalio told Bloomberg investment conference attendees last week that we have a problem.  “We are at the beginning of a late, big-cycle debt crisis when you are producing too much debt and have a shortage of buyers,” Dalio said.

Beginning with the public debt as a percentage of GDP, here are a few graphics from the Peterson Foundation to help drive home the scale of our problem:

How long can anyone or any government continue to spend more than they earn?

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A looming bank crisis is creating the perfect pretext for the forced introduction of Central Bank Digital Currencies!

That’s the conclusion of noted author and financial commentator John Rubino.

In his Substack newsletter, Rubino describes two dangerous financial trends that are converging now:

1. “Central banks are conspiring to force us out of traditional savings and checking accounts and into central bank digital currencies (CBDCs).”
   
2. “Deposits are now fleeing local and regional banks because an inverted yield curve makes it impossible for those banks to pay competitive interest rates on deposits. Put another way, there’s a shortage of dollars in the banking system, which is an existential threat for a lot of banks.”

Rubino, in turn, cites an article about Eclectica Asset Management founder Hugh Hendry, who believes that investors pulling deposits from banks may force the Fed to place limits on withdrawals.

“That could reach a crescendo where the Treasury and the Fed may have to come in and actually restrict your right as a U.S. citizen to pull money out of the U.S. banking sector,” says Hendry.  He likens the current situation scenario to 1934 when a desperate government confiscated the people’s gold.

“I would recommend you panic,” he Hendry.

According to Rubino, the crackdown “will begin with more Silicon Valley Bank-style failures, leading the government to ‘protect’ the banks by limiting depositors’ ability to pull their money out. This in turn will make banks even less attractive to depositors, leading to an acceleration of withdrawals and a surge in bank failures. Which gives the Fed its pretext.”

What should you do?  Act before the crisis hits!

“One certainty,” says Rubino, “is that in a bank run/deposit freeze/CBDC forced adoption, money will pour out of the banking system — and out of the dollar generally — and into gold and silver.”

As usual, the best advice is this:  Don’t wait until it is too late. Speak with your Republic Monetary Exchange gold and silver professional today.

BRICS+ Could be A Bombshell!

“The most significant development in international finance since 1971!”

That’s what bestselling author and gold commentator James Rickards is calling an event headed our way in August.  

That’s when a geopolitical shock wave will be delivered by the BRICS, an international financial consortium consisting of Brazil, Russia, India, China, and South Africa.  That represents about 40 percent of the world’s population.  

Now, with other nations seeking to join the core BRICS nations, the term “BRICS+” has been coined.  Potential additions to the currency and trade partnership, says Rickards, are “eight nations that have formally applied for membership and 17 others that have expressed interest in joining. The eight formal applicants are Algeria, Argentina, Bahrain, Egypt, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates.”

“The 17 countries that have expressed interest are Afghanistan, Bangladesh, Belarus, Kazakhstan, Mexico, Nicaragua, Nigeria, Pakistan, Senegal, Sudan, Syria, Thailand, Tunisia, Turkey, Uruguay, Venezuela, and Zimbabwe.”

Rickards suggests that a new BRICS+ currency may be announced at the annual BRICS Summit Conference set for August 22 – 24 in Durban, South Africa.

Rickards:

When the new currency launch is announced in August, the currency will not fall on an empty field. It will fall into a sophisticated network of capital and communications. This network will greatly enhance its chances of success….

What’s behind this quest to ditch the dollar? In no small part the answer is U.S. weaponization of the dollar through the use of sanctions.

What makes the plan not just a major global financial development, but an actual bombshell, is Rickards’ conclusion that the plan is to link the new BRICS+ currency to gold.  And that will create a real upheaval in the global monetary markets.

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The total federal deficit in 2003 – the deficit for the entire year – under President George W. Bush was $377.6 billion dollars.

On Monday, June 5, — in a single day – the national debt increased by almost that amount, by a total of $359 billion.

Now the US national debt is more than $31.8 trillion.  That’s what you could call debt out the wazoo!  And there is a lot more where that came from.

What’s going on?

When the debt ceiling of $31.4 trillion was reached and the issue of suspending the debt ceiling was being debated in Washington, a lot of accounting tricks were put to work to keep the bills paid.  It’s as those some money was moved from the sock drawer to the underwear drawer, and from the front pocket to the back pocket.  Some bills were shuffled to lower-priority positions; they didn’t have to be paid at that moment.

Then on the first business day after President Biden signed the debt bill, the Treasury started borrowing more to pay bills that were stacking up.  And the debt jumped by almost $400 billion.

Wolf Richter at WolfStreet.com says, “And that was just the beginning, there will be more hair-raising single-day spikes of the debt over the next few days:

By some estimates, the Fed could issue a flood of Treasury bills, $800 billion to $1 trillion, rattling the markets.

Richter points out that for the first time, “the Fed’s QT [Quantitative Tightening] is happening simultaneously with the refilling of the TGA [the Treasury’s general account] and they’ll both simultaneously for the first time draw liquidity out of the market.

We’re in for some real fiscal turmoil!  How is your gold and silver position? 

Are you ready?

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When the government’s debt is unsustainable, buy gold!

Without the slightest regard for how the Washington debt ceiling debate has evolved by the time this commentary is published, we’d like to put the current size and scope of federal debt front and center.

That is because it is huge.  And it cannot be retired by normal, straightforward, and honest means.  It can only be contained by the expedient of inflation.  In other words, federal debt management will require a massive and ongoing devaluation of the dollar.

The US national debt clock, always worth a visit at usdebtclock.org, tracks the national debt at $31.818 trillion.  That works out to $95,016 per citizen, or more than $380,000 for a family of four.  Where are the people expected to get the money to pay that?  

They are not expected to pay for it.  It is unpayable.  

The unfunded liabilities of the US government promises it has made to people that are not funded, things like Social Security, Medicare, and veterans’ benefits, amount to an additional $187.996 trillion.  That is an additional $560,594 per citizen or $2,242,000 for a family of four.  Where are the people expected to get the money to pay that?

They are not expected to pay for it.  It is unpayable.

In other words, it doesn’t matter much what Mr. Biden, Mr. Schumer, Mr. McConnell, and Mr. McCarthy do. They won’t do what must be done.

Let us backtrack for a bit.  We said the national debt cannot be retired by normal, straightforward, and honest means.  We should have said by any such means that are politically feasible.  On the other hand, Senator Rand Paul has proposed a solution that is straightforward but is not politically feasible.  He proposes capping total spending, cutting 5 percent of the total budget every year.  

From The Hill:

Under his [Paul’s] plan, if government spending continues at its current rate, an automatic $302 billion cut would take effect in 2024 and another $241 billion cut would take effect in 2025 — amounting to a total of $545 billion in cuts over the next two years.  

Paul says his proposal would balance the budget by fiscal 2028 if the government adhered to its caps.  

It would also mandate that growth in federal outlays may at no point exceed the growth in revenue from the previous fiscal year.  

Senator Paul’s plan is not the only one.  There are other workable alternatives to bring spending into control.  None of them has the slightest chance of being enacted.  Yet if there are not real, substantial cuts in spending, the debt will have to be repudiated or inflated away.

The pain would be much less under Senator Paul’s plan.  The inflation alternative is capable of destroying the Republic and ruining the culture, or such culture as we have left.

In either case, your dollars will become worth less and less until they become worthless.  

But your gold and silver will become worth more and more.  You might say that it will become priceless in terms of dollars.

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Consumers, the US, and the rest of the world are all leaning on debt... what could possibly go wrong?

You’ve probably heard the story from long ago about the South Seas islander explaining his view of creation to the visiting missionary.

The world stands on the back of a turtle, he explained.

“Well,” ask the missionary, “what does that turtle stand on?”

“Another turtle,” explained the islander.

“And that turtle,” the missionary asked, “what does it stand on?”

“You can’t fool me,” said the islander.  “It’s turtles all the way down!”

It’s a fun story, at least for those that haven’t heard it too often.  But it’s not as fun when it is about debt.  Today, it’s the debt all the way down.

That thought occurred to us when we learned that Americans are now carrying about a trillion dollars in credit card debt.

The Hill reports that the average interest rate on a new card is 24 percent, the highest rate since the 1980s, and that the typical household has a record $10,000 in credit card debt:

If that doesn’t sound like a lot of debt, try paying it off. At $250 per month, with 24 percent interest, you’ll be making payments until 2030, and you’ll spend a total of $20,318, twice what you owed. And that assumes you never use the card again. 

“It’s hard to build wealth when you’re paying 20 percent interest every month,” said Ted Rossman, a senior industry analyst at Bankrate.com.  

The nation’s credit card debt stands at $986 billion, according to the Federal Reserve. The figure has climbed by $250 billion in two years.  

Some other estimates range higher. A WalletHub report put total card debt at $1.2 trillion at the end of 2022.

Total US consumer debt has hit a new record high of $17.05 trillion.  

Then there is government debt, the much-debated statutory debt limit of $31.4 trillion.  Total world debt is estimated to be $305 trillion.

The thing is that all that debt is balanced on a very small point of non-debt liquidity called gold.  Gold is an amazing monetary commodity, but the load as shown in this graphic portrayal called the Exeter Debt Pyramid is growing fat too top heavy.  Already it is wobbling.  There is too much debt for such a small amount of real liquidity.  

Of course, the gold will still be fine, it will continue to be money, but everything else from derivatives to government debt and paper money will come crashing down.   

And that is just one more reason to take steps to protect yourself.  Speak with a Republic Monetary Exchange gold and silver specialist today.

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Take it from the Swiss!

UBS, the Swiss banking giant, has a “most preferred” rating on gold.  Now, in a report entitled “Three Reasons to Buy Gold Now,” its Chief Investment Office says that it expects gold to break its all-time high later this year, and has offered three specific reasons for its forecast of higher gold prices.  

1. Central bank demand should remain robust.

“Last year marked the 13th consecutive year of net gold purchases by global central banks and the highest level of annual demand on record dating back to 1950…. We think this trend of central bank buying is likely to continue amid heightened geopolitical risks and elevated inflation. In fact, the US decision to freeze Russian foreign exchange reserves in the aftermath of the war in Ukraine may have led to a long-term impact on the behavior of central banks.”

We concur.  In a recent post, China Keeps Buying Gold, we reported that in April China added to its gold reserves for a sixth consecutive month.  Poland’s central bank added 14.8 tons of gold in April as well, its biggest addition in three years.

The National Bank of Poland’s governor, Adam Glapinski said it is in 2021 that Poland was preparing for “the most unfavorable circumstances.”

“Why does the central bank own gold?” asked Glapinski.  “Because gold will retain its value even when someone cuts off the power to the global financial system.  Of course, we do not assume that this will happen. But as the saying goes – forewarned is always insured. And the central bank is required to be prepared for even the most unfavorable circumstances.”

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2. Broad US dollar weakness supports gold. 

UBS says it sees see another round of dollar weakness over the next 6–12 months.  “The direction of a weakening dollar is clear, with the US Fed having signaled a pause in its current tightening cycle after 500 basis points of rate hikes over the past 14 months…. We believe the reduction in US yield carry will continue to weigh on the greenback.”

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3. Rising US recession risks may prompt safe-haven flows.

“Overall, recent data coming out of the US showed the country’s growth is slowing, with weaker-than-expected 1Q GDP, six consecutive months of contracting manufacturing activity, and the weakest consumer sentiment since November. Tighter credit conditions, evidenced by the Fed’s latest Senior Loan Officer Opinion Survey, are also likely to weigh on growth and corporate profits. Based on data since 1980, gold’s relative performance versus the S&P 500 improved significantly during US recessions.”

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UBS is the world’s largest private bank.

Speak with a Republic Monetary Exchange gold and silver specialist about today’s troubled monetary system.

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Gold, Jewelry Sales Surge in India on Central Bank’s Currency Crack-down!

The Reserve Bank of India continues its war on cash and its attempts to herd the nation’s people into the banking system.  

In a sudden move, the central bank announced that it was withdrawing 2,000-rupee notes from circulation.  The notes are equal to about $12.

The call-in is reminiscent of India’s crack-down on cash in 2016 when it withdrew 500- and 1,000-rupee notes from circulation.  That move caused inconveniences, dislocations, and upheavals across the country.  

Because it is inevitable that the US will in time experience its own currency call-in, here is a brief digest of India’s experience in 2016 when the government demonetized its widely used 500- and 1,000-rupee notes. 

Predictably the government disguised the currency call-in as a way to catch drug dealers and counterfeiters.  It did no such thing.  It was a combination of a tax grab and a means of stampeding the populous into the crony banking system.  The old bills were exchangeable for a period of weeks, after which they became worthless.  People who turned in currency were expected to be able to explain the source of their money and had their fingers marked with indelible ink so they couldn’t make subsequent exchanges.  

At the same time, the government banned all cash transactions of 300,000 rupees or more, an amount less than $5,000.   The sudden currency call-in cost millions of jobs, lost in the cash economy.  A billion people who lived in places without reliable electricity and internet access were nevertheless forced into digital banking.  It was no surprise to find angry mobs had taken to the streets.  

Now the Indian government is at it again.  Details of the current currency call-in are somewhat different than the last one.  The Hindustan Times reports that “people scrambled to buy gold and silver in bulk in bullion markets, leading to an increase in prices.”  At the same time, the government is cracking down on hawala transactions, informal non-bank, and non-reported fund transfers.

India’s government insists that this new currency call-in does not mean demonetization of the currency.

Meanwhile, the war on currency and privacy continues here in the US.  And hint:  neither privacy nor honest currency is likely to end up on top.  Make sure you have ample gold and silver in your portfolio as the crackdown continues.

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It’s Up, Up, and Away!

Washington spends one or two trillion dollars more than it collects in taxes.  (We’d be more specific, but what are a trillion dollars between friends?)

So where does it get the difference?  Like any household whose income doesn’t keep up with its outgo, it has to borrow the difference.  (We’ve covered the government’s money-printing business many times and will save it this time for a later discussion.)

Creditors, like Mastercard and Visa, put limits on individual credit lines.  That’s when consumers realize they need to cut back.  They can’t spend beyond their income forever without unwanted consequences.

Our government doesn’t seem to believe it must ever cut back its spending meaningfully.  When Washington runs up against its statutory debt limit, it just passes another law, unilaterally raising its legal borrowing limit.

And for all the debate, the pitched drama from the media, and posturing politicians, we feel safe in predicting that the debt limit will be raised and that any compromises and concessions will not be enough to save the US from having to inflate wildly to avoid an eventual default on its debt.

For now, take a closer look at the history of the debt ceiling in this graphic from Visual Capitalist.

We should also mention fiat currency!

“The Fed is problem No. 1 in American finance.”

So says the wickedly smart Jim Grant, the author/editor of Grant’s Interest Rate Observer.

Grant says the long-term suppression of interest rates by the Federal Reserve is the source of our problems.  “I think generally that the suppression of rates introduces all manner of distortions in the economy,” Grant said in a recent interview.  “It distorts savings. It causes people to go and reach for growth, for yields as if they were on their hands and knees with a flashlight looking under their furniture for some return on their savings.”

During Congressman Ron Paul’s presidential race years ago, he was asked who he would like to appoint to the chairmanship of the Fed.  After no doubt explaining first that there should be no Fed, Dr. Paul suggested that if Fed did remain in place, then Jim Grant would be on his list.

That was a good call!

“I think that the basic idea of buying up bonds and thereby suppressing longer-dated interest rates, in the hopes of generating rising asset prices and thereby stimulating the economy by dint of people spending the proceeds of their capital gains, this idea that the Bernanke Fed surfaced in 2010-11 I think it is a very, very dicey proposition longer term. I don’t think it works,”

We agree with Grant that the Fed is a problem that has cost the American people dearly.  It has destroyed 93 percent of the value of the dollar during its existence — by design.  We think the very existence of the Fed is an outrage and is nothing less than a huge wealth transfer machine that enriches Washington’s banking cronies.  

But we might describe the problem somewhat differently, as being the unbacked, fiat, made-up, irredeemable dollar.  We suspect Grant would argue with us.  He is, he says, “eternally bullish on gold.”

And why not?  Gold is the go-to money of the ages around the world and in every kind of financial crisis.  And we are sure in a crisis now as people are noticing.

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Confidence in Fed at All-Time Low!

Americans prefer gold to stocks over the long term.

That’s according to a new Gallup poll.

The highest inflation in most people’s lifetimes, ever-climbing debt, and a governing class that is quite unwilling to get its spending under control have apparently had an impact on public attitudes about both gold and the Federal Reserve.

A Forbes report on the poll says that “Americans favor gold as the strongest long-term investment at the largest proportion in over a decade, a new survey found, as equities lose favor while the precious metal hovers at a near-record high.”

• About a quarter (26%) of Americans view gold as the best investment over the long term, according to a Gallup poll conducted between April 3 and April 25 among 1,013 American adults.

• That’s the highest faith in gold since 2012 and a nearly two-fold increase from last year.

• It’s also the first time since 2013 more respondents have favored gold over stocks.

Earlier this month Gallup reported that 48 percent of Americans are worried about the safety of their money in the banks.  

At the same time, the public is not all buying what the Fed is selling.  Here’s a new Bloomberg headline:

JEROME POWELL FACES LOWEST PUBLIC CONFIDENCE FOR FED CHAIRMAN ON RECORD, GALLUP SAYS

Just 36% say they trust Powell to do the right thing for economy

At the recent Berkshire Hathaway shareholder meeting, Warren Buffett warned authorities to be careful.  “”It’s very hard to see how you recover once you let the genie out of the bottle and people lose faith in the currency,” he continued.

It’s “madness to just keep printing money,” Buffett said.

The Forbes article points out that gold is “up 11 percent year-to-date and just shy of its 2020 peak. Various destabilizing factors including geopolitical tensions stemming from the Russian invasion of Ukraine, the Federal Reserve’s aggressive monetary policy and the U.S. dollar’s decline are behind gold’s surge in value.  Spot prices of fellow precious metals platinum and silver are each up nearly 20 percent over the last year.”

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Beware of the Twin Crashes: Commercial Real Estate and Bonds!

“The twin crashes in US commercial real estate and the US bond market have collided with $9 trillion uninsured deposits in the American banking system. Such deposits can vanish in an afternoon in the cyber age.”

So writes veteran British journalist Ambrose Evan-Pritchard in The Telegraph’s Economic Intelligence newsletter.

We keep reading that the failures of First Republic, Silicon Valley, and Signature banks were “idiosyncratic.”  That means that the failure was not systemic to the banking system but was limited to just those banks.

Of course, if the failure of those leading banks is a sign of things to come, then you would rush right out and buy gold and silver.  

Evans-Pritchard is not having any of that “idiosyncratic” nonsense.  It is a “dangerous evasion” he says:

Almost half of America’s 4,800 banks are already burning through their capital buffers. They may not have to mark all losses to market under US accounting rules but that does not make them solvent. Somebody will take those losses.

He cites Amit Seru, a professor at Stanford’s Graduate School of Business, who also says, “Let’s not pretend that this is just about Silicon Valley Bank and First Republic. A lot of the US banking system is potentially insolvent.”

Evans-Pritchard:

Prof Seru and a group of banking experts calculates that more than 2,315 US banks are currently sitting on assets worth less than their liabilities. The market value of their loan portfolios is $2 trillion lower than the stated book value.

These lenders include big beasts. One of the 10 most vulnerable banks is a globally systemic entity with assets of over $1 trillion. Three others are large banks. “It is not just a problem for banks under $250bn that didn’t have to pass stress tests,” he said.

Already US bank closings have produced losses of about $550 billion.  As the problems cascade through the banking industry, the FDIC will find itself inadequate to the last of providing the kind of liquidity necessary to stave off a collapse.  It is more than the Federal Reserve can handle without massive money printing.

Evans-Pritchard concludes, “The horrible truth is that the world’s superpower central bank has made such a mess of affairs that it has to pick between two poisons: either it capitulates on inflation, or it lets a banking crisis reach systemic proportions. It has chosen a banking crisis.”

You don’t have to be personally victimized by either crisis.  Insulate yourself by owning gold and silver during the difficult times coming our way.  Speak with a Republic Monetary Exchange specialist today.

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One more reason the US Dollar is losing market share to gold!

In the three months to the end of March, central banks added 228 tons to global reserves, the highest rate of purchases seen in a first quarter since the data series began in 2000.

CNBC, 5/5/23

How would you like to use a bank that makes you comply with policies that have nothing to do with banking?  Maybe it is crazy woke.  Or it decides to worship some weird made-up deity. Or maybe you have to agree with its political positions and vote for its candidates.  

You would probably move your account somewhere else in a jiffy.

Of course, you would. 

It is imperfect, but that is the best analogy we can come up with for the global role of the dollar.  Instead of being a neutral currency without fear of favor, the White House gets to decide what foreign nations must do.  And if they don’t comply, not only are they frozen out of the dollar economy and trade settlement systems that use the dollar, but sometimes their dollar-denominated assets are just taken from them.

Other countries, even long-standing allies, don’t like it very much.  And that is why so many nations are moving central bank holdings out of US dollars and into gold.  

That is one of the reasons that world-class billionaire hedge fund manager Stanley Druckenmiller says his only high-conviction trade is betting against the dollar.

It just makes sense.  Nobody wants their assets held hostage.  But the US dollar has been weaponized.  Elon Musk explained it in one terse tweet:

Economist Peter Earle at the American Institute for Economic Research makes the same point:  “by weaponizing dollar dominance and permitting expanding mandates to disorient US monetary policy, the dollar’s fate as the lingua franca of world commerce over the long haul may already be sealed.”

No wonder a Financial Times article reports that central banks are headed to gold now and in the future:  “An annual poll of 83 central banks, which manage a combined $7 trillion in foreign exchange assets, found that more than two-thirds of respondents thought their peers would increase their gold holdings in 2023.”

It is a trend that is well underway as the following chart illustrates.

It is not good enough to try to reign supreme over other countries.  Washington wants to wield the same power over you.  Its forthcoming Central Bank Digital Currency is an attempt to have veto power over your personal choices.  

Just as the weaponized dollar is driving people out of the dollar and to gold, the appetite of the Deep State Money Manipulators to surveille you should be enough to drive you to the privacy offered by gold.

Speak with a Republic Monetary Exchange gold and silver professional today.  He will answer all your questions and help you make a sensible move to the enduring money of the ages.

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All it took was the closing of a few banks and another bailout of the cronies to trigger a gold and silver rush!

March saw the biggest monthly sales of American Eagle gold coins in over two years while the Buffalo gold coins hit the highest sales level since 2009.

Coin News reports:

Sales of American Eagle and Buffalo gold bullion coins from the U.S. Mint experienced an incredible rally in March, rocketing from the prior month, and far beyond last year’s sales figures from the same month. This resulted in a remarkable improvement in their first quarter totals, bringing them in line with last year’s performance…

In March, sales of American Eagle gold bullion coins surged significantly, with a total of 215,000 ounces sold — the highest monthly sales since January 2021. This marks a 277.2% increase fom February’s sales of 57,000 ounces and a 38.3% increase from March 2022’s sales of 155,500 ounces. First-quarter sales for this year totaled 435,500 ounces, a 2.1% increase from the 426,500 ounces sold during the same period last year.

Meanwhile, the Silver Institute reports record high silver demand for the year 2022:

All major silver demand categories achieved record highs in 2022, pushing total silver demand to a new high of 1.242 billion ounces (Boz) last year. Silver industrial demand rose by 5 percent, physical investment increased by 22 percent, and jewelry and silverware rose by 29 and 80 percent, respectively, leading to the total global silver demand milestone. Since 2020, the global total has increased by 38 percent as world economies recover from the pandemic…

Along with record silver demand and lower mine production, the silver market achieved its second consecutive annual structural deficit, at a significant 237.7 million ounces (Moz) last year.

The bullish conditions in both the gold and silver markets are the natural consequence of high inflation and an unbacked, irredeemable paper and digital money system.  And it looks like we are in the early and accelerating stages of long-term dollar decay. 

Get ready!

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Happening now – just as we warned.

The air is coming out of the Federal Reserve’s Superbubbles.  

And gold is stirring!

Tom Dyson, with Bonner Private Research, puts it in a nutshell for us:  “They blew up a gigantic wealth bubble by suppressing interest rates, printing money, bailing out bad investments, and encouraging speculation. Now that era is over. The days of free money and low consumer price inflation are finished. We’re in a new period of rising interest rates, falling valuations, and inflation volatility. It’s just getting started.”

Sound familiar?  

We’ve written about the popping of the Fed’s bubbles many times in the past.  For example, in a piece in called Bubble Spotting, we cited the world’s foremost bubble spotter Jeremy Grantham:

“There will be an enormous negative wealth effect, broader than it has ever been, compared to any other previous bubble breaking. It’s the first time we have bubbled in so many different areas – interest rates, stocks, housing, and non-energy commodities. On the way up, it gave us all a positive wealth effect, and on the way down it will retract, painfully….”

Now we are seeing the effects of bubble retraction not just in the stock and bond markets and cryptocurrencies, but in housing markets as well.  The damage is spreading to banks as we learned with Silicon Valley Bank, Signature, Silvergate, Republic, and Credit Suisse.  

The next shoe to drop is commercial real estate, with high-rise office buildings across the land in fire sales or foreclosures due in large part to work-at-home policies.  That spells more trouble for banks that hold about 45 percent of commercial real estate debt.  

Corporate bankruptcies are on the rise too, as the air comes out of the bubbles.  Here’s a CNN account:

More companies around the world defaulted on their debts in the first three months of this year than in any quarter since late 2020, when businesses were still hamstrung by restrictions to stop the spread of Covid.

In a report Tuesday, credit rating agency Moody’s said 33 of the corporations it rates defaulted on their debts in the first quarter…

Meanwhile, credit conditions are tightening throughout the economy as banks are under the spotlight:

Not to be overlooked is that the US dollar has been “bubble-ized” by the Fed as well.  Now the air is coming out of the global dollar and its companion payment system.  

We are witnesses to a historical event, but it is one we wouldn’t wish to have to experience:  the popping of a global funny money Superbubble.  It can pick up speed at any time, so we urge our friends and clients to make sure they have adequate gold and silver positions to protect their wealth and prosper as the bubbles deflate.

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When this happens, you will wish you owned gold.

We are encouraged that more and more people we talk to are aware of the freedom and prosperity destroying properties of Central Bank Digital Currencies (CBDC).  Unfortunately, we must report that these digital, Deep State, total surveillance monetary substitutes are headed our way on a fast track.

You may remember the truckers in Canada during the Covid lockdown protests in Ottawa.  The freezing of their financial assets was only the beginning.  

The latest development on the fiat, digital, fake-money front involves the International Monetary Fund’s plunge into CBDCs.  It is hard enough to keep an eye on and pry freedom-hating, power-worshipping politicians out of office in one national government, but it will become an insurmountable problem if governance becomes globalized.   It is bad enough when your nation-state attempts to corral you into a complete control currency, but it is far worse if such a currency is globalized.  Then there will be no place to go, no place to turn that is outside the system.

But the people’s interest notwithstanding, all the multinational institutions – the World Bank, the IMF, and the Bank for International Settlements – appear to be pushing CBDCs.

In addition to CBDCs’ power as a tool of social control, they represent totalitarian economic and financial power, enabling the authorities to impose top-down fraudulent and misleading interest rate schemes, undebated and unstoppable taxes, and currency devaluations.

Here is a news release about an announcement made last week:

WASHINGTON, April 10, 2023- Today, at the International Monetary Fund (IMF) Spring Meetings 2023, the Digital Currency Monetary Authority (DCMA) announced their official launch of an international central bank digital currency (CBDC) that strengthens the monetary sovereignty of participating central banks and complies with the recent crypto assets policy recommendations proposed by the IMF.

PRNewswire

Our thanks to Michal Snyder at the Economic Collapse Blog for bringing this news to our attention.  Snyder writes:

As the press release quoted above indicates, this new “Universal Monetary Unit” was created by the Digital Currency Monetary Authority.

So who in the world is the Digital Currency Monetary Authority?

Honestly, I had no idea until I started doing research for this article.

The press release says that the organization consists of “sovereign states, central banks, commercial and retail banks, and other financial institutions”…

We recommend reading Snyder’s article at the above link.  Meanwhile, be aware that when the authorities begin the wholesale restructuring of a currency system, changing denominations, convertibility, redeemability, and planning currency call-ins, it is because currency failure is in the offing.  

So while the Deep State Money Manipulators are intent on stampeding the people into the universal control of CBDCs, their own central banks, are acquiring gold at record rates.  

Of course, they are.

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Hint: It’s Because of the Money!

Doesn’t it feel like we are seeing stories like this more and more often?  58 percent of Americans are living paycheck to paycheck according to a CNBC poll.  

The people have no savings.  It’s a mystery why this should be a mystery.  It happens because Washington clearly is at war with savers.  It’s a pretty old and reliable rule of thumb:  if you penalize something, you can generally expect to get less of it.  And… the state sure does penalize saving!

You know it does, because every dollar you save loses purchasing power hand over fist.  By design.  

You can think of inflation as rising prices, and you would end up befuddled.  But if you learn to see inflation for what it is, a decrease in the dollar’s purchasing power, then you’ll understand that the American people are being punished for saving.  It’s because of inflation.

Imagine you locked $100 dollars up in the bank for a year.  When you take the money out to spend it, you will discover that thanks to the deep-state money manipulators and their money printing, your dollar buys less.

Exactly!  Then why save if it makes you a guaranteed loser? 

Here’s a chart we borrowed from David Stockman.  It shows in green the declining purchasing power of the dollar since 2000.  Down, down, down.  

Then why save dollars?

The other lines show the increase in consumer prices over the same period.  The overall CPI is shown in blue.  The red line is the rising index of food prices.  The purple line shows the increasing price of energy.  Up, up, up.

So perhaps we should understand when we learn the people have no savings it is because the waning purchasing power of the US dollar disincentivizes saving.

In a gold based monetary system, people are very likely to be saving.  Because gold is good money.  As we like to say, they can’t print more gold.  

Gold investors know a thing or two about wealth preservation.  To learn more, speak with a Republic Monetary Exchange gold and silver specialist today.

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