Get some gold

Get some gold:‍

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Get some gold.

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You’re gonna need it.

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As much for an increase in asset value as it is to protect what you have.

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Inflation is coming back.

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Roaring back.

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Central banks have decided.

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Jerome Powell knows how screwed his situation is.

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Congress keeps spending like a drunken sailor.

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He has to continue to sell treasury bonds.

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US treasuries are underwater but the banks still get liquidity from the BTFP.

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That’s done.

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More regional bank failures are coming.

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SVB 2.0.

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Commercial real estate is underwater.

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Banks hold a lot of those assets on their books.

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Especially regional ones.

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That spells trouble.

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What about Chinese real estate?

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Their banks are also bankrupt.

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The government is just backstopping everything.

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Xi knows it can’t fail.

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Yet it is coming.

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Who owns those assets?

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Banks globally.

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What happens when they have to take a write down?

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Not good.

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What happens next?

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QE infinity.

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Powell already did it backing up SVB when it failed.

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He’ll do it again when the next one does too.

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The US debt load is too high.

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For every extra amount that gets added, it means the interest payment skyrockets.

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Right now a lot of US income tax is going to pay the interest.

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The interest the US government owes to creditors for already existing debt.

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Not new debt, but existing debt.

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America has a MASSIVE financial problem.

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That will come to a head in the next decade.

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Print or default.

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History is clear.

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Defaults aren’t an option.

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So printing is going to come.

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Get ready for some rocky times.

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As Charlie Munger said, inflation is how democracies die.

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It’s a beast and it’s been let out of the bag.

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So how do you keep up with inflation?

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You need to buy assets with your money that appreciate higher than the value of inflation.

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It’s the only way for your quality of life not to decrease as the central bankers abuse their power to print money.

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What assets are likely to appreciate higher than inflation?

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Silver.

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Commodities.

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Oil.

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But most of all, gold.

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Why?

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Why gold and not the others?

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Because central banks are buying them around the world.

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Wrote a piece on it a few years back.

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Precious metals are moving east.

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Led by gold.

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The BRICS has already discussed a new currency.

They know the dollar is losing power.

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Once demand for dollars goes down, people won’t need to use them as much.

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Will it disappear tomorrow?

No.

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The US dollar is still the most important currency in the world.

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It’s how most people around the world do business.

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But people are moving away from that.

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Putin mentioned it in his interview with Tucker Carlson.

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American made a grave mistake by using its dollar as a foreign policy tool.

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The US government and congress keep devaluing them through printing.

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Anyone who’s studied history knows they’ll continue to print.

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Inflation is coming back.

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It’s a dragon that hasn’t been slayed.

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Many in the finance world still trust Jerome Powell.

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Why?

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He’s been wrong every step of the way.

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Said inflation was transitory while it was at 7% and he was buying $120B of corporate bonds a month.

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Let me put it a different way.

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He was injecting $120B of liquidity into the system every month while inflation was already 7%.

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And that’s with the numbers being fudged.

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Ask anyone who’s lived the last few years about their costs.

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They haven’t just gone up by 10%.

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It’s way more than that.

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When you start hearing about food prices from your parents and grandparents, something is wrong.

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I’ve been hearing about this for years.

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Sadly, it’ll only get worse from here.

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So what can you do?

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Get educated.

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Built a good support system.

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Have close relationships.

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Rely on your community.

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Protect your assets.

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Buy inflation-protected assets.

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Commodities.

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Silver.

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Oil.

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And finally,

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Get some gold.

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