Today, let’s start with how pathetically fickle, and predictable, America’s electorate has become – in the final, malignant stage of history’s largest, most destructive fiat Ponzi scheme. Which I’m sure is no different than that of any modern “democracy”; which I write in “quotes,” given how, per today’s principal topic, Americans’ rights are being eliminated at a frighteningly rapid pace.
Bill Clinton – the so-called “best President ever,” given his luck to have resided over the biggest equity bubble to date; which in hindsight, was catalyzed solely by “Maestro” Greenspan’s money printing after the 1987 stock market crash. To that end, when Slick Willy took office in 1993, he was handed a Congressional majority in both the House and the Senate; and yet, despite the massive stock bubble that occurred on his watch, the Democrats lost control of both the Senate and House just two years later.
When George W. Bush was elected in 2000, when the dotcom bubble was just starting to implode, he was handed a split Congress, nearly 50/50 in both houses – as the Democrats had regained some of the aforementioned “lost ground” when the dotcom bubble inflated to its peak level in the late 90s. However, when the tech bubble really imploded in 2001 and 2002, both the Senate and House turned Republican – as clearly, the populace “blamed” the Democrats” – enabling Bush to print money en masses, to not only fund Wall Street bailouts, but the “Economic Stimulus Plan of 2008” – which accomplished nothing, but gave America “hope” as the housing bubble Greenspan and Bernanke inflated burst. Which was turbo-charged, I might add, by Clinton’s repeal of the Glass-Steagall Act in 1999, enabling Wall Street derivatives to not only be born, but infect the global economy like the Ebola virus. Alas, by the time Bush mercifully left office, the U.S. economy was amidst its worst financial crisis since the Depression, and the national debt had doubled. And oh yeah, the Democrats won back the House in 2007, and the Senate in 2009 – just in time for Obama to be elected, with a fully-supportive Congress.
Who, surprise surprise, immediately signed the “American Recovery and Reinvestment Act” in February 2009, mere weeks after being elected. Which, yet again, accomplished NOTHING except the promise of “hope and change”; except of course, doubling the national debt again, and leaving office with America in its worst economic and financial condition ever; replete with social unrest so powerful, the ultimate anti-establishment candidate, Donald Trump, was elected President; in the process, humiliating the ultimate Washington insiders, and presumed heirs to the increasingly totalitarian throne, Jeb Bush and Hillary Clinton. And what do you know, Obama lost control of the House just two years into his reign, in 2010; and “unexpectedly,” the Senate in 2016, just in time to hand Donald Trump a “fully supportive” Congress in 2017 – which I say in quotes, as the vast majority of Republicans despise his unpredictable, decidedly non-Status Quo attitude.
Lo and behold, just two days into his Presidency, the “fully supportive Congress” submitted a trillion dollar “stimulus” plan – in this case, with no apparent funding, other than the Fed’s soon-to-be-turned-up printing press. As now that the debt ceiling “suspension” put in place in 2015 (to enable limitless pre-Election spending) is about to end – in mid-March – the only way to fund said “stimulus”; particularly if accompanied by the across-the-board tax cuts he proposes; is to dramatically increase the national debt. To that end, the Republican-controlled Congress must raise the “debt ceiling” by perhaps $2 trillion, with no material spending cuts to offset it; as if actual reductions would ever occur, given the Obama experience of instituting “spending cuts” that were, for the most part, deferred well into the future, where they could be cancelled or altered by future stimulus-seeking Congresses.
In the case of the “Trump-flation” stimulus, it is focused nearly exclusively on non-revenue generating projects; including a wall across our Southern border, which will have the “double-negative” effect of sucking up rapidly depreciating taxpayer dollars, and creating a trade and currency war with long-time allies who I assure you, will aggressively respond. Throw in the repair of bridges and roads – which in the big picture, is the equivalent of digging holes and filling them back up; and expanding an imperialistic, globally-destructive military that already spends more than most other militaries combined; and we’re looking at an explosive debt surge; likely, combined with dramatically rising interest rates if said plans actually get through the upcoming, potentially cataclysmic debt ceiling debates.
Not to mention, if the dollar actually rises in response – which it likely will anyway, due to a combination of global political and economic chaos, and the potential collapse of the EuroZone – it will cause dozens of Central banks to accelerate their already record selling of U.S. Treasuries to staunch the declines in their cratering currencies. Which in turn, will catalyze the necessity of heightened Fed QE, no matter how “hawkishly” they are trying to act now – to LOL, “preserve credibility.”
Moreover, as I wrote in January 11th’s “2.5%, ‘Nuff Said,” even the slightest increase in interest rates will annihilate the already cratering economy, as evidenced by collapsing mortgage and re-financing applications following this fall’s measly 70 basis point rate rise – to levels barely a third of the historical average of roughly 6%, as measured by the benchmark 10-year T-bond. Heck, none other than New York Fed President Bill Dudley, just last week, said America needs to start cashing out its home equity to get the economy going, one day after Trump launched a thermonuclear currency war salvo at the world, by proclaiming the dollar is “too strong.” Which of course, are as powerful “fighting words” in favor of a compliant, dovish Federal Reserve as you can find; which irrespective, must occur as the nation’s, LOL, third longest “expansion” ever; which in reality, is already over; officially ends in the coming months.
Consequently, the Precious Metal markets have rallied, after yet again being slammed into year-end – irrespective of the unfathomably blatant capping methods that have retarded their advance, such as the time-honored “2:15 AM” and “12:00 PM EST cap of last resort” algorithms we have seen literally every day; as simultaneously, “dead ringer” and “hail mary” algos have been utilized to relentlessly prop the “Dow Jones Propaganda Average”; and thus, mask the increasingly obvious rot in the system. You know, the rot that catalyzed Trump’s election, and overthrowing of the Democrats’ Senatorial majority. To that end, I couldn’t have been more repulsed this weekend by a “newbie” market commentator – who relies principally on useless “technical analysis” – in claiming it’s not possible to manipulate a market (in this case, gold) for 30 years. This, when hard-core evidence proliferates – much of it, overt. But don’t worry, my friends – as given the certainty that we are heading into an historic era of money printing, draconian government actions, and monetary revolution, Precious Metals’ historically tight supply/demand balance will only grow tighter; until inevitably, the Cartels’ 46-year reign spectacularly ends.
Regarding today’s topic, it’s no accident that my (two-page) introduction ended with a prediction of the “draconian government actions” I anticipate in 2017 – and beyond. To that end, I rarely – if ever – discuss politically-related issues; unless of course, they are within the context of my expectations for financial markets – and more specifically, Precious Metals. Which today’s discussion decidedly is, given how increasingly fascist and totalitarian governments are destroying rights – and currencies; so rapidly, they are causing a global rush for safe-haven assets, such as physical gold and silver; and what I view as the greatest threat ever posed to the fiat currency protecting gold Cartel, Bitcoin.
Today’s topic was catalyzed by my good friend Mike Krieger of the equally FREE libertyblitzkrieg.com blog – a champion of personal rights and freedoms, who I interviewed last week in this must listen pre-inauguration podcast. Yesterday, he wrote the following of Donald Trump, describing exactly why I am so scared what this historically “loose cannon” of a President might do – particularly when major crises, political, economic, and monetary – arise in the coming months.
“I am of the strong belief that any administration which comes into power in the current environment of nearly unrestrained executive authority; a lawless and sprawling intelligence agency complex; and a debt-driven, rent-seeking rewarding fraud economy; should be assumed to represent a serious threat to the civil liberties and remaining freedoms of the American public. This would’ve been true under Hillary, and it’s also true under Trump.”
The shocking amount of “executive orders” Trump has already signed – six, in just two days of work – has put him on a pace to eclipse the most ever by a President; i.e., the 3,522 issued by FDR during his 3¼ term reign from 1933-45 – amidst the two greatest crises in U.S. history, World War II and the Great Depression. Nowhere in the Constitution are “Executive Orders” permitted – i.e, laws without Congressional approval; and in fact, Article I, Section I makes it clear that all legislative powers reside in Congress. And yet, they have become more a part of U.S. government than ever – including, from the George W. Bush days, the ability to launch wars without Congressional approval. Which, I might add, “Nobel Peace Prize” Obama did with aplomb – in dropping more bombs, on more countries, than any prior President.
Some executive orders are harmless, like Trump’s ban on government employees using social media; and some are questionable, like his restriction on Moslem immigration from seven Middle Eastern nations. But some are unquestionably dangerous, like his order to build a wall across the nation’s Southern border; or economically deleterious – like advancing the Keystone and Dakota pipelines, which may well expand an already historic crude oil glut. However, it’s the executive orders during times of crisis I fear most; like, for instance, the “cash ban” instituted, seemingly out of the blue – in India. Which I assure you, was in response to expanding political, economic, and/or social crisis – which is exactly what I anticipate in not just the U.S., but the entire world in the coming months and years, as history’s largest, most destructive fiat Ponzi scheme implodes.
Of which, I can’t emphasize enough the necessity to PROTECT your financial well-being whilst you still can – as eventually, draconian “executive orders” will negatively affect your life, no matter what country you live in. And historically, only physical Precious Metals have responded to that need, preserving monetary purchasing power throughout the ages. And given that today’s historic suppression scheme has catalyzed the tightest physical market conditions in memory – as evidenced by the $1.15/oz premium Eastern investors are paying for physical silver relative to the West – Precious Metals are arguably at their “most undervalued levels in modern times.”