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Financial Tyranny: Footing the Tax Bill for the Government’s Fiscal Insanity

This article was originally published by  John W. Whitehead & Nisha Whitehead at The Rutherford Institute. 

EDITOR’S NOTE: Taxation is theft. The rulers see us as tax cattle to be stolen from and abused until they no longer need us.  Time to wake up.

“We are now speeding down the road of wasteful spending and debt, and unless we can escape we will be smashed in inflation.”—Herbert Hoover

We’re not living the American dream. We’re living a financial nightmare.

The U.S. government—and that includes the current administration—is spending money it doesn’t have on programs it can’t afford, and “we the taxpayers” are the ones who will be forced to foot the bill for the government’s fiscal insanity.

We’ve been sold a bill of goods by politicians promising to pay down the national debt, jumpstart the economy, rebuild our infrastructure, secure our borders, ensure our security, and make us all healthy, wealthy, and happy.

None of that has come to pass, and yet we’ve still been loaded down with debt not of our own making.

This financial tyranny works the same whether it’s a Democrat or Republican at the helm.

Let’s talk numbers, shall we?

The national debt (the amount the federal government has borrowed over the years and must pay back) is $28 trillion and growing. That translates to roughly $224,000 per taxpayer.

The government’s answer to the COVID-19 pandemic has been to throw more money at the problem in the form of stimulus checks, small business loans, unemployment benefits, vaccine funding, and financial bailouts for corporations. All told, the federal government’s COVID-19 spending has exceeded $4 trillion.

The Biden administration is proposing another $2 trillion in infrastructure spending.

The amount this country owes is now greater than its gross domestic product (all the products and services produced in one year by labor and property supplied by the citizens). And the top two foreign countries who “own” about a third of our debt are China and Japan.

That debt is also growing exponentially: it is expected to be twice the size of the U.S. economy by 2051.

Essentially, the U.S. government is funding its very existence with a credit card.

We’re paying more than $300 billion in interest every year on that public debt, not including what COVID-19 just added to the bill. That breaks down to more than $2400 per household.

According to the Committee for a Reasonable Federal Budget, the interest we’re paying on this borrowed money is “nearly twice what the federal government will spend on transportation infrastructure, over four times as much as it will spend on K-12 education, almost four times what it will spend on housing and over eight times what it will spend on science, space, and technology.”

Clearly, the national debt isn’t going away anytime soon, especially not with government spending on the rise and interest payments making up such a large chunk of the budget.

Still, the government remains unrepentant, unfazed, and undeterred in its wanton spending.

Indeed, the national deficit (the difference between what the government spends and the revenue it takes in) is expected to be $2.3 trillion for fiscal 2021.

If Americans managed their personal finances the way the government mismanages the nation’s finances, we’d all be in debtors’ prison by now.

Despite the government propaganda being peddled by the politicians and news media, however, the government isn’t spending our tax dollars to make our lives better.

We’re being robbed blind so the governmental elite can get richer.

This is nothing less than financial tyranny.

“We the people” have become the new, permanent underclass in America.

In the eyes of the government, “we the people, the voters, the consumers, and the taxpayers” are little more than pocketbooks waiting to be picked.

Consider: The government can seize your home and your car (which you’ve bought and paid for) over nonpayment of taxes. Government agents can freeze and seize your bank accounts and other valuables if they merely “suspect” wrongdoing. And the IRS insists on getting the first cut of your salary to pay for government programs over which you have no say.

We have no real say in how the government runs, or how our taxpayer funds are used, but we’re being forced to pay through the nose, anyhow.

We have no real say, but that doesn’t prevent the government from fleecing us at every turn and forcing us to pay for endless wars that do more to fund the military industrial complex than protect us, pork barrel projects that produce little to nothing, and a police state that serves only to imprison us within its walls.

If you have no choice, no voice, and no real options when it comes to the government’s claims on your property and your money, you’re not free.

It wasn’t always this way, of course.

Early Americans went to war over the inalienable rights described by philosopher John Locke as the natural rights of life, liberty and property.

It didn’t take long, however—a hundred years, in fact—before the American government was laying claim to the citizenry’s property by levying taxes to pay for the Civil War. As the New York Times reports, “Widespread resistance led to its repeal in 1872.”

Determined to claim some of the citizenry’s wealth for its own uses, the government reinstituted the income tax in 1894. Charles Pollock challenged the tax as unconstitutional, and the U.S. Supreme Court ruled in his favor. Pollock’s victory was relatively short-lived. Members of Congress—united in their determination to tax the American people’s income—worked together to adopt a constitutional amendment to overrule the Pollock decision.

On the eve of World War I, in 1913, Congress instituted a permanent income tax by way of the 16th Amendment to the Constitution and the Revenue Act of 1913. Under the Revenue Act, individuals with income exceeding $3,000 could be taxed starting at 1% up to 7% for incomes exceeding $500,000.

It’s all gone downhill from there.

Unsurprisingly, the government has used its tax powers to advance its own imperialistic agendas and the courts have repeatedly upheld the government’s power to penalize or jail those who refused to pay their taxes.

While we’re struggling to get by, and making tough decisions about how to spend what little money actually makes it into our pockets after the federal, state and local governments take their share (this doesn’t include the stealth taxes imposed through tolls, fines and other fiscal penalties), the government continues to do whatever it likes—levy taxes, rack up debt, spend outrageously and irresponsibly—with little thought for the plight of its citizens.

To top it all off, all of those wars the U.S. is so eager to fight abroad are being waged with borrowed funds. As The Atlantic reports, “U.S. leaders are essentially bankrolling the wars with debt, in the form of purchases of U.S. Treasury bonds by U.S.-based entities like pension funds and state and local governments, and by countries like China and Japan.”

Of course, we’re the ones who will have to repay that borrowed debt.

For instance, American taxpayers have been forced to shell out more than $5.6 trillion since 9/11 for the military-industrial complex’s costly, endless so-called “war on terrorism.” That translates to roughly $23,000 per taxpayer to wage wars abroad, occupy foreign countries, provide financial aid to foreign allies, and fill the pockets of defense contractors and grease the hands of corrupt foreign dignitaries.

Mind you, that staggering $6 trillion is only a portion of what the Pentagon spends on America’s military empire.

The United States also spends more on foreign aid than any other nation ($50 billion in 2017 alone). More than 150 countries around the world receive U.S. taxpayer-funded assistance, with most of the funds going to the Middle East, Africa, and Asia. That price tag keeps growing, too.

As Dwight D. Eisenhower warned in a 1953 speech, this is how the military-industrial complex will continue to get richer, while the American taxpayer will be forced to pay for programs that do little to enhance our lives, ensure our happiness and well-being, or secure our freedoms.

This is no way of life.

Yet it’s not just the government’s endless wars that are bleeding us dry.

We’re also being forced to shell out money for surveillance systems to track our movements, money to further militarize our already militarized police, money to allow the government to raid our homes and bank accounts, money to fund schools where our kids learn nothing about freedom and everything about how to comply, and on and on.

It’s tempting to say that there’s little we can do about it, except that’s not quite accurate.

There are a few things we can do (demand transparency, reject cronyism and graft, insist on fair pricing and honest accounting methods, call a halt to incentive-driven government programs that prioritize profits over people), but it will require that “we the people” stop playing politics and stand united against the politicians and corporate interests who have turned our government and economy into a pay-to-play exercise in fascism.

Unfortunately, we’ve become so invested in identity politics that pit us against one another and keep us powerless and divided that we’ve lost sight of the one label that unites us: we’re all Americans.

Trust me, we’re all in the same boat, folks, and there’s only one real-life preserver: that’s the Constitution and the Bill of Rights.

The Constitution starts with those three powerful words: “We the people.”

As I make clear in my book Battlefield America: The War on the American People, there is power in our numbers. That remains our greatest strength in the face of a governmental elite that continues to ride roughshod over the populace. It remains our greatest defense against a government that has claimed for itself unlimited power over the purse (taxpayer funds) and the sword (military might).

Where we lose out is when we fall for the big-talking politicians who spend big at our expense.

The post Financial Tyranny: Footing the Tax Bill for the Government’s Fiscal Insanity first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Stimulus Addiction Disorder: The Debt-Disposable Earnings Pyramid

This article was originally published by Charles Hugh Smith at Of Two Minds Blog. 

One glance at this chart explains why the status quo is locked on “run to fail” and will implode in a spectacular collapse of the unsustainable debt super-nova.

For those who suspect the status quo is unsustainable but aren’t quite sure why I’ve prepared a simple chart that explains the financial precariousness many sense. The chart depicts the two core elements of a debt-based, consumerist economy: disposable earnings, defined as the earnings left after paying for essentials which can then be used to service debt and debt.

In other words, if all the household earnings are spent on non-discretionary expenses (rent or mortgage, taxes, food, utilities, healthcare, etc.) then there is no money left to pay the interest and principal on a loan. Lenders consider this household uncreditworthy for the simple reason that their earnings cannot support the monthly nut of debt service (interest and principal).

Note the word earnings as opposed to income. Social entitlements such as Social Security are income but they are funded by taxes paid by those with earnings. (All of America’s social entitlements are pay as you go–the trust funds are PR fiction.) The investment income (interest) paid to owners of Treasury bonds is also paid by taxes on earnings.

All the interest and principal of the debt is ultimately paid out of earnings, either private-sector debt paid directly out of wages or public-sector debt paid out of taxes which are paid out of earnings.

The problem with servicing debt out of income is two-fold: one, earnings of the bottom 95% have been stagnant for decades, which means earnings aren’t actually rising in terms of the goods and services they can buy, and two, the cost of non-discretionary expenses (essentials) has been rising, especially the big-ticket costs such as housing, healthcare and higher education.

You see the problem: since earnings are flat and the cost of essentials is steadily rising, there are fewer disposable earnings left every month to service debt. This is a problem in an economy like America’s that depends on debt-funded consumption to fuel “growth.” No increase in debt means no increase in consumption which means no “growth.”

In response, the status quo–the Federal Reserve and the federal government–have played two financial tricks to maintain the illusion that earnings can support more debt: one, the Fed has lowered interest rates to near-zero, reducing the costs of mortgages (but not the sky-high interest rates charged on student loans or credit cards, of course) so the same stagnant earnings can support a much larger mortgage, and two, the federal government has increased its own borrowing to fund various stimulus programs, most of which are corporate welfare to monopolies and cartels in the form of subsidies, tax breaks, government contracts, etc. But as the consumerist economy weakens, the government is increasing its stimulus to households as well–all with borrowed money that is theoretically serviced by taxes on earnings.

Alas, these tricks are not sustainable. Interest rates can’t go lower than zero without bankrupting the banking sector, and federal spending is completely untethered from tax revenues.

The “solution” is obvious: borrow the money needed to service new and existing debt. This is the definition of a zombie economy comprised of zombie companies and zombie consumers that need to borrow more to sustain the illusion of solvency, i.e. that their disposable earnings are sufficient to service all their debts.

Notice that the debt-disposable pyramid is inverted: an ever-larger amount of debt is being piled on an ever-shrinking amount of disposable earnings. The trick of borrowing more to make the payments on the existing debt and fund new consumption results in a compounding of debt, not an arithmetic (linear) increase in debt: debt grows geometrically while the disposable earnings needed to service the debt remain stagnant.

The only “solution” left is Stimulus Addiction Disorder (SAD): the Fed must create trillions of dollars out of thin air to buy the Treasury bonds that are sold to fund trillions of dollars in stimulus–not once or twice, but from now on until the entire travesty of a mockery of a sham collapses under its own weight of flimflammery and fraud.

Artifice, illusion and simulacra are not real, and what’s not real vanishes back into the air whence it came. One glance at this chart explains why the status quo is locked on run to fail and will implode in a spectacular collapse of the unsustainable debt super-nova. SAD, to be sure.

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So This Is How The U.S. Dollar Dies…

This article was originally published by Michael Snyder at The Economic Collapse Blog. 

EDITOR’S NOTE: This is all about the Great Reset agenda.  People must be dependent on the government for their very survival so they can force everyone onto a fully centralized and tracked and traced digital dollar that they control. In exchange for your slavery, you’ll get a pittance – as long as you continue to obey the masters.

Our leaders are killing the U.S. dollar, and it is being done to thunderous applause.

The House and the Senate have now both passed the 1.9 trillion dollar “COVID relief bill”, and it will go to Joe Biden’s desk for his signature.  Of course, we don’t actually have 1.9 trillion dollars to spend on yet another “COVID relief” package.  In fact, we don’t even have one dollar to spend on another “COVID relief” package.  Every single dollar that is spent will have to be borrowed, and that will soon push our national debt beyond the 30 trillion dollar mark.  Sadly, our politicians seem convinced that giant mountains of dollars can be printed, borrowed, and spent indefinitely without any repercussions, and most Americans fully support what they are doing.  In fact, one recent poll found that a whopping 78 percent of all Americans support more stimulus checks…

A huge majority of Americans, including nearly two-thirds of Republicans, support the $1,400 stimulus checks President Biden is calling for, and his full $1.9 trillion stimulus proposal also has strong public backing, according to a new poll from Quinnipiac University.

The poll found that 78 percent of Americans supported the stimulus checks, including 90 percent of Democrats and 64 percent of Republicans — suggesting that Republicans in Congress who want to reduce the checks to $1,000 are out of step with their constituents on this issue.

If you are in that 78 percent, you are wrong.

Yes, it is nice to get a big, fat government check in the mail.  But in the process, we are rapidly destroying our currency, and what we are doing to future generations of Americans is beyond criminal.

Previous COVID relief bills have had wide bipartisan support, but this one passed almost entirely along party lines

The final vote Saturday in the Senate was 50-49 with all Republicans voting against the measure and all members of the Senate Democratic caucus supporting it. Sen. Dan Sullivan, R-Alaska, was not present for the vote. In the House, it didn’t earn a single Republican vote in the two times the bill came to a vote.

Biden ran on his ability to broker bipartisan efforts on Capitol Hill, drawing on his 36 years in the Senate and eight years as vice president. Republicans have viewed the bill as a betrayal of the bipartisanship Biden embraced and spoke of during his campaign.

This is being called a “big win” for Biden, and when Pelosi announced that the bill had passed the House she did a little “shimmy“…

House Speaker Nancy Pelosi announced the 220-211 vote result from the chair, prompting the bill’s supporters to burst into applause. Just a single Democrat voted against it.

Her glee at the outcome was evident even though she had a mask on. She executed what her daughter Christine called a ‘shimmy’ as she gaveled down the vote in a chamber where a five-vote majority gave her very little wiggle room.

After the vote was over, House Minority Leader Kevin McCarthy referred to the COVID relief package as “socialism”

House Minority Leader Kevin McCarthy, R-Calif., described it as a “laundry list of leftwing priorities” that “do not meet the needs of American families.”

“It is very liberal,” he said. “They called this the most progressive piece of legislation in history. For those who are watching, progressive means socialism.”

He is right, but I just wish that he would have figured that out several COVID relief packages ago.

Because the truth is that what we have already done to our currency is absolutely nightmarish.  The following is the latest M1 chart from the Federal Reserve…

Thanks to our wild-spending politicians and unprecedented intervention in the financial markets by the Federal Reserve, we have now entered an era of hyperinflation.

It took from the founding of the United States to 2020 for M1 to get to 4 trillion dollars.

And then it took about one year for M1 to go from 4 trillion dollars to 18 trillion dollars.

This is utter madness.

Of course, the chart above doesn’t even reflect the impact that this new COVID relief package will have.  Another 1.9 trillion dollars is about to be poured into the system, and that will make things even worse.

Needless to say, most Wall Street investors are absolutely thrilled that another tsunami of money is coming.  One recent poll found that “37% of Main Street investors” plan to pour stimulus money directly into the Wall Street casino…

A recent Deutsche Bank survey found that 37% of Main Street investors, some of who could be members of the Reddit community, will plow a “large chunk” of stimulus money, about $170 billion, “directly into equities.”

These small but mighty investors have gained notoriety in recent months, creating volatility and heavy volume in a number of heavily shorted stocks, such as GameStop Corp., AMC Entertainment Holdings Inc. and Bed Bath & Beyond Inc.

That should be very good news for stocks, but of course a major “trigger event” could crash the market at any time.

So we will have to wait and see how all of this plays out.

Meanwhile, Joe Biden just announced that he will unveil “the next phase” of his administration’s response to the pandemic on Thursday

Just hours after the House passed the Democrats’ $1.9 trillion stimulus package (which will unleash another wave of “stimmies” that will inevitably find their way into millions of Robinhood and other discount brokerage accounts), President Joe Biden said Wednesday that he would unveil “the next phase” of the US COVID-19 response on Thursday, which is also the one-year anniversary of the first COVID-inspired lockdowns in the US.

Even if more stimulus checks are not involved, any new programs that Biden announces will cost money, and that involves more borrowing.

We are printing, borrowing, and spending our way into oblivion, and we have nobody but ourselves to blame.

As I was preparing to write this article, I just kept thinking of the scene from one of the Star Wars movies where Emperor Palpatine announces that the Republic will be reorganized as “the first Galactic Empire”, and the Senate erupts in applause.

Our Republic is dying too, and our politicians are gleefully murdering the reserve currency of the entire planet.

This is not going to end well, but you already knew that.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream, and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial, or health decisions.  I encourage you to follow me on social media on FacebookTwitter, and Parler, and anyway that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

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What Collapsed the Middle Class?

This article was originally published by Charles Hugh Smith at Of Two Minds Blog. 

The middle class has already collapsed, but thanks to debt and bubbles, this reality has been temporarily cloaked.

What collapsed the middle class? In many ways the answer echoes an Agatha Christie mystery: rather than there being one guilty party, a number of suspects participated in the collapse of the middle class.

Can we consolidate these dynamics into a few core causal factors? I’ve made the case in the past few posts that yes, we can: many of these causes are part of a single dynamic, the decapitalization of the middle class and the decay of the ladder of social mobility which enabled tens of millions of workers to transform their wages into productive capital via saving and investment in their own human capital, their own enterprises, and assets that earn income.

The Top 10% Is Doing Just Fine, The Middle Class Is Dying on the Vine (2/4/21)

The second primary dynamic is the substitution of debt and speculation for earned income and productive capital. As the purchasing power of the bottom 90%’s wages declines, the status quo has substituted debt for income and speculation for investing in productive capital.

Debt and the Demise of the Middle Class (2/9/21)

This dynamic incentivizes debt, speculation, and consumption rather than producing, savings and investments in human and productive capital. The source of this incentive structure is the maximization of corporate profits earned by banks loaning money to the middle class and by selling the middle class on superfluous consumption being the signifier of “success” rather than production being the signifier of “success”.

In reality, what counts is agency (control of one’s life, having a voice in governance) and ownership of productive capital. Becoming a debt-serf to buy more stuff and grab a few chips in the speculative casino sacrifices both agency and the acquisition of productive capital. But this sacrifice is oh-so profitable to the financier purveyors of debt and speculative gambles in the casino.

The third dynamic is globalization, and specifically the tyranny of global markets. Global banks and corporations are ideally placed to profit from the arbitrage of labor, environmental regulations, currencies, corruption (dear in some places, cheap in others), and the price of debt and risk.

Wage-earners have no such leverage. In effect, all the risks of competition are eliminated for corporate monopolies and cartels while the risks are transferred to workers who face a global race to the bottom in wages, opportunity and income security.

The fourth dynamic is speculative bubbles put many assets out of reach of the bottom 90% who have only their wages and savings. The winners in speculative bubbles are those fortunate enough to have bought homes, bonds, rental properties, land, etc. decades ago when a house could be had for three times median income and bonds paid solid, above-inflation returns.

The bottom 90% attempting to find productive assets at affordable prices now are out of luck. Consider a 900 square foot home built in 1916 in the desirable San Francisco Bay Area community of Albany, CA. The house sold for $135,000 in 1996, 3.8 times the national median household income.

Then Housing Bubble #1 boosted the value to $542,000 in 2004, 12.2 times the national median household income. Housing Bubble #2 has pushed the value to slightly over $1 million, 14.5 times the national median household income. Only those inheriting wealth (or who chose wealthy parents), those earning over $250,000 annually or speculators who just scored big gains in bitcoin or GameStop could afford this very small, modest house.

That’s what speculative bubbles do to the middle class: they leave them behind forever. Those who bought 25 years ago entered the top 10% in wealth due to the bubblicious increase in the value of their home. A few winners in the casino who sold at the top might have edged into the top 10%, but the vast majority of gamblers in the casino cannot compete with the insiders, manipulators, and pros, so they lose ground. This is why the bottom 90% collect an insignificant 3% of all income from capital.

Jay Taylor and I discuss The Upcoming Revolt of the Middle Class (22 min)

These four primary dynamics manifest in the following ways. Each one helps generate a two-tier Neofeudal Economy of a Financial Aristocracy and its top 9.9% technocrat class who own virtually all the productive capital and the bottom 90%, a disenfranchised ALICE (assets limited, income constrained, employed) workforce.

1. The shifting of pension and healthcare costs and risks from the state and employers to employees. (see chart below)

2. The decline of safe, secure high-yielding investments as central banks have driven savers into risky, crash-prone speculative assets such as stocks and junk bonds.

3. The decline of scarcity value in college diplomas that were once the ticket to middle-class security. How Many Slots Are Open in the Upper Middle Class? Not As Many As You Might Think (March 30, 2015).

4. The inexorable rise in big-ticket costs: higher education, healthcare, and housing. Even as wages stagnate, these costs continue rising, claiming an ever-larger share of household incomes, leaving less to save/invest.

5. The transition from a stable economy with predictable returns to a financialized boom-and-bust economy that wipes out middle-class wealth in the inevitable busts but does not rebuild it in the booms.

6. The regulatory and administrative barriers to self-employment, forcing most of the workforce into wage-slavery and/or dependence on the state. Endangered Species: The Self-Employed Middle Class (May 2015).

7. The rising exposure of the U.S. workforce to highly educated, lower-cost competing workforces in a globalized economy.

8. The decline of labor’s share of the U.S. economy: the slice of the pie distributed to earned income has been declining for decades.

9. The share of the earned-income slice going to the top 5% is rising.

10. The wealth of the middle class is tied up in the family home, a non-income producing asset prone to the wild swings of housing bubbles and busts. Stagnation Nation: Middle-Class Wealth Is Locked Up in Housing and Retirement Funds (October 25, 2017).

The middle class has already collapsed, but thanks to debt and bubbles, this reality has been temporarily cloaked. All bubbles pop and all excessive debt ends in default. When these inevitably occur, the reality can no longer be hidden.

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3 Glaring Problems with Joe Biden’s New Multi-Trillion COVID Package

This article was originally published by Brad Polumbo at the Foundation for Economic Education.

Any legislative package intended to revive the economy shouldn’t include policies projected to put millions out of work.

On Thursday night, Joe Biden rolled out a sweeping proposal for $1.9 trillion more in COVID-19 relief and stimulus spending.

“I believe we have a moral obligation,” Biden said during a speech in Delaware announcing the plan. “In this pandemic in America, we cannot let people go hungry, we cannot let people get evicted, we cannot watch nurses, educators and others lose their jobs, we so badly need them. We must act now, and we must act decisively.”

It’s a massive proposal, and any final legislative text based upon it would no doubt be hundreds of pages (if not thousands). But here are some of the package’s main provisions:

  • An additional $1,400 in “stimulus” checks to most Americans, upping the recently-passed $600 payouts to $2,000
  • Renewal and increase of the expanded unemployment benefits that extend payouts to many new classes of workers through September 2021. Biden’s proposal would add $400 a week in federal payouts on top of existing state-level benefits
  • Expansion of the child tax credit and the Earned Income Tax Credit
  • Increase in food stamp benefits
  • A nation-wide $15 minimum wage
  • Extension of the federal government’s eviction moratorium
  • $350 billion for local, state, and tribal governments
  • $160 billion for vaccine distribution and other COVID health measures
  • Paid leave for millions of workers, much of which would be paid for by taxpayers

Biden’s proposed spending splurge comes in the context of the federal government already having spent an astounding $3 trillion and counting on COVID-19 relief and stimulus efforts. Many of the government’s various economic initiatives have proven ineffective and rife with fraud, but Biden’s plan would simply double-down on this approach and pour more money into it.

Of course, advocates would say that the government has a moral and prudential duty to step in and steer the economy out of the red. “This [plan] gets money quickly into the pockets of millions of Americans who will spend it quickly,” Biden said.

But here are three key problems with Biden’s multi-trillion-dollar proposal.

Despite ostensibly being a COVID-19 relief bill, Biden’s proposal largely ignores the root cause of our economic distress: government lockdowns and restrictions on the economy. Major economic centers like California and New York remain in large part locked down, with businesses shut down and people largely confined to their homes. (Despite the ampleand growing—evidence that harsh lockdowns are not an effective COVID containment tactic).

The unfortunate truth is that the federal government could pass a $100 trillion stimulus bill and it still couldn’t revive an economy that is chained down by local government restrictions. The unfortunate truth is that the federal government could pass a $100 trillion stimulus bill and it still couldn’t revive an economy that is chained down by local government restrictions.

“If states would lift draconian lockdowns we wouldn’t have to keep revisiting conversations about stimulus spending,” Republican congresswoman Lisa McClain argued. “We need more jobs, not more government bailouts.”

One might understandably assume that a COVID relief bill should promote work and job growth, not kill it. But Biden’s proposal upends this assumption.

At the same time, the president-elect is promising to steer the nation to economic renewal, he is proposing the expansion of an ultra-generous unemployment benefits system for the next 7 months. It’s Econ 101, and an intuitive matter of basic incentives, really, that government programs that make unemployment more attractive—in many cases this expanded program would pay close to or more than people’s regular job—hurt job growth and prolong unemployment.

Economists Casey Mulligan and Stephen Moore estimate that the Biden bill would destroy at least 4 million jobs due to the work disincentives it would create. How’s that for “stimulus?”

And the inclusion of a federal $15 minimum wage is equally counterproductive.

Even setting aside the objection that such a partisan priority shouldn’t be slipped into a COVID emergency package, the policy on its merits alone would crush small businesses. A recent survey found that almost 60 percent of small business owners said that they don’t expect their enterprise to survive through June 2021. Hiking their wage bill—often an enterprise’s biggest expense—would no doubt deal the killing blow to many of these businesses.

“If you actually wanted to create more jobs during this pandemic, then why would you impose a costly $15 minimum wage on small businesses?” Republican congressman Greg Murphy asked. “This is just another example of progressives trying to pass their liberal agenda under the guise of COVID relief.”

A federal $15 minimum wage would also hurt workers directly by killing millions of jobs. It’s basic economics that when the cost of a service goes up, less of it is demanded. So, it’s no surprise that the nonpartisan Congressional Budget Office has projected that a federal $15 minimum wage would eliminate an estimated 1.3 million to 3.7 jobs. Any legislative package intended to revive the economy shouldn’t include policies projected to put millions out of work.

Any legislative package intended to revive the economy shouldn’t include policies projected to put millions out of work.

Another glaring flaw plaguing Biden’s package is that so much of its expenditure would not go to the needy or those actually impoverished by the COVID-19 crisis and lockdowns, but to affluent or well-off Americans. Consider the president-elect’s stated desire to send out increased “stimulus” checks, for example.

We can safely assume that Biden would use the same or similar eligibility requirements as the House Democrats did with their bill to send out $2,000 checks. Under this scenario, taxpayers would be on the hook for billions sent to wealthy families. As economist Peter Jacobsen and I previously explained for FEE:

The Committee for a Responsible Federal Budget’s Marc Goldwein examined the House Democrats’ proposed boosted stimulus checks legislation. He reports that a single adult with a $100,000 salary would get $750 courtesy of the US taxpayer—even if their (rather sizable) income hasn’t been disrupted at all. A married couple with 3 kids with a household income of $200,000 would get $7,500 (!!!) in taxpayer money.

These are just two examples. But it’s true, broadly speaking, that these proposals would spray billions of dollars—funded by our taxes and debt—to well-off people whose employment has not been adversely impacted by COVID-19 lockdowns.

In a similar vein, Biden’s package allocates hundreds of billions in taxpayer money to bail out poorly-managed state and local governments.

“This is a bailout package for blue states for their bad policies, for their lockdown policies,” Republican congressman Michael Waltz, who represents Florida, explained. After all, in stark contrast to Waltz’s home state, in California and New York, draconian lockdown policies have caused a budget crisis. (What they have not caused is much amelioration of the pandemic, which is far worse in California and New York than in Florida.)

“They have to fill that hole,” Waltz said. “States have to balance their budget, the federal government doesn’t. So AOC and now Joe Biden are going to the big piggy bank in the sky that prints nonstop money.”

Suffice it to say it is neither fair nor prudent to force federal taxpayers to bail states out of the consequences of their poor decision-making. The relief such states truly need is relief from the impoverishing policies of their governments.

Biden’s new stimulus plan may be intended as an opening salvo in negotiations. Many of the above provisions might not make it into the final bill Congress ends up considering. But the president-elect’s sweeping proposal still offers the public a glaring example of a timeless principle: Politicians will always exploit a crisis to expand their power.

This is the danger economist Robert Higgs identified in his seminal work Crisis and Leviathan as “the Ratchet Effect.”

Higgs showed how throughout history, crises have been used to excuse government power grabs. After each crisis, the government lets go of some of the power, but never all of it. As a result, the federal government’s power (the Leviathan) has ‘ratcheted up,’ crisis after crisis, throughout the last hundred years.

So, Americans must not treat Biden’s COVID stimulus proposal like an app’s terms and conditions of service and simply accept it after a brief skim. We must guard against big government power grabs and radical economic interventions foisted on us in the name of crisis response.

The post 3 Glaring Problems with Joe Biden’s New Multi-Trillion COVID Package first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Horowitz: Every single budget bill of Trump’s presidency passed with more Dem than Republican support

The budget betrayal didn’t begin during the final budget of Trump’s presidency. In an era when Congress barely legislates and surrenders all the power to the other two branches, the annual budget bills encompass every priority under the sun. Sadly, every single budget bill that Trump signed in the Oval Office was a Democratic bill. In fact, to my knowledge, every budget bill Trump has signed has actually garnered more Democratic support than Republican support.

When Congress sent Trump a budget bill in March 2018 that contained nearly every Democratic priority and voted on the 2,000+-page bill within hours of it being written, Trump promised, “I will never sign another bill like this again.”

Imagine how different this country would look had this promise been fulfilled. Sadly, there has never been a budget bill signed by this president that has not included all these policy and process flaws each and every time.

If you want to know why the border numbers are higher, the interior immigration enforcement numbers lower, the debt and dependency greater, and liberty less now than any time during the Obama presidency, it’s all in these budget bills.

Here is a list of the voting record of each one:

H.R. 244 (Consolidated Appropriations Act, 2017)

  • Senate: Supported by every Democrat and opposed by 18 Republicans (May 4, 2017)
  • House: Supported by Democrats 178-15; supported by Republicans 131-103 (May 3, 2017)

H.R. 601 (2017 blank check debt limit increase)

  • Senate: Supported by every Democrat and opposed by 17 Republicans (Sept. 7, 2017)
  • House: Supported by every Democrat; supported by Republicans 133-90 (Sept. 8, 2017)

TARGET Act (FY 2018 omnibus)

  • Senate: Supported by all but 6 Democrats; opposed by 26 Republicans (March 23, 2018)
  • House: Opposed by 77 Dems (supported by Pelosi); opposed by 90 Republicans (March 22, 2018)

FY 2019 “Cromnibus”

  • Senate: Supported by every Democrat except Bernie Sanders; opposed by 6 Republicans (Sept. 18, 2018)
  • House: Opposed by just 5 Democrats; opposed by 56 Republicans (Sept. 26, 2018)

2018 Trillion-dollar farm bill (read more here)

  • Senate: Supported by every Democrat; 13 Republicans opposed it (Dec. 11, 2018)
  • House: All but three Democrats supported it; 44 Republicans opposed it (Dec. 12, 2018)

FY 2019 Homeland Security omnibus bill that ended shutdown without funding border wall

  • Senate: Opposed by just 3 Dems (all running for president); opposed by 13 Republicans (Feb. 14, 2019)
  • House: Opposed by just 19 Democrats; opposed by 109 (majority of) Republicans (Feb. 14, 2019)

Debt ceiling increase and busting of budget caps

  • Senate: Supported by all but 4 Democrats; opposed by 24 Republicans (Aug. 1, 2019)
  • House: Passed by Democrats 219-16; opposed by roughly two-thirds of Republicans (July 25, 2019)

FY 2020 continuing resolution

  • Senate: Supported by every Democrat; opposed by 16 Republicans (Sept. 26, 2019)
  • House: Passed by Democrats 225-3; opposed by Republicans 76-119 (Sept. 19, 2019)

5,593-page FY 2021 omnibus with COVID bailout for states and education cartel

  • Senate: Supported by every single Democrat; opposed by 6 Republicans (Dec. 21, 2020)
  • House: Supported by all but 2 Democrats; opposed by 50 Republicans (Dec. 21, 2020)

Thus, we see that every single major piece of legislation that has affected our country garnered more support from Democrats, often unanimous, and most often with support from their leadership. Yet Trump not only signed each of them, but Treasury Secretary Steven Mnuchin negotiated them from the get-go. Republicans had control of both houses of Congress for the first two years and control of the Senate along with the White House for all four years. This was an alliance between Trump’s liberal cabinet members, Democrat leadership, and RINOs against conservatives every single time. This swamp was refilled rather than drained.

It’s important to remember that the Republican opposition to most of these bills would have been even stronger had Trump himself opposed them. However, many more members supported them because his administration negotiated them before Trump, in some cases, made last-minute protestations against the bill after hearing complaints from conservatives.

This is how we are now saddled with $7.6 trillion in additional debt from the past four years, dwarfing the $5.8 trillion in debt accrued during Obama’s first term. Perhaps if Republicans would spend less time forewarning about socialism and actually eschewing support for it at present, we’d be in better shape altogether.

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TRUMP SIGNED $600 STIMULUS: CAVED BIG-TIME?

This article was contributed by The Wealth Research Group, and we deem it important!

In 2020, our inbox got filled after each and every letter we published that mentioned either Trump or Biden; it’s like walking on eggshells. I want to address this topic of favoritism or bias towards either Republicans or Democrats, Biden or Trump, America First or Globalism, socialism (communism) vs. capitalism, free speech or censorship (Section 230) and all the other highly inflammatory subjects that Americans, from both sides of the aisle, are not seeing eye-to-eye on and find no middle-ground to compromise on.

Hopefully, this will put to rest any confusion about where we stand on these issues and, instead of a flood of emails each time we express commentary, there will be an understanding of expectations, so that you’ll see our point of view.

The first thing to note is that we have heard and looked into all of the arguments from both sides:

* We have heard and looked into Trump supporters consider the following to be indisputably true: Joe Biden is a pawn of the Chinese Communist Party (CCP), the mainstream media and tech giants are suppressing the evidence of voter fraud (creating a false narrative), they’re purposefully not reporting about Hunter Biden’s legal issues (since it would have reflected horribly on Joe’s presidential aspirations), globalists agendas are hijacking America’s middle-class jobs and sending them overseas (the Deep State and its operatives), bankrupting the wealth of the average American (through debt and currency creation). They are also rewriting history and creating a radical left policy (“woke” Americans and “Cancel Culture”), which will rob Americans of their God-given rights and freedoms set forth by the Constitution, by trampling all over it (propaganda and BLM, for example). If Biden gets his way, America is toast and there will be nothing to stop Democrats on their quest to implement their own version of 1984.

On the flipside, Americans who hate President Trump also believe they’ve got all of their ducks in a row and take the following to the bank:

* We have heard and looked into what they live and swear by, which are the following: President Trump is a liar and a clown, who is not to be trusted. He destroyed America’s prestige among world leaders by ruining relationships with other countries, disregarding climate change, colluding with Russia, creating racist policies, helping his friends with favors, exaggerating and cheating, allowing people to die from the pandemic by not sticking with the science (he closed the borders first, but did not enforce masks…) and creating a more dangerous Middle East by removing troops, creating a power vacuum that terrorists will fill instead.

We are well aware of, highly familiar with and constantly checking various media sources in order to absorb all narratives and digest the data from all angles.

We listen to many channels, which have been taken down from YouTube and now publish on alternative platforms and we also listen to the mainstream narrative, in order to understand where most Americans (certainly most of millennials) get their “facts” from.

There are no blind spots or areas where we’re being naïve or complacent. There are no areas where we’re bending over and accepting tyranny or allowing any media source to dictate reality to us. By wearing a mask, we are not saying that CNN is right and by not wearing one, we are not saying that coronavirus does not exist and that this is all 5G-related. Said differently, we are not “persuaded” or brainwashed.

We’re not a political publication at all, but because politics is woven into the market behavior, we certainly must comment on it, which creates friction, when the letter does not conform to the reader’s view of the world. It’s impossible to publish any worthwhile insight, without aggravating a single soul, unfortunately.

Therefore, whenever we incorporate politics into our letters, it is done for the purpose of showing not what WE believe is the truth about Biden, Trump or their respective agendas, but what “the street” (which is to say Wall Street) believes to be the truth, since our mission is to highlight financial and investment opinions and reporting.

If I think the moon landing never happened, that the Earth is actually flat and that Area 51 is filled with aliens and I’ve got all the supporting evidence to back these claims, it will do me no good from a financial perspective, if Wall Street is not trending in this fashion.

Over 80% of money invested in stocks is transacted by large funds and massive pools of wealth, and Computer Algorithm Trading, so the value of knowing what the street is thinking is ENORMOUS.

If, for instance, you believe that Joe Biden is going to hand over American interests to the Chinese, or, on the flipside, you believe that four more years of Trump will result in America losing its respect with world leaders, the BEST and first thing you can do in either case is become financially independent, so that you can protect you and yours from what’s coming.

Your highest priority in life should be to live your BEST LIFE, since politics will never be just how you want it. One cannot be a victim of the times he is living in and this doesn’t mean being silent about injustices or not saying what you believe, but it does mean to not allow these issues to bring your quality of life down with them!

Bottom line: our publication projects the sentiment of the street, not that of the author, because the street is what matters!

After we release information, we dissect the potential opportunities it creates. This is how we showcased Bitcoin at $450/coin, when Jamie Dimon was threatening to fire employees, who traded it. We saw that the street was bullish. We released information and offered our opinion. This is how we turned bullish on stocks in late March, when we saw the FED would do anything to get the markets functioning again.

When we say that one should tolerate the opinions and notions of the very people he despises, we do not mean one should ACCEPT them by any stretch of the imagination. If someone came to me explaining Marxism, for example, I would listen with an open mind in order to understand how he thinks about the world, but his opinion would then be challenged with facts, from my part. I refuse to accept bullshit and unsubstantiated opinions, but I also refuse to be closed-minded, impatient or not exhibit courtesy, by turning away. Tolerating does not equal agreeing with or succumbing to the other side!

It means that we respect the diversity of opinions and the right of others to believe what they want. In the end, we lead by example; therefore, openly discussing issues and getting down to the root causes of why people think certain thoughts will help rid the world of foolish notions. Not being tolerant actually adds fuel to their convictions and puts them on the defensive and back them into a corner. We see it with teenagers all the time; whatever a parents warns them not to do, that’s what they’ll be obsessed with doing to spite their folks.

So, after this long background explanation of the purpose of this newsletter, know that when we state that President Trump just signed into law the $600 stimulus checks, there will be those who claim that he had caved, while others would reject that and believe that it’s part of his greater strategy.

Both could be right, but where is the VALUE in analyzing it?

The value is in understanding what the big money thinks, because that’s where opportunity exists. This is the main mission of our newsletter, which deals with financials.

The street is convinced that 2021 will be a bit more inflationary than in recent years and that’s important for you to know!

With the Treasury General Account holding $1.5tn, which they’ll spend into the real economy, with oil prices and agricultural commodities breaking out and with the GSCI on the verge of breaching a 12-yr resistance line, that’s the most important piece of information from a financial point of view – which is what you’ll always get from us.

Courtesy: Zerohedge.com

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Greg Mannarino: “We Are In Economic Collapse!”

We have reached the point of no return. The meltdown of the United States economy is continuing and rapidly accelerating says market analyst, Greg Mannarino.

Greg Mannarino: It’s Time To “Wake Up” Because “You haven’t Seen ANYTHING Yet!”

Mannarino begins by explaining the jobless numbers that came in last week (885,000) are a telltale sign of the destruction caused by governments over the samdemic. “We are in an economic collapse! Full on, Great Depression-era with regard to unemployment numbers.”  And all of this is happening as the stock market climbs higher on the creation of new fiat currency, or debt.

We are going to go through a massive debt crisis, Mannarino continues.

“We’re gonna run into a crisis of the debt, okay, that you cannot possibly fathom! A shutdown of the global economy way worse than what we’re seeing now. Because economic activity is going to be deliberately STOPPED. Just…it’s gonna stop. No cash in the bank. No cash out of the ATMs. No transactions.” -Greg Mannarino

The federal reserve is buying everything. “This is it. We are there right now,” says Mannarino. “Some people out here are hurting a lot worse than others are. And with this epic number, 885,000 initial jobless claims, I mean, you don’t…I’m speechless. I am speechless here! We have never seen in the hisory of our country, more people falling into poverty at a faster rate than we are seeing now. We’re worse, way worse than the Great Depression, but you’re not supposed to know that. You’re not allowed to know this stuff…only a liar of the highest order could put a message [that we’re in a V-shaped recovery] to the American people.”

Greg Mannarino: “They Want People Desperate. People Aren’t Desperate Enough”

Greg Mannarino: The Economic Collapse Is Here

The post Greg Mannarino: “We Are In Economic Collapse!” first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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Congress ‘Close’ On Stimulus; Will Include New Round Of Direct Checks, Nix State And Local Funding, Liability Protections

This article was originally published by Tyler Durden at ZeroHedge. 

Congress is ‘close’ on a coronavirus deal, which is expected to remain below the $1 trillion upper boundary set by Senate Majority Leader Mitch McConnell (R-KY) and GOP leadership earlier this year, according to The Hill. The current iteration of the deal will include direct stimulus payments to individuals but excludes liability protections and direct aid for state and local governments.

The  new round of stimulus checks will come in “at an amount lower than the checks of up to $1,200 per adult and $500 per child included in the CARES act,” according to The Hill‘s Scott Wong, who adds that it will “leave out $160B in funding for state and local governments, which was originally included in a $908 billion compromise proposal that Democratic leaders endorsed in early December, as well as liability protection for businesses, a top priority of GOP leadership.”

*  *  *

Looks like Goldman was right this time: one day after the bank’s chief political economist Alec Phillips flipped his stimulus position again, and said yesterday that think “it is more likely than not that Congress will pass this week a package similar to the recent $748bn bipartisan proposals, which would be close to our standing assumption of a $700bn (3.3% of GDP) package” moments ago Politico’s Jake Sherman confirmed what was already widely expected when he tweeted that negotiators “are on the brink of a $900bn coronavirus rescue package that would include a new round of direct payments, but would leave out state and local aid, and a liability shield.”

More importantly, he added that “a deal could come as early as early this morning.

The news immediately spiked the EMini, pushing it briefly above 3,700 before the gains fizzled as traders realized that much of this was already priced in.

The news also pushed 10Y yields to session highs above 0.94%.

For those who missed it, yesterday Goldman said that congressional leaders appear slightly more likely than not to include most of the other aspects of the bipartisan $748bn proposal (summarized below).

The largest of these would be another round of loans through the Paycheck Protection Program (PPP) for hard-hit businesses, payments to states to cover COVID-related education costs and public health funds for activities like testing and vaccine distribution. A $300/week UI top-up payment through March also looks likely.

As an aside, Goldman’s base case for additional stimulus remains $700bn (3.3% of GDP):

At this point, the discussions appear to be shaping up similar to our own expectations regarding the size of the additional fiscal measures. However, while we believed that Congress would provide around $200bn to state and local governments, it looks likely that if Congress acts this month, it would include only around $100bn for state and local governments, directed to schools.

And as we wait for details on the full stimulus package, something ominous: according to Goldman, “if Congress acts this month, it could be the last major installment of fiscal relief. If Congress passes fiscal legislation this month, it will likely create a new set of expiring policies in March or April 2021, which could pressure lawmakers to pass additional fiscal relief.”

While this might create some upside risk to our fiscal assumptions, we would expect the amount of additional fiscal measures Congress passes next year to be modest. With warming weather and vaccine distribution well underway by that point, another package worth several hundred billion dollars seems unlikely.

This means that another round of payments to individuals and aid to state and local governments could pass in early 2021 only if Democrats win both Senate seats in Georgia. Prediction markets currently put the odds that Democrats win both seats at around one in three. If they win both seats, Democrats will likely pass additional measures to provide state and local relief as well as payments to individuals, along with some other fiscal priorities that Congress is likely to omit from any fiscal legislation it passes this month. That could add an incremental $300bn to $800bn to the total fiscal relief we expect under a divided government scenario.

The post Congress ‘Close’ On Stimulus; Will Include New Round Of Direct Checks, Nix State And Local Funding, Liability Protections first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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$1,750 Gold: BLOODY RATED-R SCENARIO!

This article was contributed by Future Money Trends.

Bitcoin is on a tear right now because major institutional investors are entering the sector. It’s not a bubble, but its price is nowhere near being considered a bargain. We remember when our newsletter discussed both Bitcoin and Ethereum. It was early in 2017 and Bitcoin was $400 to $500 and ETH was $12!

Back then, it was an opportunity of a lifetime, as it was after the 85% implosion that came. Right now, it could go much higher because the sentiment is mind-blowingly bullish.

While Bitcoin is experiencing record inflows, gold has been suffering from record outflows!

Investors believe much higher rates are coming, which will end the environment of negative nominal rates. This is detrimental for gold and silver, but this script, in which the economy is about to greatly recover in 2021 without further stimulus or additional monetization of the national debt, is unrealistic.

In the near-term, the trend is clear: gold is hated!

Courtesy: Zerohedge.com

Money has exited gold at warp speed. Notice, though, that the catalyst for this sell-off is vaccination news, which is not the main driver for buying or selling gold. In other words, what just occurred revealed to the market what price discovery is projecting if we factor out COVID-19’s vaccination catalyst. Even if gold falls further, hitting $1,750 as technical analysis suggests, it’s still an incredibly profitable industry, with a global AISC (all-in sustaining cost) of $975/ounce and no major discoveries in years.

In other words, this shakeout actually highlights the profitability of mining companies and the scarcity of gold. If spot gold does fall below $1,800, we’d get interested in purchasing.

An important point to keep in mind is that most analysts and investors use either $1,450 or $1,500 as their value for gold when they judge any gold or silver mining stock for their portfolio.

Even before this sell-off, the market is convinced that $2,000 gold is not a long-term target, which is more evidence that gold is not in a bubble at all.

Courtesy: Zerohedge.com

Gold’s severe sell-off comes because the notion is that interest rates are headed much higher, towards where they were before COVID-19, which is an interesting proposition since we believe that Washington will soon be forced into creating a massive stimulus package that investors are adamant about not pricing in.

We believe that the consensus of the market is mistaken. We not only assess that the USD is in a bear market, but that central banks are impatient about the gridlock in Washington and will be charging forward aggressively in order to “buy time” for politicians.

Courtesy: U.S. Global Investors

The use of debt is so alarming that it makes us wonder how anyone could save any significant sum in a fiat currency when it’s clearly a vehicle for wealth destruction.

In 2009, when gold peaked on November 2nd at $1,196, the markets also disregarded the metal, explaining that the worst was behind us. It retreated to $1,081 and stayed below its all-time high of $1,196 back then until April 2010, only truly breaking out again in July 2010. Said differently, it traded downwards and sideways for eight months. If we plot the same pattern now, its peak was on August 5th, which means that we should expect it to hit $2,000 again around the end of January but only truly break out towards March 2021.

Between now and then, we will present a number of companies to study and research because unlike with general equities, now trading at their highest-ever valuations, there are sensible multiples and speculative ideas in the mining sector.

Furthermore, we are also going to feature a number of compelling securities we ascribe a 5x to 10x potential to that are already GENERATING both REVENUES and PROFITS.

The post ,750 Gold: BLOODY RATED-R SCENARIO! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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Greg Mannarino: “They Want People Desperate. People Aren’t Desperate Enough”

Greg Mannarino says the stock market will continue to rise for now and expect more debt after the election to spur inflation. The big goal now is to destroy the middle class and make people desperate. And they aren’t yet desperate enough.

Another lockdown that impoverishes more and takes the livelihoods of hundreds of thousands more people could very well be coming down the pike. Already, “more Americans are going hungry today than we have seen in the last  75 years. That’s pretty profound,” says Mannarino.

That says a lot about the current financial state of affairs in this country right now.  But unless people get more desperate, they won’t be taking the central bank’s new digital dollar, which will be tracked, traced, taxed, and tied to a social credit score.  You can be eliminated at will and prevented from spending money if the powers-that-shouldn’t-be decide it.

This should honestly horrify everyone.  Our permanent enslavement is around the corner if we don’t wake up and stop letting political psychopaths and central banks dictate our lives. If you want a clear picture of what the establishment ruling class wants, it’s the New World Order and can be summed up by reading this article:

If America had any sense, we would be locking down again now

Poverty must occur to create dependence on the system in order for this to work in the elitists’ factor.  Once you understand the end game, you should know their next moves, at least to some extent.

This market is all fake, everything is staged, and we are living in a Matrix far too many are hopelessly dependent upon.

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Goodbye Middle Class: Half Of All American Workers Made Less Than $34,248.45 Last Year

This article was originally published by Michael Snyder at The Economic Collapse Blog. 

If you are making less than $3,000 a month, you have plenty of company, because about half of the country is in the exact same boat.  The Social Security Administration just released new wage statistics for 2019, and they are pretty startling.

To me, the most alarming thing in the entire report is the fact that the median yearly wage was just $34,248.45 last year.  In other words, half of all American workers made less than $34,248.45 in 2019, and half of all American workers made more than $34,248.45.  That isn’t a whole lot of money.  In fact, when you divide $34,248.45 by 12 you get just $2,854.05.  Needless to say, it is not easy to survive in America today on just $2,854.05 a month, and this may help to explain why we have been seeing so many people fall out of the middle class in recent years.

And of course, all of the figures that I am sharing with you in this article are just for 2019.  This year, we have seen more than 63 million Americans file new claims for unemployment benefits as the U.S. economy has imploded during this pandemic, and so the final wage numbers for 2020 could be quite a bit worse than the numbers for 2019 were.  Please keep that in mind as you go through the rest of this article.

Once upon a time in America, a single income could easily support a middle-class household in most cases, but those days are long gone.

The cost of living has been rising far faster than our paychecks have, and as a result, many Americans have been working themselves to the bone just to survive financially from month to month.

To give you an idea of just how bad things have gotten, I would like to share with you some key numbers from the report that the Social Security Administration just released

-32.26 percent of American workers made less than $20,000 last year.

-44.79 percent of American workers made less than $30,000 last year.

-56.46 percent of American workers made less than $40,000 last year.

-65.91 percent of American workers made less than $50,000 last year.

Today, the poverty level for a household of five in the United States is $30,680.

That means that close to half of all workers in this country do not even make enough to get a family of five above the poverty level.

Wow.

There are tens of millions of Americans that are referred to as “the working poor” because they are living in poverty even though they are employed and are working extremely hard.  Many of you that are reading this article know exactly what I am talking about.  Some of you are working way more than 40 hours a week, and yet there never seems to be enough money at the end of the month.

Sadly, the truth is that our system has evolved in a manner that makes it almost impossible for most Americans to ever build up much wealth.

If you are making the median monthly wage of just $2,854.05, there simply is not going to be much leftover after all of the bills are paid.  First of all, you are going to need someplace to live.  In the middle of the country, you may be able to find something habitable for under $1,000 a month but in most of our major metropolitan areas that simply is not going to be realistic.

Secondly, you are going to need to pay your utility bills.   If you can keep the combined cost of your power, water, phone, television, and Internet bills to about $250 a month, you are doing quite well.

Thirdly, you will need a vehicle in order to get around, and these days it is hard to buy or lease a vehicle for less than $300 a month.  In addition, you will also need insurance, and that will set you back even more.

Fourthly, you will need health insurance.  If you are young and single, maybe you can find a plan for just a few hundred dollars a month, but most Americans pay far more.

Fifthly, you will probably want to eat, and that will cost you several hundred dollars a month as well.

At this point, almost all of your money is already gone, and there are so many expenses that I haven’t even mentioned yet.

And of course you never even started with $2,854.05 in the first place, because all sorts of taxes were taken out of your paycheck before you even got it.

Are you starting to understand why so many families in America are deeply, deeply struggling today?

We have an economy that works for those at the very top of the food chain, but pretty much everyone else is desperately trying to stay afloat.

And now we have entered an economic downturn during which tens of millions of Americans have lost their jobs.  According to John Williams of shadowstats.com, if honest numbers were being used the real unemployment rate in the U.S. would be 26.9 percent right now, and that would rival the worst levels that we witnessed during the Great Depression of the 1930s.

Others have come up with similar numbers.  For example, Axios is reporting that the “true unemployment rate” in the United States is currently 26.1 percent

A person who is looking for a full-time job that pays a living wage — but who can’t find one — is unemployed. If you accept that definition, the true unemployment rate in the U.S. is a stunning 26.1%, according to an important new dataset shared exclusively with “Axios on HBO.”

No matter how you want to crunch the numbers, everyone should be able to agree that millions upon millions of Americans are really hurting financially and are deeply concerned about the future.

And they have good reason to be concerned about the future because our economic system is in the process of imploding.

For decades, the greatest debt bubble in the history of the world allowed us to enjoy a level of debt-fueled prosperity that was far greater than we actually deserved.

Now the party is ending, and our society is going to experience an enormous amount of pain as everything changes.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream, and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial, or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and anyway that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

The post Goodbye Middle Class: Half Of All American Workers Made Less Than ,248.45 Last Year first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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OVER MY DEAD BODY: Gold $4,000 – BIDEN SWORN IN!

This article was contributed by Tom Beck with Portfolio Wealth Global.

If you conducted your own DUE DILIGENCE and followed our Watchlists (1, 2, 3, and Tech), as well as our TOP IDEAS for holding precious metals and mining stocks, your portfolio is PERFORMING BETTER than the world’s TOP HEDGE FUNDS and quant computers; you’re in the top 0.01% of ASSET RETURNS.

And, I have even better news for you: This is just THE KICK-OFF!

All across the globe, there’s a massive STIMULUS PLAN going on, as well as a GENERATIONALLY-STRONG surge of innovation and entrepreneurship.

Hardship and struggle are BIRTHING DISCIPLINE, a sense of carefulness in corporate behavior, and better conditions for the future.

Even MORE IMPRESSIVELY, we feel that gold is still a DOUBLE from here.

Courtesy: Zerohedge.com

Ray Dalio’s hedge fund has been UNDERPERFORMING FOR YEARS, but the two things he did get right are gold and China.

We believe most Americans are thinking of China with a 30-YEAR DELAY. They do not yet realize just how technologically advanced it is, and they certainly don’t appreciate its IMMINENT WEALTH BOOM.

China’s boom is actually one of the biggest reasons for my REVISED TARGET for gold by 2023 of $4,000/ounce, up from $3,300.

The stock market is going MUCH HIGHER, regardless of who’s going to win this election. The chart is clear:

Courtesy: Zerohedge.com

The S&P 500 index is headed to 5,000 points within 2-3 years. Stocks are expensive (we know), but the REAL BUBBLE, perhaps the only one, is in GOVERNMENT BONDS.

Why on earth is $17tn parked in negative-yielding assets?

PortfolioWealthGlobal.com truly believes that about 5% to 10% of that money will flow into gold, driving its price up 105%.

When gold hits our FINAL TARGET of $4,000 for this cycle, we forecast a 40:1 or 45:1 gold-to-silver ratio, implying silver’s target is around $90 to $100.

No one has yet understood just how much demand for silver COULD GROW if the U.S. dollar starts to lose purchasing power in a noticeable fashion.

Most Americans have no idea what constitutional money is or how silver protects their purchasing power. They’re hypnotized.

Courtesy: Zerohedge.com

We believe they’re about to receive a GIANT WAKE-UP CALL!

The Federal Reserve can’t really control much anymore, by way of interest rate hikes. If inflation does increase, it will turn into an everyday mainstream problem.

Just as fast as Americans buy guns when times seem uncertain or gobble-up toilet paper in the Covid-19 quarantine like programmed robots, so will they purchase a few ounces of silver, when inflation is broadcasted on the news.

As you know, the ABOVE-GROUND supply is only 2.5bn ounces, which IS NOTHING in the grand scheme of things.

Are you ready to TAKE WHAT’S YOURS?

If Biden wins this election, the dollar could plummet by 20% in his first term. His programs are giant PRINTING OPERATIONS to Americans. His stance on China is more relaxed and we believe that in the big picture, silver will thrive!

Gold $4,000; silver $100 — ride ‘til you CAN’T NO MORE!

 

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BLINK OF AN EYE: Crashing -20% – IS IT IMMINENT?

This article was contributed by James Davis with Future Money Trends

People love to focus on the NATIONAL DEBT and on DEBT per citizen or taxpayer, and they’re right – the FEDERAL DEBT is stupid, crazy, and unsustainable.

As of this writing, each citizen would owe $81,000 if the government tried to close the debt down by collecting EQUALLY from each. Of course, not everyone is an active taxpayer, so when done in that way, it comes out to $214,844/taxpayer since about 1/3 of Americans pay income taxes. The interest component on the debt per adult comes out to about $14,000, had the government wanted to just pay that.

Let’s look at the FLIP-SIDE of this debt equation, which is what getting into this MONSTROUS DEBT has allowed the United States to create: total NATIONAL ASSETS stand at a record $125tn, which is $381k/citizen!

Said differently, if wealth was COMPLETELY REDISTRIBUTED equally among all, debt would be wiped out altogether from the government balance sheet and each citizen would have $300,000 in their pocket.

Courtesy: Zerohedge.com

What you see above is the reason why America works, will continue to PRODUCE WEALTH, and why mistakes are PART OF GROWTH; it works because THINKING AND DOING is rewarded or punished, thus people improve and take personal responsibility, not because everyone is rewarded for just breathing.

Do you know what would happen if America did its WEALTH REDISTRIBUTION experiment?

In 20-30 years, it would be back to what it is today…

In a free market system, some individuals have CRACKED THE FORMULA for creating value, so much so that their net worth is tremendous.

What these people are learning now is that their BIGGEST CHALLENGE is how to create additional value by giving their FUNDS TO CAUSES they believe in. Said differently, the rewards for creating value today are SO LARGE that the rewards are more than one needs to live his dream life and the surplus can be donated towards productive enterprises.

I want you to BE INSPIRED to reach those levels as well!

A great man is one that can earn as much as he needs to live a FULL LIFE with no excess. If he creates RESERVES, he can deploy his HIGHEST DUTY, and that is to reinvest those extra funds in ADVANCING HUMANITY.

Purely capitalistic men believe the way to do it is by investing in businesses that aim to SOLVE PROBLEMS. I, for one, believe it’s about investing in the YOUTH – the future generations.

Courtesy: Zerohedge.com

The TWO CHARTS show you what capitalism is all about: individuals making DECISIONS that have repercussions, both positive and negative, depending on what’s happening. If a government tries to TAKE AWAY the personal responsibility that each has for his lot in life, it will produce STAGNATION and a lack of innovation. Greed, fear, reasoning powers, accurate thinking, herd mentality and deep analysis; these create the market drama and lead to results – there is NO REPLACEMENT to true ingenuity of thought.

Do you love being able to turn on your air conditioner in the summer?

Had it not been for ONE PERSON taking responsibility for solving that issue for the rest of us, we’d still be sweating all day and all night.

Innovation is BORN FROM DISCOMFORT.

Many traders are about to find out that greed is good, but ONLY WHEN coupled with sound reasoning.

You cannot BET THE FARM with everything you’ve got on every idea and we believe that millions of people are about to RE-LEARN that valuable lesson.

We find it hard to envision a -20% move down, but we ACTUALLY ANTICIPATE a few (2 or 3) corrections following each other in the space of two or three months between them, each SHAKING OUT more traders with each passing time.

If you’ve AVOIDED tech thus far, know that 3D printing, cloud computing, the Internet of Things (IoT), robotics, genome sequencing, energy storage, blockchain technology, artificial intelligence, and their ANCILLARY INDUSTRIES understand that valuations are STILL CHEAP for a select few of them!

Expect an incredible list of companies to look into from us in a NEW special report!

The post BLINK OF AN EYE: Crashing -20% – IS IT IMMINENT? first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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Since 9/11, the Government’s Answer to Every Problem Has Been More Government

This article was originally published by John W. Whitehead at The Rutherford Institute.

“A government big enough to give you everything you want is a government big enough to take away everything that you have.”—Anonymous

Have you noticed that the government’s answer to every problem is more government—at taxpayer expense—and less individual liberty?

The Great Depression. The World Wars. The 9/11 terror attacks. The COVID-19 pandemic.

Every crisis—manufactured or otherwise—since the nation’s early beginnings has become a make-work opportunity for the government to expand its reach and its power at taxpayer expense while limiting our freedoms at every turn.

Indeed, the history of the United States is a testament to the old adage that liberty decreases as government (and government bureaucracy) grows. To put it another way, as government expands, liberty contracts.

To the police state, this COVID-19 pandemic has been a huge boon, like winning the biggest jackpot in the lottery. Certainly, it will prove to be a windfall for those who profit from government expenditures and expansions.

Given the rate at which the government has been devising new ways to spend our money and establish itself as the “solution” to all of our worldly problems, this current crisis will most likely end up ushering in the largest expansion of government power since the 9/11 terrorist attacks.

This is how the emergency state operates, after all.

From 9/11 to COVID-19, “we the people” have acted the part of the helpless, gullible victims desperately in need of the government to save us from whatever danger threatens. In turn, the government has been all too accommodating and eager while also expanding its power and authority in the so-called name of national security.

As chief correspondent Dan Balz asks for The Washington Post, “Government is everywhere now. Where does it go next?

When it comes to the power players that call the shots, there is no end to their voracious appetite for more: more money, more power, more control.

This expansion of government power is also increasing our federal debt in unprecedented leaps and bounds. Yet the government isn’t just borrowing outrageous amounts of money to keep the country afloat. It’s also borrowing indecent sums to pay for programs it can’t afford.

The government’s primary response to this COVID-19 pandemic—flooding the market with borrowed money in the amount of trillions of dollars for stimulus payments, unemployment insurance expansions, and loans to prop up small businesses and to keep big companies afloat—has pushed the country even deeper in debt.

By “the country,” I really mean the taxpayers. And by “the taxpayers,” it’s really future generations who will be shackled to debt loads they may never be able to pay back.

This is how you impoverish the future.

Democrats and Republicans alike have done this.

Without fail, every president within the last 50 years has expanded the nation’s debt. When President Trump took office on January 20, 2017, the national debt—the amount the federal government has borrowed over the years and must pay back—was a whopping $19.9 trillion. Despite Trump’s pledge to drain the swamp and eliminate the debt, the federal debt is now approaching $27 trillion and is on track to surpass $78 trillion by 2028.

For many years now, economists have warned that economic collapse would be inevitable if the national debt ever surpassed the size of the U.S. economy. The government passed that point in June 2020 and has yet to put the brakes on its spending.

In fact, the Federal Reserve just keeps printing more money in order to prop up the economy and float the debt.

At some point, something’s got to give.

As it now stands, the U.S. is among the most indebted countries in the world.

Almost a third of the $27 trillion national debt is owed to foreign entities such as Japan and China.

Most of the debt, however, is owed to the public.

How is this even possible? Essentially, it’s a case of robbing Peter to pay Paul.

First, the government requires taxpayers to pay a portion of their salaries to the Social Security Trust Fund. The government then turns around and borrows from Social Security to cover its spending needs. Then the government raises taxes or prints more money in order to pay out whatever is needed to the retirees.

It’s a form of convoluted economics that only makes sense to government bureaucrats looking to make a profit off the backs of the taxpayers.

According to the U.S. Debt Clock, each taxpayer’s share of the national debt is $214,000 and growing.

That’s almost five times more than the median income for what Americans earn in a year. That’s also almost five times more than the average American has in savings, across savings accounts, checking accounts, money market accounts, call deposit accounts, and prepaid cards. Almost 60% of Americans are so financially strapped that they don’t have even $500 in savings and nothing whatsoever put away for retirement.

Just the interest that must be paid on the national debt every year is $338 billion and growing. According to the Congressional Budget Office, the fastest-growing item in the budget over the next decade will be interest on the debt.

As the Committee for a Responsible Federal Budget reported in 2019, before COVID spending pushed the country over the fiscal cliff, “Interest payments will rise from $325 billion last year to $928 billion by 2029, a nearly threefold increase. If tax cuts and spending increases are extended, interest will exceed $1 trillion and set a new record as a share of the economy. The federal government will spend more on interest than on Medicaid or children by 2020. By 2024, interest will match defense spending.

Bottom line: The U.S. government—and that includes the current administration—is spending money it doesn’t have on programs it can’t afford, and “we the taxpayers” are the ones who will have to pay for it.

As financial analyst Kristin Tate explains, “When the government has its debt bill come due, all of us will be on the hook.”

Despite the tax burden “we the people” are made to bear, we have no real say in how the government runs, or how our taxpayer funds are used, but we’re being forced to pay through the nose, anyhow.

We have no real say, but that doesn’t prevent the government from fleecing us at every turn and forcing us to pay for endless wars that do more to fund the military-industrial complex than protect us, pork-barrel projects that produce little to nothing, and a police state that serves only to imprison us within its walls.

All the while the government continues to do whatever it wants—levy taxes, rack up debt, spend outrageously and irresponsibly—with little thought for the plight of its citizens.

This brings me to a curious point: what the future will look like ten years from now when the federal debt is expected to surpass $78 trillion, an unsustainable level of debt that will result in unprecedented economic hardship for anyone that does not belong to the wealthy elite.

Interestingly enough, that timeline coincides with the government’s vision of the future as depicted in a Pentagon training video created by the Army for U.S. Special Operations Command.

According to the video, the government is anticipating trouble (read: civil unrest), which is code for anything that challenges the government’s authority, wealth, and power, and is grooming its armed forces (including its heavily armed federal agents) accordingly to solve future domestic political and social problems.

The training video, titled “Megacities: Urban Future, the Emerging Complexity,” is only five minutes long, but it provides a chilling glimpse of what the government expects the world to look like in 2030, a world bedeviled by “criminal networks,” “substandard infrastructure,” “religious and ethnic tensions,” “impoverishment, slums,” “open landfills, over-burdened sewers,” a “growing mass of unemployed,” and an urban landscape in which the prosperous economic elite must be protected from the impoverishment of the have nots.

And then comes the kicker.

Three-and-a-half minutes into the Pentagon’s dystopian vision of “a world of Robert Kaplan-esque urban hellscapes — brutal and anarchic supercities filled with gangs of youth-gone-wild, a restive underclass, criminal syndicates, and bands of malicious hackers,” the ominous voice of the narrator speaks of a need to “drain the swamps.”

Drain the swamps.

Surely, we’ve heard that phrase before?

Ah yes.

Emblazoned on t-shirts and signs, shouted at rallies, and used as a rallying cry among Trump supporters, “drain the swamp” became one of Donald Trump’s most-used campaign slogans.

Far from draining the politically corrupt swamps of Washington DC of lobbyists and special interest groups, however, the Trump Administration has further mired us in a sweltering bog of corruption and self-serving tactics.

Funny how the more things change, the more they stay the same.

Now the government has adopted its own plans for swamp-draining, only it wants to use the military to drain the swamps of futuristic urban American cities of “noncombatants and engage the remaining adversaries in high-intensity conflict within.”

And who are these noncombatants, a military term that refers to civilians who are not engaged in fighting during a war?

They are, according to the Pentagon, “adversaries.”

They are “threats.”

They are the “enemy.”

They are people who don’t support the government, people who live in fast-growing urban communities, people who may be less well-off economically than the government and corporate elite, people who engage in protests, people who are unemployed, people who engage in crime (in keeping with the government’s fast-growing, overly broad definition of what constitutes a crime).

In other words, in the eyes of the U.S. military, noncombatants are American citizens a.k.a. domestic extremists a.k.a. enemy combatants who must be identified, targeted, detained, contained and, if necessary, eliminated.

Funny how closely fact tracks fiction these days.

Just recently, in fact, I re-watched Escape from L.A.John Carpenter’s 1996 post-apocalyptic action film that imagines a future (2013, in fact) in which the United States has elected a president for life who runs the country according to his own theocratic moral law. Anyone who runs afoul of the president’s moral laws is stripped of their citizenship and either electrocuted or deported to the island of Los Angeles, a penal colony where lawlessness reigns supreme.

As the film’s opening narrator recounts:

In the late 20th century, hostile forces inside the United States grow strong. The city of Los Angeles is ravaged by crime and immorality. To protect and defend its citizens, the United States Police Force is formed. A presidential candidate predicts a millennium earthquake will destroy L.A. in divine retribution. The earthquake measuring 9.6 on the Richter scale hits at 12:59 P.M. August 23rd in the year 2000. After the devastation, the Constitution is amended, and the newly elected president accepts a lifetime term of office. The country’s capital is moved from Washington, D.C., to the president’s hometown of Lynchburg, Virginia. Los Angeles Island is declared no longer part of the United States and becomes the deportation point for all people found undesirable or unfit to live in the new, moral America. The United States Police Force, like an army, is encamped among the shorelines, making any escape from L.A. impossible. From the southeastern hills of Orange County to the northwestern shore of Malibu, the great wall excludes L.A. from the mainland. The president’s first act as permanent Commander in Chief is Directive 17: once an American loses his or her citizenship, they are deported to this island of the damned, and they never come back.

Carpenter is a brilliant filmmaker whose dystopian visions of the future are eerily prescient, but this film is particularly unnerving: environmental disasters; engineered viruses used like weapons to control the masses; riots and looting that leave the populace longing for law and order; religion used as a weapon; martial law; surveillance that keeps every citizen under the government’s watchful eye; and a growing awareness that the only path to freedom left for humanity is to shut down the government and start over again.

We’re almost there now.

As I make clear in my book Battlefield America: The War on the American People, unless we make some effort to reject the sorry excuse for a representative government that we have been saddled with, the future that awaits us—whether it’s the future envisioned by the Pentagon in its training video or the future imagined by Carpenter—will be a living nightmare from which there is no escape.

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RENDEZVOUS w/DESTINY: Silver $52 – PIPES BURSTING!

This article was contributed by Lior Gantz of the Wealth Research Group. 

I showed you the THREE BIG TRUTHS of the coming decade. Ignoring these trends will result in poverty, while adapting to them and ADOPTING THEM will lead TO RICHES.

The second truth is that rates will REMAIN NEAR ZERO for years, perhaps for good (until the dollar is replaced or joined by another reserve currency).

If that’s the case, NEGATIVE RATES are nearly guaranteed. Think of it in this light: if rates are zero and inflation isn’t, then real rates are negative BY DEFINITION.

Too many currency units in circulation have led the large institutional funds to embark upon adventures that they wouldn’t otherwise choose to engage in; they’re borrowing because it’s there for the taking.

There’s just NO WAY to generate a fixed-income stream the same way that it WAS POSSIBLE in the 1980s and 1990s, when nominal rates were high and inflation was quite moderate, NOT TO MENTION that debt/GDP ratios weren’t alarming, as they are today.

Courtesy: Zerohedge.com

The chart above shows the STRENGTH of the TREND. Inflation is rising, since Covid-19 isn’t nearly as bad as those early epidemiologists SCREAMED it WOULD BE.

Therefore, not only is the rebound quick to happen, BUT SINCE industries weren’t in a TOUGH SPOT going into this mess, there’s a real chance that dominant companies will BOUNCE BACK faster than we might expect.

In fact, that’s what the MARKETS ENVISION, since they treat the world’s MEGA-CAP companies, such as Apple Inc., Facebook, Google, Amazon and Microsoft, as more than regular businesses. They ascribe a MASSIVE PREMIUM to them, since they’re also stores of value, AAA bonds and gold, all in ONE CLICK of the mouse.

They dominate their industries, almost like monopolies do, but it’s not like that at all; customers have plenty of OTHER CHOICES, but they love the products and the services they get from them.

Other companies CAN BE DISRUPTED, overtaken or somehow seem vulnerable, but these ones are DEEMED INVINCIBLE.

This notion is translated into HISTORICALLY-HIGH levels of concentration of size, as you can see below:

Courtesy: Zerohedge.com, BearTrapsReport

The market now has days where the OVERWHELMING MAJORITY of stocks are down, deep IN THE RED and yet it closes up. This is possible only because the WEIGHT of the index is towards market capitalization.

This demonstrates the importance of owning the indices, since history proves that the LION’S SHARE of ultimate return originates from only a handful of stocks.

Two years ago was the last time I WALKED THE STREETS of Manhattan and visited the Federal Reserve’s building, as well as Wall Street, home to the New York Stock Exchange.

On this exchange, more than 3,000 public companies are listed. Today, with markets at ALL-TIME HIGHS, fewer than 50 of these stocks are trading at 52-week highs! On the NASDAQ, where about 3,500 tech and other types of companies are listed, fewer than 150 stocks are trading at 52-week highs!

I can see the WRITING ON THE WALL and it tells me we’re either ON THE PRECIPICE of a severe correction or, if the economy generally improves, on the cusp of a SPECTACULAR RALLY to even loftier valuations.

While it is impossible to predict which is next, we can HEDGE PROPERLY, by both diversifying into companies that are STILL CHEAP, while at the same time having exposure to the index, but also allocating funds into precious metals, real estate and PRIVATE DEBT.

Diversification is paramount!

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HUGE MOVES: GOT 2 MORE YEARS OF THIS!

This article was contributed by Tom Beck of Portfolio Wealth Global. 

I’m going to show you the MOST AMAZING chart I’ve ever seen. Since 1971, the moment when FIAT CURRENCIES were born again, gold and the CRB (which is the basket of commodities) have moved in tandem until 2008, when the 37yr correlation ENDED.

The chart is so clear on this matter. It was when the Great Recession began and the central banks birthed the new monetary reality we all live in that gold and other commodities SEPARATED WIDELY.

Look at the UNBELIEVABLE CHART below, since it points to the greatest opportunity in trading distressed assets the world has ever seen.

The more I look at it, the more THE POTENTIAL of it begins to talk to me:

Courtesy: Zerohedge.com, TheFelderRerport.com

The disappearance of inflation in EVERYDAY ITEMS, and its concentration within certain asset classes – among them stocks, real estate, and bonds – have left commodities FOR DEAD.

In March, April and May, we’d published two watch lists, containing just over 30 companies that are mostly S&P 500 components, coupled with proposed limit orders. This was THE FIRST, later came THE SECOND. The gains have been DOUBLE-DIGITS with any and all companies that dipped below the limit orders – a RARE ACHIEVEMENT. Between the 60% in SWK, 54% in LEG, and 52.4% with PNR, there have been IMPRESSIVE WINNERS.

With the S&P 500 delivering its BEST 100-DAY rally of all time, the MAIN SECRET was to stay in there and to even CAPITALIZE on the panic.

As you’ll see below, though it seems COUNTERINTUITIVE, the stock market, with very few exceptions, MARCHES UPWARDS after such times, with a 94.4% probability of seeing an average of a 9.4% return.

Those are pretty good odds, I’d say.

Courtesy: Zerohedge.com

There’s a GREAT TRUTH to be learned by what’s happening here; history is a GREAT TEACHER and it is telling you big moves are ACTUALLY CATALYSTS for additional rallies.

With everything that 2020 has handed us, I want to deliver a message to you.

These are very difficult times for so many people. In the western world, there have been VERY FEW HARDSHIPS the scope of Covid-19.

All over the world, there is suffering. We all want to help and contribute; some have the financial means to do it, while others do not.

We all have personalities, though. We all, poor or rich, young or old, male or female, have a personality. It is our BUSINESS CARD, the way we speak to the world. Though one might be poor, financially speaking, a wealthy character can take you anywhere!

Resist the temptations that come with this competitive world and accentuate your generosity, your gratitude, your will to be courteous, your empathy, and your patience towards everyone else, no matter what their belief system may be. Strive to be tolerant and to celebrate the truth, not your own opinions.

We have one planet and we can do SO MUCH BETTER with it.

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GOT BURIED: Silver Resurrected – RESET UNAVOIDABLE!

This article was contributed by James Davis with Future Money Trends. 

Over the past three days, after silver UNDERWENT CARNAGE, going down to -13.5% in ONE DAY, many made their peace with reality and ACCEPTED DEFEAT. The bulls remembered that silver is EXTREMELY VOLATILE, while the bears got to breathe a SIGH OF RELIEF after the month of July proved to be SILVER’S BEST-EVER on record.

We need to keep the bottom line IN MIND; as I write this, silver is up $1.16, and has a spot price of $26.93/ounce. It is, IN NO DOUBT, moving upwards and the mining stocks will have, in some cases, +100% margins, since many have an All-In Sustaining Cost of less than $13.5/ounce.

The big picture is MOST IMPORTANT and the visuals are clear: debt is growing MUCH FASTER than the ability to service it, UNLESS rates remain close to zero, UNTIL THE RESET:

Courtesy: Zerohedge.com

With over $26tn, Washington’s spending can only be maintained, while the Federal Reserve and other central banks do everything UNDER THE SUN to suppress rates FOR GOOD.

Throughout the passing period of the 2010s, investors DID NOT have this kind of assurance that the U.S. central bank will keep rates at zero all the time. They kept broadcasting that the aim was to normalize rates, to GO BACK to historical norms, but the plan failed in DECEMBER 2018.

For the financial system – Corporate America, the average person, and the small business owner, from governments to the individual – rates have been ZERO for so long that it has become our WAY OF LIFE. Now we know it’s here to stay.

A good friend of mine, for many years, tried to quit a nasty habit he had. Every time he would stop COLD TURKEY, something would later draw him back to it. He went to see an associate of his who quit smoking after two decades and never relapsed. Their conversation revolved around how to achieve the same thing; the associate said that “You can’t just quit a habit – the secret is to find a replacement.” One can’t replace SOMETHING with NOTHING.

The global economy does not have a SUBSTITUTE for the U.S. dollar as a reserve currency; it won’t consider precious metals, nor will it entertain the notion of the Euro or any other singular fiat currency.

Courtesy: Zerohedge.com

Washington knows it and, therefore, PERMITS ITSELF actions that no other government can afford; CHALLENGERS are non-existent.

This is the IDEAL WORLD for gold and, when the CYCLE IS RIGHT, can also be ideal for silver. Governments and central banks consider gold to be money, so they purchase it, COME RAIN OR SHINE. The result has been that gold has returned just about 6,000% since 1971. In periods when the dollar was in a bear market, like the 1970s or the 2000s, silver had A LOT going for it as well. We have again entered a dollar bear market, after nine years, so silver will NOT ONLY have that tailwind going for it, but also zero interest rates and record deficits.

Courtesy: Zerohedge.com

In the short-term, rates are reversing and beginning to creep up, as they should, after MONTHS of one-way trading. They are GOING DOWN more and more, without ceasing.

This will have an impact on precious metals since REAL RATES are calculated by subtracting inflation (CPI) from the 10yr bond yield. Rising rates elevate real rates, but if inflation is RISING at the same time, it offsets this!

That’s what the gold bears AREN’T SEEING, but it is clear as day when looking at this:

Courtesy: Zerohedge.com

THE GOLD AND SILVER BULL MARKETS ARE ON;
THEY WILL SEE PAUSES, PULLBACKS, AND CORRECTIONS!
OVERALL, THE TREND IS HIGHER,
SO LONG AS REAL RATES REMAIN NEGATIVE!

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PAGE THE DOCTOR: Dollar Flatlines – GOLD IS ALIVE!

This article was contributed by Tom Beck of Portfolio Wealth Global. 

There’s nothing like a close race to get the JUICES FLOWING. Fake polls or not, Trump knows that he is losing public support and that he might be close to losing the upcoming election. Before the virus, it was NEXT TO GUARANTEED that he’d win and stay for a second term.

I wouldn’t exactly call him an underdog, but it’s MUCH TIGHTER than it would have been without Coronavirus.

The most important FORWARD-LOOKING market anticipation right now is that the dollar is entering a long bear market.

Check this out:

Courtesy: U.S. Global Investors

What this shows you is that the ODDS OF INFLATION increasing are huge!

Basically, money isn’t moving now; the public has stopped spending and wealthy individuals are scared of making big moves. EVERYTHING IS IDLE. The race between Biden and Trump makes large institutions paralyzed until they know the answer.

Well, after idleness in velocity, there’s only one option: MULTIPLIER EFFECT.

The real economy is hurting and it will take 2-3 years, perhaps even four years, to get back to where we were.

The thing is that Europe looks more united on its goals than even the United States does.

This is the first time since 2008 that EU political leaders have more in common with each other than American politicians do with their counterparts in the opposing party.

The Euro is more attractive than the dollar since European companies are cheap.

Courtesy: U.S. Global Investors

When the dollar is OUT OF FAVOR, as it is becoming at present, then gold’s price can triple, beginning with the MONETARY U-TURN in January 2019.

In other words, we’re putting a 2-year price target of $3,300/ounce on gold. We anticipate this occurring by July 2022.

The elections will force Trump to get aggressive on policy in the coming months, and I believe that he is desperate not to allow Covid-19 to define his so-called “legacy.”

In his eyes, he has been the greatest president ever, so he can’t let a pandemic defeat him. Therefore, with the dollar now at 52-week lows, our analysis is that the election battle will cause a DOLLAR CRISIS.

Courtesy: U.S. Global Investors

As you can see, the next REAL HURDLE for silver is $25/ounce, which it should clinch in the coming weeks.

It has incredible momentum.

The banking system is saturated with money; Judy Shelton has cleared the banking committee and she will most likely pass the vote in the REPUBLICAN-LED Senate. This will give America a SOUND MONEY advocate on the board of the Federal Reserve.

Courtesy: Zerohedge.com

The incentives to BORROW MONEY today will soon bring households back to the fold. They won’t be able to resist the low rates. I am telling you that you MUST PREPARE for a dollar bear market and an amazing precious metals BULL MARKET.

Trump will have to divert the public attention BACK TO CHINA; he will do it subtly so that markets don’t panic, but nonetheless, he must unite voters against a common enemy and we believe he will.

You can’t change or fight the trends: GOLD AND SILVER are headed MUCH HIGHER!

Courtesy: Zerohedge.com

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ROTHSCHILD ACUTE HEADACHE: GOLD’S METEORIC MOVE!

This article was contributed by Lior Gantz of The Wealth Research Group. 

This isn’t Warren Buffett’s best year, in terms of PUBLIC PERCEPTION. He’s been ridiculed for selling the airlines a number of days before their SHARE PRICES bottomed and began TURNING AROUND. Gold, which Buffett often says does nothing and “Just Sits There” is SITTING PRETTY and outperforming Berkshire’s by miles and miles. Meanwhile Berkshire’s CASH PILE is eroding fast in PURCHASING POWER, but one thing to remember about Buffett is that he is the greatest capital allocator to ever live.

No one has championed the art of deciding where to put your next dollar to get the best RISK-ADJUSTED RETURN like he has. The chief reason for that, according to Warren himself, can be plainly summarized by his first rule of investing: NEVER LOSE MONEY.

The rule is obviously a rule of thumb (since never losing is impossible), which speaks to his STATE OF MIND – his obsession with playing defense, not offense, and with being consumed by the idea of RISK MANAGEMENT, not with maximum leverage.

Of all the quotes and pearls of wisdom that he has shared over the years, this is the one I see as fitting for the crumbling currency system: “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”

While Warren has a HUGE BLIND SPOT when it comes to gold, his psychology is incredible when it comes to making DIFFICULT DECISIONS and being disciplined with shareholders’ funds. He cuts losers fast and for good, a habit that a major survey found was the one that most investors just can’t BRING THEMSELVES to do.

Most investors who have a losing position will SINK WITH THE SHIP; they’ll refuse to admit failure and move on. I’ve talked extensively about position sizing, setting stop losses, rationing buy and sell orders, risk tolerance and net worth, more than I’ve talked about any other topic, but most investors just go ALL-IN regardless. They can’t help themselves.

Back in March, the world went ALL-IN on the dollar. It was such a crowded trade that the system couldn’t HANDLE THE DEMAND for cash. The distrust in any financial instrument was one that we did not even reach in 2008.

DOLLAR BEAR MARKET: DEEP STATE BANKERS LOST THE GAME!

As Buffett said above, then, energy spent on patching holes in a chronically leaking boat is a wasted one; the solution is to JUMP SHIP. More specifically, it is to jump to a BETTER SHIP, not into the cold, open ocean.

The media, owned by deep state bankers, will ALWAYS portray the fiat monetary system as the ONLY VESSEL AT SEA, so that if we don’t save it from sinking to the abyss, we’re ALL DOOMED.

That’s a LOAD OF CRAP.

Not only are there other ships better equipped to handle the turbulent waters, but those ships are BATTLE-TESTED, metaphorically speaking.

My message isn’t that Buffett is always right or that one should treat him as an all-wise guru, but that in CUTTING LOSSES, he has shown that there is no such thing as being HALF PREGNANT. We either stop with this MONETARY LUNACY, or we’re doomed to pay a HEFTY PRICE.

Luckily, you and I have figured out that we don’t have to wait for others to see what we HAVE UNDERSTOOD long ago about the national debt. We’re looking at the sinking fiat currency ship, using binoculars from the deck of the GOLD & SILVER superyacht.

 

Courtesy: Zerohedge.com

The Rothschilds, along with other powerful families, have STIRRED GLOBAL EVENTS for centuries, manipulating currencies and advocating that banks are safe institutions that the general public ought to trust.

Gold is THE ANTIDOTE to this credit and debt disease.

Lord Evelyn, you and your ancestors have amassed a fortune, at the expense of humanity, but you’ve paid with your soul.

There’s definitely a global resistance movement to the idea that MORE debt will solve the deficit nightmare.

Pain is nature’s way of telling man that he is on the WRONG TRACK.

Those who have trusted governments are about to learn the hard way that absolute power corrupts absolutely.

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ARMY OF MORONS: Media Out Of Control – USA GOING DOWN!

This article was contributed by Tom Beck of Portfolio Wealth Global. 

Yesterday and today, for the first time in my life, I watched the mainstream media in order to understand what people, who are clearly INCAPABLE OF CRITICAL THINKING, allow CNN to brainwash them with. I was an experiment in tapping into the intellect of the average voter.

I have to say that, at different times, I thought LONG AND HARD about the contempt of the editors and script writers, who come up with the narrative for the news, towards the viewers. Clearly, they must be ABSOLUTELY CERTAIN that they are speaking to people with the understanding of a three-year-old.

I sat there and thought this was a prank.

Two conclusions that any self-respecting American needs to draw in 2020:

  1. The media has NO RESPECT for its audience. They are literally engaged in dumbing down people that already probably do NO READING, NO THINKING AND NO STUDYING and are susceptible to propaganda and mind manipulation.
  2. The media is not media at all. What I saw from CNN borders on a lawsuit that ought to be filed against them for irresponsibly spreading junk around.

I had to laugh, since it was so awkward. It was troubling to view the words they chose to deliver their propaganda, and my biggest concern is that America is TOO DIVIDED and TOO MISPLACED to come back from this into the realm of real debate.

There are millions of people who are TRULY SUFFERING and I don’t think that there’s any REAL INTENTION to come together.

Courtesy: Zerohedge.com, Deutsche Bank

The survey above represents THE BEATING PULSE of America; entrepreneurs, who took it upon themselves to start a business in their own community, risked everything and built something, only to be told to SHUT THEM DOWN. There’s a cost to FORCING UNPRODUCTIVITY and the price has yet to be revealed, but it will be MASSIVE.

Small businesses are bleeding, and creating new currency doesn’t solve the problem.

Consumer spending is about emotional decision-making, not about getting government aid. Unless Americans feel secured and confident in the future, they will choose to close their wallets and to down-size.

How can politicians, who have no idea what it is like to DELIVER REAL VALUE to the marketplace, to innovate and put a smile on someone else’s face, know how to LEAD US THROUGH this crisis?

Government doesn’t lead; it only serves to make people INDIFFERENT to their true worth by offering subsidized social programs.

Courtesy: Zerohedge.com, Deutsche Bank

Since the Federal Reserve took it upon itself in 2008 to “SOLVE MATTERS,” we have witnessed debt issuance by both governments and corporations become a POOR JOKE.

Debt is death. Debt is leverage. Debt is stress.

Finally, debt is the problem of both the entity that wants it and the entity that extends it. Certainly, it is NOT MY PROBLEM if Wells Fargo or any other criminal-minded institution decides to push his luck and lend currency to people who can’t possibly repay it.

Debt will SELF-DESTRUCT and collapse under its own weight, so don’t worry about the fact that these bankers live like kings. In the end, they will pay for their actions.

The general population is SO NUMB that it might not happen until we get a full-blown revolution, but know that chaos is the result of this monetary experiment these lunatics are taking us all on and FORCING UPON US.

Courtesy: Zerohedge.com

The world IS PANICKED. You can see it by looking at where people choose to put their money.

What we need to understand is that we can’t CHANGE THE WORLD, but we must not GET DRAGGED into the foolishness and evil that is attempting to re-program our values and principles.

Be true to yourself. Be true to what’s effective and don’t allow CORPORATE INTERESTS to influence your integrity.

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DEBT OVERHANG: Funeral Directors – FED CROSSED RED LINES!

This article was contributed by Tom Beck of Portfolio Wealth Global. 

The U.S. dollar is, WITHOUT A DOUBT, a weapon at this point. The Federal Reserve uses it to PROP UP American businesses, mostly with the thought in mind that ANYTHING IS BETTER than seeing a debt deflation.

It’s true; a debt-deflation would lead to riots ONE HUNDRED TIMES worse than the ones you’re currently seeing. A debt deflation would lead to MARTIAL LAW, to curfews, to ROBBED ATM machines, to a WORLD OF PAIN, so you know the central bank cannot let this happen.

In the movie The Godfather, the head of the family Michael Corleone is confronted by his wife and mother of his children, Katherine “Kay” Corleone, saying she doesn’t love him and that she wants to take his children from his house and raise them on her own. He tells her that “He will use all of his resources and power to stop that.” It’s a powerful scene.

To Jerome Powell, a debt deflation is what taking children from their father is to Al Pacino’s character. He will turn heaven and earth before he lets it happen.

Courtesy: Zerohedge.com

This is the reason the system IS BROKEN. It can’t undergo recessions and slowdowns; TOO MUCH DEBT allows it to work only in boom times.

The world is too divided to DECIDE ON a new monetary structure, so when China finally HAS ENOUGH of American currency dominance, THE SEPARATION will be like an earthquake.

My analysis doesn’t show the Yuan becoming the new reserve currency, but that China will be able to persuade ITS BLOCK OF COUNTRIES – which give more of their allegiance to China than they do to the U.S. – to trade in a basket of Chinese-led currencies/commodities.

The dollar will NOT CEASE being the world reserve currency, but it will have competition.

As can be seen above, the number of bankruptcies IS INCREASING; no doubt Covid-19’s economic damage has been PAPERED OVER, but you can’t bail out everyone – it’s NOT POSSIBLE.

This will put additional pressure on government and central banks – more stimulus packages WILL FOLLOW.

Courtesy: Zerohedge.com

This crisis has hit both the young and the elderly, FINANCIALLY SPEAKING (check it above).

It mostly hurt the ALREADY-STRUGGLING, who are laid off more quickly since they’re replaceable. And if a competitor recruits them, it doesn’t create long-lasting damage.

For America, Covid-19 will be remembered as the crisis in which the Federal Reserve showed what it means to be ALL-IN, and I believe this will change how investors view future crises.

The reason I say that is because from now on, the focus will no longer be on the Federal Reserve, but on the DEBT OVERHANG that its programs create. It will be considered a given that the central bank fixes market issues, but the debate will revolve around the unintended consequences of their policies.

Central banks have entered a NEW ERA. They will need to prove that their actions don’t create UNSOLVABLE problems for countries.

Everyone understands now that central banks simply print currency; nothing fancy about it… they are just COUNTERFEITERS WITH A LICENSE.

EXCLUSIVE REPORTS, Featured In This Article and in Others, Which Are Considered ESSENTIAL READING:
1. Gold Investing – DOWNLOAD HERE!
2. Trump’s War with Mainstream Media – DOWNLOAD HERE!
3. Covid-19 Round2 Sell-Off Playbook – DOWNLOAD HERE!
4. Why The Dollar Is Dead – DOWNLOAD HERE!
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HOSED DOWN: America’s Back – I DON’T BUY IT!

This article was contributed by Tom Beck of Portfolio Wealth Global. 

Fiat currencies are a STRANGE INVENTION. Sometimes, they fail miserably. At other times, they fail slowly, but NEVER have they been able to STAY ALIVE for long. Even the British Pound, the oldest fiat currency of them all, doesn’t have MUCH GOING FOR IT.

Fiat currencies are INHERENTLY diminishing in value since the money supply will ALWAYS INCREASE. The world is getting richer, so even if we were under a gold standard, the currency supply would enlarge constantly.

The BIG DIFFERENCE would be that it would have grown in accordance with debt and productivity levels. Politicians couldn’t JUST CREATE new units on a whim, nor could central bankers LEND currency to the entire RUSSELL 2000 index.

Simply put, when a central bank creates MORE CURRENCY than is needed for an economy, which it ERRONEOUSLY DOES, the excess currency floats to the rich and to assets, which inflate in price.

It’s easy to DETECT this flow of currency and it is what fuels our public debt.

Courtesy: Incrementum AG

The public learns TO DEPEND on this ballooning deficit (as shown above), instead of on itself for solutions. They don’t develop skills, but they develop dependence, which is just what politicians want – TRAPPED VOTERS.

Finally, what happens is that there’s STRESS between those who can’t figure out how the game of life works and those who have got the knowledge and the strategies.

Debt is a disaster, and if you think that just because there’s LOW INFLATION that debt doesn’t come with a price tag, YOU’RE WRONG.

Debt allows bad actors to get rich at your expense. It allows deep state to operate and PERPETUATES POVERTY.

Courtesy: Incrementum AG

This is the reason that in EVERY COUNTRY, the best option is to STORE WEALTH in gold, as you can see above!

I believe in American enterprise and I believe in this country and its people, but I’m NOT NAÏVE. Most have LITTLE TO NO financial education and can’t understand basic economic terms.

I don’t see this changing anytime soon and though it saddens me, I know the part I have to play in this and that is to publish this letter and inspire anyone that listens that the door to wealth is open, but it’s NOT EASY.

Through this platform, my objective is to allow everyone to COME INTO the world of finance.

Think about the fact that if every American adult would go out and buy 6 ounces of silver (worth around $100 today), more than one billion ounces of silver would be needed. This would bring forth the national debt debate TO THE FRONT AND CENTER and would FORCE AUTHORITIES to figure out new ways to conduct themselves.

Wealth creates destinies, not handouts.

Courtesy: Incrementum AG

It is DEEPLY DISTURBING that they don’t show this chart in schools and mainstream media outlets. EVERYONE should know that they’re saving wealth in a ticking TIME BOMB unless they own precious metals.

America’s future will be great, but the problem is that it’s not inclusive; the GDP grows, but so do the polarities between classes. The rich are FINDING OUT that unless they learn profitable ways TO ELEVATE others out of poverty, by inspiring them to get trained in new skills, and unless the government LEAVES STUDENT TUITION alone so that its price can fall by 90% and be realistic, the income gap will continue to WIDEN and they’ll be scrutinized much more and won’t be cherished for creating jobs, but vilified for exploiting workers.

America’s back, but its problems remain BLATANTLY VISIBLE.

Don’t be fooled.

EXCLUSIVE REPORTS, Featured In This Article and in Others, Which Are Considered ESSENTIAL READING:
1. Gold Investing – DOWNLOAD HERE!
2. Trump’s War with Mainstream Media – DOWNLOAD HERE!
3. Covid-19 Round2 Sell-Off Playbook – DOWNLOAD HERE!
4. Why The Dollar Is Dead – DOWNLOAD HERE!
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Fear Of The Coronavirus Has Absolutely Destroyed America’s Future

Very few people are talking about it, and even fewer are bothering to object, but by borrowing and spending so much money our politicians are essentially feeding America’s financial future into a wood chipper.  It took from the founding of our country all the way to 1981 before the U.S. national debt reached one trillion dollars.  Incredibly, we just added more than a trillion dollars to our national debt in less than a month.  On April 5th, we were 23.9 trillion dollars in debt, and by May 4th we were 25 trillion dollars in debt.  Fear of the coronavirus has caused nearly all of our politicians to suddenly become socialists, and we are being told that trillions more in spending may be coming.  This is complete and utter lunacy, and we are leaving future generations of Americans with a mountain of debt that would absolutely crush them.  But of course our society may not even last too much longer at the rate we are going.  For years I have been loudly warning that our absurd national debt is an existential threat to America’s future, but at this point both major political parties have completely abandoned any sense of fiscal responsibility.  Now our national debt is rapidly speeding toward the 26 trillion dollar mark, and the House of Representatives just passed a bill that would borrow and spend an additional 3 trillion dollars that we do not currently have…

Last week, House Democrats unveiled their latest pandemic-relief package. The bill combines aid for families, a bailout for struggling cities and states, and additional funds for testing, tracing, and hospitals. The price tag is about $3 trillion—and it comes just weeks after the president signed an economic-relief package worth about $2 trillion.

Since we are destroying the nation anyway, why don’t we make the grand total a nice round 10 trillion dollars like the progressives at the Atlantic are suggesting?

After all, we added close to 10 trillion dollars to the national debt during the Obama years and hardly anyone seemed to mind.

Of course Trump is trying to outdo Obama.  We have already added more than 5 trillion dollars to the national debt while he has been in office, and it looks like more “coronavirus relief bills” could be on the way.

Yes, borrowing and spending money that we do not have gives us an economic boost in the present.

But it is also money that we are stealing from future generations, and we are systematically destroying the bright future that they were supposed to have.

Since Barack Obama’s first day in the White House, we have been stealing an average of more than 100 million dollars from our children and our grandchildren every single hour of every single day.

And under Trump, that pace has actually increased.

I know that figure is difficult to believe, but run the numbers yourself and you will see that I am correct.

What we are doing to future generations is beyond criminal, and it should make every American deeply angry.

But instead, many Americans are convinced that we aren’t spending enough.

In fact, Mark Cuban believes that the government should be issuing $1,000 checks to each household every two weeks

The federal government has already sent a one-time check of up to $1,200 to millions of American families, but according to Mark Cuban, the stimulus is not enough to offset the economic pain of the coronavirus pandemic.

The billionaire entrepreneur proposed the government issue $1,000 checks to every American household every two weeks for the next two months, with the caveat that the money must be spent within 10 days of receipt or it expires. It would cost about $500 billion, Cuban estimated.

Everybody knows that you should never go full Weimar Republic, but since we are essentially doing that already, why not make it $10,000 for every household every two weeks?

After all, $1,000 doesn’t go as far as it once did.  These days, you can blow $1,000 in a single trip to the grocery store.

Of course I am being facetious.  We are literally watching our leaders destroy everything that all previous generations of Americans fought so hard to build, and it is absolutely infuriating.

At this point even the ultra-liberal Washington Post is admitting that “the national debt is out of control”, but of course the Post also keeps on promoting ultra-liberal spending policies.

We are like a morbidly obese guy that can’t even fit in his own bathtub anymore because he is so addicted to food.  Our addiction is debt, and no matter how loud the warnings get we are just going to keep going back for more.

Ultimately, the only way that the U.S. is going to be able to service this exploding debt is to wildly devalue the currency.  This is the road that the Weimar Republic, Venezuela and so many others have gone down, and it always ends in utter disaster.

Only this time the biggest economy on the entire planet is doing it, and the currency that we are devaluing is the reserve currency of the world.

Sadly, there is no turning back now.  Both political parties are completely committed to this course, and the mainstream media is fully behind them.  In fact, CNN insists that “now is not the time to cut back on the borrowing”.

So when will be the time to cut back on borrowing?

If we need to add trillions to the national debt to deal with a relatively minor crisis like this coronavirus pandemic, what in the world are we going to do when really bad stuff starts happening?

Last November, I was absolutely horrified when our national debt hit the 23 trillion dollar mark.  But by the time this November rolls around, we might be at the 27 or 28 trillion dollar mark.

Unfortunately, we throw the word “trillion” around so much these days that most Americans don’t even realize how much money a trillion dollars actually is.

If you would have been spending a million dollars every single day since Jesus was born, you still would not have spent a trillion dollars by now.

We are talking about an amount of money that is absolutely unimaginable, and we just added that much money to the national debt in less than a month.

Thanks to our free spending politicians and everyone that is supporting them, there is now no future for this country.

We are literally committing national suicide in front of the whole world, but we are so utterly consumed by our addiction that we don’t even realize that we should be deeply ashamed of ourselves.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

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