Friday, October 30, 2020

Rob Kirby: Voting for Bread Lines

Rob Kirby, proprietary analyst and founder of, 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,

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,

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,

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,

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,

(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

Wednesday, October 7, 2020

Gold Silver: Why Is North Korea A Dark Void At Night?

Why is North Korea a dark void at night, who turned out the lights? The answer may surprise you...

Monday, October 5, 2020

David Forest: Gold Is Still the Best Disaster Insurance You Can Buy

Regular readers know that Bill is a longtime goldbug. He and Dan Denning, his colleague over at The Bonner-Denning Letter, recommend allocating a sizable portion of your portfolio to the yellow metal.

And this year has seen plenty of action in the gold market. Following a 12% drop in the gold price in just nine days in March, gold went on to break its previous all-time high in August. It’s now 32% above its pre-crash level.

Some readers may be wondering if they’ve missed the opportunity to get into gold. But this weekend’s guest editor, David Forest from Casey Research, is here to tell us why he believes this gold bull market is just getting started…

And he tells us how we can find out how legendary gold investor, Casey Research founder Doug Casey, made his millions in the metal

In August, gold took out its all-time high of around $1,914 an ounce and quickly shot past $2,000.

But I believe we’re just in the early innings of a historic gold bull market.

There are a number of reasons why I think the precious metal will soar to new highs.

Firstly, in an attempt to paper over the market’s insanity, the feds continue to unleash a wave of money-printing unlike any we’ve seen before.

Since the market crash in March, the Federal Reserve has pumped out $3 trillion in new money supply. And there’s more coming.

Intuitively, made-up money shouldn’t solve real economic problems. But it worked in 2008. And it might get us through the current crisis as well.

Since its March low, the Dow is up 50%. Stock markets could glide on and continue rising. In fact, stock prices might rise faster than ever because of all the new money sloshing around.

Crash Protection

But historically, October is a “witching season” for market crashes. It’s almost a self-fulfilling prophecy. Everyone worries and selling can quickly accelerate into a runaway collapse.

Typically, when this happens, people rush out of stocks… and into gold.

But it likely won’t be a straight shot higher for gold. There will be surges and dips along the way, as we’ve seen these last few weeks.

I understand this can be unsettling for those with positions in gold. And I get a lot of questions from readers wondering what to expect in the months ahead, like this one from Daniel:

Will gold stocks sink as deep as they did in March if we have another crash? Why or why not?

If we do get another major crash, physical gold likely will offer protection. Historically, gold prices fall less than other assets during financial panics.

But here’s the critical point: Gold will likely fall initially if we get a crash.

During crises, people sell everything. That includes physical gold. We saw that back in March, when the gold price dropped 12% in nine days – even as the gold supply dropped as mines halted production due to the coronavirus restrictions.

Past Crashes Show What Lies Ahead

As for what could happen in the months ahead, I’d like to point to a couple of historical examples as my second reason why I believe the gold bull market is just beginning.

In 2008, the Dow lost 53%. Gold bullion dropped from $1,000 per ounce to $700.

But although it took the Dow four years to recoup its losses, gold quickly rebounded. By September 2009, it was back to $1,000. It then soared to a record $1,927.70 in 2011.

That triggered a massive bull market in gold stocks. The VanEck Vectors Gold Miners ETF (GDX) shot up 257% in just under three years.

Many people don’t realize, but the troubled 1930s were the same. Gold mining was one of the few industries that prospered.

The initial shock in 1929 wiped out many stock investors and companies. And a second collapse clobbered more investors in 1930. You can see that in this chart of the Dow Jones from 1929 to 1933 below…

But here’s the surprising thing. That collapse triggered big gains for gold stocks.

Here’s another chart, showing major gold miner Homestake through the 1930s. Notice how it took flight starting in 1931, when the big crash was in full swing… ending the decade on a 441% gain, compared with a 54% loss for the Dow.

Gold stocks like Homestake got a big lift in 1934, when President Roosevelt raised the gold price nearly 70% to $35 per ounce. That set off a gold-mining bull market that lasted through much of the Great Depression.

Although we’re now off the gold standard… and presidents can’t revalue gold… over the past 15 months, gold prices have already risen 37%. So I think we could see something similar unfold.

In fact, gold has already regained its losses from earlier this year and is now 32% above its pre-crash level. And GDX is 105% higher than it was before the crash.

Not Too Late

That’s why I’ve been telling my readers that this could be a gold bull market for the ages.

And it’s not too late to get in.

The first step is owning physical gold. After that, consider taking a position in VanEck Vectors Gold Miners ETF (GDX). As the price of gold rises, gold miners could skyrocket even higher.

But if you’re looking for the best way to invest in gold, Legacy Research cofounder and legendary gold investor Doug Casey recently revealed how he built his gold fortune.

He’ll tell you all about the method that’s made him a millionaire… and reveal five gold plays set for 10x… 20x… even 50x gains.

Saturday, October 3, 2020

Peak Uncertainty: President Trump Contracts COVID-19

When I stated last week that we hadn't seen the end of the 2020 chaos, the end of the uncertainly, I certainty didn't see this curveball coming.

Dominating the news headlines today is the fact that President Trumps and the First Lady have tested positive for COVID-19, shortly after news broke that Hope Hicks, one of the Presidents close aides contracted the virus.

In true Trump fashion, the President took to twitter to break the story;


This news has once again upended the already upended and now empty apple cart, as the President's campaign plans have been halted dead in their tracks, as he is forced to self isolate for the duration of the virus.

Markets Sent Reeling

Unsurprisingly, U.S. markets across the board reacted negatively to the news, moving sharply lower as this information spread across the world.

The DOW dropped by a significant 400 points, while the NASDAQ reacted even more negatively, shedding 200 points, or 1.7% of its value.

Even more severely impacted were the oil markets, which suffered heavy losses upon learning this news.

Brent dropped by a stunning 5.1%, moving to levels not seen since June, while in New York, West Texas Intermediate crude futures plummeted by as much as 5.4%.

Other oil indexes dropped in a similar fashion, moving sharply lower.

(Chart source,

This of course is going to be seen as either an overreaction by the markets, or an under reaction depending on how severely President Trump, who is 74 years of age and thus at a heightened level of risk to the coronavirus, reacts in the coming days.

If President Trump's health takes a turn for the worse and is hospitalized, similar to how the leader of the United Kingdom, Boris Johnson was, then you can expect what we are seeing now occur in the markets amplified by an untold magnitude greater.

President Trump is Deemed As the Pro Business Candidate

The fact that this news has moved the markets so significantly tells you all that you need to know about the general, broad sentiment of market participants. 

President Trump is viewed as the "pro business" candidate and thus, better for the markets as a whole.

Besides the efforts that the President has made over the last number of years that he has been in office, with his "America" first agenda influencing the majority of his decisions in regards to international trade, there remains the stark reality that President Trump wishes to keep the economy open, while Joe Biden has suggested that further lockdowns are required.

Wall Street by no means wants the latter and unsurprisingly wishes to see the markets remain open, no matter the ramifications.

This is even further highlighted by today's unemployment numbers, which plunged below 8%, as approximately 661K jobs were added, showing that the economy, under President Trump is on track for recovery.

Whether or not you personally agree, or disagree with eithers Joe Biden's, or Presidents Trump's course of action matters little, as the markets have spoken through this move and are clearly worried about how this news is going to affect the rapidly approaching elections.

Meanwhile, gold and silver bullion are being bought as safe haven assets and unlike the broader markets, are holding strongly in the face of this news, with gold remaining relatively unchanged and silver moving slightly higher.

Conspiracy Theories and Shameful Comments Run Amuck

Further highlighting just how far the political divide has become between the left and right within the United States is how this news is being digested on social media, with the most toxic of this, as per usual, being represented on twitter.


Supporters of the President have already begun to raise conspiracy theories on whether or not someone close to President Trump was intentionally infected with COVID-19, so then to pass it on to the President.

While others on the right are wondering if "getting" President Trump infected with COVID-19 is simply going to be used as a means of assassinating the President in another manner, only then to blame the infection as the cause of death.

Meanwhile, those who would qualify as being on the radical left have rejoiced in the news, with many taking to social media, wishing the President ill-will, hoping that the infection takes a turn for the worse, killing the President in the process.

Already the President's previous shown twitter announcement that he and the FLOTUS have contracted COVID-19 is the President's most shared / liked twitter post of all time and is filled with both support and truly heinous, toxic comments.

In Conclusion

We truly do live in interesting times, however maddening and chaotic they may be.

In the coming days we are going to see a new level of uncertainty, with next week's trading action being filled with extreme volatility, as the markets attempt to digest every morsel of news they can acquire about the Presidents health.

How this will affect the Presidential elections and the remaining two debates is yet to be seen and is anyone's best guess at this point, however one thing is guaranteed, uncertainty is going to continue to remain supreme.

Stay safe and keep stacking.

- Source, Nathan McDonald via Sprott Money News

Friday, October 2, 2020

Charles Nenner: Stock Market Not Going to End Very Well

Renowned geopolitical and financial cycle expert Charles Nenner called this market just 2% from the top in January. 

What does he think now? He likes gold and says he “made more money in gold than in stocks” in the past few months. Nenner says, “We are playing the long term gold market. 

We went out at $2,100 (per ounce), and the price target was $1,850 (on the downside). We hit $1,850 a couple of days ago, so we bought back in. We get in and out for a couple of hundred points, and it’s worthwhile. 

So, the gold cycle is up for much longer. $2,500 is the first target, and it could be we get higher targets. 

I do not believe in the stock market, most of the markets we do nicely in are the gold market, silver market, crude oil market, bond market and the dollar. 

It’s all very simple and normal, and the stock market is not going to end very well.”

- Source, USA Watchdog