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“Return with us now to those thrilling days of yesteryear! From out of the past come the thundering hoofbeats of the great horse Silver! The Lone Ranger rides again.”

Miles Franklin sponsored this article by Gary Christenson. The opinions are his and are not investment advice.

During the 1950s, the Lone Ranger thrilled television audiences. Gold sold for $35 per ounce, silver sold for $0.90, a milkshake cost $0.20, and the dollar was exchangeable (by foreign countries) for U.S. gold.

Who was that masked man? The Lone Ranger fought for truth and justice. He followed a strict moral code that included (per Wikipedia):

“That God put the firewood there, but that every man must gather and light it himself.”

“That sooner or later… somewhere… somehow… we must settle with the world and make payment for what we have taken.”

The Lone Ranger wore a mask over his eyes to conceal his identity as a surviving Texas Ranger and crime fighter.

Many of the criminals he fought wore masks over their nose and mouth to hide their identity as thieves, bank robbers, cattle rustlers, counterfeiters, and killers.

Today, gold sells for about $2,000 per ounce, silver sells for $25 per ounce, the Lone Ranger no longer rides the trails in the old west, and the dollar is not backed by gold. In 2020 people wear masks because political and medical authorities demand it. Meanwhile, back in D.C. the Fed attempts to solve an excess debt problem by creating more debt.

WHO ARE THESE MASKED MEN?

Dr. Fauci is considered a medical authority. He advocated required mask wearing and an economic shutdown. He hopes to force a mandatory vaccine (huge revenue to Big Pharma) upon Americans when (if) it becomes available. People claim he has close ties to “Big Pharma,” the Wuhan lab, and Bill Gates.

Jerome Powell is Chairman of The Federal Reserve, the central bank of the United States. The Fed has created $7 trillion dollars from nothing to support the stock market, bond market, and government spending.

The Lone Ranger would not “print” dollars because that was illegal counterfeiting. However, counterfeiting is legal for a central bank, so expect much more printing, often called QE4ever and stimulus.

Wearing a mask, trusting central banks, stimulating the economy, printing dollars, and supporting the stock and bond markets are considered normal in today’s strange world. Few argue with those policies, but alternatives exist.

Dr. Fauci claimed a “shutdown” was necessary, and masks were essential. In contrast, Sweden had no lockdowns, low deaths, and minimal economic damage, per this article. Masks were not required, and business continued as usual. Perhaps Sweden did not need to crash their economy for political purposes, or to conceal the destructive consequences of excessive spending, bad monetary policies, and massive debt.

Mr. Powell claims QE4ever and near zero interest rates for an extended time are essential. Federal Reserve policies supported Wall Street and the wealthy, but hurt the lower 90%, pension plans, savers, and small businesses. Many people think their policies that enrich the wealthy are intentional. The data support this conclusion.

History shows that central bank “printing” ruins economies, encourages excessive debt, and often leads to hyper-inflation. Many currencies have been hyper-inflated into worthlessness. Wall street, central banks, and the media ignore those long-term consequences and focus on short-term profits and supposed benefits.

But, “sooner or later… somewhere… somehow… we must settle with the world and make payment for what we have taken.”

Consequences occur from actions which are often ignored by our “leaders.” Consider the consequences of:

a) An economic shutdown caused by official reaction to the pandemic. We have seen, so far, over 30,000,000 unemployed, hundreds of thousands of small businesses closed, widespread bankruptcies, and devastation for professional sports, air travel, health care, bars, restaurants, retail stores, small businesses, fast food, and higher education.

b) The U.S. government has $26.5 trillion in official national debt (growing rapidly) and more in contingent liabilities. At normal interest rates, the government cannot service this debt. Hence interest rates can NEVER rise from near zero. Really? A hundred years of controlled interest rates? I doubt it.

c) The Fed can levitate the stock and bond markets, or support the dollar, but not both. Expect the dollar’s purchasing power to fall, as it has for ten decades.

A milkshake cost $0.20 in the 1950s. In 2020 it costs $5.19. The dollar has lost purchasing power every decade.

WHAT ABOUT OTHER MASKED MEN?

Politicians make promises during an election year to “buy” votes. Skepticism is appropriate…

But history shows we should expect during the next four years:

a) Wall Street, “Big Pharma,” the military-industrial-security-surveillance complex, and “Big Ag” will influence the presidential and congressional winners with their agendas.

b) Increasing deficit spending.

c) Much higher official national debt.

d) More “stimulus.”

e) The dollar will lose purchasing power.

f) Counter-party risk will again become important.

g) Lots of political “hot air” and partial truths will saturate the media.

h) Gold and silver will rise as the dollar falls in value.

But, “sooner or later… somewhere… somehow… we must settle with the world and make payment for what we have taken.”

When the “bill comes due,” the dollar will buy much less than in 2020, gold and silver will have preserved purchasing power, and wearing a mask will not protect citizens from the predations of central banks or politicians.

Bill Bonner: The Federal Reserve Helps the Rich Get Richer.

“… tell them the truth: that printing money does not bring them [Americans] wealth; it merely shifts it from those who earned it to those who didn’t… and that every penny of real wealth that comes their way from the federal government must sooner or later come from them.”

“The solution, as we pointed out yesterday, is very simple: Just say ‘no’ to the fakery and the larceny. No more stimulus. No more deficits. No more Federal Reserve support for Wall Street. No more counterfeiting.”

But everyone knows “Just say no” to fake money, deficit spending, Wall Street, and Federal Reserve counterfeiting will not happen.

And that is why wise people who understand history protect their savings and retirements with gold and silver.

From Charles Hugh Smith: “The ‘New Normal’ is De-Normalization

“What few seem to understand is all the Old Normal systems can’t restabilize at some modestly lower level of diminishing returns; their only possible future is collapse. Just as fine-dining restaurants cannot survive at 50% capacity because their cost structure is so astronomical, the same is true of sports, airports, airlines, cruise lines, fast food, movie theaters, healthcare, higher education, local government services and all the rest of the incredibly fragile and unaffordable Old Normal.”

Read:

David Schectman: Patience

Berkshire Buys Barrick Gold

Brady: Big Picture Remains Up

The Lone Ranger yells, “Hi-yo, Silver! Away!” Silver, the horse, carried the Lone Ranger into the sunset to ride again, fighting for truth and justice. He used SILVER bullets to fight criminals…

Silver coins have been and remain real money. Enron stock, black and white televisions, and medical doctors promoting the benefits of smoking (from the 1950s) have faded into history, but silver keeps its value.

Consider the chart of log-scale monthly silver (in cents) for five decades. The trend channel, as drawn, contains most prices. Three-digit prices for silver are likely during this decade. When depends upon how many new dollars are created, and how quickly people realize the U.S. is traveling (per bill Bonner) “down this long, dark road to inflation, bankruptcy, and social suicide.”

CONCLUSIONS:

  • “Sooner or later… somewhere… somehow… we must settle with the world and make payment for what we have taken.”
  • Know them by their actions, not the masks they wear.
  • The “old normal” will not return for many sectors of the economy.
  • It is an election year. Expect pandemic fears, shutdowns, economic trauma, more debt, and promises, lots of promises.
  • Total market cap for stocks, divided by GDP, is registering an all-time (bubble) high. Expect a correction in the stock market, even when supported by QE4ever “printing” by the Fed.
  • The Fed will sacrifice the dollar to “save” the bond and stock markets. It wants inflation, and a weaker dollar will push prices higher.
  • Silver prices have doubled in a few months, fallen hard, rebounded, and corrected. Expect a deeper correction and new highs in a few months.
  • Regardless of who is declared the election winner, plan on larger debt. Choose either: bailout Wall Street and the states, or bailout the states and Wall Street.
  • Silver prices may correct in the short term, but long-term, they are going far higher, unless politicians, central bankers, and Fed employees reverse decades of policies.
  • Buy silver and gold coins and bullion.

Miles Franklin sells gold and silver. Call them at 1-800-822-8080. Tell them you want to buy silver bullets to fight monetary crimes.

Gary Christenson