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.

One thing that I am not allowed to do is give individual investment advice in this type of format. Since that is the case, I can only talk in general terms, but something caught my eye today.

I saw a report by JP Morgan that the boom in AI is causing problems already with the nation’s water supply. I also saw that 3 Mile Island is going to reopen with all the electricity generated going to Microsoft.

In the Morgan report https://www.yahoo.com/tech/ai-chips-data-centers-making-185302471.html

it was noted that a mid-sized data center uses about 300,000 gallons per day to cool their servers. Larger facilities can use 1-5 MILLION gallons per day. Last year in 2023 these centers used 75 BILLION gallons. This does NOT include the massive amounts of water needed to produce the semiconductors that run the centers. What do these two things tell me? Water and energy are going to play a major role in the AI space.

Why is this important?

Remember the great Wayne Gretzky. For our younger readers he was possibly the greatest hockey player of all time and had a saying that I use often. “You don’t go where the puck is- you go where it is going to be.” I believe too many people see where a mania is building and have a fear of missing out rather than looking at whether or not buying now makes any sense. It seems that when a certain trajectory is taking place it is human nature to see it continuing in that way far into the future even though a run may be nearing its end. There are many great companies today that are just simply FAR too expensive where they sit.

I also remember a story from the California gold rush where thousands of people flocked to the state to find the golden riches. Many went out in search of a fortune. A few were fortunate enough to find those riches. Unfortunately, the majority had a great adventure and shattered dreams.

At the same time, the people who enabled all of the prospecting- those retailers that sold the picks and shovels- along with the manufacturers- got wealthy off of the production and sales of the tools needed to enable the prospecting.

While many are focused on big names and other companies that put “AI” into their company reports I believe most of these companies are far too expensive right now and I would not buy before a major correction. I seem to be the minority on that one.

The things that I am interested in here because there seems to be more value are the pick and shovel companies. To me, these would include water treatment and delivery companies. It would include utilities and in particular the inputs needed to run the utilities- natural gas and uranium in particular.

It appears that these will be the building blocks. Since I am not an expert in this area, I would appreciate anyone who is letting me know what other building blocks are necessary. (Supply and demand)

In a similar situation, silver is an industrial powerhouse commodity used in most electronics, solar panels, and many other devices. In addition, Russia has just announced that silver will be added to their reserves in 2025. This implies that silver’s absence from the financial system is ending. In addition, Samsung has announced a solid-state battery due to be produced in 2027 that will, in their words, revolutionize the electric car industry. From what I have heard it will extend battery life and charge in a fraction of the time. Silver will be a major component.

While gold is getting all of the press (and rightly so) it appears that the upside to silver could be historic in the near future.

This all ties into my thesis that the central banks will continue “printing” to avoid a total collapse until the last bit of remaining value in the world’s fiat currencies is extinguished. Once you start paying interest, retiring debt, paying current bills and start funding wars with cash from nowhere and with no value we can be reasonably sure we are near the end.

I will say that regardless of the short-term view of pain I see coming we can be reasonably assured- assuming no catastrophic destruction caused by all-out war- there will be a recovery. This aspect gets lost because our problems run so deep not just financially but physically, politically, spiritually- you name it. It is hard to find a lot to be enthusiastic about in the near-term.

One thing that may make it easier to survive- and hopefully thrive is to hold ASSETS that will hold VALUE when many paper promises fail to be kept. Central Banks. Major banks and billionaires are well aware of this and have been planning for it for a decade. Remember when you see rising prices it is not the ASSET that changes but the amount of currency you need to buy it because it is losing VALUE.

What is YOUR plan?

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.

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