Ron Paul: The Bipartisan Stimulus Hoax

Democrats and Republicans publicly argue and bicker with one another. Outwardly, there is conflict. 

But when it comes to expanding the power of government in every direction, there couldn't be more harmony between them. 

The growth of state power and destruction of individual liberty is a bipartisan affair laced with endless lies. 

Word of another "stimulus" is in the headlines, with the stated intention of "helping" Americans and the economy.

- Source, Ron Paul

Catherine Austin Fitts: The Great Reset Means a Digital Control System

Investment advisor and former Assistant Secretary of Housing Catherine Austin Fitts says the reset is “the end of currencies.” She goes on to say, “It’s the death of currencies.

Currency is something that is liquid. Currency is something I can put in my pocket and walk away. This is a digital control system. This is a credit at the company store.

You will be given a credit at the company store, and if you do what you are told, you can buy things at the company store, but you can’t start your own store. That’s what we are watching right now in the U.S. economy. This is how it works.

The insiders and their businesses are deemed essential and can stay open. Then they can do a series of things to shut down all the independent people and herd all those cash flows into theirs. So, you can’t go to church and you can’t sing, but you can stream Netflix. You can go to Costco. You can go to Walmart.

If the Fed and New York money center banks can make money from it, it’s essential, and you can do it. They can borrow from the Fed at 0%, and our credit cards cost 16%. This is how this works. So, this is economic warfare, and it’s designed to destroy the independent producer.”

- Source, USA Watchdog

Bitcoin Goes Parabolic: Tis the Season for Record Breaking Highs

Here we are again, yet another week and yet another new all time high for the price of Bitcoin. This asset is truly on fire and is now once again entering into a "parabolic" phase.

The reasoning for this continues to be the ever increasing demand of institutional investors who are moving heavily into the crypto space, with Bitcoin being the natural first and main choice for many of these institutions.

But how long can these gains continue at this neck breaking pace, before one of its dreaded and often before seen crashes occur?

Tis the Season for Bitcoin

Bitcoin has truly dominated the financial headlines as of the past few months, with CNBC and other financial outlets plugging the crypto currency over and over again.

This has led to much speculation and much hype surrounding the asset class and for good reason, the gains experienced in the Bitcoin marketplace have been truly historic.

(Chart source, coindesk)

At the time of writing, Bitcoin stands at $22,478.27 USD, moving up from a low seen on December 11th of $18,137.32 USD.

This means that in one week's time, Bitcoin has gained a stunning $4,340.95 USD per coin. 

Say what?

Those buying in at these prices need to have stomachs made of steel, as this is starting to look like one of Bitcoins many "blow off" tops that it has had countless times throughout the years, only then to be rebought by stronger hands at lower prices.

Many people have discovered that this is one of the most volatile and turbulent asset classes that you could possibly buy into, making you fabulous gains overnight, only to evaporate before you go to bed again at night.

However, for those who have "stuck" it out for the long-term, dollar cost averaging into Bitcoin month over month, have done remarkably well, outpacing any other asset class on the market.

Practice Extreme Caution Moving Forward

For those who are new to the Bitcoin space, you may be expecting these gains to continue indefinitely, however, Bitcoin is a fickle lover and what it gives, it rapidly takes away.

Remember, the price of Bitcoin was trading as low as $10,555 USD per coin as of early October, meaning that it has more than doubled in only two months!

Typically this is a giant red flag for any asset, any stock, or anything in general. 

A large correction is likely to occur as investors who have profited wildly in the past few months take money off the table and secure their gains.

I would not be surprised to see Bitcoin suffer a retracement back to the $15,000 USD level, however, anything is possible at this point, as Bitcoin has continued to prove time and time again. The volatility is just that extreme within this space.

Gold and Silver Bullion Continued to be Underappreciated

Meanwhile, Bitcoin's older cousins, gold and silver bullion continue to be foolishly ignored.

(Chart source, goldprice.org)

Many investors see the continued stagnation in the price of gold and silver bullion as being directly related to the meteoric rise in Bitcoins price.

This may be somewhat true, even if it does not paint the full picture, as precious metals and cryptos are two wildly different asset classes, that serve very different purposes to those who have more than a superficial level of knowledge of the two asset classes.

I do believe however that this is a trend that cannot and will not continue, as I know many investors within the crypto space who strongly believe in the fundamentals of precious metals and their necessity as an insurance policy against rising inflation and geopolitical risk.

It is very likely that if the bull market for Bitcoin continues into 2021, then you are going to see some crypto investors diversify a portion of their gains out of the crypto space and into precious metals, causing the metals to play "catch up" and move significantly higher.

There simply is no replacement for physical precious metals in your personal possession, despite what some within the crypto space would try to tell you.

In Conclusion

To make any solid predictions on what is going to unfold throughout the course of 2021 is an incredibly difficult task for even the most brilliant of financial minds, however what is almost guaranteed at this point is that 2021 is going to be filled with extreme risk and uncertainty.

COVID-19 will continue to plague the world well into the year and more financial bailouts are going to be needed if the system has any hopes of staying afloat until the true end of this crisis.

Money printing is going to continue to occur at a record breaking pace and inflation will follow suite.

This is exactly why you are seeing alternative assets such as Bitcoin being bought so heavily and is exactly why I believe that we are going to see precious metals break free from its shackles as we head throughout next year.

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

- Source, Nathan McDonald via the Sprott Money Blog

Rick Ackerman: Second Great Depression Starts in 2021

Analyst, professional trader and financial writer Rick Ackerman likes gold and silver too, but not because he sees explosive price rises. 

He likes precious metals because they are solid core investments. They work well in inflation or deflation. 

They are rugged and will work no matter what comes. Ackerman thinks what is coming will be far worse than the Great Depression, “I call it the ‘Second Great Depression.’

What are we going to have? A zombie apocalypse? I use the example of somebody riding to the soup kitchen on an $8,000 graphite trail bike.

We are going to find out how many of the jobs are completely unnecessary, like 95% of people who work for government. That’s coming.

It’s coming sooner or later, and we are going to have a time or day of reckoning. How long can this con go on? 

We are in a very unstable position and, financially speaking, we have stimulus not stimulating anymore in a meaningful way.”

- Source, USA Watchdog

The COVID-19 Vaccine Will Define the Economy in 2021

By now I'm sure that you have already had one, two or possibly even more conversations with family and friends about the rapidly approaching wave of COVID-19 vaccinations that are about to inoculate the world.

Without a doubt and I believe unarguably at this point, this will be the most dominating news headline as we head into 2021 and as we proceed throughout the year.

The rollout of this vaccine, its success rate and the ability for officials around the world to convince a large enough percentage of the population to take it are all contributing factors in how the global economy for 2021 is going to be defined.

The question is, how will it all play out?

The COVID-19 Debate Rages On

On one side, you have a large percentage of the population eagerly anticipating the rollout of the COVID-19 vaccine, with the majority of governments eager to get their hands on as many doses, as quickly as possible.

On the other side of the aisle, you have a smaller, however still very significant percentage of the population who are questioning the COVID-19 vaccine, whether it be from the angle of how rapidly it was developed, or how the long term effects are yet unknown.

I am not here to argue either side of the debate, however, it is undeniable that this topic is only in its early days and is going to rapidly become the "hot" topic of 2021, that will divide many friends and family members.

Those on the side of being "anti" the COVID-19 vaccine are not isolated to just those who are considered anti-vaxxers in general, with approximately 40% of the American population having some form of reluctance to get the vaccine.

Obviously, those deemed anti-vaxxers in general are naturally on this side of the argument, however, many prominent figures have stepped forth, who are typically pro vaccine, arguing against it.

One of the most recent people to join these ranks is Kyler Kemper, the half-brother of Justin Trudeau, the latter of which is the Prime Minister of Canada.

The National Post reports;

Kemper said there remains a “gigantic divide” in the scientific community over the COVID response. “Vaccine manufacturers are exempt from liability. That scares me. There are so many ways we can improve our immune systems to counter coronavirus. The sun gives us vitamin D and it’s great for the immune system. But Justin and the public health officials don’t tell people to get outside and get vitamin D,” he said.

Kemper said “the global health dictatorship” has imposed a response that has ultimately made people less healthy, with rising levels of suicide and depression, as well as “obliterating” small businesses such as the seven restaurants his family runs in Ottawa.

“It does not warrant all this hype and mania and doesn’t necessitate an experimental vaccine being rushed to market,” he said.

Some of the points that Kemper states are similar to arguments that you have heard throughout the course of the COVID-19 pandemic, such as the fact that there are ramifications to the lockdown, such as higher rates of substance abuse, depression and suicide.

Meanwhile, those who are in favor of the lockdowns state that without the lockdowns, COVID-19 would be even more severe of problem than it already is, with a magnitude more of lives being lost due to the pandemic running unchecked.

Hindsight is 2020 as they say.

Additionally, it is true that an ungodly amount of resources have been dedicated to developing an effective COVID-19 vaccine, with over 200 companies working day and night to discover an effective treatment.

This has resulted in a discovery rate that would typically take years to uncover in a standard vaccine clinical study, meaning that in all likelihood the COVID-19 vaccines that have been approved by many countries in the West are deemed safe, at least in the short term.

Vaccine Manufacturers Will Not be Held Accountable for Long Term Effects?

Even though a monumental amount of resources have been dedicated to discovering an effective COVID-19 vaccine and even though companies can guarantee that the COVID-19 vaccines being issued are safe in the short term, they however cannot state definitively that they are safe in the long term.

This is the major sticking point for many people around the world who are currently reluctant to take the COVID-19 vaccine immediately, as even the companies themselves have made governments sign off on liability protection against COVID-19 vaccine related injuries.

As stated in the New England Journal of Medicine;

"Equally important is offering companies protection against potentially substantial liability should Covid-19 vaccines cause real or perceived injuries to recipients. Manufacturers won’t agree to procurement contracts or ship vaccine without liability protection. 

According to an AstraZeneca executive, for example, in the company’s bilateral contracts, it has been granted protection against legal claims arising from the use of its vaccine products, since it “cannot take the risk” of liability."

Ironically, a statement out of Australia was just released today, indicating that one of their COVID-19 vaccine trials would have to be stopped, as a number of participants received false positives for HIV after being inoculated with their version of the vaccine.

Zerohedge reports;

The Australian government has canceled further development of a COVID-19 vaccine after several trial participants had false positive tests for HIV. The vaccine was being developed by the University of Queensland, while Australian biotech company CSL Limited had been under contract to provide 51 million doses. The vaccine had been on schedule for mid-2021, with phase two and three clinical trials due to commence in December.

"Our processes will not be compromised. At the end of the day, the Therapeutic Goods Administration – like with any vaccine in Australia – must give their tick-off. Without the tick, there’s no jab when it comes to vaccines in this country. That is true for the Covid-19 vaccine, as it is true for any other vaccine that is administered here in Australia," Morrison added.

On the other side of the argument, this should be considered good news, as things may be rushed, but at least checks and balancing are still being applied, with the safety of the vaccine being paramount, as a botched rollout of the COVID-19 would have long lasting negative effects on the vaccine industry in general for decades to come.

In Conclusion

I believe that this debate is going to rage on well into 2021, with many armchair doctors rising up to do battle against one another over many family dinners for months to come.

Regardless of which side of the debate you stand on, you cannot deny the fact that a safe, effective COVID-19 vaccine that is accepted in the hearts and minds of the majority of the worlds population is paramount to the health of the global economy in 2021.

Without it, it is unlikely that government officials will lift all lockdown restrictions, restrictions that have utterly killed the travel industry and so many other sectors of the economy.

Sadly, it appears that 2021 is set to be yet another turbulent year, continuing on with the trend set in 2020.

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

- Source, Nathan McDonald via the Sprott Money Blog

Bitcoin is on Fire: Gains Over $3275 USD in Less Than a Week

Although both gold and silver bullion are recovering nicely at the time of writing, with gold cresting above the $1840 USD per oz mark and silver above $24 USD per oz, they do however continue to be stuck in a trading range, with repeated pressure keeping them from moving to new highs.

(Chart source, goldprice.org)

One market that is also experiencing continued setbacks, only then to rally hard into strength is the king of the Crypto markets, Bitcoin, which is once again nothing short of being on red hot fire.

The Rollercoaster Ride Continues

Last week I discussed how Bitcoin had a phenomenal month of gains throughout November, only to then suffer a massive correction, sending the price tumbling by thousands of dollars in the span of only a few short days.

(Chart source, coindesk)

Fast forward to this week and those losses have been completely and utterly eradicated, as Bitcoin has found its footing in record time and has galloped past the $19,000 USD per BTC level, with it reaching a market cap of over $353.80B at the time of writing.

This is truly mind boggling, as it means that BTC moved from its setback low experienced on November 26th of $16,490.59 USD to its recent rally high experienced on December 1st of $19,768.15 USD in a matter of only five days!

This was an increase of $3277.55 USD per BTC, or 16.5% in gains, in less than one week.

Talk about volatility.

Still, many analyst seem to have faith in this move higher and some are making very lofty predictions, such as Bloomberg's Crypto department which recently stated the following;

“Bitcoin will maintain its propensity to advance in price into 2021, in our view, with macroeconomic, technical and demand [versus] supply indicators supportive of $50,000 target resistance, implying about a $1 trillion market cap.”

These predictions come largely based on the fact that many investment firms still do not hold a solid Crypto position, with BTC being the first "go to" coin to hold within that space, as well as the fact that only 900 BTC are being mined per day now, compared to 1800 per day in 2017, due to the halving that occurred within BTC.

Of these 900 BTC being mined per day, one firm alone, Grayscale Bitcoin Trust is gobbling up approximately 70% of them, taking the majority of them off the market instantly.

Also spurring on this demand is the stark reality that inflation is going to be a huge, continued problem in the years to come, due to the historic levels of money printing that has occurred and is still yet to occur due to the COVID-19 pandemic.

This has many Bitcoin investors worried and is one of the many reasons why they are fleeing into an asset class that they believe will offer them protection in the coming days.

Precious Metals Advocate Nigel Farage Joins the Bitcoin Party

Joining in on the recent action and adding some more positive news to the world of Bitcoin is Nigel Farage, the man who many believe "made" BREXIT happen.

In addition to being a renowned politician within the UK and abroad, loved by some and hated by others (depending on which side of the aisle you stand on), Nigel Farage has also been a stout supporter of alternative currencies that compete with the government controlled fiat based system.

For the past decade, Nigel Farage has appeared on precious metals podcasts such as King World News and many others, preaching to the masses about the protection that precious metals can offer and warning of the dangers surrounding fiat money printing run amuck.

Nigel has ultimately been correct in many of his predictions and has been proven to be a man that oftentimes ends up on the correct side of a trade.

It is therefore being taken quite seriously that Nigel Farage has decided to enter into the Bitcoin space, going on the record stating that he believes in it for the long-term.

In a recent interview with Sam Volkering, Nigel Farage stated the following;

“From the poorest to the richest in the land, one of the conversations that are going on is about cryptocurrency. The reason is all too obvious: it's that governments are, through this pandemic, creating vast amounts of funny money, debasing currencies, and people are scared about what this means for their money, their investments.”

In edition to this, Nigel Farage, ever being the anti-establishment type stated that Bitcoin is the “the ultimate anti-lockdown investment.”

In Conclusion

Whether or not Bitcoin will reach the $50K levels predicted by Bloomberg and many other analysts who strongly believe in the Crypto marketplace is yet to be seen, however, at this stage of the game and with this much fiat money printing occurring, anything is possible.

We know for certain that more fiat money creation, more bailouts and more stimulus plans are yet to be announced and will be coming throughout the course of 2021 and beyond.

The train cannot be allowed to stop, whether or not we are in the midst of a pandemic, the entire house of cards would come tumbling down and the financial elites cannot risk that.

Alternative assets that are scarce, limited and suffer from natural supply restraints such as precious metals, Bitcoin, high end art and collectibles are going to continue to adjust higher due to this historic influx in the supply of fiat money.

I strongly believe that 2021 is going to be an interesting year, that is going to shatter many previously set records.

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

- Source, Nathan McDonald via the Sprott Money Blog