Chris Martenson: Get Ready for Inflation Good and Hard in 2021

Dr. Chris Martenson is a futurist, economic researcher and says severe economic damage has been done to the economy. Wall Street wins while Main Street loses. 

Martenson contends, “The economy is very bad at this point in time, and it’s being covered up by a very, very complicit Federal Reserve that is just propping markets up.

Dr. Martenson also says that because of all the money printing that has already happened with much more to come, there will be some big inflation bubbling up. 

Martenson predicts, “Follow with me out to June of 2021, and we are going to find ourselves in a situation where the shale oil miracle has collapsed to five or six million barrels a day. 

We are going to be demanding, and our economy is going to be on fire at that point because of all this free money that is just sort of floating around. Then we are going to see inflation good and hard.

We are going to have actual oil based inflation come through at that point in time. 

That is the prediction I am working with right now. People need to be ready for that, and that is what our seminars are all about.” Martenson likes physical assets such as gold, silver and farm land. 

Martenson shows people how to be more resilient for what is coming.

- Source, USA Watchdog

Continuing the Trend: 2020 to End in Chaos

It should come as no surprise to anyone that 2020 has been a year of sheer chaos, madness and worldwide change the likes of which we have not see in most peoples living memory, that is unless you have been living under a rock.

For those of you who are hoping that this trend was going to change as the year progressed and headed towards closure, you are sadly going to be mistaken, as the ending to this year of epic nonsense is only going to get worse, much worse.

Possibly the Most Contested U.S. Elections of All Time

As the November 3rd Presidential Elections rapidly approach, people have finally begun to realize what I have stated since the end of last year, that this year's election are going to be dominated by violence and uncertainty, ending with literal blood in the streets.

Both the far right and the radical left are going to ensure that this will be how 2020 ends, regardless of who takes home the "perceived" victory after the dust finally settles after November 3rd.

Both the Democrats and the Republicans have begun uttering their talking points, with President Trump recently dominating the headlines with statements concerning the high probability of mail in ballot voter fraud.

Mail in voting has many concerned on the political right, as it has the possibility of being heavily abused.

Knowing this fact and how his base feels, President Trump alarmed many this week as he refused to acknowledge that their would be a "peaceful transfer of power", if he loses the 2020 Presidential Elections to Joe Biden.

As recently reported;

When asked directly whether he would commit to a "peaceful transition of power," Trump responded, "We're going to have to see what happens." He went on to suggest that authorities "get rid of the ballots," an apparent reference to the huge uptick in votes cast by mail amid the coronavirus pandemic, adding that, if they did, "there won't be a transfer [of power], frankly. There will be a continuation."

Meanwhile, the Democrats have also stated that they are going to dispute the election results if Joe Biden loses as well, already putting into motion various game plans that will tie up the final results for weeks, if not months, possibly leading to a hung election.

All of this uncertainty has just recently begun to set in on the markets, sending them sharply lower as people see the grim future that awaits them come this fall season.

(Source, google charts)

Regardless of whom is declared victorious, or who is the one doing the disputing and contesting the results, the fact remains that the United States is going to be in an extreme state of anarchy and limbo for many months to come.

This is going to result in an ungodly number of riots, protests, violence and destruction in the worlds largest economy and military power.

The Coming Volatility

Despite the fact that the writing is now on the wall as to what is going to occur in the coming months, both gold and silver bullion have been trending lower over the last number of days, defying all common sense and showing many peoples complete lack of foresight.

(Chart sources, sprottmoney.com)

The metals as seen above, have suffered alongside the general markets, moving sharply lower and taking a vicious beating.

Gold is now well below its highs seen in the month of August, sitting at $1863.03 USD per oz at the time of writing, while silver risks breaking through the $23.00 USD per oz mark.

This recent pull back is great news for anyone that is looking to add to their positions and hedge against these coming risks, of which I believe is a near certainty at this point.

As the madness begins to truly unfold with the 2020 elections getting closer and as the results begin to trickle in on November 3rd, I believe it is then that the true feeling of dread is going to set in with the masses.

It is then that you are going to see one side or the other in the streets, protesting and causing destruction on a near daily basis, with the Mainstream Media exasperating the problems and pitting both sides against one another, which is what they do best.

In Conclusion

The writing is on the wall and sadly I believe that there is no turning back at this point.

The divide between the far right and left within the United States has grown so vast that I believe we are going to have to hit a true boiling point before things can ever return to normal again, if they even can.

The damages are going to be great and the risk to the system will be vast, however, gold and silver bullion have proven themselves to be the one true protection in times of great unrest and upheaval.

This has been true for over 10,000 years and although 2020 is truly one for the history books, I have no doubt that precious metals will offer financial protection once again for those who are wise enough to take action before it is too late.

Until next time, stay safe and keep stacking.

- Source, Nathan McDonald via Sprott Money Blog

Ron Paul: Debt is the Real Pandemic

The warfare-welfare state is alive and well.

- Source, Ron Paul

Martin Armstrong: Rich People Are Selling Stocks Again, Buying Precious Metals

Legendary financial and geopolitical cycle analyst Martin Armstrong thinks many European bonds will never be fully paid back. They will be a default, but it won’t be an outright default.

Armstrong explains, “So, in Europe, all the bonds they have bought, they have to constantly keep rolling them over in addition to what they buy. It’s not sellable.

The proposal in Europe, behind closed doors, is to convert them to ‘perpetual bonds.’ It’s a way to default.

So, effectively, they will just give you the interest, and you can never redeem them.” As far as the stock market goes, Armstrong says, “Rich people are selling stocks again.” Remember, this is just like what happened just before the CV19 lockdowns.

What can the common man do to cushion from what is coming? Armstrong says, “Buy canned food because food prices are going up.”

Armstrong also like soft commodities, energy and gold and silver, especially silver. Armstrong says, “People are not going to know what a silver bar is. I would buy silver coins that are dates 1964 or earlier.

The average person can look at that and know what it is. I would recommend that more than silver bars.

I would say silver would actually be better (than gold) because it’s a smaller denomination that can actually be used.”

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Despite Mint Closures, Silver Bullion Sales Surge Past 2019 Numbers

Large sectors of the global economy have been shut down throughout 2020, with some being affected more than others, creating pockets of scarcity and price increases as a ramification to these forced shutdowns.

These shortages were incredibly noticeable throughout this summer season, with many leisure and sporting goods simply being unavailable for purchase, whereas there would typically be no problem at all.

For some areas of the economy, these higher prices have helped offset some of the losses in production, while other areas of the economy have simply had to grin and bear the pain, experiencing losses that they are never going to be able to recover from.

One area of the economy that was affected and of which was noticeably affected was within the precious metals space, as many of the worlds largest mints were forced to shut down production, taking supply off the market just as demand was skyrocketing.

Silver Bullion Sales Vastly Outperform 2019 in First Half of the Year

As the COVID-19 driven panic began to set in, some people fled to safe haven assets such as precious metals, fearing that the forced shutdowns could cripple the global economy.

Meanwhile governments around the world went into money printing hyper-drive, bailing out individuals and businesses alike, with some of the largest increases to national debts that this world has ever seen.

The ramification of these actions are yet to be fully witnessed and are going to be felt for years to come.

Regardless, this led to an initial sharp increase and move higher in both gold and silver bullion, which for a time looked as if they were going to finally break free of their shackles and surge to ungodly new highs.

Although this parabolic rise was slowed down, I believe that the gains we have witnessed over the past couple of months are only the beginning and just the start of a truly historic new bull market for the precious metals market.

(Chart source SRS Rocco Report)

As the above chart shows, I am most certainly not alone in this assessment.

Silver bullion sales, despite mints being forced to a grind early during the COVID-19 breakout, have vastly outperformed their 2019 sales, with the three major mints all reporting starkly higher numbers.

In the first half of 2020, the U.S. Mint, Canadian Mint and Perth Mint sold a collective 34.9 Moz, compared to 24.1 Moz during the same time period in 2019.

This amounts to an impressive 10.8 Moz sold in 2020, during a time period in which the mints were suffering from temporary closures.

Despite these closures, the mints were able to increase sales by a stunning 45% year over year!

Imagine what these numbers would of looked like, if business was allowed to run unhindered and imagine how much more silver would now be out in the open market.

The Trend Continues and Will Only Get Better

Many people will write this increase in sales off as only an anomaly, however, further data suggests that this couldn't be further from the truth.

Although the Canadian Mint is slower than the U.S. Mint and the Perth Mint in reporting updated sales data, as the SRS Rocco Report highlights, the trend of strong silver bullion sales is only growing in momentum.

(Chart source, SRS Rocco Report)

Updated figures indicate a steady move higher in YoY silver bullion sales from the three top mints.

Collectively the three mints have now sold a total of 40.4 Moz year to date, while during this time period in 2019, they had a total sales of 27.3 Moz.

This results in an increase of total sales YoY of 13.1 Moz.

As previously mentioned, the first half of the year saw a total increase of 45% in YoY sales, while the updated numbers now show a 48% increase YoY, meaning that momentum is still growing within the precious metals space.

This is heartening as an advocate of physical precious metals and the safety that they can offer in a time of increased uncertainty, turmoil and unrest.

In Conclusion

As we move through the remainder of 2020 and into 2021, I believe that there are going to be challenging times ahead for the world both financially and politically that are going to threaten the system in a way many of us have never experienced before.

People continue to go deeper into debt as this crisis worsens, as too do governments around the world.

Fiat money is thus going to be continued to be printed in an ever increasing quantity, as officials attempt to "dig" themselves out of this crisis, just as the Fed has recently indicated they are hoping will happen.

This is going to result in a continued demand for precious metals as more and more people wake up and smell the roses, realizing what is happening to the fiat based system that they find themselves living within.

The trend is your friend until the end and the trend for precious metals is positive indeed.

Stay safe and keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

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Gold is a Barometer of Fiat Currency, We Are Experiencing the Return to the Gold Standard

David Garofalo has 30 years in mining. 

As CEO of Goldcorp, David made history last year by spearheading the $32 billion merger of Goldcorp with Newmont to create the world's largest gold production company. 

Since that time, the value for Goldcorp shareholders has tripled including dividends. 

David discusses how gold is the barometer of fiat currency and what we are witnessing is the return to the gold standard.

Silver Breakout to $30? Or Correction Lower?

New Fed Inflation Targeting Restarts More Currency Wars

As predicted, many high ranking politicians from other countries and central bankers from other countries are angry about the Federal Reserve's announcement at Jackson Hole last week to let inflation run hot and have a higher inflation targeting policy to try to weaken the Dollar.

- Source, Wall St for Main St

All But Assured: Erosion of the Dollar, Explosion of Debt

The Federal Reserve has unanimously come together, developing a plan and strategy that they believe will help prop up the U.S. economy as the threat of COVID-19 continues to plague the world.

Their plan? Well its the same as always. Easy money and debt creation.

This cannot and will not end well for those who continue to hold and accumulate their hard earned savings in U.S. dollars, as the Federal Reserve has made a pledge to keep interest rates near zero for the foreseeable future.

Some analyst have even gone as far as estimating that rates could remain at these historically low levels for at least several years, due to the fact that the Fed has no other option than to do so.

The Los Angeles Times reports;

"The policy shift, which Fed officials have been developing for many months and was adopted unanimously, isn’t meant to address the immediate economic problems caused by the pandemic-induced downturn. But knowing that the Fed’s benchmark rate is likely to stay at its current level of near zero for a long time — analysts say that could be several years — might give companies more confidence to invest and hire."

This is all being done in the name of artificially propping up an economy that has been hit incredibly hard by the forced restrictions and lock-downs that government officials imposed as the COVID-19 outbreak began and has continued across large parts of the country seemingly unchecked.

Whether or not these actions are correct, is yet to be seen, however it sadly is going to have a number of dire consequences on the long term health of the U.S. economy and thus the West as a whole.

This undoubtedly means a continued erosion of the U.S. dollar and rising inflation, the latter of which has the potential to run out of control if the easy money tap is left open for too long.

(Chart source, Yahoo Finance)

This will come on the heels of an already battered and bruised U.S. Dollar, that has taken a beating over the course of 2020. 

However, we haven't seen nothing yet, if the Federal Reserve does indeed follow through on these new policy changes, as the USD is going to move much, much lower.

A Weak Dollar Diminishes the Value of Existing Debt

Likely, the Federal Reserve knows that this is the only path that they have left available to them, unless they wish to utterly implode the U.S. economy by going the opposite direction, crippling and destroying those who have been forced to take on extraordinary debt levels.

The West is largely broke and the Federal Reserve knows this fact. They know that if interest rates were ever to be raised in any meaningful way, then the entirety of the system would implode as debt defaults would soar out of control due to rising interest rates.

(Chart source, Federal Reserve Balance Sheet)

And it is not just on the business or individual level, as the Federal Reserve itself has been forced into action, erasing any of the deleveraging that they did since the 2008 crisis, taking on a stunning amount of debt in such a short period of time.

Keeping rates low all but ensures that people are going to go deeper and deeper into debt in the coming years, however, at historically low rates.

The Federal Reserve is hoping beyond all hope that this debt creation may possibly help spur on the economy and people can begin to dig themselves out of the holes they now find themselves in.

Sadly, I believe we have passed the Rubicon and there is no hope of ever collectively getting out of this mess. 

Easy money will be the only policy until the entire house of cards eventually comes crashing down on the Federal Reserves head and everyone else in the process.

The other hope that the Federal Reserve likely has, is the fact that a deteriorating U.S. Dollar will diminish the value of pre-existing debts that people and the government owes.

If a dollar is worth a quarter of what it once was, then so too is the previous debt that was denominated in that dollar.

As you can imagine, this is unsustainable in the long run and is thus typically only seen by countries spiraling toward hyperinflation or outright collapse.

In Conclusion: Keep Stacking

In this upside down world, in which the Federal Reserve is openly embracing the creation of debt, the destruction of the U.S. Dollar and thus rising inflation, it should come as no surprise that gold and silver are more vital now than ever.

As we move forward into this period of higher than normal inflation, gold and silver are going to steadily and consistently become more and more desirable to hold.

A period of low interest rates should result in a strong bull market for precious metals, significantly making their fundamentals that much stronger.

Central Bankers know this, the "smart money" knows this and it is exactly why they are moving so heavily into precious metals.

It is now only matter of time before the masses wake up and smell the roses, pushing gold and silver to staggering new heights, sparking one of the greatest wealth transfers in mankind's history.

The prices we see today are not going to last forever and those who act sooner, rather than later will be the ones who benefit the greatest in the coming bull market.

Prepare accordingly.

Keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

The Scramble Into Monetary Metals Keeps Building

First-time guest Lobo Tiggre, founder of Independent Speculator, joins Liberty and Finance to offer his view of the political, economic, and financial times we are hurtling through. 

Lobo draws a sharp distinction between how monetary metals (gold & silver) will fare vs. industrial & commodity metals and other natural resources.

- Source, Liberty Finance

Walk the World: Talking Loan Deferments

I discussed the latest from the Bankers Association on the arrangements for the mortgage and business loans deferment reviews which are now underway on ABC Illawarra today.

- Source, Walk the World

Ron Paul: What To Do When The Bubble Bursts?

What is happening as the massive bubble is bursting in the US economy? Is there any hope to survive - or even prosper - in the age of Fed bubbles, Covid-19 hysteria, and riots in the street? 

Financial publisher and author Porter Stansberry joins the Ron Paul Liberty Report with his views on what's wrong and what we can do about it.

- Source, Ron Paul

China Threatens to Dump All U.S. Treasury Holdings if Tensions Erupt

Once again gold and silver bullion are moving lower throughout today's trading session, despite overwhelming strong fundamentals and news that should be sending the price of precious metals higher.

(Chart source, goldprice.org)

However, no one ever said that the markets were sane or rational.

This is proven more so with each passing day, as the broader markets continue to hold strong in spite of the fact that we are in a global pandemic, with unfathomable geopolitical risks all around us.

(Chart source, google charts)

As can be seen above, the S&P 500 is currently trading at 3,443, shrugging off the entirety of the COVID-19 pandemic and acting as if it never even occurred.

Another risk that should be weighing heavily on the markets is the ongoing trade wars between the United States and China, of which there appears to be no resolution in sight, as long as President Trump remains in office.

The Debt Bomb Grows

A major risk to the United States that has been bandied about within the precious metals market for years and more recently in the minds of broader investors is the amount of U.S. debt that foreign countries have accumulated over the past number of decades and the fact that it could one day be used as a weapon against the United States.

Chief among these are Japan and China, the former of which holds approximately $1.26 trillion in U.S. debt and the latter of which holds $1.07 trillion.

(Chart source, The Balance)

However, even though it is Japan that is the larger of the two holders, it is always China that is invoked when any fear mongering is to be done about the level of foreign U.S. debt holdings.

This is for good reason and due to the fact that Japan and the United States have been strong allies and trading partners for decades.

While the United States and China have also been incredibly strong trading partners, their relationship has often been much more tenuous and uneasy.

This has been especially true over the last few years since President Trump has taken office, invoking his "America first" agenda and renegotiating U.S. trade deals to be much more favorable for his country, much to the anger of countries such as China and others.

This has led to the point in which we are at now, which is without a doubt the lowest point in China / U.S. relations that we have seen in a very, very long time.

China Threatens to Unload U.S. Treasuries

Exemplifying this low point in relations, China has pointed out the fact that they hold so much in U.S. debt and the power that they now wield because of it.

China has made it openly known that they hope to change this position over time, shedding U.S. holdings in favor of other holdings, such as gold bullion and other hard assets.

However this cannot and will not happen overnight, as China would run the risk of completely tanking their own holdings of U.S. Treasuries, destroying the value they personally hold.

Regardless of this fact, they have not eliminated the possibility of dumping their holdings in rapid succession, if the need ever arose.

Reuters reports;

“China will gradually decrease its holdings of U.S. debt to about $800 billion under normal circumstances,” Xi Junyang, a professor at the Shanghai University of Finance and Economics, was quoted as saying on Thursday, without giving a detailed timeframe.

“But of course, China might sell all of its U.S. bonds in an extreme case, like a military conflict.”

This second statement is just the threat that so many of us have discussed for years and highlights the fact that these large holdings of Treasuries pose a very real threat to the security of the United States, as it could be used to tank the Dollar overnight, sending the economy reeling in the process.

In Conclusion: A Double Edged Sword

Although China is rattling their saber once again, I believe it is just that, as the ramifications for them dumping their entirety of U.S. Treasuries on the market would have dire consequences for them as well.

(Chart source, statista.com)

Take the above chart for example, which shows just how much the United States imports from China each and every year.

Although  this number has lowered in the past year due to the ongoing trade wars, it still is a staggering number that makes up for the largest percentage of China's exports, followed secondly by the European Union, then Japan.

Unfortunately for China, they are caught between a rock and a hard place, as relations with the European Union and Japan have also been in a rocky position.

Meanwhile, both the European Union and Japan remain two of the United States strongest allies and trading partners. 

Additionally, the United States has the ability to simply move onto another low cost country for manufacturing, such as Vietnam, Thailand, India or bring production back home. 

Of course this would not be without pain, or disruptions, but eventually relative normality would resume for U.S. consumers.

Therefore, I believe that we are far from the doomsday scenario of China following through on this threat of dumping all of its U.S. holdings onto the market overnight, crashing the U.S. dollar in the process.

The risks are too great, the ramifications are too high.

However, this does not mean that things will not slowly, gradually deteriorate over time.

The need for precious metals is great. The need for financial protection remains.

Keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

Buying A House With 500 Silver Coins

Can you buy a house with silver coins? 

How much silver will it take? 

They are two of the most common questions we get, tune in to today’s update and get Mike Maloney’s thoughts on how this could play out.

- Source, Mike Maloney

Walk the World: The Recovery Hits Stall Speed

The latest in our series of Friday afternoon chats in which Journalist Tarric Brooker and I discuss the latest economic data. 

What is really going on, and will it support a recovery ahead?

- Source, Walk the World

Ron Paul: Locked Down and Unemployed, the Fed's Solution? Inflation

With tens of millions unemployed, and countless businesses gone for good, the heavy hand of government continues to pile on. 

State and local governments are looking to raise taxes in this environment, and the Federal Reserve, the enabler of big government, intends to escalate the counterfeiting of dollars on top of the trillions already created out-of-thin-air. 

More taxes and higher prices ahead, which makes for more economic heartache for the American people.

- Source, Ron Paul