This article was contributed by Tom Beck of Portfolio Wealth Global.
The markets are pricing in a SWIFT resolution to COVID-19, an immediate cure and a quick return to normal since stocks have been ON FIRE since last week. I’ve gone through the entire apparatus of potential drugs to cure patients and there are CURRENTLY 35 different ones being considered, with some of them already being administered, but the UPWARD movement in stocks is deceiving since the volume traded is ODDLY THIN.
Still, the markets, with all of their forward-looking estimates, must also be pricing that President Trump will get re-elected and that all of the money supply that was created will end up being efficient for corporations and for the economy since it’s been nothing but GREEN for days – something is OFF about this whole thing!
But, consider this: between the months of September and December of 2008, the S&P 500 experienced six SEPARATE sessions, comprised of rebounds of +9%, with several as HUGE as 19%. Remember, however, the bottom only hit in March 2009, which is several months later.
This may be much different than in 2008, but right now the fear of missing out is DEFINITELY starting to make investors believe that all is well IN THE KINGDOM.
Just like this has been the FASTEST-EVER bear market smacking, it’s also been the QUICKEST-EVER bull market resumption.
This is PRECISELY the reason I called this an ARTIFICIAL bear market – unlike all of the pundits, our view did not entail that a -35% was in the cards, regardless of COVID-19, as some are mentioning.
Coronavirus wasn’t a pin that punctured a bubble in stocks; it only SERVES to further accentuate the BUBBLE. We are making mistake after mistake by going deeper into debt, instead of ASKING why deficits exist in the first place.
The Federal Reserve is the institution instilled by law to moderate money supply for the United States economy and, indirectly, for the whole planet.
The Federal Reserve’s balance sheet now includes stocks, bonds, mortgages and may include other assets in the future.
This is important since it means that they are, BY DEFINITION, market manipulators.
Their balance sheet is actually a PORTFOLIO.
These are WILD times and this is the reason we are seeing UNBELIEVABLE premiums on physical silver, more than 100% higher than the COMEX spot price.
As I see it, the Federal government is not really the one to default, but actually the various 50 states that MAKE UP the union.
They can’t print, nor issue municipal bonds on a whim. Their obligations are going to come crashing down on them.
The next bailouts will be state pension programs, and until we get an administration that is ready to look the population straight in the eye and tell them that we are on a path to social and economic DESTRUCTION, you and I are in the responsible minority.
The average American will spend his Helicopter Money faster than you can say “Keynes.”
If this chart is correct, then the dollar is showing signs of A TOP, while Trump’s approval ratings are showing signs of a rally.
Many are STILL predicting bigger gains for the USD, in relation to other fiat currencies, but I think the Federal Reserve and the government have really overshot this time around.
This helicopter money is not like corporate bailouts – it’s going to be spent rapidly into the marketplace.
Once I begin to see private equity, institutional money and savvy investors going into mining stocks again, that will be our SIGNAL and it looks like it is FAST-APPROACHING.
If the dollar is peaking, the appetite for other currencies isn’t that big; gold is much more important to a country’s reserves than Euros or Yens.
Markets look good now, but my forecast is that this is a BOUNCE and that the real cheese is in hard assets.
Someone trading cigarettes, jailbreak phones, name brand soda pops, laundry detergent, or automobiles is not getting the store price. Someone using gold as a medium of exchange is not getting spot price. If anyone is a daredevil, who actually tries any of these survival tips in real life, you will find that value is being exchanged for convenience.
In places like Zimbabwe, PE’s were pegged to artificially-low numbers (in the pennies) so the govt could profit from a global market. It’s collected as we collect soda cans. You’re counting on the existence of a formal market, which is agreeable to you, personally.
Or, in the informal market, try telling those survivalists from “Deliverance” or “Nothing but Trouble” (there are some in every cul de sac) that you found some shiny rocks.
“Go to now, ye rich men, weep and howl for your miseries that shall come upon you. Your riches are corrupted, and your garments are motheaten. Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days. Behold, the hire of the labourers who have reaped down your fields, which is of you kept back by fraud, crieth: and the cries of them which have reaped are entered into the ears of the Lord of sabaoth. Ye have lived in pleasure on the earth, and been wanton; ye have nourished your hearts, as in a day of slaughter. Ye have condemned and killed the just; and he doth not resist you.”
— from James 5
“The sword is without, and the pestilence and the famine within: he that is in the field shall die with the sword; and he that is in the city, famine and pestilence shall devour him. But they that escape of them shall escape, and shall be on the mountains like doves of the valleys, all of them mourning, every one for his iniquity. All hands shall be feeble, and all knees shall be weak as water. They shall also gird themselves with sackcloth, and horror shall cover them; and shame shall be upon all faces, and baldness upon all their heads. They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.”
— from Ezekiel 7
Well, this whole event just plainly sucks.
“They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD:”
Learn to make moonshine then. That will deliver you! Alcohol is always in demand. Make some high proof for sterilizer too. Always a way around things. Your brain will deliver you (or not).
High-octane booze is a refrigerant, fuel, preservative, solvent, makes tinctures, and also, allegedly kills systemic, fungal infections.
I respectfully maintain my position, though:
— not getting the store price.
— value is being exchanged for convenience.
Silver can be used as a disinfectant too and to fight viruses. A still can distill water for batteries etc. Pool chlorine can disinfect most things and has a 100 times longer shelf life than liquid bleach. Alcohol and aloe makes hand sanitizer (3 parts alcohol 1 part aloe). If you want to park some cash in a good barter item buy solar panels and controllers (cheap on ebay). Cheap inverters are good too. Like I said, use yer brain or just pray that you will be ok lol.
These are useful, industrially, in an economy of scale.
I believe that you’re probably resourceful and would be grateful to salvage these items, in teotwaki.
In practice, they are not fungible mediums of exchange.
Tom Beck, thanks for your informed opinion on the ” state of the economy.” We’ll see.
The JUMP TO CONFUSIONS by Media & some Politicians has resulted in huge infringements on the natural rights (spelled out in the Bill of Rights) of American CITIZENS. This World Health Organization induced rush to action based on flawed & insufficient information defines the old phrase “Garbage in = Garbage out.” Original estimates of the death-ratio (Covid-19 people infected / Covid-19 deaths) were deeply flawed as limited testing was available. Insufficient & flawed information led to rushed & over-reaching decisions. Of course, the politicians could hardly wait to stomp on the RIGHTS of Americans and disregard the LIMITATIONS on govt. power spelled out in the CONSTITUTION.
Does that mean people should go out and lick a toilet seat. Hell no, but neither should anyone jump to a confusion and step on the RIGHTS of American CITIZENS.
It’s yer lucky day! JMBullion has some silver for sale. A few eagles for a little over 22 bux and some 90% junk silver. 299 minimum order with 2 week shipping. Better git on it, the mint is closed down….
JM Bullion has a few silver things for sale…