Show Me the Money!

Miles Franklin sponsored this article by Gary Christenson. The opinions are his.

I’ll show you the real money. It looks like this:

Those circulating dollar bills, euros, pounds, and yen are DEBTS (notes) issued by central banks to extract wealth from citizens and the economy, dilute the purchasing power of the currency, and nourish the banking cartel.

From Graham Summers:

“The problem of course is once it has done this [created the ‘everything bubble’], the Fed will NEVER be able to normalize interest rates because the entire financial system is now addicted to extraordinarily low rates.”

“… a Fed President stated point blank that the Fed is aware that the entire US financial system is one gigantic leveraged bet on low interest rates…and as a result of this, the Fed is DONE with normalization.”

From David Stockman:

“Indeed, the Fed’s pro-inflation policy since Alan Greenspan’s arrival at the Eccles Building in August 1987 has been sheer folly.”

“The Warfare State will metastasize until something bigger stops it. AOC-and-MMT-style socialism plus the Green New Deal promise the same for the Welfare State.”

THE IMPLICATIONS ARE:

• Central banks and the banking cartel are supporting the political and financial elite with debt-based currency units. The rest of us manage on our own.
• The U.S. official national debt passed $22 trillion. Not only must debt creation increase, it must accelerate or risk a recession, depression, or revolution. Exponential increases in debt are essential until a reset occurs.
• Fiat currency systems throughout history that depended upon the honesty and integrity of the banking cartel and government officials died from corruption, excess “printing” and devaluation of the currency. The dollar will not be an exception.
• However, the dollar may survive many years as the elite create ever-increasing debt, or it might “reset” much sooner.
• “Inflate or die.” Richard Russell.

From Jim Sinclair:

“Just as there is no tool other than QE to feign financial solvency, there is no tool to balance the balance sheet of the offending entities other than Gold.”

QUESTIONS TO ASK:

• Argentina lopped 13 zeros from their currency in the past 80 years. Would it have been wise to own physical gold coins while the Argentine government and central bank debased the currency with runaway inflation?

• Would you prefer to be a billionaire in Zimbabwe dollars or the owner of 10 ounces of gold?

• Do you own more than one Senator on speed-dial?

• The national debt has increased at almost 9% per year for over 100 years. Do you expect that trend to reverse soon? More debt = more currency in circulation = more price inflation.

• Welfare lobbyists are powerful. Warfare lobbyists get what they want. The banking cartel donates to congressional and presidential elections. Will they receive financial considerations for their “donations?”

• Do you own enough gold and silver that you sleep well at night knowing congress and the Deep State are promoting their agenda?

WHAT ABOUT SPECIFICS?

The official national debt, not counting unfunded liabilities, is over $22 trillion – over $150,000 per worker in the U.S. It will default or be repaid with hyper-inflated dollars. Silver and gold can’t default. They depend upon the counter-party promises of no one.

The national debt increases every year, even allowing for population changes.  Divide national debt by the population (every man, woman, and child). The result is:

The Gross Domestic Product (GDP) as reported by the St. Louis Fed shows an exponential increase even when adjusted for population growth. Dollars buy less so nominal GDP increases.

But the critical observation is that GDP has grown 3.4% per year for the last decade while population adjusted national debt has grown at 7.7%.

How long can debt grow faster than the economy which supports that debt? A long time, but not forever…

Worse, the growth of population adjusted GDP from the 1960s through 1986 has slowed from 8.9% to only 3.4% per year since the 2008 financial crisis.

WHAT ABOUT THE DOW JONES INDUSTRIAL AVERAGE AND GOLD?

The DOW has increased exponentially for many decades.

And gold sold for $42.00/oz in 1971.

The DOW is near the top of its six-decade trend channel. The next major move is likely down.

Gold prices are near the center of their five-decade trend channel. Debt-based currency units will devalue further, as they have for over 100 years. When the dollar buys less, the price of gold must increase.

But gold prices will increase even more rapidly as the world realizes fiat currencies are dodgy and must decline in purchasing power. The dollar, as global reserve currency, has held up better than most, but gold will survive. The dollar will not.

WHEN?

From Jim Sinclair:

“The party ends mid-2019.”

MORE QUESTIONS:

• Zerohedge reported that the U.S. military airlifted 50 tons of gold from Syria. Why gold, not paper currencies such as the Syrian Pounds, Iranian Rials or Russian Rubles?

• Why did Iraq steal gold from Kuwait when Iraq invaded?

• What happened to Libya’s gold?

• What happened to the billions of Zimbabwe dollars printed by their central bank? Toilet paper?

From Thomas Sowell:

“If you have been voting for politicians who promise to give you goodies at someone else’s expense, then you have no right to complain when they take your money and give it to someone else, including themselves.”

CONCLUSIONS:

• Population adjusted official national debt has exploded in the past 100+ years.

• Population adjusted GDP has not kept pace with debt—a bad sign.

• Worse, population adjusted GDP has fallen from 8.9%/year in the 1970s to 3.4%/year in the past decade.

• Gold prices will rise as fiat currencies devalue, and as the world acknowledges $250 trillion in global debt is unpayable. The “printing game” can last longer, but the consequences will be ugly.

• Have you protected your savings and retirement with something real – like silver and gold – instead of trusting devaluing fiat currency units manufactured in the trillions by corrupt central banks?

Buy silver and gold for insurance against the excessive “printing” of central banks. Miles Franklin sells silver and gold.

Call them at 1-800-822-8080 and request a shipment of fiat currency protection units (silver and gold coins). Tell them the Deviant Investor suggested it.

Gary Christenson

The Deviant Investor