Sunday, November 22, 2020

Ron Paul: Class Warfare, Fed Counterfeiting & Lockdowns Hammer The Poor & Middle Class


The Fed’s counterfeiting of dollars hits the poor and those on fixed incomes like a sledgehammer. Inflation leads to there never being enough money at the end of the month. 

To make matters worse, unnecessary COVID lockdowns have slammed middle class small businesses, while crony politically-connected corporations made out like bandits. 

Free markets and sound money are desperately needed to return to an economic reality that has been lost on America since the Fed was founded in 1913.

- Source, Ron Paul

Friday, November 20, 2020

A Renewed Surge in COVID-19 Cases Rattles Investors

Just as the economy was beginning to find its feet and begin some form of recovery in earnest, the reality of 2020 has begun to sink in once again, with cases of COVID-19 rising rapidly across both North America and Europe.

Some of this increase has to do with better testing, some if it has to do with the significantly increased knowledge we have about the virus, however, a significant proportion of it has to do with complacency and people's desire to live their lives in as normal of a fashion as they possibly can in this upside down world.

Regardless of the why, the markets are reacting and they are suffering negatively because of it.

Markets Drop Across the Board

Renewed fears of an economic shutdown is what is scaring market participants the most, as it is appearing more and more likely that Joe Biden is going to become the next President of the United States, despite President Trump's continued fight in that arena.

Joe Biden and his closest allies have stated repeatedly that they are not taking a mass shutdown off the table and are indicating that it is a very likely possibility in their attempt to battle the spread of COVID-19 once he takes office.

Many people laugh at this notion, as they believe that it is simply too late to stop the spread of the virus and only a mass national vaccination program will help alleviate the problem, or simple herd immunity over time.

Yet, fears about people's willingness to take the first wave of vaccines is a real concern for the markets.






(Chart sources, google stocks)

These various concerns are what is causing the recent volatility in the markets, as speculation of what is coming next begins to run rampant in the minds of many investors.


Recent polling from across Canada has indicated that support for taking a COVID-19 vaccine is rising from recent levels, however, many are still anxious about taking what they believe to be a "hastily" approved vaccine.


Global News reports;

A new poll suggests the proportion of Canadians planning to get vaccinated for COVID-19 is on the rise after encouraging initial results from Pfizer’s vaccine trial.

Sixty-nine per cent of respondents said they plan to get inoculated against the novel coronavirus once Health Canada approves a vaccine that is broadly available and free, according to a survey by Leger and the Association for Canadian Studies.

The number is a jump from the 63 per cent who said they would take up such an offer one month ago, and a return to levels of vaccine enthusiasm reported in a similar poll in July.

Similar polling, carried out for Global News between October 23-26 by Ipsos, found that just 54 per cent of the Canadian public is willing to take a vaccine as soon as they can. Of that figure, only 22 per cent feel strongly about taking a vaccine right away.

What this means is that there is going to be heavy resistance by a large percentage of the population in taking the first round of COVID-19 vaccines, and despite what your personal beliefs may be surrounding this controversial topic, this has the markets and governments around the world rattled.


China Steams Ahead with Vaccinations

One country that is not waiting for global approval in regards to a standardized COVID-19 vaccine is China, who has to date vaccinated over 1 million citizens under the "emergency use" designation.


This vaccination campaign by the Chinese government is much higher than what Western officials previously believed and of which has been largely targeted towards troops and those in peace keeping positions according to government officials.


Joining the ranks of China, and unsurprisingly to many is Russia, who has also made recent news due to the fact that they have also begun to issue "still in clinical trial" doses of their COVID-19 vaccine.


Zero Hedge reports;

Russia and China are the only two countries actively working to develop a vaccine that have used emergency measures to vaccinate large swaths of their populations. Russian President Vladimir Putin even claimed earlier this year that one of his adult daughters had been inoculated in one of the early-stage trials for the vaccine developed by the Gamaleya Institute.


The rush to profit off of an effective COVID-19 is truly underway at this point, with countries such as Brazil already signing a contract to purchase the Chinese COVID-19 vaccine, while others such as Turkey are also entertaining the idea.


Meanwhile, in North America, both Pfizer, Moderna and other western corporations are signing deals with countries all around the world, as they claim to be close to having an effective COVID-19 vaccine.


In Conclusion

The markets remain rattled at the moment, fearing renewed, potential lockdowns, while also fearing the effectiveness and willingness of the public to take a newly released COVID-19 vaccine.


However, they need to fear not, as big daddy government is soon to be coming to the rescue once again, revving up the printing presses and issuing out stimulus checks galore, of that you can rest assured.


As previously stated, it mattered little who won the election if money printing was first and foremost on your mind, as both Donald Trump and Joe Biden plan to do just that.


In this scenario, both gold and silver bullion remain strong buys in my personal opinion, with dollar cost averaging being the continued preferred method of acquisition, riding out by the highs and the lows in stride.


2020 will remain a volatile year right until it closes its chapter, however, sanity will eventually be returned and a new normality will be resumed, yet with much uncertainty remaining as we head into 2021.


Until that time, stay safe and as always, keep stacking.


- Source, Nathan McDonald via the Sprott Money Blog

Friday, November 13, 2020

The Election from Hell, the Political Hangover of the Century

Just as predicted, the 2020 Presidential Elections went off not with a whimper, but a monstrous, ear shattering blast.

This was easy to see for some, despite the fact that once again the Mainstream Media and the Polling industry were calling for a crushing, undisputable victory for Joe Biden. 

In which they stated he would run away with the night, easily leaving Republicans in the dust.

This clearly was not the case and was easy to predict, as Trump supporters were being horribly underrepresented in the polls, just as they were in 2016.

The result of this will be the complete and utter collapse of the polling industry as we know it, as they have now called both the 2016 and 2020 elections horribly wrong, causing irreparable damage to themselves and the psyche of the American public.

Mistrust in the System is at All Time Highs


A contested election was what I feared the most and I believe many people are shocked that America is currently in the undesirable position that it now finds itself in, in which it is not only going to suffer negatively from for the next few months, but in all likelihood, the next four years.

The reason for this is that mistrust in the political system is at an all time high. 

This has largely been caused by the allowance of mail in voting on a grand, unprecedented scale, of which as I previously stated many times over the past few months, was going to be an epic disaster.

The seeds of doubt have now been sown amongst roughly 50% of population, with so many States being so tightly contested and now "appearing" to swing favorably towards Joe Biden.

President Trump is fanning these flames of doubt, just as everyone expected him to, taking to twitter on a near hourly basis, ranting and raving about how "rigged' the election was.

Sadly, there are so many discrepancies and glaring examples of all around "funny business" that many are taking what he has to say quite seriously, both on the political left and right, as clearly many errors were made throughout the course of election night.

In all likelihood, Joe Biden is going to ultimately be declared the next President of the United States, however, not after many more months of fighting and legal actions from President Trump and his closest allies.

Throughout these next few months, the mistrust in the political system is only going to grow and only going to get worse in the minds of his most fervent, fierce supporters, as more and more examples of election meddling, fraud and mistakes are brought to light, regardless of whether or not they are enough to actually change the results of who is ultimately deemed the victor.

The Markets Are in For a Wild Ride


This extreme volatility initially caused both gold and silver bullion to spike higher in price, only then to fall lower as it became more clear that Joe Biden was likely to be deemed the victor, reducing uncertainty in the short term.

However, this is only in the short term, as it is looking more and more likely that months of unrest lay ahead, with the next step of this Presidential battle more than likely heading to the Supreme Court.

(Chart source, goldprice.org)

If the results in which the MSM have declared Joe Biden the victor are overturned officially by the Supreme Court and Donald Trump is reelected via this avenue, then you are going to be looking at one of the most hostile and violent times in American history, with the radical left coming out in droves, burning, looting and causing destruction the likes of which have rarely been seen in mankind's history.

If the results are maintained, and the status quo declared by MSM is kept intact, then the political right will grumble, complain loudly and protest, but all around destruction and anarchy will be avoided.

To many, they are hoping for the latter result, regardless of how much "funny business" actually took place in the election, to others, they know that the long term longevity of the American political system is much more important than that, and would like the truth, no matter the cost or damage that it may cause in the short term.

Regardless, you can expect much more volatility and gyrations within both the precious metals markets and general stock markets as a whole in the coming days and months.

In Conclusion


Dark days lay ahead for America, as trust in the political process has been utterly shattered, with little to no faith remaining in the honesty of the system.

This is a dangerous path to be traveling down, as it is at this point that people begin to act irrationally and act out in erratic ways, believing that it is the only avenue they have left.

Regardless of who is ultimately deemed the President of the United States come 2021, the President is going to have an asterisk placed at the end of their name in the eyes of approximately 50% of the population.

Unrest, uncertainty and mistrust will be the trend for 2021 and possibly many more years.

Where this all ends is anyone's best guess.

Until then, stay safe and keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

Wednesday, November 11, 2020

2021: Gold and Silver Break Out, Plus Banks Heading into Crisis


With foreign USD and bond holders waking up to the smell of a rotten dollar, Americans oblivious to the unfolding dollar crisis are likely to be the ones left holding the bag. 

Euro-Zone banks desperately maneuvering to hide a ghastly pileup of bad debts are poised on a knife’s edge, geared up to unstable multiples, and running out of time. 

Meanwhile gold, silver and cryptos are breaking out, and destined to bolt higher. Alasdair Macleod, head of research at Gold Money, returns to Liberty and Finance to update us on his latest analysis of these volatile times!

Sunday, November 8, 2020

Ron Paul: The Last Gold Rush Ever is About to Occur


New York Times bestselling author Charles Goyette joins today's Liberty Report to talk about his new book, "The Last Gold Rush…Ever!: 7 Reasons for the Runaway Gold Market and How You Can Profit from It," and about the coming big economic crash.

Monday, November 2, 2020

Jim Sinclair: Exploding Global Debt Means $100,000 Gold is Guaranteed


Financial writer Bill Holter and renowned gold and financial expert Jim Sinclair say exploding federal debt and massive defaults will send gold to the stratosphere. 

Holter does the astounding and yet simple math and explains, “The number is over $100,000 per ounce for gold now. 

If you take the 260 million ounces that we (U.S. Treasury) supposedly have and take the 260 million ounces and divide it into the current debt which is $27 trillion, it’s well over $100,000 per ounce now. 

In other words, if we had to back our debt in gold, the gold would have to be priced at over $100,000 per ounce.” Sinclair offers hope and a way out of the financial mess we face. 

It involves a Trump Win that will preserve the Constitution and the rule of law. If we can maintain the rule of law and the U.S. Constitution, America can and will recover, according to Holter and Sinclair. Let’s pray that happens.

- Source, USA Watchdog

Sunday, November 1, 2020

Election Outcome Prediction: Blue Or Red They Print More Money


Politics & media benefit from inflaming the masses. To escalate or de-escalate is a choice, not a consequence. Media: Don’t censor truth, give it to me & let me decide.

Friday, October 30, 2020

Rob Kirby: Voting for Bread Lines


Rob Kirby, proprietary analyst and founder of KirbyAnalytics.com, returns to Liberty and Finance to declare that we have been witnessing a breakdown of the rule of law at every level, from some of our highest figurehead leaders and elite, to our financial markets, to orchestrated insurgencies in our cities and neighborhoods. 

From market regulators that turn a blind eye, to intelligence agencies that can’t seem to prosecute the big fish, to mayors ordering police to stand down as property and lives are being destroyed, Kirby says the US is sending the message that “Crime Pays.” 

He further connects the dots to loss in confidence in the US dollar, the loss of freedom of speech, and the loss of life, liberty, and the pursuit of property - for us, our children, and our grandchildren - unless we act with courage now.

Easy Money, Low Interest Rates to Last for Years

The COVID-19 pandemic has rocked the world and a historic amount of money printing has taken place all across the world.

This money has been dumped into the markets, given to individuals and used to help keep businesses afloat while the forced lockdowns were put into place, greatly reducing consumer spending in many parts of the world.

Many would argue that this money printing was required, others would disagree. Sadly hindsight is 2020 and we may never truly know what the repercussions of no lockdowns would have been.

However, there is one thing that is for certain in the coming days, months and years. 

The ramifications of our actions are far from over and the piper will be calling, the only question that remains is when?

Interest Rates to Remain at Historically Low Levels for Years to Come


Throughout the pandemic, most governments across the world lowered interest rates, a common tactic deployed by Central Bankers in a time of crisis, or economic recession.

However, rates were already low, as many countries never truly had a chance to raise them in the years following the 2008 economic collapse, knowing that if they did so, they would tank their economy once again and make them uncompetitive on the international markets.

Fast forward to 2020 and we have a new crisis, the likes of which the world has scarcely seen before and one in which rates were already at artificially depressed levels.

Many countries have taken to slashing their interest rates to near zero levels, or even negative rates, hoping that the ability to easily loan funds will help keep the economy churning along.

It is without a doubt, that the countries that were forced to lower rates following the 2008 collapse and now even more so following the COVID-19 pandemic, will not and cannot raise rates in the coming years, if not possibly even longer.

This belief has been confirmed today by the Bank of Canada, which has given banks the "low interest green light", at least until 2023.

As reported by the CBC;

"The Bank of Canada says it has no plans to change its benchmark interest rate until inflation gets back to two per cent and stays there, something it says isn't likely to happen until 2023.

The central bank said Wednesday it has decided to keep its benchmark interest rate steady at 0.25 per cent. The news was expected by economists, as although the economy is showing signs of recovering from the impact of COVID-19, things are still a long way from normal, so cheap lending will be needed for a long while yet."


The Bank of Canada knows what many other Central Bankers around the world know, that this economy is incredibly fragile and is going to suffer much more pain in the coming years, as irreparable damage has been done to many businesses over the course of 2020, some of which has not fully come to fruition.

In a recent statement, the Central Bank of Canada went into further detail, explaining their decision to keep rates at the historically low .25 percent level until at least 2023;

"With more than six months since the onset of the pandemic, the Bank has gained a better understanding of how containment measures and support programs affect the Canadian and global economies.

This, along with more information on medical developments related to COVID-19, allows the bank to now make a reasonable set of assumptions to underpin a base-case forecast."


The Central Bank of Canada, like many other government entities in the West, are highlighting the fact that a highly effective vaccine is still many years away and thus rolling lockdowns are likely to occur well into at least 2021, further damaging and hurting the economy.

Gold and Silver to Benefit from Money Printing and Low Interest Rates


Although gold and silver bullion have suffered from strong resistance in the past few months, after initially spiking much higher in the early days of the pandemic, I have little doubt that strong gains are yet to come.

(Chart source, goldprice.org)

A low interest rate and easy money environment that is rife with geopolitical uncertainty will create a rock solid bedrock of fundamentals for the precious metals market for years to come.

When this historic amount of fiat money and debt creation inevitably makes its way into the broader markets and as things eventually return to a new "normal", we are going to see monstrous inflation.

The risks are simply just too great to hold anything fiat based in my personal opinion, and this is exactly why I believe you are seeing alternative investments, such as collectibles skyrocketing to new highs, as people continue to pile money into anything tangible. 

Dollar cost averaging into precious metals in the coming days is a safe, prudent play that is sure to help mitigate the risk that is coming our way.

In Conclusion


Central bankers, governments, and anyone else with their finger on the pulse of the markets knows that we stand on a knife's edge, with even the slight breeze risking to send the economy crashing down once again.

You can rest assured that we have not seen the last of the stimulus programs, the last of the easy money policies and the last of the bailouts.

The ramifications of this year's lockdowns are yet to fully come to light and much rot remains within the system.

Gold and silver bullion will help mitigate these risks, while offering handsome rewards to those who act before the true damage boils to the surface.

Until then, stay safe and as always, keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

Saturday, October 24, 2020

Coronavirus & the Lasting Effect On Capitalism And The US Economy


Legendary investor Leon G. Cooperman, chairman and CEO of Omega Family Office, Inc., joins Real Vision managing editor Ed Harrison for a conversation about his career journey from Goldman Sachs to founding his hedge fund, Omega Advisors, and later converting it into a family office. 

Cooperman weighs in on the lasting impact the coronavirus pandemic will have on the U.S. economy and what this means for the future of capitalism. 

He shares his current market philosophy from investing in FAANG stocks to calling out the rise of retail investors and the "Robinhood market," and he opens up about diversifying his portfolio, his best trade tips, and what's ahead for the markets as the 2020 election nears.

Friday, October 23, 2020

The Polls Were Horribly Wrong in 2016, Are They Wrong Again?

Without a doubt, we are about to head into an incredibly difficult and turbulent period in mankind's history.

I am not trying to be hyperbolic, I am not trying to scare anyone, however, if you don't see what is coming in the next couple of weeks then to put it simply, you need to take your blinders off.

The 2020 U.S. Presidential Elections will take place on November 3rd, which is only eleven days away at the time of writing.

The outcome of this election is going to have a powerful impact on the most powerful and prosperous nation in the world, and thus the entirety of the global economy as a rippling effect.

Therefore, it comes as no surprise that market participants are scrambling to find any and every clue that they can find that would indicate whether Joe Biden, or President Trump is going to win come that night.

Turning to the polls once again, people are highlighting how Joe Biden is ahead significantly, but is this accurate? Can the polls be trusted?

The 2016 Elections Polls Were Horribly Wrong


Heading into the 2016 election night, Democratic voters were already jubilant and rejoicing wholeheartedly, as they knew without a doubt that Hillary Clinton was going to win, how could she possibly lose?

The reason for this assumption was the non-stop cheerleading from the vast majority of the Mainstream Media, of which was largely endorsing the Hillary Clinton campaign, rooting for her to win and thus providing overwhelming positive coverage.

In addition to this, the near entirety of the polling industry was not just predicating that Hillary Clinton would win the 2016 Presidential Election, but would win in a complete and utter landslide, reinforcing what many Democratic voters already believed was a foregone conclusion.

Almost any poll that you looked at gave Hillary Clinton a 90% plus chance of winning, with some even going as high as 98%! Boy were they wrong.

Meanwhile, in a series of articles that I wrote leading up to that time period, I was ringing the alarm bell, highlighting how the sample sizes for many polls were horribly out of whack and did not make sense from a logical standpoint once dug deeper into.

These biased sample sizes and the fact that many Trump voters were shamed by the MSM into not stating who they were going to vote for, led to the results that we got on election night, which saw a newly elected Donald Trump take office.

This sent a shock wave through Democratic supporters and the polling industry at large, as they had to face the hard facts that they got it so wrong.

There were indeed many eggs on many faces as the sun set on November 8th 2016.

The Polls Are Likely Wrong Again and Are Drastically Underestimating Trump


Knowing what people know now, and how horribly out of touch the pollsters were in 2016, how could anyone trust the polling industry this time around?

Although somewhat scared, battered and bruised, it is without a doubt that many people, in fact a large majority of people still do.

Constantly you are hearing polling numbers bandied about on the Mainstream Media once again, being quoted and taken as concrete evidence that Joe Biden is going to win come November 3rd.

(Chart source, Fiverthirtyeight)

Currently, Bidden has a stunning 87% chance to win according to one major polling aggregate.

But will he?

I believe that after four years of President Trump in office, the MSM and much of the political establishment has only hardened in their hatred and resolve to see Trump taken out of office.

This means that they have a hard bias and motivation to see him lose and thus a willingness to take the polls at face value once again, just as they mistakenly did in 2016.

This is a dangerous path to be traveling down if they truly do wish to see him removed from office, as wholeheartedly trusting in the pollsters is a recipe for disaster.

The fact of the matter is, to get voters motivated they need to believe that they NEED to get out, wait in those long lines and actually vote. They need to mail that ballot in, fill it out properly so it does not get disqualified (a common occurrence for mail in voting ballots).

That sad reality is that many people are unmotivated, or simply don't care that much about politics, even if they state they are voting for Joe Biden, they may not carve the time out of their day to put in the effort to head out and actually cast their ballot, under the assumption that he is going to win anyway.

Why bother right?

Trump Supporters Are Very Motivated, But Very Hidden


On the other hand, you have Republican supporters who are constantly barraged by how evil and corrupt President Trump is by the MSM, much to the opposite of how they view the President and thus to what they believe.

They have borne witness to countless “we’ve got him this time stories” over the past four years, all of which have ended in frustration for Democratic supporters.

Crying “wolf” at this point is nearly meaningless and people now just shrug and roll their eyes, regardless of how serious the claim is.

This overwhelming negative coverage has led to mistrust and a general unwillingness to believe in what the MSM is putting out.

Additionally, President Trump has engaged in a four year smear campaign against much of the major broadcasting networks, with the most notable being CNN, who he has labelled outright “fake news”.

Trump supporters have had the moral authority taken away from them by the MSM, in a large percentage of people's eyes, to state who they are going to vote for and who they support.

There have been many stories about how people have been cancelled, ostracized and outright fired for posting "pro Trump" messages on their personal social media accounts.

This is once again playing out just as it did in 2016 and is resulting in the appearance of a much lower than is actually there support level in polling numbers for the President.

Much of President Trump's base feels like their opinions are not being heard and are thus oppressed, which will result in a very strong, highly motivated voter turnout, just as it did last time.

In Conclusion


If President Trump wins once again come November 3rd, I believe that this will be the end for the polling industry. They will be shattered and broken and deemed untrustworthy by many.

The times are changing and so too do their methods of capturing people's opinions. We live in dynamic, fast changing times.

However, regardless of who wins, I stand by my opinion that turbulent times lay ahead, as neither side is going to willingly accept the results this time around.

Gold and silver bullion are going to move higher first due to uncertainty, then later as the printing presses are once again revved into high gear and additionally COVID-19 stimulus packages are passed

Until then, stay safe and as always, keep stacking.


- Source, Nathan McDonald via the Sprott Money Blog

Wednesday, October 21, 2020

Election Countdown: Sell U.S. Dollar, Buy Silver, and Other Advice from Analysts


Gold prices have been stuck around the $1,900 an ounce for most of October due to the strength in the U.S. dollar, but analysts expect the gold price action to pick up in the next few weeks, producing a "lasting price upswing."

- Source, Kitco News

Monday, October 19, 2020

Axel Merk: Boatloads of Money Coming No Matter Who Wins


Money manager Axel Merk manages about $1 billion in assets. Merk says, “We love one guy and hate the other guy. I care more about fiscal spending. 

As I said earlier, yeah, we are going to spend a boatload of money. They are going to spend it a little differently and on different priorities, but they are going to spend a boatload of money. 

They are politicians, and they can’t help it. One big difference with Trump is we are going to get a reduction in regulation and regulatory burden, and with Biden we will get an increase.” 

Merk likes gold because of all the money printing and the eventual inflation that is surely coming from printing all those digital dollars. 

He also likes a diversified portfolio, but one of his very favorite investments is gold. 

Merk tells me he holds more than some people would and is holding it as a core investment. His simple advice for the little guy is, “Spend less money than you make so you can save more.”

- Source, USA Watchdog

Friday, October 16, 2020

The Piper is Calling: A Sea of Debt, a World of Problems

The world remains steadfast, tightly gripped in the midst of the COVID-19 pandemic, however, there is another calamity that is lying in wait and is sadly unavoidable at this point.

The debt bomb is primed, set and ready to go off, not just in the United States, Canada, or the United Kingdom, but rather across the entirety of the world.

There is no escaping it, but there is still time to prepare.

Economic Disaster After Economic Disaster Has Taken Its Toll

The dot com boom and bust, the housing collapse of 2008 and now the economic ruin caused by the COVID-19 lockdowns have all systematically chipped away and destroyed the foundation of many economies across the world.

Led by Keynesian economists, Central Banks around the globe have avoided taking their medicine and letting the system collapse and correct itself naturally.

This has been done through their favorite tool of economic control, printing copious amounts of fiat money and throwing it at the problem.

The results of their actions are in the pudding as the world continues to chug along. 

They have done what many believed to be impossible time and time again, putting band aids on the wounds and keeping the system afloat, for just a little bit longer each and every time.

(Chart source, goldprice.org)

But at what cost?

There is a reason why the price of gold has continued to trend higher and higher since these unchecked bailouts began in earnest, accounting for the new level of fiat money injected into the global economy.

The problem with simply throwing artificial, printed out of thin air money at each and every economic calamity is the fact that you are just burying the problem and masking the gaping wound. 

The rot still exists and the structural, long term damage to the system still remains. You cannot dig yourself of a "debt hole", by simply creating an ever increasing amount of debt.

Nothing has changed, nothing has been fixed and the debt continues to grow and grow, reaching what is unarguably now, unsustainable levels.

Are the COVID-19 Bailouts the Icing on the Cake?

The latest bailouts that occurred in every established country around the world, in response to the COVID-19 pandemic, is truly the icing on the cake.

In a record breaking period of time, countries have printed ungodly amounts of fiat money, tossing it at their citizens, businesses and whoever else would accept it, as people were forced out of work and made to stay home.

This brought the global economy to a halt and although some new versions of "normality" are now returning in many areas of the world (others remain less well off), businesses on main street are still heavily impacted and feeling the pain due.

However, the worst part of all of this, at least economically speaking, is the long term damage that has now been done and ramifications that are now coming due to these bailouts.

(Chart source, statista.com)

In true Keynesian fashion, countries increased debt levels the likes of which have rarely been seen before outside of war times.

Japan, Canada, Australia and the United States led the charge, injecting a stunning 21.1%, 16.4%, 14% and 13.2% respectively of stimulus, when compared to their yearly GDP, directly into their economies.

The worst part of all of this, is the fact that more stimulus is going to be needed before the COVID-19 pandemic is fully resolved, with many countries already working on fresh waves of bailout money, meaning that further significant increases in debt to GDP ratios are yet to come.

In Conclusion

The world is now truly awash in debt, with many countries finding their debt to GDP ratios at unsustainable, non recoverable levels.

(Chart source, visualcapitalist.com)

Debt to GDP ratios at this level are akin to "circling the drain", with the problem now compounding upon itself as making the interest payments on this debt is the best most countries can hope for.

This will only further exacerbate the problem, causing these highly indebted countries to go further and further into debt, to help finance the pre-existing debt and new obligations / bailouts that arise.

We are truly living in a sea of debt and a world of problems.

The debt bomb is primed and ready to go off, only needed a spark to ignite it.

Don't be caught off guard when that day inevitably occurs and this "house of cards" comes crashing down upon our heads.

Get prepared and keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

Friday, October 9, 2020

Precious Metals to Rally Hard After Elections, Even More So if Joe Biden Wins

The Presidential Elections will take place in less than one month, with November 3rd only a mere 25 days away.

The anxiety, the uncertainty is rife and all around us, especially if you call yourself a citizen of the United States, however, the ramifications of the coming election will be felt all around the world.

At the moment both the Democrats and Republicans are jockeying for position and the typical political nonsensical games are being played in real time, as seen from the non stop appearances of political surrogates from both parties appearing on the MSM, spewing their talking points and pushing their agendas.

However, there are a few things that are all but guaranteed at this point, regardless of which side is deemed the victor.

Political Violence Will be in Abundance


I take absolutely zero joy in this predication. 

Yet, I see no alternative scenario unfolding in the coming months.

Political violence is going to hit a level within the United States that we have not seen in decades, and that is saying a lot, considering the near non stop riots and strife that have been unfolding in many major cities across the United States in the last half of the year, with Portland being one of the most serious examples.

Unfortunately, I believe that this is going to be nothing in comparison to the coming dark days that the world is going to be forced to bear witness to, if one side or the other does not win in a complete and utter landslide.

The plethora of mail in voting that is taking place within the United States due to the ongoing COVID-19 pandemic has led to increased uncertainty and mistrust within the voting system, with many on the right speculating that "funny" business is almost going to be taking place.

Meanwhile, conspiracy theorists on the left have attacked the U.S. Postal system as well, with many declaring that President Trump is attempting to sabotage the organization and thus throw the election into chaos.

More than likely, neither side is right, however, this does not change the fact that mail in voting is notoriously flawed and has had very serious problems in the past, due to improperly filled or filed voting ballots, resulting in a large number of them being simply discarded.

What this is all leading to is one of the greatest enemies of the markets and democracy at large, extreme uncertainty, the likes of which is likely only going to fuel the radical sides of both parties further in the coming months.

Many are going to feel "justified" in their violent actions due to this heightened level of uncertainty, whether it be through direct violence to others who they deem the enemy, or simply through outright destruction of property while engaging, as the MSM likes to put it, "mostly peaceful protest".

This is going to send the financial markets spinning, as the country attempts to resume stability and hopefully cooler heads can prevail.

Extreme Money Printing is Coming

The next scenario that is all but guaranteed at this point is the fact that much, much more stimulus is coming after the elections, regardless of who wins.

President Trump is pushing hard for a second wave of COVID-19 stimulus, amounting to approximately $1 Trillion USD.

This effort has been bogged down by the Democrats for a number of reasons since rumors first began circulating that a second wave of stimulus was in the cards, over six months ago.

Although many reasons and objections are cited as to why funding is not being passed, it doesn't take a rocket scientist to figure out that passing a second stimulus bill and placing a fat check in peoples bank accounts weeks before an election, is not in the Democrats best interest and would only help President Trump's chances of re-election.

"Buying" votes is a well known tactic for politicians, however, the Democrats have mastered the art of easy money printing above all others.

Still, this does not mean that no stimulus is coming if Joe Biden wins on November 3rd, in fact quite the opposite.

Remember, Joe Biden is in much greater favor than President Trump of shutting down the economy and placing further restrictions on the economy, in an effort to slow down the spread of COVID-19.

If this occurs, or even if it doesn't, then the Democrats are going to push for additional stimulus packages of their own, putting the printing presses in high gear, cranking out those digital fiat dollars.

(Chart source, goldprice.org)


(Chart source, Market Watch)

Likely this is one of the reasons why we are seeing a renewed weakness in the strength of the U.S. Dollar Index, as market participants can clearly see that much more money printing is going to take place, before this crisis is fully put behind us.

Additionally, both gold and silver bullion have surged significantly higher as the odds of Joe Biden winning the President elections (according to many analysts and polls), has increased in the past number of days.

Still, these polls and predictions should be taken with a grain of salt, as we all know what happened in 2016, when Hillary Clinton went into election night with a 98% chance of winning.

Regardless, the markets clearly believe that Joe Biden will be the "even easier money" President.

In Conclusion

The coming days are going to be intense, scary and incredibly interesting to watch unfold.

The 2020 U.S. Presidential campaign cycle is soon to come to a close, however, the ramifications of November 3rd are going to be felt well into 2021 and beyond.

Regardless of who wins, strife is going to occur, uncertainty is going to be in abundance and fiat money printing is going to continue in excess.

The moral of the story? Prepare accordingly and above all else...

Keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog