Speed Kills

The Law of Nature has a big problem just ahead. Its called speed. Speed kills. The velocity of money that has always been the problem for the elite. Trumpflation is coming. With Trumpflation will come jobs. With Trumpflation will come higher wages. With Trumpflation will come higher costs of imported goods. By the way guess where most of the “stuff” we buy comes from? With Trumpflation will come a declining dollar. With Trumpflation will come an expanding National debt. With Trumpflation will come higher interest rates.

All of these changes may begin taking place this year, even over the next six months we might see these changes exerting there effects on the real economy. I remember discussing on a Yahoo message board and on this blog that gold and miners were the place to invest after the collapse of 2008. I remember like yesterday stating that gold would do very well in deflation/inflation/WORSENING stagflation. I remember stating we were heading directly into stagflation. I remember stating the only economic environment that gold and miners did NOT perform well in was slow growth AND low inflation. Guess what picture the true power painted. Slow growth and low inflation. 

Stagflation indeed occurred and still is in force. What the true power was able to do was create a an illusion of 2% annual GDP and 1% inflation with improving NFP improvement. All of the headline numbers were a lie to create and illusion to maintain the illusion the fiat dollar and other currencies had value and could hold value against the ONLY competing store of value and that was of course GOLD. It worked. It really is that simple. IT WORKED. But at what cost? There’s always a cost. In this case the costs were immense but I just want to speak to a couple of costs.

We expanded the debt on our sovereign balance sheets and our private corporate sheets (eg see share repurchases). We blew up our medicare/social security/EBT etc. Promises we can never keep up in the future. We kept the interest rates at zero and destroyed the retirement funds across the nation and made them basically Bernie Madoff Ponzi pumps.

Now we will see the collision of CONfidence loss and velocity of money. Velocity of money will begin this year to increase with Trumpflation. Chaos will precede AND follow this phenomenon. You must have patience this year, but I think in hindsight it will appear to happen very fast this year. gl