Get some gold:
Get some gold.
You’re gonna need it.
As much for an increase in asset value as it is to protect what you have.
Inflation is coming back.
Roaring back.
Central banks have decided.
Jerome Powell knows how screwed his situation is.
Congress keeps spending like a drunken sailor.
He has to continue to sell treasury bonds.
US treasuries are underwater but the banks still get liquidity from the BTFP.
That’s done.
More regional bank failures are coming.
SVB 2.0.
Commercial real estate is underwater.
Banks hold a lot of those assets on their books.
Especially regional ones.
That spells trouble.
What about Chinese real estate?
Their banks are also bankrupt.
The government is just backstopping everything.
Xi knows it can’t fail.
Yet it is coming.
Who owns those assets?
Banks globally.
What happens when they have to take a write down?
Not good.
What happens next?
QE infinity.
Powell already did it backing up SVB when it failed.
He’ll do it again when the next one does too.
The US debt load is too high.
For every extra amount that gets added, it means the interest payment skyrockets.
Right now a lot of US income tax is going to pay the interest.
The interest the US government owes to creditors for already existing debt.
Not new debt, but existing debt.
America has a MASSIVE financial problem.
That will come to a head in the next decade.
Print or default.
History is clear.
Defaults aren’t an option.
So printing is going to come.
Get ready for some rocky times.
As Charlie Munger said, inflation is how democracies die.
It’s a beast and it’s been let out of the bag.
So how do you keep up with inflation?
You need to buy assets with your money that appreciate higher than the value of inflation.
It’s the only way for your quality of life not to decrease as the central bankers abuse their power to print money.
What assets are likely to appreciate higher than inflation?
Silver.
Commodities.
Oil.
But most of all, gold.
Why?
Why gold and not the others?
Because central banks are buying them around the world.
Wrote a piece on it a few years back.
Precious metals are moving east.
Led by gold.
The BRICS has already discussed a new currency.
They know the dollar is losing power.
Once demand for dollars goes down, people won’t need to use them as much.
Will it disappear tomorrow?
No.
The US dollar is still the most important currency in the world.
It’s how most people around the world do business.
But people are moving away from that.
Putin mentioned it in his interview with Tucker Carlson.
American made a grave mistake by using its dollar as a foreign policy tool.
The US government and congress keep devaluing them through printing.
Anyone who’s studied history knows they’ll continue to print.
Inflation is coming back.
It’s a dragon that hasn’t been slayed.
Many in the finance world still trust Jerome Powell.
Why?
He’s been wrong every step of the way.
Said inflation was transitory while it was at 7% and he was buying $120B of corporate bonds a month.
Let me put it a different way.
He was injecting $120B of liquidity into the system every month while inflation was already 7%.
And that’s with the numbers being fudged.
Ask anyone who’s lived the last few years about their costs.
They haven’t just gone up by 10%.
It’s way more than that.
When you start hearing about food prices from your parents and grandparents, something is wrong.
I’ve been hearing about this for years.
Sadly, it’ll only get worse from here.
So what can you do?
Get educated.
Built a good support system.
Have close relationships.
Rely on your community.
Protect your assets.
Buy inflation-protected assets.
Commodities.
Silver.
Oil.
And finally,
Get some gold.
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