George Carlin once said of our political system that it is one big club, and you aren’t in it.

This could not be more evident than in places like Europe, where without any say from the populace they are looking to roll out the European Digital Currency in October. Poll after poll shows that the regular people like you and me are fine with the options that we have now and that they are working well.

Of course, this new version of “money” will allow total control of how the “money” is used and will allow those “in charge” to monitor all of your spending. This is nothing but an attempt to force behaviors by using economic force.

While many who read my articles are well aware of the pitfalls of this new system of total control, I came across another bit of information that got me thinking even deeper than I had been.

I find it interesting that just a few weeks ago Christine Lagarde came out with the statement of a digital Euro in October of 2025. Right around the same time Ursula von der Leyen announced the Savings and Investments Union.

What could be the problem with a Savings and Investment Union? A tweet by Ms. Von der Leyen lays out the EXACT problem. They are aiming to redirect “unused savings” from CITIZENS to finance military growth and bolster Europe’s defense industry. “We’ll turn private savings into much needed investment.”

In my earlier article I was meaning to bring out the fact that Christine Lagarde (Head of the European Central Bank) has made a statement that the EU will have a central bank digital currency by October 2025.

I have written about the problems with these many times. We already have a digital currency already that those “in charge” can do a few clicks on a computer and conjure up trillions of currency units with virtually no cost and no backing.

In rolling out the CBDC, they will be allowed to maintain total control of how “their” money is used and spent.

I expect our “leaders” will soon come out and declare that we cannot let the EU get ahead of us and we will roll ours out soon also. (Just a guess).

Many may say that our President has banned CBDCs with the stroke of a pen. With another stroke he can mandate one. Would it surprise anyone if there was to be a flip-flop?

Augustin Carstens- the head of the BIS (Bank of International Settlements- central bank of central banks) is on tape telling us that this will give the central banks TOTAL CONTROL of our “money.” The reason for that is that even now- we have NO money. It is actually a debt instrument that is owed back to the actual owners- the central bank. The new version will allow them not only to track all of your transactions, but they can actually determine what you can and cannot buy.

Things are changing fast. That is obvious. Most everyone is aware that tariffs and retaliatory tariffs are being proposed, implemented, delayed, and postponed day after day. One of the MANY reasons that stock “markets” have been struggling lately is that markets dislike uncertainty- and we are getting that in spades.

One thing that is hardly ever mentioned on the financial game shows is what assets actually perform well in times of uncertainty- like gold and silver. While gold has hit numerous all-time highs just like the S&P 500 there is barely a peep at its performance. In fact, gold is the #1 performing asset class since the year 2000. The only thing that has had better gains is Bitcoin which I consider total speculation and devoid of any actual VALUE like a stock or hard asset.

Anyone who gets biased information like this that only mentions what the advertisers are selling will not be served well in the long run.

As I was thinking about what to write this week a saying came to me that as I look for the best places to invest, I want to use history as my guide and data as my roadmap. By that I mean I want to see how similar scenarios have played out in the past. This is because someone once said that “history doesn’t necessarily repeat itself, but it often rhymes”- meaning it may not play out exactly the same way but could be remarkably similar.

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While our politicians and media try to portray our economy as “strong” and our outlook bright, their actions are betraying their words. The latest sign of our demise is the Mara Lago Accord. While it has a cool sounding name, I believe it is a clear sign of how desperate our debt situation has become.

The idea is to replace some of our longer-dated treasuries with 100 Year Bonds that would be issued at a discount and mature in 100 Years. They would pay no interest and could be used as collateral to get low-to-no interest loans from the Fed if money were needed in the meantime.

This could lower the interest expenses that we have been paying but would VERY likely undermine the world’s confidence in our US dollar and economy- likely leading to more “printing and buying” and inflation.

In my opinion, this is real banana republic stuff.

Is it any surprise why central banks are jettisoning their treasuries and buying gold?

There has been a lot of commentary lately on the massive amounts of gold being moved into the United States in the past few months. While there is no official story that we can all believe there are many theories out there. Most are plausible but it would be nice to know which ones are actually correct.

As I was writing my article last week, I mentioned about how many ridiculous ideas were out there to kick the economic can down the road. I also mentioned that our only real option was to get back to our roots of hard work and thrift.

I also believe that we need a stronger currency. This could be accomplished with HIGHER- not lower interest rates or backing or partially backing the US dollar with gold, silver or other hard assets. This would likely lead to FAR lower stock prices but LOWER prices for our necessities. Which is better for YOU?

Every single “idea” that seems to get floated out concerns creating more cash out of nowhere to:

· Prop up stock “markets” for the illusion of a strong economy.

· Conjure up cash and buy MASSIVE amounts of bonds to foster artificially low interest rates to make the financing of our daunting debt easier and also to help keep the stock “markets” propped up.

· Put tariffs on anyone and everyone to punish supposedly unfair trade practices. Of course, the main PAYER of tariffs are the CONSUMERS. (You and me). All tariffs do is raise the price we pay for EVERYTHING.

As I was writing my weekly commentary, I was pointing out the disinformation that we have all been subjected to. It occurred to me that I missed a few extremely important points.

This also seems to me to be misdirection.

We have been hearing about different countries (USA included) that want to buy Bitcoin and use it to pay down our debt. The total amount of Bitcoin will be 21 million with around 20 million already produced.

I believe this to be either a ploy to get people to buy into Bitcoin or a total fabrication.

Let’s just say that the USA were to buy Bitcoin and other countries followed suit. This would likely drive the price FAR higher. (Supply and demand). So far so good.

Just using our own (admitted to – but actually exponentially higher) national debt the 20 million Bitcoin would have to rise to $1,800,000.00 per bitcoin to retire the debt. This does not include any other countries that may try this. So, what is the problem?

It is that unless they are going to use Bitcoin as an asset to back NEW DEBT which in the long run will lead to an even larger collapse, what do you think will happen when those banging the price higher by buying it? Supply and demand says that when the selling starts look out below.

Almost everyone I speak to has the feeling that, as they watch the “news” and read the headlines almost nothing seems to make sense. I also get the feeling from most of these people that they believe that many things are wrong, but they cannot put their finger on what the problem actually is.

Personally, I believe that the problem is that those “in charge” want to keep us as clueless as possible. Why would they do that? They are doing things that, if we normal people were aware of, we would likely put a stop to it.

It appears to me that those “in charge” are doing everything they can to keep we regular people from finding out the truth about MANY things.

It is pretty evident that when we look at how things are playing out inflation has never been temporary, transitory or falling. Prices continue to rise. I guess we are supposed to believe that those who are responsible for the inflation- central banks- do not know what they are doing. I always have to laugh at the “experts” who claim that the Fed is clueless. No, it is the “expert”, who in his hubris- is clueless. The central banks know EXACTLY what they are doing but are more than happy to allow you to think this whole thing was just one big policy error.

There are some people that make statements that are far more profound than many of us realize when we first hear them.

One such example would be from Rick Rule- a well-known metals investor. In an interview I heard many years ago he said that “The cure for low prices in commodities is always low prices. The cure for high commodity prices is high prices.”

When we think about this for a moment, we can realize that when prices are artificially low (likely manipulated that way by traders for their own benefit) it leads to a situation where the commodity cannot be produced for a profit so new projects are postponed or cancelled. This ultimately leads to a lack of production and a lack of supply going forward.

At some point demand overwhelms supply and prices rise.

A perfect example of this would be silver. The price has been artificially suppressed probably for decades but certainly since 2011 when the suppression became easy to spot. In the past few years, the amount of silver produced both by mining and scrap has lagged demand by millions of ounces.

According to the silver Institute, demand for silver in 2023 was 1.24 BILLION ounces. The total supply between mining and scrap was just over 844 million ounces. This means that 396 MILLION ounces more were needed than were produced. This number has been growing year after year. As a matter of fact, Keith Neumeyer (CEO of First Majestic- Silver miner) said that in July the deficit for 2024 was 215.3 million ounces-up 17% from the prior year.

In the last few weeks, I have written about a few of the major manias that have occurred throughout history mostly in stock markets but also in other assets. What I have been thinking about is how much time had to pass before another major mania took place and another was born.

The reason is pretty obvious. Of the many who were chasing the latest fad, many bought in after most of the major gains were in the rearview mirror. This led to many having their financial lives ruined or at least greatly impaired.

It is always the same story- “It’s different this time!”

When something like this happens the fresh memories of losing a substantial amount of money makes most rational people shy away from taking undo risks.

Many people who were chasing stocks in the 1920’s, only to see an obliteration of their wealth, were some of the most conservative people I have ever met. (Yes, I am old enough to have had grandparents who lived through it).

Even if they avoided the collapse the images of those that took part lasted a lifetime.

Today, it is absolutely amazing to me that we have had three major bubbles burst in the last 25 years and we are in the largest and most dangerous bubble that I have ever seen.

Many times, I have pointed out that since we have gone down the “printing and buying” path that there aren’t too many good options. This is particularly true when you get near the end of a fiat experiment as it appears we are nearing- if we are not already there.

I have said that the two options are to continue “printing and buying” and history says that the currency gets debased and ultimately becomes virtually worthless. The other option is to try and balance the budget and ultimately pay off the debts that have built up over time.

History also shows that those “in charge” have always taken the most expedient way out. That would be to keep “printing and buying” to mask all of the underlying problems that they themselves created and to say that they met the promises that they made even though the VALUE that you imagined while “investing” has only a fraction of the imagined purchasing power.

In the case of the USA, we have a new administration that is promising lower prices, lower interest rates and is starting a new program to reduce government waste (DOGE).

While I have to commend the new folks for their intentions, I can tell you that if they get lower prices, we could have the worst economic collapse we have ever seen- Bar None.

Deep Seek or Deep Fake?

I have heard compelling arguments on both sides of this issue.

Since I am not anywhere near an expert in the tech area, I have to rely on those that are deemed to be. I have done a lot of research on this in the last few days because the answer to the question of “Is deepseek a real game changer or is it just a made-up excuse for a “market” pullback or psyop of some kind?” This could make a world of difference particularly in the high-flying tech stocks.

From most tech experts that I have heard from the belief is that this is a paradigm shift. Billions have been poured into many AI companies with the idea that it would be a closed system, and it would be a subscription type of service. This has led many companies to invest billions in computer chips, energy and technology. As of last week, it appeared that the opportunities were historic.

This led to massive investments in energy- like Microsoft restarting Three Mile Island to have enough energy to power their new venture. It led to massive orders for companies like NVIDIA and other chip makers. Even utilities and energy companies benefitted. This led to FAR higher share prices for those companies.

Earlier this week I wrote a note that included information from Rick Rule. That information is that gold was $250.00 in the year 2000 and is currently over $2700.00 today. Even so, many ask him when gold will go up.

I believe that this shows how biased the media is in reporting financial news. Every new record in the stock “markets” are celebrated with hats and balloons on the financial game shows while new highs in the metals “markets” are ignored. Of course, when gold and silver pull back it is front and center. If you watch the commercials, you can see why.

When I used to go on CNBC, Fox Business, and others I was routinely cut off when I talked about gold, natural gas, etc. That is not what they SELL.

How many people do you know that actually understand that in 2024 gold substantially outperformed the major stock “markets”? How many people understand that it is not gold rising but currencies collapsing?

One of the main ways we can tell that currencies are collapsing is that if we look at some major currencies and the rise of gold in those currencies it gives us a good look at how fast currencies are losing purchasing power.

In 2024 gold gained:

27.2% in US dollars. 35.6% in the Euro, 37.1% in Swiss Francs, 41.7% in Japanese Yen.

I remember getting a card a few years ago that listed the prices that were paid for certain goods in the year that I was born. To say the least any of us born 50 or more years ago remember those days.

Getting a nickel meant that you could go and get a full-sized candy bar that I have recently seen in a smaller version for $2.49.

There are many examples like this, but the main point is that our purchasing power is being undermined by excessive money creation and manipulation of “markets” for the benefit of the VERY few.

There are many data points which, if we connect the dots, we can see why many people are suffering out there. It is not because they are lazy or do not want to work- in most cases anyway- but try as they may the harder, they work the harder it seems to be to get by.

Major corporations and our own government have been colluding against mom-and-pop shops for quite some time. The Covid lockdowns were just the latest assault on small private businesses and likely will not be the last.

Over the years we have seen consolidation in almost all fields. Doctors being priced out of private practices and becoming corporate employees. Ditto for dentists and other professionals. They now take marching orders from moneychangers who know very little-if anything at all- about medicine but are keen to keep an eye on activity and the bottom line.

I have written many times how I believe that when historians look back upon our time in history, they will likely think that we were the most gullible generation of all time. Personally, I believe that the phrase “those who fail to learn history are doomed to repeat it” is quite appropriate for a huge majority of people- not only here in the USA but across the world.

If we look at history, it is full of examples of people chasing stories and bidding prices up higher than anyone could imagine. One of the first examples I am aware of was the Tulip Bulb mania in the Dutch Republic in the 1630s.

According to Wikipedia, at the height of the mania a single tulip bulb sold for 10 TIMES the annual income of a skilled artisan. In those days, a skilled artisan earned 150-350 florins per year. There was a trade recorded in 1635 of 40 Tulip bulbs for 100,000 Florins. Putting that into perspective- if a skilled worker today makes $100,000.00 per year that tulip bulb would sell for $1 MILLION.

This action took place because there was a futures market where the Dutch described it as “windhandel” or wind trade because it was a trade where no tulip bulbs actually changed hands. It was a paper contract that drove prices ever higher. During the peak in the winter of 1636-1637 many contracts changed hands multiple times with no Tulip bulbs delivered. In February 1637 prices collapsed and those contracts were never delivered on. This is an example of a derivative (forward contract) determining the price of a real asset. The same scheme is used today to trick the algorithms into thinking there is FAR more gold and silver available than actually exists- therefore suppressing the price rather than driving it higher. Of course, when demand collapsed so did the price- and the bubble.

I am convinced that by any historical standards we are seeing “markets” that are in the largest bubble of our lifetimes. Any valuation metric you would like to use shows that we are at historic levels of overvaluation in our “markets”. Remember, I always use the ““ because we really do not have true markets where a willing buyer and a willing seller determine a fair price.

Central banks, major banks, hedge funds, etc. are all participating to prop up stock, bond and property prices. While most central banks are BUYING gold, the Fed and its owners- the major banks are gifting them the ability to buy it for a deep discount as they manipulate the price lower so the US dollar can maintain the illusion of strength.

It is my opinion that this overvaluation has been built on an unsustainable pile of debt. This debt has been issued by the US government and governments around the world. It has been issued by cities, states, and municipalities globally. It has been issued by corporations- large and small. It has been lent to individuals. In every circumstance we are seeing historic levels of debt that are gnawing away at our economy.

All of the “money” that is being spent on debt service is eating directly into economic activity and the development of new ventures. Debt is even being issued by many companies to buy back their own shares to give the illusion that the company is doing better than it is and to prop up their share price- mainly at bonus time. This also eats into Research and Development and also takes away from investing in future projects that could benefit the firm in the long run.

Since we are nearing the end of 2024, I think a good question to ask is what we might expect to see in the year ahead- 2025.

What I am personally seeing is something akin to what Clubber Lang said in Rocky3 when asked what his prediction was for his upcoming fight with Rocky- “PAIN”.

Many might say I am being negative. I wish that was all it was. There are MANY signs that have my attention right now.

#1 2025 is the year that the Bank of International Settlements has mandated that all central banks have a digital currency. While this does not necessarily mean that they will all roll out this year I have always believed that a crisis would have to take place to usher in this new system. There are MANY things that could happen to bring this about- War, currency debasement, civil unrest, and many other things. Right now, it appears that those clinging to power are doing all they can to ignite world-war three.

#2 Inflation is starting to rise again and could rise uncontrollably in 2025. I say this for many reasons. If the Fed were really interested in stopping inflation, they would not be lowering rates- they would be raising them. If those “in charge” were interested in stopping inflation they would be decreasing the money supply and reducing spending. The deficits we have seen in the recent past may appear to be peanuts compared to what appears to be coming in 2025. Fiscal 2025 started in October of 2024. According to the US Treasury, the spending that took place in October and November was over $1.2 TRILLION in 2 months! This is higher spending than we had in 2021 during the lockdowns. Even more concerning is that revenue (TAXES) came in at $628 BILLION. This means that ½ of all spending was DEBT. If this keeps up our $2.1 TRILLION (admitted) deficit for 2024 would balloon to $3.5 TRILLION in 2025. Who knows how many more trillions that are not “official” there are.

Gradually- then all at once!

I have spoken in the past about how many things happen so fast that most are taken by surprise.

It does not help that we are propagandized 24/7 about how “great!” things are so that most people cannot discern the real state of our economy. Add to that TRILLIONS in currency units to cover up the implosion of our economy and the illusion is maintained- at least for a while.

I woke up on Sunday morning to the news that Syria’s government had been overthrown. When I left my office on Friday, I had just read that Iraq was sending troops and equipment to help the Assad regime. I was stunned when just a few hours later the jig was up. Later on, we found out that Assad had fled Syria and was in Russia.

This got me thinking about how tenuous the situation must have been in Syria, but the real situation was unknown because of the propaganda that was being spread and kept most people in the dark. Even experts like Scott Ritter (Former UN arms inspector) were surprised by the ease with which the country was overthrown.

I am sure that MUCH more will come out in the future, but it appears that the military just decided to give up.

The reason that this appears important to me is that we could easily see a similar situation take place in our economy.

I got a call from a client this week and he asked me a question that really got me thinking.

The question was where do I see opportunity in the “markets” at this time?

The first thing that came to mind is that it appears to me that the valuations of stocks are WAY off the charts. There are many good companies I would like to own but I believe patience will be rewarded here. What I mean by that is that it will be a much better time to buy after a large pullback than at all-time highs.

In the old days I would be shorting this market, but I stopped almost all shorting in 2011 when it became apparent that the Fed-with unlimited firepower- was going to prop up the “markets” and that any metrics that we used to use to determine if a share-price was expensive or cheap could be thrown out the window. It seems the worse the economy gets, which in the days of actual markets stocks would suffer- in our new paradigm the worse it gets the higher stocks climb.

Since the massive interventions have been taking place in most assets there is virtually NO PRICE DISCOVERY in almost any asset. A common saying from me is that 2+2=4 UNTIL the Fed steps in and if they say 2+2= 17 then you have to adjust your thinking because they will “print” their way to the desired outcome. This can only go on for a limited time so anyone thinking this won’t end- think again.

While many are buying into the latest fads the central banks, major banks and billionaires are continuing to amass massive amounts of gold. How much? The global demand rose 5% year over year in the third quarter. It is an all-time record for a third quarter of 1,313 Tons.

I believe they all know that they are “printing” their fiat currencies into oblivion and are preparing for a new system that will likely be hatched shortly. Remember the Bank of International Settlements made it mandatory for all central banks to have a digital currency by 2025.

Does that mean that we will have a meltdown and a new financial system in 2025? Only time will tell what the timing may be, but it bears watching closely.

I cannot help but speculate that Bitcoin is being used to divert money that normally would go into gold so that the “dollar strength” illusion can be maintained. I also cannot help but believe that Bitcoin may be used to usher in a new monetary system.

Before any Bitcoin enthusiasts get too excited, I am NOT saying Bitcoin will be used in the new system- just used to usher it in.

How might this happen?

Bitcoin gets bid up higher and higher. At a certain point (likely when the banks choose) it collapses, and many get wiped out. Those “in charge” will likely blame the fact that there is no central bank that is monitoring the situation and that only a centrally planned currency can prevent this type of catastrophe from happening again.

Who Hates Gold?

These are my guesses.

Wall Street- HATES GOLD. Why?

My guess is that as people buy gold it is not traded very often. Keep in mind that money in motion is what Wall Street wants. A great example of why was brought up in the movie “Trading Places” with Eddie Murphy and Dan Aykroyd. When Eddie Murphy gets the job that Aykroyd previously held it was explained that, as clients make trades, they may make money-or not- but WE get paid for every transaction. If people buy and hold assets the HOUSE doesn’t constantly get a piece of the action.

Since most physical gold buyers are buying it for stability and to keep up with inflation it is held for longer periods and impedes commissions. This is likely the main reason why gold is rarely mentioned even though it has performed better than most other assets since the year 2000.

Every all-time high is celebrated in the “markets” but with gold also hitting all-time highs there appear to be crickets. How many people realize that as of Nov. 20th. Gold has risen over 32% in 2024?

CENTRAL BANKS AND MAJOR BANKS- Hate gold publicly but hoard it privately.

Central banks have been buying gold in record amounts particularly since 2022. This is being done to avoid counterparty risk- which is the risk of someone’s promise to pay not being kept. Another reason is to avoid sanctions. Since 2022 the central banks have SOLD $1 TRILLION in US Treasuries and have BOUGHT $1 TRILLION in gold. Publicly they call it a pet rock and other derogatory terms to, in my opinion, keep us commoners off the scent as they buy it all. If we were in on it, they would have to pay substantially more. Andy Schectman says that the central banks use the PRICE as a diversion. What this means is that they manipulate the price (almost always lower) with paper contracts, and it gives the illusion of more gold than actually exists and also makes it appear “risky” while they list it on their balance sheet as a tier 1 (riskless) asset. They are “printing” their product (currency) and buying gold. What does THAT tell you?

Trouble Ahead? There are a few things that I think we should be paying attention to.

Ever since Mr. Trump won the Presidency, we have seen cryptos flying higher and certain stocks leading the indexes to new all-time highs. The euphoria seems off the charts.

If anyone watches college football like I do, you have probably seen Lee Corso making predictions on Gameday. One of his favorite lines when he is going to pick against you is “Not So Fast!.”

While he is not always right- and I am not either I do think there are some warning signs out there that indicate that things could take a turn at any time.

Many think that since the new president will be coming in and reducing regulations along with the Fed lowering rates, easy money and good times will be right around the corner. With this in mind it appears that many are throwing caution to the wind and buying about anything.

In my opinion there are many possible warning signs out there.

#1 The Fed has lowered the overnight rate by .75% in the last two meetings. That is great and historically this means easy money is returning. What many may not realize is that in that same time the 5-year note has RISEN by .75% and the 10 -year yield has gone from around 3.75 to 4.41 as I am writing this. About .65% HIGHER. (Marketwatch). This indicates that the “easy money” theory may be in jeopardy. Remember, they can reduce the overnight rate by dictating it. All other maturities have to be BOUGHT to keep the rates down. With other countries selling our debt I have to wonder just how much the Fed is actually conjuring up from nowhere to maintain the illusion of control.

The election is finally behind us and, as I write this, the “markets” are celebrating. Bitcoin is flying -probably because the president-elect has promised to be the bitcoin president. Stocks are flying higher across the board on the morning after. On the other side, gold, silver, oil, and most hard assets are taking it on the chin.

Personally, I look at this as a short-term reaction. The “markets” got what they wanted out of the election. However, I do have a few questions.

#1 As the stock “markets” are rising- so are interest rates. It appears that bonds are being sold along with commodities to fund the race into stocks. While this is short-term bullish for stocks, I have to wonder whether the Fed will let this stand as the cost of funding the government is rising. Personally, I believe that those “in charge” cannot allow rates to rise much further. Is it possible that the “market” may pull back shortly to prop up the bond “market”? Remember, the Fed can lower the overnight rate by mandating it. All other maturities must be bought (most of it with cash from nowhere) to manipulate the rates lower. Not only is the act of “printing and buying” inflationary but the lower rates add gas to the fire.

Week after week it seems that I am discussing the anemic state of our economy and trying to enlighten those who care to look about the propaganda taking place 24/7. It may seem that I am being pessimistic. Actually, I am just being realistic and trying to give people a heads-up so they can prepare for what I believe will be an extremely difficult 2025 and beyond. I also believe I am a bit of a counterbalance to that same propaganda. Instead of talking points given out by those “in charge” and parroted across the airwaves by willing (well-paid) accomplices in the media I actually do research and look at actual numbers- not the massively massaged numbers that are regurgitated over and over as facts. Remember the Nazi playbook- tell a lie often enough and it becomes the truth.

I cannot tell you how many times I have had to turn off the major financial channels when I see this happening.

I also believe that I am putting information out that is either being underreported or ignored. Things like the BIS (Bank of International Settlements) mandate that all central banks have a digital currency in 2025 (that I referenced in an article in 2020). Real inflation and unemployment numbers from Shadow Government Statistics. Revealing that our “low” unemployment rate is made available because over 100 MILLION working age people are simply not counted. Hopefully, knowing a little more of the truth will allow you to make plans that will make your life easier going forward.

It appears that every trick in the book is being used to keep us as uninformed about our current reality.

I just saw a headline that global debt will hit $100 TRILLION soon. Really? That is only because all of the promises made- and not funded are not counted. Wars are off budget, so I guess the trillions spent there is just an illusion. Just here in the USA, according to USDEBTCLOCK.ORG our UNFUNDED (no money to pay for it) liabilities are over $200 TRILLION and growing by the minute. Let’s also not forget about the $29 TRILLION lent to the banks which is also off-budget. What is the real number? It’s anybody’s guess but a QUADRILLION is probably not out of the question. That would be 100X what they are saying.

Let’s also not forget about personal and corporate debt that is off the charts.

I hear two candidates for president that are offering no solution or even acknowledging the debt problem that threatens our well-being. As a matter of fact, I hear almost nobody talking about our greatest challenge at any level.

I hear both candidates espousing lower rates and a cheaper dollar. What does that mean? INFLATION. As a matter of fact, if you wanted to create inflation there would be no better way than to spend like a drunken sailor and issue ever more debt to fund the splurge.

Will they, or won’t they? Many people are asking whether or not a new settlement currency for the BRICS known as the UNIT will be announced at the meeting in Russia taking place next week.

For those who may not know what the UNIT actually is, it is a currency that will be backed by 60% local currencies or commodities and 40% backed by gold. This would greatly impact the US dollar as MANY countries are looking to trade amongst themselves without a third party (USA) intervening.

As many as 59 countries have applied for membership in addition to the current 10 members.

Another interesting outcome will be to see if any expansion will be announced at this time and what the timeframe might be moving forward. Last year, 6 new members were announced. Argentina backed out after a leadership change and Saudi Arabia is in- but not fully yet. The 10 members will have to determine who, and how many, new participants will be added. This could also give us a glimpse of how fast these events may take place.

Most of the commodities, including oil, would be produced by these members and they would have substantial pricing power- taking it away from the western moneychangers that have been manipulating prices for their own benefit- and to the detriment of the producers for centuries. This would be the end of the petrodollar as we have known it since the mid-1970s. It could also be the end of keeping areas of the world- mainly in Africa- in abject poverty as the West has been exploiting the resource-rich continent for their own benefit and to the oppression of the local population- again for centuries.

As anyone who reads these articles know I am a major bull when it comes to hard assets, and in particular, gold, silver, and the mining companies. I saw an interview where the host asked a great question: Why has gold vaulted to all-time highs, but silver and the gold mining companies have not followed suit?

While silver and gold mining companies have made some major strides this year silver is still 40% below its all-time closing high. Remember, if inflation were factored in the $50.00 high in price would have to be SUBSTANTIALLY higher. It reached $50.00 in 1980 and again in 2011. How much “printing” and inflation has taken place since then?

If you look at gold stocks they are trading FAR below where they were when gold was trading at $700.00 lower than today.

While many look at this as a reason to shun these assets (most of Wall Street in particular) I believe that those looking at this objectively would have to think that these assets are just two of the few things we can look at and believe that they are really undervalued. There are not many other things that we can look at and think they are undervalued. Remember the saying: BUY LOW, SELL HIGH.

I believe that many are still stuck in the old paradigm that the major banks will always be able to suppress the price of metals, etc. utilizing their futures contracts and other means that have been exposed in court cases that have led to large fines and unfortunately, VERY little jail time.

The economy is GREAT! Our economy is the envy of the world! We are the richest country of all time!

Three lies that we are constantly being fed by the mainstream media and our “leaders” that are so obviously false that they must think we have no functioning brain cells at all. They would like us to believe what we are told and not what we see with our own eyes.

Personally, as I have written for the past 10 years it appears that we have devolved into a third-world country. The numbers put out by our government are so different from the reality on the ground that it is amazing anyone believes the numbers at all. Just a couple of months ago we learned that 818,000 jobs that were reported never existed. The unemployment rate, if reported as it was in the 1980s would be north of 15% (Shadow Government Statistics) and inflation would be about the same.

All the following information is being written with information from USDEBTCLOCK.ORG.

Currently, the US government lists $35.7 TRILLION in debt. This number is concerning enough but it is just the tip of the iceberg. Between Social Security and Medicare add another 69 TRILLION to that number. With regards to the trust funds (which appear now are just IOUs from the government) there are serious questions. We are told the trust funds will deplete around 2033. I must wonder why, if the trust funds are really there, why did the Treasury report that $80 BILLION was conjured up to pay Social Security last year that the taxes did not cover and $460 BILLION to pay Medicare for the same reason?

I think one of the major problems we have here in our Western culture is that we expect events which appear inevitable to take place immediately. Another problem we seem to have is that we tend to think linearly. As an asset or object moves in a certain direction most people project that same trajectory into the future. Both ways of thinking can lead to more harm than good.

I recall many times making a purchase expecting a good outcome immediately- or at least in the near future- and have had to wait quite a while to get the desired result. I believe that in investing it is better to be far too early than even a minute late.

There is a lot of talk about the BRICS plus bloc and the likelihood of a new settlement currency which has been talked about. The UNIT, as it has come to be called will supposedly be backed by 40% gold and 60% of either commodities produced by members and/or national currencies.

There is speculation that at the meeting in Russia in late October an announcement may be made unveiling this new settlement currency. Keep in mind this is to settle bilateral trades- bypassing an intermediary- like the US dollar in settling trades among nations. It is not intended to be a BRICS currency used by regular people like us.

This Saturday would have been my grandmother’s 110th. Birthday. She was a member of what we now call the “greatest generation.” I am not sure that is accurate but over the years- knowing many from that generation- I believe it was the greatest generation that we will see in our lifetimes.

They lived through the great depression of the 1930s, World War 2 in the 1940s and the rebuild of America in America’s heydays in the 1950s and 1960s.

What they went through in the 1920s was a classic boom/bust cycle, similar to what we are seeing today. The roaring 20s featured rising stock markets and cheap, abundant money to fuel the upward trajectory. It appeared so easy to get “rich” that many threw caution to the wind and went into debt to get those easy profits. Today, we have “traders” who offer NOTHING to society but game the system to make profits for themselves. Most are just gamblers.

Of course, the leverage used on the way up to goose the returns is what led to the implosion in 1929.

Anyone who bought the DOW near the top in 1929 did not recover their original investment until 1954. That is longer than most people’s time horizons for their investments. The war that the US entered in 1941 was started years earlier. Many say that WW2 took us out of the great depression. I believe this is one of the many lies we have been told and since it has been said enough most people buy it.

Every time I turn on the TV, I am reminded that we are in another election season. As a matter of fact, it seems that those “in charge” want to keep us occupied 24/7 with the idea that if we vote this way or that way, we will be better off. As we approach November, I am sure we will see a nauseating amount of propaganda from both sides.

There are a few common themes that I am seeing in the commercials.

One side wants to raise taxes on the “rich” and make corporations pay more taxes. For those who are unaware the corporations, if taxes are raised, HAVE to pass that cost on to you and me. For the doors to stay open and to keep a profit margin that allows an actual PROFIT, taxes must be accounted for. The result? YOU PAY MORE for whatever you are buying. INFLATION.

I also see ads that bash corporations for price-gouging and shrinkflation. Both may be somewhat true but what can government do about it? Some are proposing price controls which have been shown to destroy supply chains and lead to shortages or unavailability of the goods being artificially priced. If it costs more to produce than it can be sold for, production STOPS. This would lead to EMPTY STORE SHELVES and likely a black market where a fair (likely FAR higher) price can be determined.

I was listening to a podcast that had Martin Armstrong of Armstrong Economics on it. In it he said something that struck me.

He was talking about some of the “ideas” that are being floated about taxing gains even prior to making them (wealth tax) and price controls- which we have tried in the past and saw first-hand that this does not work.

I will always remember in the 1970s going to the grocery store and my mom wanting to buy American cheese. We could not find ANY cheese. In speaking to the person who owned the store he told us “The government says we must sell cheese for $2.00. The farmer charges us $3.00. Until this changes there will be no cheese. A quick lesson in how absurd this idea actually is.

While all of that is interesting the real subject that hit me was that he mentioned how the government initially established the income tax- taxing only the “wealthy” who earned more than $3000.00 per year.

He said that his grandfather was paid $20.67 per week. (A $20.00 gold coin) A living wage at that time. That means that most were making between 1 and 2 thousand dollars per YEAR. The same is being said about the unrealized gain tax being floated- only the “rich” would be impacted.

There are many stories out there that allow us to see the true state of our economy- as long as we do not rely on our “news” outlets to get the information.

While we are distracted by the presidential reality show the world around us is, and has been, collapsing.

I am sure those “in charge” can’t wait for football to start so the masses can be distracted even more with irrelevant stories and either real or manufactured stories of romance between football stars and singers.

I am also sure that they are thrilled that the gambling sites that millions are frequenting will be teeming with young and old alike who will not be worried about working or adding any value to society but will be looking to make quick buck. Another GREAT distraction from reality.

I was sad to hear about the billionaire who lost his life in his yacht off of Sicily but the fact that this would be a front-page story in the Wall Street Journal allows me to see that even a paper that many look at as the financial go-to source is putting out stories that distract us from the real stories that can and do affect all of our lives.

Both candidates are promising lower interest rates and a weaker dollar. Both make it sound like the good times will be right back right after they get in. What nobody calls into question is “HOW DOES A WEAKER DOLLAR HELP ME?” A weaker dollar- likely engineered with lower interest rates means that everything I buy I will need more dollars to get the same goods so both candidates are promising more and higher INFLATION.

The end of last week and the beginning of this week has given us a glimpse of just how bad things are.

I do not say this because of the massive downdraft in Japan (Nikkei down 20% in 3 days) or the beatdown of most “markets” around the world.

The reason I say this is because this was supposedly (and likely) caused by a mere 0.25% raise in interest rates in Japan. It appears to me that the “markets” are so dependent upon cheap “money” that even the slightest jolt can cause shockwaves around the globe.

Since the selloff we have seen a recovery- again just after Japanese authorities met and let the world know that no more rate hikes will be coming anytime soon. I guess when you owe over a QUADRILLION (1000 trillions) even a 0.25% rate is too much to handle.

The Japanese have total debt of 1.3 quadrillion Yen (who has ever heard of that number before?) and the Japanese Central bank owns 753 TRILLION Yen assets on their balance sheet - mostly Japanese Government bonds. If rates rise, can you imagine the scope of their losses? They can, and have, just conjured up cash to manipulate interest rates lower but we must keep in mind that EVERY intervention widens the chasm between PRICE and VALUE. They also buy ETFs and own a significant percentage of the Nikkei index because of that. (Wikipedia)

I have made my position known for years that the USA has become no better than a third world country.

It is bad enough that we are following the same path that has led to disaster hundreds of times in history, but we have likely not seen anything yet.

I was watching a video of Glenn Beck where he was making the observation of what is going on in Venezuela and comparing it to what is happening here. He went over the lack of election integrity, the lack of the rule of law and other social problems. Very similar to what we are seeing here.

He also was showing how the politicians and those close to them became extremely wealthy while the masses suffered greatly. (Sound familiar?)

The sad part is that the social problems were caused by their currency collapsing.

Glenn did not go into the circumstances that caused all the social problems. I will.

To start with, we must understand that Venezuela was the most prosperous country in South America just a few decades ago. They also sit on some of the largest oil reserves on the planet. This allowed those “in charge” to make many promises to the populace and buy their loyalty and votes.

I’ll bet most Venezuelans had the same “it can’t happen here” attitude that most have here.