As Americans watch their bills relentlessly rise, they're repeatedly told by official sources that there is no inflation, or 'not enough' inflation. According to the Fed, prices aren't rising fast enough!
They've yet to hit their "inflation target." So which is it? Are your own eyes lying to you? Or are the bureaucrats refusing to come clean?
Bill discusses the events in Texas during the winter storm and why the weather was sigma level abnormal. The forecasts were wrong, and the infrastructure in Texas was not built for those temperatures.
This was the worst storm in 150 years, but Bill says, "The financial storm that is coming is 100% obvious and certain. There is 280 trillion in debt and one quadrillion in derivatives outstanding, and neither will perform.
What is a contract valued at that can't perform; the answer is zero, and that is what you have in these markets.
The debt tail of this dog is ten times larger than the dog itself." Bill thinks the shutting down of the economy eased issues behind the scenes with the credit and repo markets. They took advantage of the situation to stall the inevitable.
We see interest rates pressured higher, but the danger is in the excessive leverage, and they can't allow rates to rise.
If they move higher, the economy is finished, so they will choose to rig the system. All financial assets are in the most massive bubble in history. Eleven million homeowners are behind on their mortgages, and what happens when evictions resume.
Silver remains undervalued, and the gold/silver ratio is well out of the historical range. Most of the silver is already spoken for, and therefore, we must be entering into a shortage.
We've been heading in deficit for a while, particularly if you look at the metal supply-demand profile. Bill thinks more people are beginning to look at gold and silver as a haven.
He doesn't know if the Reddit movement will make a difference but has zero doubt that silver and gold will find their real value. At these prices, people are not selling their silver. Raise the price high enough, and some supply will return.
Everything that you do and use relies on credit and what happens when that system stops functioning. The products and services the world depends on will disappear for a time.
From world central banks repatriating their sovereign gold, to hedge funds, ETFs and “Others” standing for delivery in record-smashing volume, to COMEX warehouse/mints reporting they’re sold out until March, to REDDIT Wall Street traders swarming into a silver squeeze, to ordinary retail investors and stackers cleaning out major dealers and even local coin shops, there is a rush to pull physical gold & silver off the exchanges and market at every level.
This week we cover the price rise in platinum, we'll review the gold to silver ratio, the price movements of gold, silver, equities sector, and oil to gold ratio.
Charles Hugh Smith explains the reasons for two separate Americas and what impact this division will have on our economy and the middle class in general.
The skyrocketing debt and flat out money printing was somewhat alarming in 2020, and it already looks like 2021 is shaping up to be downright shocking.
And the massive stimulus programs aren’t just taking place in the US, but around the world, so we’re checking in with our good friend Simon Popple on Thursday, January 21, 2021, to try to make some sense of all the big government spending, as well as explore some ideas of what we can do to protect our savings and maybe even profit from it.
This week we cover gold & precious metals in 2021, where will silver go next, and are the precious metals on the cusp of their next big move? We'll review the movement of the US Dollar Index, gold, silver, platinum, and more.
Tom welcomes back Michael Oliver from Momentum Structural Analysis. He discusses past markets and how in the 1976 period, investors moved into commodities and stocks went sideways.
Today, we are entering a similar period as most commodities have had long basing periods and are now turning upwards.
This move seems to be caused by the expansion of the money supply and monetary policy.
Since mid-2018, gold has gone from $1160 to $2000 and has done so without the help of weak stock markets. Now the dollar is turning downwards while markets are at highs.
Big investors seem to be moving assets into different sectors, and soon we may see a violent rebalancing. He discusses how silver broke one of their momentum oscillators in July and, afterward, moved rapidly to near $30.
He expects gold to do something very similar soon. This next move could easily be eightfold, and silver is now poised to outperform gold.
Major annual momentum shifts and macro factors are now spreading to the daily news. This chaos seemed baked into the cake a year ago.
Michael cautions that the most delusional trend is the US stock market, and there are times when the Fed backs off, or the market collapses on its own regardless of Fed actions.
Today, there are only five or six stocks that comprise 50% of the Nasdaq 100. It looks like a blow-off top that began this summer, maybe topping out.
The dollar forecast is difficult to predict, but it usually follows the trend for some time.
Michael outlines where treasuries may head and why we are entering a time of flight to safety. He says, "Many investor assumptions will be overturned this year."