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.

I cannot think of anyone who would want to be a buyer at over a million- actually only a few could be buyers at that time. As the price starts to fall it would likely totally collapse as the insiders will likely be short and those that bought late will be left holding the bag. The rush to get out when it becomes apparent that the tide has turned would likely be STUNNING and there would be no time to respond. The very act of selling and paying down debt would COLLAPSE the price.

The trillion- dollar platinum coin is another doozy of an idea. It is actually POSSIBLE for the US Treasury to mint a TRILLION- dollar coin to help reduce the debt. The problem, as always with these “ideas” is that it is an illusion. Just because they make the PRICE $1 TRILLION who would pay the trillion when an ounce of platinum sells for less than $1000.00? Let’s say it was a 100 oz. coin. It would take 10 MILLION 100 oz coins (at 1000.00 per ounce) to have the VALUE match the price.

How does it appear THAT would work out?

Another ridiculous idea is to tax unrealized gains. Anyone who could back this is an economic idiot.

Just imagine that I own Nvidia stock- as many people do-and those “in charge” want to tax me on the gains that I have on paper, but I have not realized yet.

Some people will be able to sell other things to pay this tax, but many will have to liquidate at least a portion of the stock position. This would lead to a lower price and the “gains” that you paid the taxes on would disappear. There cannot be ANY tax that could be more damaging to everyone than that.

When ideas are floated out like this think it through.

My opinion is that all this is being thrown at us to keep our eyes off of what really matters. Natural resources, hard assets, hard work, and thrift.

Is ANYONE anywhere talking about getting back to the basics and producing the best goods in the world- which we used to do?

They can come up with one scheme after another but until we get back to our roots of hard work and self-reliance, we are going to keep going deeper and deeper into the abyss.

Let’s be part of the SOLUTION and not keep adding to the PROBLEM.

All of these schemes scream to me to have hard assets and not someone else’s promise to repay. Just looking at the sheer lunacy of some of these ideas let’s me know that those “in charge” have no answers other than another scheme to kick the can farther down the road.

Be Prepared!

Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.

Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.

Precious Metals, including gold, are subject to special risks including but not limited to price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.

Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.