The Miles Franklin Newsletter
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From The Desk Of David Schectman
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David's Commentary (In Blue):
Stocks down, Bonds down, credit down, gold down, oil down, copper down, crypto down, global systemically important banks down, and liquidity down...
Today was the worst day for a combined equity/bond portfolio... ever...
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I still maintain with what’s ALREADY occurred, excluding the tens (hundreds?) of trillions in future helicopter money that if the dots were allowed to get connected gold would be $10k and no offer. Silver $500. The HUI should be over 1,000.
I’ve been talking privately with a few business people and bankers. They are scared sh*tless. The already insolvent local and state, budgets now face massive increases in unemployment payouts and other Coronavirus expenses at a time when tax collections are practically plummeting to zero. We all agree that debtors are going to run away and hide, and creditors will get killed. The sub- prime auto and housing creditors are screwed.
Credit card debt, student loan debt, you name it, they’re all getting ready to go delinquent.
The only option to avoid social catastrophe is CTRL-P to infinity.
– James M
We have entered into a collapse function of our Highly Leveraged Debt-Based Fiat Monetary System that was going to happen sooner or later. This global contagion just moved up the time-clock and speed.
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Eight years ago, Susan and I purchased an ocean side condo in Miami. We spent five or six months a year there until I (wisely) sold it in 2015. That was supposed to be a life-style change for me. And part of the life style change was I felt it was time to cut way back on my writing. So, I hired Andy Hoffman and Bill Holter, two talented but relatively unknown firebrands to write for Miles Franklin and allow me to cut way back. Hoffman left a couple of years ago to promote crypto currencies. I don’t think it worked out too well. Bill left shortly thereafter to work with Jim Sinclair at JSMineset. That was a great move for Bill and he is thriving in his new environment. I understand why Bill left - which reminds me of a conversation I had many years ago with a Rabbi who happened to live across the street from me. I ran into him on the street one day and I asked him, “ Rabbi Kamens, why did you leave the large and prestigious synagogue in St. Paul to become the Rabbi here in St. Louis Park with a much smaller congregation?” He replied, ‘Leonard Bernstein was asked, what is the most difficult instrument to play in the orchestra?’ Bernstein replied, ‘second fiddle.’” I love Rabbi Kamens. He speaks my kind of language. Bill is no longer writing in my shadow or Hoffman’s either, for that matter. He sits on his own throne now. He earned that privilege. That’s a roundabout way of saying I had to start writing more again. So, for the last few years I would write once, or sometimes twice a week in an environment where people in my industry were no longer considered to be relevant, at least to many of our clients and readers. It had reached the point where my brokers were complaining that many of their clients wouldn’t even answer the phone when they saw Miles Franklin come up on their caller ID. Our readers – and that goes for every precious metals company – had lost faith in our product and our message. Hey, I get it. Gold was $1,900 eight years ago and silver was $50. All the while, the stock market soared to record highs. People forget the message. The message I preached every time I wrote an article was a simple one. Gold (and silver) coins and bars are NOT an investment. Let me repeat, not an investment. They are an insurance policy, an asset that should maintain value when everything else is falling. Surprisingly, they are not doing what they are supposed to now, in the midst of a collapse of everything, but that will quickly change. This is not the time to deal with the “whys” but I will get to it soon. I am more of a “What” guy than a “Why” guy. What is happening and what do we do. I’ll sum it up on a few words: It is what it is!” So, using my own philosophy it was easy to understand why people were not interested in what I, or those like me in my industry had to say. I had little motivation to write often to a readership who, for the most part, didn’t care what I had to say, assuming they even bothered to read our daily at all.
Ah, how quickly things can change. All it took was a Global Pandemic and a collapse of the stock market. But I feel I should defend my views and this is as good a time to do it as any. A few days ago, my best friend said, “Well you have to be right once in a while.” He was referring to the many years that I stood behind my philosophy and never swayed from my belief that our fiscal policies were dangerous and this would not end well. I was, in his eyes, and in the eyes of many, the boy who cried wolf. I would address that, occasionally, with the reminder that THE WOLF CAME. I often wrote, “It’s not over until the Fat Lady sings. That must sound terribly wrong in this new Politically Correct world we live in. I can’t help it if female sopranos in the opera are – well, they are fat. I just can’t get around to saying, “when the portly lady sings.” I was saying we are just about in the final act of the opera now, and we know how it ends, and the Fat Lady will tell us when. “What” is easy. “When” is not. Well, guess what. The Fat Lady has waddled onto the stage and started to sing, and the “when” is here now.
Let me digress a bit, and I will come back to the “What.” They are called “true believers” for a reason. People embrace a certain mindset and they cling to it through thick and thin. Gold bugs do, and mainstream, Wall Street kind of people do to. We just have different beliefs. To the goldbug, gold should never have gone down eight years ago. I mean, the problem never went away. The Fed papered it over but did not fix it. We are right, you need gold, it’s the market that’s wrong. To everyone else, we were nuts and everything was great. Donald Trump has issued in a new era of prosperity forever, and he even topped it off with a nice tax cut. The mantra became - the stock market will only go up. It has the Fed “put” and the Trump “put” behind it. Any pullback will be just a short-term correction and then up, up and away. Of course, the Wall Street crowd will make the same mistake that the gold bulls did when they held onto their gold and silver too long, and rode it all the way down to the bottom. For them, the stock guys, it will be holding onto their stocks all the way down to the bottom. Who is right and who is wrong? Everyone. Nothing goes up forever. Everything cycles. In the last 20 years we have seen three stock market COLLAPES (2000, 2008 and now). We have seen one precious metals collapse (2-12 to 2018).
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In that period of time, the last two decades, there was one stock market bull market and one precious metals bull market. Who was right and who was wrong? Everyone, both sides. But people only remember “What have you done for me lately?” And lately was all about the stock market and gold was the black sheep in the family. I hated writing to that marketplace. And if I don’t love what I do and can’t be passionate about it ,and do it with conviction, then I have little motivation to write. And so, I didn’t. Plus, at my age (78 – a week ago) I kind of thought I should be retired. I compromised and was sorta semi-retired, and wrote once in a while.
Oh, how quickly things can change. In the last couple of weeks, I witnessed an extraordinary, once-in-a life-time, make that a once-in-a-century event. It was like being doused with a bucket of cold water. It took my breath away. It didn’t seem real.
Suddenly, out of nowhere, a black swan appeared, the kind that I had been warning would appear, but did not know what it would be or when it would arrive – it has arrived. Yup, that old Chinese proverb is here to haunt me again: Be careful what you wish for, your wish may come true. I didn’t wish for a Pandemic, I wanted something to jump start the bull market, not only so I could increase my wealth, but because I need the proof, the justification that I had not been wrong, that my faith in precious metals and understanding of the underlying problems were right. Yes, I got it but at what a cost.
Since my eyes were opened to the Austrian Economists way of seeing the world, way back in the mid-80s, I have been viewing the world through a different prism than my friends, family and frankly, than most people. I started to believe things I had never been exposed to, like all debt must be paid, either by the lender or the borrower. That debt and deficits do matter. That gold and silver are money and that once Nixon took us off the gold standard in August, 1971 there would eventually be a point in the future where the runaway monetary inflation it caused would catch up with us. But in 1985 I never thought it would take 35 years. I think the people at the Fed are idiots, but they are talented idiots. They kept the economy from having to face a severe recession or depression for at least a decade or two longer than I ever thought possible. But the thing is, the longer you wait to deal with a problem (like a cavity) the worse it becomes and the greater the pain when you finally are forced to face it.
Why wasn’t this obvious to everyone? It is so simple, so clear? I mean it took 206 years for our National Debt to hit One Trillion Dollars. That is a lot of debt. And as of right now, with the Coronavirus shutting down our economy, we will probably add three trillion to the debt in THIS YEAR alone, and I have seen projections that our debt will top $30 trillion by 2030. Just let the math of that sink in and ask yourself, how can the dollar survive this and maintain any semblance of value? Maybe you can come up with a different answer than I have, but from my vantage point it can’t and the dollar is toast and we are all screwed. Well, not everyone. There is still gold and silver to be had and guess what, you can trade your dollars in for real money, money that is not being inflated away right before your eyes.
Look at the charts below. It took 5 years for the National Debt to grow from 1 trillion to 2 trillion. It took 5 years for it to grow from 2 trillion to 3 trillion. It took 3 years to grow from 3 trillion to 4 trillion. It took 4 years to grow from 4 trillion to 5 trillion. It took 6 years to grow from 6 trillion to 7 trillion. I guess President Clinton did something good. He did balance the budget once. Then things started to really speed up. It only took 2 years to grow from 7 trillion to 8 trillion and 1 year to grow from 8 trillion to 9 trillion 1 year to go from 9 to 10 and 1 year to go from 10 to 11 in 2009, The next jump was from 11 to 13 in 1 year, followed by 13 to 14 in 1 year and then a jump of 2 trillion and that lasted 2 years and another 1 trillion jump 2014 and 2015 and 2016, 2017 and 2018. In 2019, the National Debt increased to--- drum roll please, $21,516,058,183,180.20. But that is looking in the rearview mirror. The National Debt clock today sits at $23.3 trillion and I guess we can add another $3 trillion to that staggering number the by the end of the year.
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Why is this important? Simple. How do you think the Dow could reach 29,000? Do you know what the Dow was when the National Dept first hit $1 Trillion in 1982? It finished the year at 1,046. How could the Dow rise from 1,046 to 29,000 in 38 years? The stock brokers say, “Look what a great investment the stock market has been for decades.” Yes, if you are looking for how much it grew. But why did it grow? How did it grow? You know the answer, I hope. The money supply was exploding, courtesy to the Fed and massive deficits, so there was ample new money available to invest in stocks, and cars and houses and everything. It’s called inflation, which is defined as more money chasing goods and services. I remember buying a new Corvette in 1975 for around $3,500, give or take and a Mercedes 250SL roadster a few years later for around $10,000. What do they cost today? $75,000 and $135,000. You can pick any example you want. Everything, including stocks, has exploded in price right along with the National Debt and the flood of money the Federal Reserve created. That is what made it possible to buy stocks and things. It all worked pretty well – until it didn’t. And the “It didn’t” just showed up, as an unexpected guest at your front door. With an announcement: THE PARTY IS OVER. And you know what, things will never be the same again.
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WE WILL NOT COME BACK FROM THIS ONE. Rather, we will enter into a new world that will be very chaotic and tumultuous.
While the precious metals won’t solve all our problems, at least they will protect wealth during this time when many financial assets get wiped out.
- SRSrocco
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That was a pretty heavy statement and about this time many of you are thinking I am crazy and perhaps you should stop reading and go outside and mow the lawn or shovel the driveway, depending on where you live. Maybe I should rephrase it. The life you knew yesterday is gone, and it will not come back for at least a decade if ever in your lifetime.
Geeze Louise, what if David is right? No what if. David is right. And here is why. Yes, the Covid-19 has something to do with it, but the real problem is the economy. The economy that got bloated, along with the stock market, because of the multi-trillions of new dollars that were borrowed into existence mostly at very low interest rates. That fostered speculating. All that was needed was a pin in search of a bubble. The pin, as it turns out, is the Covid-19 virus and the bubble is – well, just about everything. When bubbles burst, the losses are enormous and trillions of dollars just evaporate. If you have, for example, a $1.5 million-dollar stock portfolio, in the last few days it is probably only worth is worth 1,000,000 today, (and heading way, way down). That does not bode well for my generation, or anyone near retirement or recently retired. You invest and count your gains for years and then in a heartbeat, it’s gone. And what about all the jobs that have just been lost, due to Covid-19, that will be gone for a year or two or maybe never come back? Now here is a point I want to spend a few minutes on.
Let me make it simple: I am not a virologist and am not an expert. I do read a bit and when it comes to the virus, I have hitched my wagon to Chris Martenson (Peak Prosperity) for my information. We all have to lean on someone. He is an “expert,” with a PHD from Duke in Epidemiology. He has been in front of this for a couple of months now and if you haven’t followed his work (he has been releasing a podcast every day and they are exceptional, and scary as Hell) I urge you to immediately.
What is he saying? Here are a few critical points that you must understand.
The virus is growing exponentially. That means it increase 10-fold every two weeks. Every two weeks!
Let’s assume that there are one million reported cases in the US today (there probably are and the only reason you don’t know that is because we haven’t been testing). If you don’t like that number, pick your own number, it doesn’t matter. It will end up the same anyway. If you pick a lower number it just stretches the time line out a few more weeks. Let’s scrap the million, and instead, let’s use the grossly understated number coming out of the CDC. They say that as of today there 10,442 cases. Using that as a starting point, then in two weeks, there WILL BE 104,000 CASES. Let’s round it off and call it an even 100,000. Two weeks later there will be 1,000,000 cases. Yup,
one million.
And two weeks later there will be 10,000,000 cases and two weeks later there will be 100,000,000 cases. All of the hoopla in the last 24 hours about closing schools and restaurants, etc. are TOO LATE. Too little too late. The genie is out of the bottle.
We will be another Italy in two or three weeks – empty highways and streets, no one allowed to go out of their house for anything but getting food or medicine, and you will need a letter stating that it is absolutely necessary. Italy is under a total lock down, a quarantine. They are dying like flies over there, and we will here to, and everywhere. The virus will play itself out but not until there is a heard immunity (when 70-80% of a population has acquired anti-bodies and developed some type of immunity). Or, until there is a vaccine that works, which everyone is saying takes at least 1 year to 18 months to come up with, test, manufacture, distribute and inoculate the entire population with.
Let that sink in. 18 months of avoiding contact will all people, friends, family, anyone, in self imposed quarantine. And if you don’t do it NOW, it will be done for you very soon. The government will mandate it, as it the case in Italy right now.
Take that a step further. The global economy will shut down for 18-24 months. What do you think the stock market will look like in just a few months with retail completely shut down – and in the US retail is responsible for 70% of our GDP? No travel, nothing. Lock down. The health system will be unable to treat most of the people who need access to an ICU and respirator. We did not prepare for this. We did not stop it soon enough. It didn’t have to be this way.
It is predicted that at least half of the population will get the virus (130,000,000) and 4% (500,000) will die. Hundreds of thousands who need a respirator to survive will not get one. We did not prepare for this. We will not have enough ICU beds or respirators or doctors and nurses to deal with this. They don’t anywhere. People will die. Doctors in Italy are forced to decide who lives and who dies, who gets the respirator. They are forced to turn sick people away and are sacrificing the elderly to save your younger patients. This is awful and it is coming – two or three weeks from now. If you don’t believe this, you will.
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The stock market is in freefall, and the World Health Organization has declared the COVID-19 virus outbreak a pandemic. A disease modeler reported on a conference call convened by the Centers for Disease Control. It was estimated that the United States could expect between 200,000 and 1.7 million deaths.
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WHO declares the virus an "enemy of humanity"...
"I went into
lockdown
almost a month ago
to save my father's life
[who is immunocompromised]..."
A
100-page government plan
marked “For Official Use Only // Not For Public Distribution or Release”
paints a very bleak picture of what is coming
...
"This is not a request, this is an order" - LA's 10 million residents ordered to stay at home...
"We have community acquired transmission in 23 counties..."
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I just read this a few minutes ago from a “financial advisor.” I have read similar statements from others in our industry. Read this and I will offer a few less than gentle comments:
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This is not only ignorant, it is dangerous. Almost immediately after the outbreak started, the Chinese government quarantined the area. No one entered or left. They were slow in reporting it to the rest of the world, but as soon as a few people started to die there they shut the area down. It did not spread all over the country (yet). The military was enforcing a total lock down. And by the way, I just heard the deaths and new cases are starting to come back again. It is not finished or contained or over. In America there are no travel restrictions (yet) and only minimal testing. Wait till the hundreds of thousands of kids return home - all over the country - from spring break in Florida, the Carolinas, Texas and California. It’s one thing to lock it down in a city or province and stop the spread dead in its tracks and another to allow it to spread all over the country before any measures are even adopted. It’s in all 50 states, without testing or follow up now, before the kids put the dagger into our heart. This article is ignorant and ill-informed and information like this is harmful. Get used to it. 18 months at minimum, a raging pandemic will be commonplace in every corner of America. We will be Italy, in two weeks. They did not contain it from spreading from Lombardy in northern Italy and people from that part of Italy left and brought it with them all over Italy. Look at the results now. Just like our spring break college kids will bring it back home with them all over the country. I did my best to temper my comments here.
Eventually it will be safe to go back in the water, heard immunity will slow down the virus and our scientists will find a vaccine, but the long-lasting damage will be to the economy, which means the stock market. If you have not yet moved what’s left of your stock portfolio into cash or money market funds, well you will probably wish you did. I am not a financial advisor and cannot give financial advice, but this is what I did with my money and what I begged my daughter to do with hers. There are members of my family who refuse to take my advice. All we can do is try, right? All I can do it lay it on the line for you in the simplest terms possible and with as much clarity as I can muster up.
Here is some good advice:
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The new Coronavirus may not show sign of infection for many days. How can you know if you are infected? By the time you have fever and/or cough and go to the hospital, the lung is usually 50% fibrosis.
Taiwan experts provide a simple self-check that we can do every morning: Take a deep breath and hold it for more than 10 seconds. If you do this successfully without coughing, without discomfort, stiffness or tightness, there is no fibrosis in the lungs; it basically indicates no infection. In critical times, please self-check every morning in an environment with clean air.
Serious excellent advice by Japanese doctors treating COVID-19 cases: Everyone should ensure your mouth & throat are moist, never dry. Take a few sips of water every 15 minutes at least. Why? Even if the virus gets into your mouth, drinking water or other liquids will wash them down through your throat and into the stomach. Once there, your stomach acid will kill all the virus. If you don't drink enough water regularly, the virus can enter your windpipe and then the lungs. That's very dangerous.
IMPORTANT ANNOUNCEMENT - CORONAVIRUS:
1. If you have a runny nose and sputum, you have a common cold.
2. Coronavirus pneumonia is a dry cough with no runny nose.
3. This new virus is not heat-resistant and will be killed by a temperature of just 26/27 degrees C. (About 77 degrees F.) It hates the Sun.
4. If someone sneezes with it, it goes about 10 feet before it drops to the ground and is no longer airborne.
5. If it drops on a metal surface it will live for at least 12 hours - so if you come into contact with any metal surface, wash your hands as soon as you can with a bacterial soap.
6. On fabric it can survive for 6-12 hours. normal laundry detergent will kill it.
7. Drinking warm water is effective for all viruses. Try not to drink liquids with ice.
8. Wash your hands frequently as the virus can only live on your hands for 5-10 minutes, but - a lot can happen during that time - you can rub your eyes, pick your nose unwittingly and so on.
9. You should also gargle as a prevention. A simple solution of salt in warm water will suffice.
10. Can't emphasis enough - drink plenty of water!
THE SYMPTOMS:
1. It will first infect the throat, so you'll have a sore throat lasting 3/4 days
2. The virus then blends into a nasal fluid that enters the trachea and then the lungs,
causing pneumonia. This takes about 5/6 days further.
3. With the pneumonia comes high fever and difficulty in breathing.
4. The nasal congestion is not like the normal kind. You feel like you're drowning. It's imperative you then seek immediate attention.
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I want to share two emails with you, one that I wrote to my best friend and another one that I received yesterday. The second email below, reminded me that what I am doing has real value. I can influence people, and that is why today I am writing with a bit more piss and vinegar than usual. The juices are flowing.
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Rick,
Why is Italy in such disarray? Because when the virus first showed up there, just a few weeks ago, it was localized in the Tuscany area. The government was concerned and they wanted to contain it, which is the correct thing to do, so they put the area under quarantine. But before they could seal the area off, thousands of people fled the area to escape the quarantine and dispersed all over Italy. Now you see the results. We are Italy. Millions of college kids migrated to the warm weather and beaches in Florida, Texas and S. California. They are not concerned, hang out, go to bars and restaurants, and a certain percentage absolutely are asymptomatic or are even showing symptoms but they don’t care. Neither would I if I were 18. They are now on the way back home, to campus towns all over the country, similar to the exodus from Tuscany. In two or three weeks we will be Italy. Highways will be empty. All retail and entertainment will be shut down. I expect martial law. And none of it will stop the virus from killing up to or over a million people. What’s 4%? We can survive that, if we are not one of the 4%, but the ECONOMY CAN’T. A hundred million or more people out of work indefinitely! Retail, which is 70% of our GDP in near total shutdown? What do you think the stock market is telegraphing? The Dow down to 10,000 or much, much lower. What will that mean to an entire generation of people recently retired and living off of their portfolio? We are screwed. Life will not go back to the way it was.
I don’t care if you don’t buy it or don’t trust my sources of information. What you think and what I think does not matter. it will be what it will be. Wait two or three weeks and then tell me what you think. Until a safe and tested vaccine is available to everyone and everyone is being vaccinated it is not safe to interact with anyone who has not totally self-quarantined. This is unbelievable. A year or two of isolation? How will people be able to deal with this - financially and emotionally?
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Here is the email I received from one of our readers from down under.
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Dear Mr. D. Schectman,
May I approach your well deserved throne to humbly offer my very sincere compliments please Sir?
As a 90 year old composer and conductor, (and very long-time committed P.M.'s hoarder), - I write articles on music and particularly conducting for many hours every day.
Therefore I understand your devotion to your craft!
Your article received today, 19/3/2020 again reveals your dedication, intuitive insight and superior wisdom.
I am yet again in awe of your generously shared fore-sighted analyses of the convoluted economic hazards that face todays society.
I felt that as I regularly receive your brilliant waves of psychic conception, I must express my heart-felt appreciation before I shuffle of this (sometimes torturous?) mortal coil.
Please keep up your wonderfully informative masterful presentations as they fulfill a gap that no one else can equal!
You are highly valuable!
My kindest regards and may God bless you richly Sir,
Dr. Prof. Edward Charles. Gold Coast Australia. (A multi-page biography may be obtained by typing my name.)
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Well, if Prof. Charles was impressed with my last rant, wait until he reads todays. OMG. I hope his old heart can take it. I thank you Dr. Charles for giving me the motivation to lay it all on the line today. You opened my eyes.
It was all so clear to me. I said when the stock market crashes gold and silver will soar. I missed this one – but I still feel gold and silver will rebound quickly and strongly and the stock market will not. Let’s just give it a little more time. It took a few months in 2009 when a similar event happened. The prices are not as low as you think because you cannot buy physical bars and coins for anywhere close to the listed spot prices.
The following chart is screaming that something isn’t working. The Federal Funds Rate and the Federal Dept are separating. In other words, all the money the Fed is dumping into the stock market and economy isn’t working.
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Here is an article that sees the problem the same way I do. Read it.
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Mike Savage
Golden thoughts
I have been getting many calls about the action in the gold markets. While gold has held up better than stocks recently, many are disappointed by the recent action. I was not at all surprised by the fall that took place up to last Thursday as it appears that gold was sold along with everything else in what appeared to be a global margin call. The equity “markets” going from all-time highs to a bear market in less than 3 weeks will cause a lot of pain for those “buying the dip” or buying on margin.
The cascading declines in the “markets” likely led to substantial weakness in most other asset classes also because the margin clerk has no qualms about selling whatever is available when a margin call is not met. Basically, it ALL goes, if necessary, with no thought as to WHAT to sell. They just want the cash for whatever is sold.
[maS1]
On Friday when the gold price continued to fall while the “markets” overall were rising it appears to me that the falling bond rates and falling commodity prices, along with gold are telegraphing that the “markets” are anticipating DEFLATION. The problems with the virus and resulting slowing economy seem to make that a likely outcome- at least in the very short term.
Many people worry that in a deflation gold and silver would not perform well. I believe gold would greatly outperform silver in deflation because silver has a large industrial component where gold is a mostly a monetary metal. This is key.
In a deflation, particularly with the entire world awash in debt, and incomes falling in a very concerning manner, most every investor will be worried about getting paid back by the people, companies, cities, states and even nations that owe them a debt. At some point the majority will realize that the debts that we have rung up both here in the USA and globally cannot be repaid with the value of our currencies where they currently reside.
As we are seeing in this current crisis the government is talking about an $850 billion bailout for citizens and hundreds of billions more for bankrupt companies. This is in addition to the over $1 Trillion deficit the government is running before all of this took place. Many of these companies may have been flirting with bankruptcy even if the virus never showed up. It is amazing how little we learned from 2008!
We also shouldn’t forget about the many trillions of dollars being funneled to the banks as we speak with the numbers and time frames increasing exponentially from overnight $50 billion to $500 billion for 1 and 3 months along with overnight repos and $60 billion per month in treasuries being bought with freshly conjured up currency by the Fed.
If these actions are ultimately taken I expect the US dollar to be worth a lot less going forward and the price of commodities (the stuff we need to live) will likely be much higher going forward and gold would likely outperform most of the commodities because it has no counterparty risk (No risk that you won’t get repaid because it is not debt) and the fact that dollars buy less of everything the dollar price of gold could skyrocket. It has already reached all-time highs in most other currencies already.
Just with the current angst in the “markets” physical gold and silver, if you can find any, is trading at large premiums to the fake gold paper price.
They will manipulate gold for as long as they can because it is the measuring stick that shows how currencies are being debased across the globe. As long as the currencies are measured against each other they can all fall together and many don’t notice the severity of the loss of purchasing power.
The illusion is that “things go up” when in reality your currency is just buying a lot less because it is worth less.
As the gold price is manipulated lower day by day the overall performance has been stellar even though 99 out of 100 have no clue. Many still believe the “markets” are the place to be. Let’s look at the history since the year 2000.
In the year 2000-2020 the major US stock averages were:
2000 2007 2014 1-2020 3-17- 2020 TOTAL Avg. Annual
DOW 11,500 14,000 17,000 29,185 20,250 _+76% +3.8%
S&P 1,500 1,566 1,900 3,321 2,440 +63% +3.15%
NASDAQ 5,000 2,500 4,414 9,834 7,050 +41% +2.05%
· The “markets” are gyrating so much that this snapshot was as of 10:30 on 3-17-2020.
· Even at the all-time highs the “markets” didn’t compare to the returns on gold
· Japan has bought hundreds of trillions of Yen in stocks, bonds and who knows what else- the Nikkei is currently 55% LOWER than the all-time high in 1989. Yes, 31 years later minus 55%. Where is the proof that “printing” money and buying stuff works for more than a brief blip? This is just after they bought $100 billion in stock in one day last week! What would their or our averages be without this massive intervention in stock and bond markets?
GOLD $250.00 $700.00 $1,290.00 $1,560.00 $1513.00 +505% +25.26%
… And what would the price of gold actually be without the constant beatdowns by the banks? What will the REAL price look like when the games are forced to end?
Information from historical prices on Marketwatch.
Has anyone shared this information with you other than me?
Actually, as soon as I started promoting this information my invitations to do the financial game shows dried up. There is a script- it is a show and if your story fits the narrative you can become a celebrity.
With all of the financial shenanigans taking place globally it is increasingly likely that the price of gold will go higher in either inflation or deflation. It actually may do better in deflation because fear is a powerful emotion. This is also likely why real physical gold and silver is getting hard to come by for regular people like us. In an interview on King World News it was said that there is plenty of supply in Switzerland in the form of bars but ordinary people are not buying in that size.
I was also surprised that as the Fed offered up to $1 TRILLION in REPOs yesterday “only” about $35 Billion was actually requested by the banks. This leads me to question if they have NO COLLATERAL to put up because the “markets” suffered a historical decline and in prior sessions we saw stocks tank when the banks were asking for far more than the Fed was supplying- likely why they raised the REPO operations from $50 billion to $100 Billion, then $175 Billion to the current $500 Billion in just a few weeks. Actually, today they are doing a second $500 billion repo after “only” about $189 Billion was requested and granted this morning. By the way each $500 Billion given out is $1428.58 per person (men, women and children) if there are 350 million of us sharing this expense. Keep that in mind!
With the “Trillions” being thrown around both here and globally how long before Joe Six pack gets a clue that we are having our currency debased in an uncontrollable manner. It is growing exponentially and will likely have a moment where it will not only be impossible to hide but will also likely be too late to prepare for that eventuality.
My belief is that gold is on sale and it may not be for much longer.
Be Prepared!
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Private Safe Deposit Boxes
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Unencumbered / Segregated Storage
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About Miles Franklin
Miles Franklin was founded in January, 1990 by David MILES Schectman. David's son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin's primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
We are rated A+ by the BBB with zero complaints on our record. We are recommended by many prominent newsletter writers including Doug Casey, Jim Sinclair, David Morgan, Future Money Trends and the SGT Report.
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