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Biden’s Plan For Hyperinflation: You Haven’t Seen Anything Yet

Joe Biden has released a budget/spending plan for the fiscal year 2022, and it is going to result in the destruction of what’s left of the United States dollar and hyperinflation that could rival Venezuela’s. The $6 trillion plan caused stocks to soar upon the announcement.

Does anyone still think the government works for them? I’ll be the bearer of bad news. They don’t. They have never, and they never will. They are in it for power and money and use the monetary system to control the slaves. If that isn’t obvious to you yet, you’re living under a rock or choose to not wake up to reality. For those who do care about their freedom, this plan is simply sinister.

“We are in economic freefall”, as Greg Mannarino says, and it will get worse.

According to a report by ZeroHedge, stocks initially knee-jerked higher, then retreated on the headlines reporting the proposed budget, which Biden can pass through the Senate using budget rules that allow Dems to circumvent the filibuster. According to the New York Times, it calls for the highest sustained levels of federal spending since World War II.

The mainstream media thinks this is just a fantastic idea, while the rest of us should know by now that inflation is the worst tax and hyperinflation is a quick and massive wealth transfer from the bottom straight to the top. Calls for spending at this level will have an effect on the already almost dead U.S. dollar. It will also impoverish those living on the edge. It appears that since they couldn’t completely take down the U.S. with a lockdown, they’ll try via the slaves’ monetary system they set up to keep us in line.

According to the NYT, the increase in federal spending, which follows both the COVID stimulus and Biden’s “Build Back Better” infrastructure plans, will be driven by “Biden’s two-part agenda to upgrade the nation’s infrastructure and substantially expand the social safety net, contained in his American Jobs Plan and American Families Plan, along with other planned increases in discretionary spending.”

Don’t worry, slaves. Biden plans to steal more of the fruits of your labor. He is expected to raise taxes and increase spending on tax enforcement, the annual deficits in Biden’s budget projections wouldn’t start to wane until the 2030s. Meanwhile, Biden’s “ambitions to wield government power to help more Americans attain the comforts of a middle-class life and to lift U.S. industry to better compete globally in an economy the administration believes will be dominated by a race to reduce energy emissions and combat climate change.”

They see us as slaves. It’s time to wake up. We had better take a stand or we will subject your children to the worst dystopian life anyone could fathom. Government is slavery. It can be nothing else and it doesn’t matter which side you are on.  “Less” slavery is still slavery. You are either free or you are not.  We need to break the brainwashing and the invisible chains around our necks before it’s too late.

 

The post Biden’s Plan For Hyperinflation: You Haven’t Seen Anything Yet first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Vaccine stocks nosedive after Biden administration makes global vow

The stock prices of several coronavirus vaccine developers took sharp downturns on Wednesday, after the Biden administration announced it supports stripping away vaccine patent protections so the formulas can be shared with the world to produce generics.

What are the details?

U.S. Trade Representative Katherine Tai announced in the afternoon that the administration supports waiving intellectual property protections for COVID-19 vaccines.

Tai said in a statement:

“This is a global health crisis, and the extraordinary circumstances of the COVID-19 pandemic call for extraordinary measures. The Administration believes strongly in intellectual property protections, but in service of ending this pandemic, supports the waiver of those protections for COVID-19 vaccines. We will actively participate in text-based negotiations at the World Trade Organization (WTO) needed to make that happen. Those negotiations will take time given the consensus-based nature of the institution and the complexity of the issues involved.

CNBC reported that following the news, shares of vaccine producers Pfizer, Biontech, Novavax, and Moderna all plunged “to session lows.”

The outlet reported that following the sharp drops, “Pfizer ended its trading day flat, while Moderna lost 6.1%; Johnson & Johnson shed a modest 0.4%.”

The Pharmaceutical Research and Manufacturers of America, a trade group that represents several of the pharmaceutical companies impacted, slammed the Biden administration’s move.

“In the midst of a deadly pandemic, the Biden Administration has taken an unprecedented step that will undermine our global response to the pandemic and compromise safety,” the group’s president and CEO, Stephen J. Ubi, told CNBC. “This decision will sow confusion between public and private partners, further weaken already strained supply chains and foster the proliferation of counterfeit vaccines.”

Reactions to the news were split on social media, with some people slamming the move and saying that pharmaceutical firms should be able to profit off the development of the vaccines. One person wrote, “This current administration has no understanding of the great lengths that went into development of these life saving vaccines. These companies should be able to profit from there (sic) hard work.”

Another expressed concern over the precedent that the Biden administration’s policy sets, tweeting, “Pretty extraordinary step. Once this box is opened I think it will be hard to limit it only to COVID. What about cancer drugs? What if we get a cure for Alzheimer’s? Are those really less important than COVID-19? This has major ramifications for IP going forward in the U.S.”

But others argued that sharing the vaccine technology was more important than profits. Akshaya Kumar, the crisis advocacy for Human Rights Watch, wrote, “Thanks for taking this bold position @AmbassadorTai! By doing so, the US may help turn the tide on this pandemic and save countless lives globally.”

Some pointed out the pharmaceutical companies had received a hefty amount of taxpayer funds for the speedy development of the shots under former President Donald Trump’s “Operation Warp Speed.”

One person replied, “Taxpayers funded this, not the companies. They took almost no risk, just reaped reward. All this is doing is asking them — who, again, did not pay for this and risked functionally nothing — to accept slightly less of a reward.”

Time magazine reported in December that Operation Warp Speed “allocated more than $12 billion to vaccine makers” for the development (including research and clinical studies) and manufacturing of the first 300 million doses.

Six deals were made between the U.S. government and individual firms or partnerships, including Johnson & Johnson, Moderna, Novavax, and undertakings by AstraZeneca-Oxford, Sanofi-GlaxoSmithKline, and Pfizer-BioNTech.

Fox Business reported in March that the deals are still rolling in for approved U.S. vaccine producers not only from the federal government, but from countries abroad.

At that point, Pfizer and BioNTech expected to split $15 billion in vaccine revenues by the end of 2021, while Moderna expected $18.4 billion in advanced sales and Johnson & Johnson was on on track to pull in roughly $10 billion by the end of the year.

Those potential revenues could look entirely different if the formulas are spread to other firms globally.

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What Could Go Awry?

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

All of which sounds very pretty indeed, but it does raise a question: can risk really be destroyed, or can it only be transferred? And if it can only be transferred, then what’s it been transferred to?

What a remarkable moment in time: every asset is lofting higher, with no limits in sight. The path ahead is already well-scouted: the U.S. economy will add a million jobs a month until the cows come home, Covid will continue fading until it basically disappears as an issue, the dollar and volatility will continue their death march toward zero (good for risk assets), oil and commodities are entering a new super-cycle of growth, as are stocks, bonds (now that pesky yields are falling), cryptocurrencies and housing– all are entering super-cycles of high growth and essentially limitless expansion of speculative gains.

It’s dreadful having a skeptical default setting, but there you have it: what could go awry? Seemingly nothing. Everything’s accounted for and for anything out of the blue, we have the trusty Fed Put, the Federal Reserve’s implicit promise to crush any spot of bother with a wall of freshly issued dollars and near-infinite credit.

Look on our works, ye Mighty, and despair, for we are the greatest power in the Universe! Resistance is futile, and so on. Indeed.

Since we’re in an era in which speculators in any asset can’t possibly lose, it’s no surprise that punters are borrowing buckets of cash to increase their stake in the casinos can’t lose gaming tables. The chart of margin debt offers an instructive history of can’t lose speculative borrowing.

Margin debt is money borrowed from brokers against the collateral of stocks, mutual funds, ETFs, etc. The more your portfolio rises, the more money you can borrow on the margin because your collateral is rising.

Let’s start with the sad, pathetic pre-speculative Stone Age of the 1950s, 60s and 70s, dreary decades of rapid economic expansion and higher wages but dismally low levels of margin debt. The poor cave-creatures back then made little use of margin debt because their lives were an unending misery of risk. Back in that Dark Age, stock market participants could actually lose money–oh the horror!

The Black Death of risk roamed the land unhindered until the all-mighty Federal Reserve established its impregnable fortress of the Fed Put: every market decline will be crushed, and speculators will be rewarded.

And so the glorious age of Speculative Mania began. The rules to guaranteed gain were simple:

1. Buy every dip, as the Fed Put would soon reverse any decline.

2. Borrow as much money as possible and throw it onto the gambling tables because the larger your bets, the greater your gains.

With risk vanquished, everyone who embraced speculation became a winner–a big winner. Only chumps didn’t buy GameStop calls and reap a quick $250,000 or more in a few weeks.

And so margin debt soared and speculators prospered. All was right with the world. But then inexplicably, some sort of glitch occurred and the dot-com euphoria popped and stocks actually dropped. Punters received the dreaded margin call for cash or they had to liquidate their positions to reduce their margin debt.

Stocks soon recovered, and easy-to-borrow money flooded into housing and stocks, lifting markets to new euphoric heights. Another inexplicable glitch occurred, however, and that bubble popped, too, with extremely awkward consequences–the Global Financial Meltdown. But after the Fed tossed around a few tens of trillions of dollars in backstops, guarantees, mortgage purchases, bond-buying, lines of credit for any bank that faced losses, and so on, that strange interlude ended and margin debt and speculative gains continued their march to new heights of glory and guaranteed gains.

This brings us to the present unprecedented levels of margin debt and can’t lose speculative mania. Everyone is supremely confident that inexplicable glitches are now impossible, and nothing can possibly go awry on the path to new super-cycles of growth and speculative gains.

All of which sounds very pretty indeed, but it does raise a question: can risk really be destroyed, or can it only be transferred? And if it can only be transferred, then what’s it been transferred to? The only possible answer appears to be the financial system itself. But never mind skeptical questions, the Fed Put is now the greatest power in the Universe and so speculative gains are guaranteed, forever and ever.

“Look on my works, ye Mighty, and despair!”
Nothing beside remains. Round the decay
Of that colossal wreck, boundless and bare
The lone and level sands stretch far away.

The post What Could Go Awry? first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Experts Are Warning That A U.S. Stock Market Crash Is Very Likely In The Months Ahead

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

Stock prices are not going to stay this high.  Everyone can see that we are in a stock market bubble that does not have any parallel in all of U.S. history, and everyone can see that the end of that bubble is approaching.

The only debate is about how fast and how far the eventual fall will be.  For the first time ever, the ratio of U.S. stock prices to U.S. GDP has reached 200 percent.  In other words, the total value of U.S. stocks is now twice as high as the value of all U.S. economic output for an entire year.  To get an idea of how crazy this is, just check out this chart.  Historically, the ratio of U.S. stock prices to U.S. GDP is normally under 100 percent, and so if all stock prices were cut in half U.S. stocks would still be overvalued.  That is how extreme this bubble has become.

Other key valuation measures also indicate that stock prices have gotten wildly out of balance.  The following example comes from a Motley Fool article entitled “Here’s Why You Should Expect a 20% Stock Market Crash in 2021”

Looking back 150 years, the S&P 500 has averaged a Shiller P/E of 16.78. Admittedly, the Shiller P/E ratio has been a lot higher over the past 25 years. The advent of the internet has broken down information barriers for retail investors, and historically low lending rates for more than a decade have fueled borrowing and lit a fire under growth stocks.

But as of Feb. 3, the Shiller P/E for the S&P 500 was knocking on the door of 35 — more than double the long-term average. To put this figure into some context, there have only been five periods in history where the Shiller P/E ratio topped 30 and stayed there during a bull market run. Two of these events — the Great Depression and dot-com bubble — led to some of the biggest pullbacks ever witnessed in equities. Two other events (not counting the current move) occurred within the past three years, delivering declines of 20% and 34%, respectively, in the S&P 500.

Basically what this is saying is that if stock prices fell by half, the Shiller P/E for the S&P 500 would still be above the long-term average.

So if the market only falls by 20 percent this year as that Motley Fool article is suggesting, we should consider ourselves to be extremely fortunate.

We have never seen anything like this before.  The bubble that we are in now absolutely dwarfs the epic stock market bubbles of 1929 and 2000.  Stock market mania has gripped the entire nation, and all sorts of people have been getting rich, at least on paper.

But many Wall Street veterans that have been watching all of this transpire have become extremely concerned.  The following comes from a Forbes article entitled “Is The Stock Market About To Crash?”

‘Very, very concerning’ echoes of the 90s dot-com bubble are being heard loud and clear by nervous market experts. A 12-year-old bull market; SPAC mania; IPOs that more than double on the first trading day; an army of amateur traders and GameStop mania. It certainly feels like irrational exuberance–and it triggers alarms for those who remember the dot-com bubble of the late 1990s. “The parallels we have today are historically very, very concerning,” notes Jim Stack, president of Whitefish, Montana’s InvesTech Research and Stack Financial Management. “The current froth is the icing on the cake, and when you look through it, you see a lot of other underlying issues.”

In this sort of environment, videos by kids on YouTube showing people how to make a million dollars by day trading stocks get hundreds of thousands of views.

If you have been able to make a lot of money by playing the stock market, good for you.

Just make sure that you get out in time.

Every other stock market bubble in U.S. history has ended badly, and as John Hussman recently noted, this is our generation’s moment of peak financial insanity…

Nothing so animates a speculative herd as a parabolic price advance in an asset detached from any standard of value. I am convinced that future generations will use the present moment to define the concept of a reckless speculative extreme, in the same way our generation uses “1929” and “2000.”

So just how far does Hussman think the market could ultimately fall?

Well, he believes that stock prices would have to drop 65 to 70 percent just to get back to historical norms…

Understand how extreme current valuations have become. In order to simply touch run-of-the-mill historical valuation norms, the S&P 500 would have to lose somewhere in the range of 65-70% over the completion of this cycle.

Stock prices always, always, always get back to their historical averages eventually.

It is just a matter of time.

However, we should hope that a stock market crash can be put off for as long as possible because a truly catastrophic stock market crash would cause far more economic pain than we have experienced so far.

Our system simply would not be able to handle a decline of 50 percent or more in stock prices.  It would essentially mean the end of our financial system as we know it today, and that is something that nobody should want.

The good news is that I do not expect a stock market crash within the next 30 days unless some sort of major “trigger event” comes along.

Stocks may go down, but for the moment I expect at least a short-term period of relative stability.

But that short-term period of relative stability will not last very long at all, and I fully expect 2021 as a whole to be a very, very painful year.

***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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An Elitist Warned: Wallstreetbets Could “Take DOWN The System”

The system of centralized totalitarian control over the population is crumbling before our eyes, and one elitist has already warned that should Wallstreetbets continue, they could take down that whole system.

The “heavy hitters” (the billionaires, trillionaires, and rulers of the globe) in traditional finance have been concerned about the recent stock market action fueled by Redditors. The elitists are playing defense while the public finally gets off its knees and proves what a scam and slavery system this rigged monetary scheme propped up by government is.

This week a Goldman Sachs executive warned that if these short squeezes continue it could “snowball through the market.” Moreover, Interactive Brokers founder Thomas Peterffy made similar comments this week saying these types of systemic risk can “take down the entire system, theoretically.”

Estimates assume that short-sellers have lost “$70.87 billion from their short positions,” according to statistics from the financial data analytics firm Ortex.

An analysis from Zerohedge discloses that Melvin Capital lost a whopping $7 billion during the first month of 2021. “Melvin Capital lost 53% in January, as Gabe Plotkin (a former SAC Portfolio Manager), lost over $5.3 billion in one month,” the report noted. –Bitcoin.com

The financial newsdesk has also been reporting on another WSB (Wallstreetbets) trend taking place during the last week as short squeezers want to squeeze the silver market. One thread on r/wallstreetbets suggested that the power of the masses could squeeze the price of silver from $25 to $1,000.

The power of the masses is often disregarded, but the tyrants will soon realize people are waking up to the evils of government and central banking.

“In the 24 hours proceeding Friday market close, SD Bullion sold nearly 10x the number of silver ounces that we normally would sell in an entire weekend leading to Sunday market open,” the finance reporter disclosed. “In a normal market, we normally can find at least one supplier/source willing to sell some ounces over the weekend if we exceed our long position (the number of ounces we predict we will sell over the weekend).”

Have people finally realized that it’s us vs. them? It’s the masters vs. slaves.  The ruling class vs. the peasants? Here’s hoping!

Government is slavery. Taxation is theft. Central banking is a scam. COVID-19 is a hoax. Democracy is mob rule. Voting doesn’t matter.

Have you figured it out yet?

The solution is to take down this oppressive slave system and live freely and voluntarily with each other. We do not need rulers and masters. Remember no one has any right to rule you no matter how many others voted for it.  This is why voting does not and will never matter when a new king is chosen. No masters and no slaves. Abolish the last two forms of slavery for good: government and centralized banking. It’s up to us.

 

The post An Elitist Warned: Wallstreetbets Could “Take DOWN The System” first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Silver Futures Soar 8%, Rise Above $29 As Reddit Hordes Pile In

This article was originally published by Tyler Durden at ZeroHedge. 

 It was the one print everyone was waiting for, and here it is: silver futures opened up 7%, surging from $27/oz to a high of $29.095 following a weekend of speculation that the next big squeeze on WSB’s radar is silver. And whether that’s true or not, may no longer matter in a world where – as described below – there is virtually no physical silver to be purchased.

 

Spot Silver is back to its highest since the August/Sept cycle highs…

Gold futures managed very modest gains…

And silver’s dramatic outperformance has pushed the gold/silver ratio to its lowest since 2014…

US Equity futures are taking a hit (all down around 1%)…

So as silver approaches $30, keep an eye on major price slams, emerging either out of central banks who desperately need to keep precious metals lower, or the BIS itself, whose Benoit Gilson will have a busy day tomorrow.

* * *

Update (1100ET): For some background on just how unprecedented this weekend’s action in silver markets is, Tyler Wall, the CEO of SD Bullion writes the following (emphasis ours):

In the 24 hours proceeding Friday market close, SD Bullion sold nearly 10x the number of silver ounces that we normally would sell in an entire weekend leading to Sunday market open.

In a normal market, we normally can find at least one supplier/source willing to sell some ounces over the weekend if we exceed our long position (the number of ounces we predict we will sell over the weekend).

However, everyone we talk to is afraid of a gap up at Sunday night market open.

This is about ready to get really interesting as there was very little inventory left from suppliers/mints going into Friday close.

Our direct AP supplier informed us after close on Friday that the “US Mint will be on allocation for the remainder of Type 1” (Current Silver Eagle Design).

Our sales for the month of January exceeded any one month last year during the heart of the pandemic. It was an all-time record month in our company history. 

And, perhaps most importantly, as QTR tweets so succinctly, “this is a red pill moment for many, and it’s beautiful.”

Additionally, there are also signs of a notable regime shift, as Bloomberg points out, investors are holding onto silver they own, rather than trying to take profits.

“Now we’re seeing nothing, no single offer, which is scary,” Peter Thomas, senior vice president at Zaner Group, said by phone from Chicago.

“Whatever we sell, people are holding it. There’s no inflow of metal at all.”

*  *  *

Update (1030ET): It would appear the run on silver has begun. With the market closed, traders have rushed to secure some exposure to silver ahead of what WSB suggests could be “the world’s biggest short squeeze” and that has left bullion dealers

As we noted below, the premium for physical silver had soared late Friday and into Saturday (after the massive flows into SLV), but as Sunday rolled around, bullion dealers are now facing massive shortages of physical coins.

Source: APMEX

 

Source: JMBullion

 

Source: SDBullion

And as one investor noted, the shortages are widespread…

We can only imagine where SLV will open after this.

*  *  *

While all eyes have been focused on GameStop and a handful of other heavily-shorted stocks as they exploded higher under continuous fire from WallStreetBets traders igniting a short-squeeze coinciding with a gamma-squeeze, the last few days saw another asset suddenly get in the crosshairs of the ‘Reddit-Raiders’ – Silver.

On Thursday, we asked, “Is The Reddit Rebellion About To Descend On The Precious Metals Market?” … One WallStreetBets user (jjalj30) posted the following last night:

Silver Bullion Market is one of the most manipulated on earth. Any short squeeze in silver paper shorts would be EPIC. We know billion banks are manipulating gold and silver to cover real inflation.

Both the industrial case and monetary case, debt printing has never been more favorable for the No. 1 inflation hedge Silver.

Inflation adjusted Silver should be at 1000$ instead of 25$. Link to post removed by mods.

Why not squeeze $SLV to real physical price.

Think about the Gainz. If you don’t care about the gains, think about the banks like JP MORGAN you’d be destroying along the way.

Tldr- Corner the market. GV thinks its possible to squeeze $SLV, FUCK AFTER SEEING $AG AND $GME EVEN I THINK WE CAN DO IT. BUY $SLV GO ALL IN TH GAINZ WILL BE UNLIMITED. DEMAND PHYSICAL IF YOU CAN. FUCK THE BANKS.Disclaimer: This is not Financial advice. I am not a financial services professional. This is my personal opinion and speculation as an uneducated and uninformed person.

…and judging by the unprecedented flows into the Silver ETF (SLV) they just got started…

SLV saw inflows of almost one billion dollars on Friday, almost double the previous record inflow for this 15 year-old ETF.

Source: Bloomberg

Which helped prompt a spike in SLV off Wednesday’s lows of over 11% (and note that every surge in price was mimicked by gold, but gold was instantly monkey-hammered lower after the spike).

Source: Bloomberg

And judging by the asset flow, SLV has room to run here…

Source: Bloomberg

 

Just as short-interest in the ETF has been building…

Source: Bloomberg

This surge came after Reddit user ‘TheHappyHawaiian’ posted the following thesis on buying silver noting that “the world’s biggest short squeeze is possible and we can make history.”

‘TheHappyHawaiian’ cites two reasons to buy – The Short Squeeze and Fundamentals.

The short squeeze:

Buy SLV shares (or PSLV shares) and SLV call options to force physical delivery of silver to the SLV vaults.

The silver futures market has oscillated between having roughly 100-1 and 500-1 ratio of paper traded silver to physical silver, but lets call it 250-1 for now. This means that for every 250 ounces in open interest in the futures market, only 1 actually gets delivered. Most traders would rather settle with cash rather than take delivery of thousands of ounces of silver and have to figure out to store and transport it in the future.

The people naked shorting silver via the futures markets are a couple of large banks and making them pay dearly for their over leveraged naked shorts would be incredible. It’s not Melvin capital on the other side of this trade, its JP Morgan. Time to get some payback for the bailouts and manipulation they’ve done for decades (look up silver manipulation fines that JPM has paid over the years).

The way the squeeze could occur is by forcing a much higher percentage of the futures contracts to actually deliver physical silver. There is very little silver in the COMEX vaults or available to actually be use to deliver, and if they have to start buying en masse on the open market they will drive the price massively higher. There is no way to magically create more physical silver in the world that is ready to be delivered. With a stock you can eventually just issue more shares if the price rises too much, but this simply isn’t the case here. The futures market is kind of the wild west of the financial world. Real commodities are being traded, and if you are short, you literally have to deliver thousands of ounces of silver per contract if the holder on the other side demands it. If you remember oil going negative back in May, that was possible because futures are allowed to trade to their true value. They aren’t halted and that’s what will make this so fun when the true squeeze happens.

Edit for more detail: let’s say there’s one futures seller who gets unlucky and gets the buyer who actually wants to take delivery. He doesn’t have the silver and realizes it’s all of a sudden damn difficult to find some physical silver. He throws up his hands and just goes long a matching number of futures contracts and will demand actual delivery on those. Problem solved because he has now matched the demanding buyer with a new seller. The issue is that the new seller has the same issue and does the exact same thing. This is how the cascade effect of a meltup occurs. All the naked shorts trying to offload their position to someone who actually has some silver. My goal is to ensure that I have the silver and won’t sell to them until silver is at a far higher price due to the desperation.

The silver market is much larger than GME in terms of notional value, but there is very little physical silver actually readily available (think about the difference between total shares and the shares in the active float for a stock), and the paper silver trading hands in the futures market is hundreds of times larger than what is available. Thus when they are forced to actually deliver physical silver it will create a massive short squeeze where an absurd amount of silver will be sought after (to fulfill their contractually obligated delivery) with very little available to actually buy. They are naked shorting silver and will have to cover all at once and the float as a percentage of the total silver stock globally is truly miniscule.

The fundamentals:

The current gold to silver ratio is 73-1. Meaning the price of gold per ounce is 73 times the price of silver. Naturally occurring silver is only 18.75 times as common as gold, so this ratio of 73-1 is quite high. Until the early 20th century, silver prices were pegged at a 15-1 ratio to gold in the US because this ratio was relatively known even then. In terms of current production, the ratio is even lower at 8-1. Meaning the world is only producing 8 ounces of silver for each newly produced ounce of gold.

Global industry has been able to get away with producing so little new silver for so long because governments have dumped silver on the market for 80 years, but now their silver vaults are empty. At the end of WW2 government vaults globally contained 10 billion ounces of silver, but as we moved to fiat currency and away from precious metal backed currencies, the amount held by governments has decreased to only 0.24 billion ounces as they dumped their supply into the market. But this dumping is done now as their remaining supply is basically nil.

This 0.24 billion ounces represents only 8% of the total supply of only 3 billion ounces stored as investment globally. This means that 92% of that gold is held privately by institutions and by millions of boomer gold and silver bugs who have been sitting on meager gains for decades. These boomers aren’t going to sell no matter what because they see their silver cache as part of their doomsday prepper supplies. It’s locked away in bunkers they built 500 miles from their house. Also, with silver at $23 an ounce currently, this means all of the worlds investment grade silver only has a total market cap of $70 billion. For comparison the investment grade gold in the world is worth roughly $6 trillion. This is because most of the silver produced each year actually gets used, as I have mentioned. $70 billion sounds like a lot, but we don’t have to buy all that much for the price to go up a lot.

**If the squeeze happens, it would be like 40 years worth of their gains in 4 months **

The reason that only 8 ounces of silver are produced for every 1 ounce of gold in today’s world is because there aren’t really any good naturally occurring silver deposits left in the world. Silver is more common than gold in the earth’s crust, but it is spread very thin. Thus nearly every ounce of silver produces is actually a byproduct of mining for other metals such as gold or copper. This means that even as the silver price skyrockets, it wont be easy to increase the supply of silver being produced. Even if new mines were to be constructed, it could take years to come online.

Finally, most of this newly created silver supply each year is used for productive purposes rather than kept for investment. It is used in electronics, solar panels, and jewelry for the most part. This demand wont go away if the silver price rises, so the short sellers will be trying to get their hands on a very small slice of newly minted silver. The solar market is also growing quickly and political pressure to increase solar and electric vehicles could provide more industrial demand.

The other part of the story is the faster moving piece and that is the inflation and currency debasement fear portion. The government and the fed are printing money like crazy debasing the value of the dollar, so investors look for real assets like precious metals to hide out in, driving demand for silver. The $1.9 trillion stimulus passing in a month or two could be a good catalyst. All this money combined with the reopening of the economy could cause some solid inflation to occur, and once inflation starts it often feeds on itself.

What to buy:

I will be putting 50% directly into SLV shares, and 50% into the $35 strike SLV calls expiring 4/16.

This way the SLV purchase creates a groundswell into silver immediately that then rockets through a gamma squeeze as SLV approaches $35.

Price target of $75 for SLV by end of April if the short squeeze happens.

Edit: for the part of your purchases going into shares, some people recommend PSLV because they think SLV might start lying about having the silver in their vault. Or that the custodian will be double counting, ie claiming that the same silver belongs to multiple people (banking on the fact that people wont all try to get their silver at once). So if you buy SLV shares and calls, that’s great. But I think it could be prudent for us to buy options in SLV (no options on PSLV) and shares in PSLV. It all depends on how paranoid you want to be. There is a lot of paranoia in the precious metals world.

Alternate options:

  • buying physical silver; this also works but you pay a premium to buy and sell so its less efficient and you take fewer silver ounces off of the market because of the premium you pay
  • going long futures for February or March; if you are a rich bastard and can actually take physical delivery of 1000s of ounces of silver by all means do so. But if you simply settle for cash you are actually part of the problem. We need actual physical delivery, which is what SLV demands and is why SLV is the way to go unless you are going to take delivery
  • miners; I don’t recommend buying miners as part of this trade. Miners will absolutely go up if SLV goes up, but buying them doesn’t create the squeeze in the actual silver market. Furthermore, most silver miners only derive 30-50% of their revenue from silver anyways, so eventually SLV will outperform them as it gets high enough (and each marginal SLV dollar only increases miner profits by a smaller and smaller percentage)

Details on SLV physical settlement:

When SLV issues shares, the custodian is forced to true up their vaults with the proportional amount of silver daily. From the SLV prospectus:

“An investment in Shares is: Backed by silver held by the Custodian on behalf of the Trust. The Shares are backed by the assets of the Trust. The Trustee’s arrangements with the Custodian contemplate that at the end of each business day there can be in the Trust account maintained by the Custodian no more than 1,100 ounces of silver in an unallocated form. The bulk of the Trust’s silver holdings is represented by physical silver, identified on the Custodian’s or, if applicable, sub-custodian’s, books in allocated and unallocated accounts on behalf of the Trust and is held by the Custodian in London, New York and other locations that may be authorized in the future.”

‘TheHappyHawaiian” ends with a call to (financial) arms:

Join me brothers. Lets take silver to the moon and take on the biggest and baddest manipulators in the world.

Please post rocket emojis in the comments as desired.

Disclaimer: do your own research, make your own decisions, everything here is a guess and hypothetical and nothing is guaranteed, not a financial advisor, I have ADHD and maybe other things too.

Bear case: silver does tend to sell off if the broader market plunges so it’s not immune to broad market sell off. It’s also the most manipulated market in the world so we are facing some tough competition on the short side

Interestingly, ‘TheHappyHawaiian’ dropped this update on 1/29:

Due to the manipulation and collusion of citadel, hedge funds, and brokers to change the rules and rig the game in their favor. Who likely knew ahead of time and bought puts right before and calls at the bottom, GME is too important to abandon still. SLV is still my next play but GME needs to go to $1000 and these people need to go to jail.

However, judging by the massive physical premiums for silver we are seeing this weekend at APMEX

… JM Bullion

… and SD Bullion.

…there are more than a few who are already rotating to SLV from GME.

The post Silver Futures Soar 8%, Rise Above $29 As Reddit Hordes Pile In first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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IT’S GONNA CRASH!

This article was contributed by Future Money Trends. 

After the inauguration, everything changes. 2021 is the year that vaccines will be administered around the world. People will be out and about again, but corporations will be very slow to rehire. It’s going to be a recovery, but you can bet your bottom dollar that the governments of the world and central banks will have to incentivize all sorts of behavioral changes in order to make it sensible for big business to expand their workforce.

We just don’t see Main Street recovering quickly, nor do we anticipate great job numbers, so we wanted to compile a list of side hustles that offer not only the potential of replacing current income but quadrupling it and then some!

Before we unveil five out of the ten that we prepared, we want to be absolutely certain that you understand how much euphoria there currently is with stocks:

Courtesy: Zerohedge.com

We believe that this ratio is going to compete with the P/E ratio mania of the 2000 Dotcom bubble, and we say that because today’s investors would rather pay a P/E ratio of 35, 40, and even 50 for companies like the FAANMG group since they trust them much more than they do government bonds.

The world’s new safe havens are the mega-cap businesses, so they command the premium of a stock/bond hybrid.

In 2021, we will not see anything like we experienced in March 2020. You can forget about the credit injections that the pandemic induced; that’s historical, so the markets will have to deal with much less and we don’t believe the street understands that new buyers won’t purchase the hot sectors of today that are up on hype.

If we were to compare what’s coming to what we’ve seen in previous situations, we could actually get a negative year for stocks in 2021.

There’s going to be a credit squeeze.

Courtesy: Zerohedge.com

We do not yet see a bottom for the dollar, so expect massive weakness going into 2021, which is great for commodities but lousy for the stock market.

Now, let’s focus on solutions (2 of 5 great side businesses to start today):

  1. Dropshipping

You’ll be able to make money by selling items without even having to create them or keep them in stock yourself. That’s a low-risk business model.

This is a process known as dropshipping and it’s a modern online business model that requires very little initial investment. There are four steps to dropshipping:

  • A customer places an order from your online store
  • Your store automatically sends the order to your third-party product supplier
  • The supplier prepares your customer’s order
  • Finally, the supplier ships the order directly to your customer

Because it’s such a conveniently hands-off process (the merchant doesn’t have to order inventory or fulfill the orders in any way), 33% of online stores use dropshipping as a fulfillment model. Your responsibilities will mainly consist of finding a niche to sell to, marketing your products, and reaching new buyers.

The simplest way to get started is to sign up with a dropshipping specialist, such as Shopify or Oblero. Then find your product niche and customers and start fulfilling those orders!

 

  1. Sell Study Guides

This is ideal for young entrepreneurs and college students can even start doing this while they’re in school. Preparing and selling study guides for courses can be highly lucrative because the test-prep market is worth a mind-blowing $24 billion.

Every year, around 20 million new students start university or college. During the era of the COVID-19 pandemic, more and more courses are being taken online and e-commerce is an increasingly preferred method of product delivery.

There’s a robust and growing market for study guides to help alleviate the demands of today’s college students. You don’t even need to print up paperback study guides for courses – a PDF document should do just fine, and the markup can be very high since it costs very little (aside from time) to write up and send out these study guides.

This is the time to adapt to the post-COVID-19 world and make it rain cash!

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Do You Really Think the Empire Will Sacrifice the Dollar to Further Enrich Billionaires?

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

As for stock markets–the devil take the hindmost.

Let’s keep it simple: US dollar up, stocks down. US dollar down stocks up. Stocks up, billionaires get richer. Since that spot of bother in March 2020 when the US dollar (USD) soared and stocks cratered, the USD has been in a free-fall, boosting the wealth of America’s Robber Barons and various other skimmers, scammers, and other undeserving scoundrels.

Chief among the undeserving scoundrels feasting on the decline of the USD are global stock markets which have soared not because revenues and profits are soaring but because the USD has plummeted.

The Federal Reserve is widely worshiped as the Ultimate Power in the Universe, a kind of financial Death Star. The Fed has seen fit to crush the USD to further boost the wealth of billionaires and save global stock markets from their well-deserved ruin. Saving the world, ho-hum, just another day for the god-like Fed.

But something doesn’t quite add up here, for as the all-powerful Fed devalues the US dollar, it destroys the exorbitant privilege of America’s reserve currency. What’s the exorbitant privilege? Simply this: the owner of a reserve currency can create “money” (USD) out of thin air and trade it for autos, oil, semiconductors–real-world goods that were not created out of thin air. Rather, all these real-world goods required tremendous investment and significant costs to be produced and transported.

The exorbitant privilege is something for nothing–a remarkably good deal. And yet the universal expectation is the Fed is going to throw that privilege in the dumpster by pushing the USD into the ground, first by devaluing it relative other currencies and then by letting hyper-inflation destroy what’s left of its purchasing power.

It is not an exaggeration to say that the ability to create “money” out of thin air and trade it for real-world goods is the foundation of America’s global power, what I call the Imperial Project. The same can be said for the other reserve currencies, the euro and the yen. (Since China’s currency is pegged to the US dollar, it is not a true reserve currency; it is only a derivative of the USD.)

So let me get this straight: the Fed is consciously choosing to undermine and then lay waste to the foundation of American power–just to boost Robber Barons and zombie global stock markets? I don’t think so. That the Fed would pursue a suicidal destruction of the purchasing power of the dollar just to boost stock markets and billionaires–that beggars belief.

The Fed is not the Empire, it is the handmaiden of the Empire. The Fed’s dual mandate– for PR purposes, stable employment and prices–is actually balancing the conflicting demands of a global and domestic currency–Triffin’s Paradox writ large.

The inherent problem with a reserve currency is that it must meet global economic needs and domestic needs, and these are intrinsically in conflict. America’s billionaires and pension funds want the US stock market to loft higher on the back of a declining USD, but that diminishes the global purchasing power of the USD–a trend heading for economic ruin.

The Fed has had numerous reasons to weaken the dollar since March: a desperate need to “save” global stock markets from well-deserved collapse, and an equally desperate need to keep the dollar weak so global debtors with loans denominated in dollars can manage to service their trillions in USD-denominated debts.

But drawing a line extending this short-term necessity all the way to hyper-inflationary oblivion is a grave misreading of the Empire’s need for the exorbitant privilege of a strong dollar.

The Fed is about done with its “rescue” of billionaires and global markets and debtors. Against virtually all expectations of seers, pundits, gurus, etc. the USD is about to start serving the Empire in its foundational role. As for stock markets–the devil take the hindmost.

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HELL UNLEASHED: CATALYSTS FOR MARKET MELTDOWN!

This article was contributed by The Wealth Research Group. 

Today’s letter encapsulates our overview of how markets may react to the all-important news flow, which is coming our way, and what might happen in December. We’ve gone over this from all angles and my main conclusion is this: risk of a correction is high, but the potential for a boom is high as well.

In other words, we don’t expect sideways action in December whatsoever; it will either be that December is a spectacular month or that a huge sell-off occurs. The best way to win in this type of set up, as we see it, is to take profits of value stocks in advance.

The thesis behind it is this: if markets crash, the large cash position will allow re-entering into growth and value at much lower prices. If the market explodes, having that allocation towards growth, going into it, will allow for big gains without risking too much cash.

These catalysts are going to drive markets in December:

  1. Black Friday / Cyber Monday sales: Remember, at the end of the day, America is a shopping machine. 70% of its GDP comes from getting its massive population base of 330M individuals to spend money and create velocity of currency. America thrives on consumer confidence, so these two holidays will tell us not only (1) who is shopping {the blue-collar worker or the white-collar worker or BOTH) but also (2) how strong they are or how badly they need a bailout.

Our data shows that people have been getting sick and tired of 2020 and will not deprive themselves of some holiday cheer. We expect online sales to be strong, but we don’t believe that it will originate from the lower-income brackets, which are in desperate shape right now! They’re looking to stay in their homes and not get evicted; they’re looking to put food on the table rather than wear the latest fashion. This data will be out by December 1st, which is the reason I outlined it first.

  1. Secondly, on December 8th and 9th, the FDA is set to approve both Pfizer and Moderna’s mRNA vaccines. If you’ve been watching the press conferences held by the White House Covid-19 taskforce, then you know that the administration is doing all it can to convince the general public to trust that the vaccines are safe and hold no adverse side effects.

This mass-marketing effort to prove that they weren’t rushed, at the expense of going through the proper procedure to eliminate any risks of taking them, comes because a majority of Americans – and for that matter, people around the globe – are not too excited about injecting themselves with yet another vaccine, when 99% of Covid-19 patients recover from the disease without any lasting harm. We know we are going to be researching this thoroughly as well.

Vaccines have become a polarizing topic, with Bill Gates portrayed as the antichrist leading the charge to inject/infect the population; many doctors, on the other hand, are deconstructing this theory by attempting to prove that there are no clear links between vaccines and autism in children, for example.

Our point is not to take sides, but to tell you that, according to the White House, there are 100M doses ready to be deployed within 24hrs of approval and that public acceptance or resentment will move markets.

  1. Another big catalyst comes on December 11th, when Congress must pass the budget for 2021 in order to avoid a shutdown.

A fiscal cliff adds to the ever-growing division in politics and we don’t believe we’ll get there, since Democrats and Republicans are working on what’s called the Omnibus Spending Bill, which is likely to bundle up a number of various spending programs into one.

With JPMorgan releasing data, which shows that they believe that Q1 2021 will see GDP contracting again, our thesis remains that the full recovery will happen in 2022.

NOTHING is over yet.

The post HELL UNLEASHED: CATALYSTS FOR MARKET MELTDOWN! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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WARNING: We’re Too Early – GOLD MELTDOWN!

This article was contributed by the Wealth Research Group. 

Since June 2019 (the past 16 months), 8 gold and silver companies that have enjoyed triple-digit gains have been featured in these pages. Among them, one company has even rallied over 1,000% — companies that we’ve been following for 3-4 years have seen 600% and 700% appreciations, while others have been uplisted to the NYSE. Truly, in the past 16 months, we could do no wrong.

Those who were brave enough to look the devil in the eye in March and April and capitalize on the panic – when TV screens the world over were broadcasting people dropping dead on the streets of China – have been able to enjoy generationally-high returns in just 6-8 months — buying the crash was, as it always is, the best opportunity to make sensational returns.

But, since gold peaked in August, nothing has worked in the mining sector. At least three companies that have been featured here since then, as potential opportunities for you to independently watch, study, and research, are now 30% – 50% cheaper than they were when these were first presented here, along with their business models. It’s a key lesson in the importance of trading tactics, such as (1) splitting purchases into increments in order to sustain blows better, (2) taking time to build positions, (3) being early, and (4) tolerating risk and volatility.

Somehow, in the past three to four weeks, investors have become convinced (so much so that they’re willing to swear by it) that Joe Biden is heading towards a landslide victory.

Courtesy: Zerohedge.com

As such, they’ve created the following script in their minds:

* A Biden victory is going to make it extremely difficult for Washington to achieve anything between now and the January inauguration.

* No stimulus bill will be passed. If one does pass both parties’ demands, it will be small.

* Therefore, we have no way of knowing how things will develop. In the meantime, we (as in the investment community) will settle for a large cash position.

As you can see by the chart above, everyone and their mama is betting on higher interest rates, for the time being.

I’ve been investing since June 2000, when at age 16, with three years’ worth of babysitting and basketball tutoring savings (which I’ve gathered since the age of 13), my personal banker had convinced my parents that I was mature enough to invest money in the markets. He got them to sign a waiver, so that I, a minor at the time, could buy equities.

Rarely have I made a decision in the twenty years since, which had anything to do with who was in the White House, since 73% of my net worth is tied to long-term strategies, not to cyclical trades. But when it comes to mining stocks, unless one is willing to absorb the risks of timing his trades wrongly and seeing -50% temporary plunges (which, at times, could even turn into permanent ones, cutting losses when things go south and moving on), one SHOULD NOT ever be in the commodities sector.

Even the world’s best gold stock can’t appreciate in price when gravity is pulling it in the opposite direction. Trading mining stocks boils down to the art of cutting losers fast and sticking with winners for the long haul.

THEORETICAL EXAMPLE: (Total portfolio size $50,000):
* Proper Asset Allocation: Speculative portfolio size (15%, $7,500).
* Proper Diversification: Ten companies, each making up $750, or 1.5% of total portfolio.
* Proper Position Sizing / Stop Loss: Each investment is made in increments of three – 33% initially ($250), additional 33% ($250) if/when the stock falls 20%, last 33% ($250) if/when stock falls another 20%; stop-loss to be set to 36%, below FINAL cost-basis.

Breakdown: Company (A) trades for $1.00. Initial outlay is made ($250 @ $1.00). The stock falls to 80c, so secondary outlay is made ($250 @ $0.80). Commodity prices continue dragging mining stocks down another 20% to 64c, so final outlay is made ($250 @ $0.64). Overall cost-basis: $0.813. Stop-loss is set to: 0.813 *0.64 = $0.52.

Risk/Reward: If the company does what it sets to do: 500% potential returns – (don’t do for less). If company (A) fails or if the commodity cycle turns bearish, potential loss: 36%.
In numbers: $1,000 could turn into $5,000 (winner) or to $640 (loser), so the equation is risking $360 in order to potentially make $4,000, an 11:1 risk/reward set up.

The biggest investment mistake people make, in my opinion, is buying the whole position on day 1.

Right now, the entire investment community is sure of a Biden victory, which will lead to a few months of wait-and-see until the inauguration.

Courtesy: Zerohedge.com

There are long-term trends in place, mixed with short-term sentiment moves. Right now, within the context of a bull market for gold and silver, there’s a short-term trade of higher bond yields. This will hurt precious metals.

Gold could fall to $1,820 and silver to $23/ounce. The mining stocks could undergo a brutal correction phase.

One has to make an individual decision, which boils down to this: Am I willing to stomach a rollercoaster ride until gold surpasses $2,000 again and reaches green pastures?

If one answers YES, then this weakness is a buying opportunity.

If one answers NO, then this weakness is a chance to sell and come back later, when the momentum is strong again.

It doesn’t look good for precious metals in the immediate-term, but looking past January 2021, the case for $2,500 to $3,000 gold is well intact, according to the world’s most sophisticated investors:

Courtesy: U.S. Global Investors

The Ball Is In Your Court!

The post WARNING: We’re Too Early – GOLD MELTDOWN! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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WARNING: We’re Too Early – GOLD MELTDOWN!

This article was contributed by the Wealth Research Group. 

Since June 2019 (the past 16 months), 8 gold and silver companies that have enjoyed triple-digit gains have been featured in these pages. Among them, one company has even rallied over 1,000% — companies that we’ve been following for 3-4 years have seen 600% and 700% appreciations, while others have been uplisted to the NYSE. Truly, in the past 16 months, we could do no wrong.

Those who were brave enough to look the devil in the eye in March and April and capitalize on the panic – when TV screens the world over were broadcasting people dropping dead on the streets of China – have been able to enjoy generationally-high returns in just 6-8 months — buying the crash was, as it always is, the best opportunity to make sensational returns.

But, since gold peaked in August, nothing has worked in the mining sector. At least three companies that have been featured here since then, as potential opportunities for you to independently watch, study, and research, are now 30% – 50% cheaper than they were when these were first presented here, along with their business models. It’s a key lesson in the importance of trading tactics, such as (1) splitting purchases into increments in order to sustain blows better, (2) taking time to build positions, (3) being early, and (4) tolerating risk and volatility.

Somehow, in the past three to four weeks, investors have become convinced (so much so that they’re willing to swear by it) that Joe Biden is heading towards a landslide victory.

Courtesy: Zerohedge.com

As such, they’ve created the following script in their minds:

* A Biden victory is going to make it extremely difficult for Washington to achieve anything between now and the January inauguration.

* No stimulus bill will be passed. If one does pass both parties’ demands, it will be small.

* Therefore, we have no way of knowing how things will develop. In the meantime, we (as in the investment community) will settle for a large cash position.

As you can see by the chart above, everyone and their mama is betting on higher interest rates, for the time being.

I’ve been investing since June 2000, when at age 16, with three years’ worth of babysitting and basketball tutoring savings (which I’ve gathered since the age of 13), my personal banker had convinced my parents that I was mature enough to invest money in the markets. He got them to sign a waiver, so that I, a minor at the time, could buy equities.

Rarely have I made a decision in the twenty years since, which had anything to do with who was in the White House, since 73% of my net worth is tied to long-term strategies, not to cyclical trades. But when it comes to mining stocks, unless one is willing to absorb the risks of timing his trades wrongly and seeing -50% temporary plunges (which, at times, could even turn into permanent ones, cutting losses when things go south and moving on), one SHOULD NOT ever be in the commodities sector.

Even the world’s best gold stock can’t appreciate in price when gravity is pulling it in the opposite direction. Trading mining stocks boils down to the art of cutting losers fast and sticking with winners for the long haul.

THEORETICAL EXAMPLE: (Total portfolio size $50,000):
* Proper Asset Allocation: Speculative portfolio size (15%, $7,500).
* Proper Diversification: Ten companies, each making up $750, or 1.5% of total portfolio.
* Proper Position Sizing / Stop Loss: Each investment is made in increments of three – 33% initially ($250), additional 33% ($250) if/when the stock falls 20%, last 33% ($250) if/when stock falls another 20%; stop-loss to be set to 36%, below FINAL cost-basis.

Breakdown: Company (A) trades for $1.00. Initial outlay is made ($250 @ $1.00). The stock falls to 80c, so secondary outlay is made ($250 @ $0.80). Commodity prices continue dragging mining stocks down another 20% to 64c, so final outlay is made ($250 @ $0.64). Overall cost-basis: $0.813. Stop-loss is set to: 0.813 *0.64 = $0.52.

Risk/Reward: If the company does what it sets to do: 500% potential returns – (don’t do for less). If company (A) fails or if the commodity cycle turns bearish, potential loss: 36%.
In numbers: $1,000 could turn into $5,000 (winner) or to $640 (loser), so the equation is risking $360 in order to potentially make $4,000, an 11:1 risk/reward set up.

The biggest investment mistake people make, in my opinion, is buying the whole position on day 1.

Right now, the entire investment community is sure of a Biden victory, which will lead to a few months of wait-and-see until the inauguration.

Courtesy: Zerohedge.com

There are long-term trends in place, mixed with short-term sentiment moves. Right now, within the context of a bull market for gold and silver, there’s a short-term trade of higher bond yields. This will hurt precious metals.

Gold could fall to $1,820 and silver to $23/ounce. The mining stocks could undergo a brutal correction phase.

One has to make an individual decision, which boils down to this: Am I willing to stomach a rollercoaster ride until gold surpasses $2,000 again and reaches green pastures?

If one answers YES, then this weakness is a buying opportunity.

If one answers NO, then this weakness is a chance to sell and come back later, when the momentum is strong again.

It doesn’t look good for precious metals in the immediate-term, but looking past January 2021, the case for $2,500 to $3,000 gold is well intact, according to the world’s most sophisticated investors:

Courtesy: U.S. Global Investors

The Ball Is In Your Court!

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CODE RED: POTUS IN TROUBLE!

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

In one month, approximately ONE HUNDRED AND THIRTY Million Americans will vote, if past is prologue. They can either elect the sitting president, Mr. Donald Trump, or his adversary, Mr. Joe Biden. As we speak, Trump has tested positive for coronavirus, has been whisked to the hospital, and is SUFFERING MILDLY and working through the disease.

The markets were DEFINITELY RATTLED on Friday and might open DEEP in the RED tomorrow as well, so with NINE MONTHS out of the way, today’s entire letter is devoted to the MATHEMATICAL RESULTS of following the various WATCHLISTS (four, in total) that we’ve released since March, which have received TREMENDOUS FEEDBACK.

Courtesy: U.S. Global Investors

Gold is MIMICKING 08′-11′ RESULTS, so we do anticipate the trend to continue, but there have been BUMPS along the way, since the August 5th RECORD-HIGH, so know that the softness of the miners, as of late, might be a real opportunity to get positioned, if one isn’t yet!

If you haven’t already, I highly suggest going through our 11 TRADING STRATEGIES report, which is a huge help in these types of cases. Access it HERE!

With that, here’s all we’ve ACCOMPLISHED TOGETHER since March:

  1. CIRCUIT BREAKER Week – HERE’S the full list. You’ll notice these are companies with a long history of success, which one could have placed 3%-4% of his portfolio in.

* American Express: Entry Date: 13th of May, Price: $78.03, High Since: $113.67, Today’s Price: $101.61, GAIN: 30.22%, S&P 500 during same period: 19.89%, ALPHA GENERATED: 51.9%

* V.F. Corporation: Entry Date: 15th of May, Price: $51.30, High Since: $76.44, Today’s Price: $72.53, GAIN: 29.11%, S&P 500 during same period: 18.52%, ALPHA GENERATED: 57.1%

* Leggett & Platt: Entry Date: 14th of May, Price: $24.62, High Since: $44.93, Today’s Price: $42.66, GAIN: 57.82%, S&P 500 during same period: 17.39%, ALPHA GENERATED: 232.4%

* Hershey’s: Entry Date: 26th of June, Price: $125.85, High Since: $149.59, Today’s Price: $142.92, GAIN: 18.52%, S&P 500 during same period: 9.85%, ALPHA GENERATED: 88%

* Stanley, Black & Decker: Entry Date: 13th of May, Price: $102, High Since: $166.25, Today’s Price: $164.81, GAIN: 61.57%, S&P 500 during same period: 19.89%, ALPHA GENERATED: 209.55%

  1. Right After the June 8th MANIA PEAK – HERE’S the full list. You’ll notice these are companies with a long history of success, which one could have placed 3%-4% of his portfolio in.

* Sysco: Entry Date: 9th of July, Price: $51, High Since: $68.40, Today’s Price: $63.17, GAIN: 23.86%, S&P 500 during same period: 6.23%, ALPHA GENERATED: 283%

* Cincinnati Financial: Entry Date: 11th of June, Price: $58.66, High Since: $83.44, Today’s Price: $77.78, GAIN: 32.59%, S&P 500 during same period: 10.1%, ALPHA GENERATED: 122.6%

* Axis Capital: Entry Date: 9th of July, Price: $37.00, High Since: $49.13, Today’s Price: $44.23, GAIN: 19.54%, S&P 500 during same period: 6.23%, ALPHA GENERATED: 213.6%

* Trane Technologies: Entry Date: 26th of June, Price: $84, High Since: $124.87, Today’s Price: $123.86, GAIN: 47.4%, S&P 500 during same period: 11.1%, ALPHA GENERATED: 327%

* Booz, Allen Hamilton: Entry Date: 16th of July, Price: $71.1, High Since: $88.64, Today’s Price: $82.85, GAIN: 16.52%, S&P 500 during same period: 4.1%, ALPHA GENERATED: 302.9%

  1. Summer Report – HERE’S the full list. You’ll notice these are companies with a long history of success, which one could have placed 3%-4% of his portfolio in.

* Enstar Group: Entry Date: 17th of September, Price: $153.74, High Since: $164.37, Today’s Price: $164.37, GAIN: 6.9%, S&P 500 during same period: -0.3%, ALPHA GENERATED: Made money, instead of losing.

  1. NASDAQ September Correction – HERE’S the full list. You’ll notice these are companies with a long history of success, which one could have placed 3%-4% of his portfolio in.

* DocuSign: Entry Date: 18th of September, Price: $194.86, High Since: $222.26, Today’s Price: $218.27, GAIN: 14%, NASDAQ 100 during same period: 2.9%, ALPHA GENERATED: 382.7%.

Millions of people got shaken out, since they had no one to bounce their ideas off of, but we hope that our conviction saved you 5, 6 and even 7 figures in your portfolio and retirement, while hedge fund clients were GREATLY DAMAGED by the mistaken thought that they’ll get to see a retest of the MARCH LOWS, thus parking in cash.

I plan to CAREFULLY REVIEW my guiding principles in life again today and spend the day expressing gratitude for living in 2020, surrounded by family, friends and the comforts that we take for granted at times. ACCESS them HERE, if you’d like.

The post CODE RED: POTUS IN TROUBLE! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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BULLETPROOF VEST IS ON: Big Money IS LIQUIDATING NOW!

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

For the past 28 years, ever since the Clinton (1992) victory and probably WELL BEFORE it, institutional money has ALWAYS BEEN selling equities in the month leading up to the elections.

Once a winner was announced, the same investors would REENTER EQUITIES.

It’s a predictable pattern because all sorts of presidents have won from both parties under INNUMERABLE DOMESTIC conditions; it seems that buying before the elections is a buying opportunity in most cases.

The most successful fund manager of all time, Peter Lynch, has summed it up in the most simplistic manner: the downside in stocks IS NOTHING compared with the upside, and he’s so right.

From October 3rd, 1980, can you even BEGIN TO IMAGINE the total amount of BULLSHIT NEWS that was probably thought of as imminent danger and a reason to go ALL-IN on CASH, yet the market returned 2,500% even if one spent ZERO MINUTES understanding investing?

Thought about in the right way, on a long-term basis, the market is always a BUYING OPPORTUNITY. It’s sometimes a very attractive one, while other times it’s less attractive, but it’s always a machine of WEALTH CREATION.

The only time one needs to pay attention to multiples, cycles, and valuations in CLOSE FASHION is when the time comes that they need EQUITIES TO BE FULLY-PRICED since they plan to liquidate and spend the sums on living expenses.

If you’re under the age of 55, every pullback (0%-10%), every correction (10%-20%), and every bear market (-20% or more) is a MASSIVE DISCOUNT window to buy more quality companies or an index fund.

You won’t catch the ABSOLUTE BOTTOM 99% of the time, but remember the eternal wisdom of the chart above and of Peter Lynch, who said the upside is greater than the downside.

Even if you bought at the top of the NASDAQ bubble in the year 2000 and had to wait for 15 YEARS until the index got back to its previous high (THAT’S INSANE!), you’re still up 150%.

The NASDAQ 100 is only up 137% in twenty years!

Courtesy: Zerohedge.com

Throughout this SEPTEMBER CORRECTION, we’ve asked you to consider contrarianism as a philosophy.

You can see why above: the masses are JUMPING SHIP before the elections, but unless you need access to funds in the coming months (which means you shouldn’t even be trading), the indices are inviting you to BUY CHEAPER than before.

Cyclical industries are not included in this way of thinking since the key to those is to buy during BUSTS and sell during BOOMS.

Gold and silver mining stocks are the PERFECT EXAMPLE:

The junior mining companies BOTTOMED IN MARCH!

Literally, this is the birth of a BULL MARKET after seven years of sideways action; THE FUN is only beginning.

In my opinion, the GDXJ can return to triple-digit figures and it’s currently 55 points, so that’s NEARLY DOUBLE its current value.

Many forecast higher prices than in 2011; to me, that kind of BULLISH RALLY largely depends on the price of silver.

If silver can SURPASS $30/ounce between now and March 2021, it has a chance of going ALL THE WAY to $50/ounce, which would propel the GDXJ to new highs and your mining portfolio would beat JUST ABOUT anything else out there.

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RAY DALIO IS DANGEROUS!

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

Are there people on YouTube or other platforms that YOU’RE ADDICTED to and love every word coming out of their mouths? When I ask around, many tell me that Ray Dalio is a favorite of theirs, or Howard Marks or Jeff Gundlach.

The reason why so many LOVE THEM is because they confirm their bias on markets.

Who wants to listen to someone they HATE and have nothing in common with? I do!

If I see a successful person who has views opposite of mine, I cherish the relationship.

Courtesy: Zerohedge.com

Ray Dalio, Howard Marks and Jeff Gundlach, among others, talk about MACROECONOMICS and I want to tell you that even if they get the macro right, it DOES NOTHING to their portfolios, as you can see.

Look at the performance of Bridgewater Associates for NEARLY A DECADE; they suck, point-blank.

Any institution, college endowment or pension fund that decided to PLAY IT SAFE and go with Mr. Dalio’s firm, had been MUCH BETTER OFF just buying the index fund.

Macroeconomics creates ZERO VALUE when picking stocks; it might help in understanding how to allocate funds among the various asset classes, but it never REPLACES STOCK PICKING skills.

Courtesy: Zerohedge.com

Of course it’s fun to listen to a GURU who confirms your worldview, but there’s nothing QUITE LIKE results. The name of the game is results!

None of these WALL STREET TYCOONS saw Bitcoin like we did!

Portfolio Wealth Global covered Bitcoin below $500, a position that is up over 2,000%!

None of these WALL STREET TYCOONS bought stocks in the MARCH PANIC, but we did, IN DROVES, through the three watch lists reports we published to you!

None of these WALL STREET TYCOONS went big on silver or gold, but we did!

The name of the game is RESULTS.

Owning stocks is PRIORITY NO.1 for any person who is looking to grow wealthier, especially if they’re cheap. In March, they were JUST THAT, but these suits were too afraid to WALK THE TALK, while we issued THREE WATCHLISTS, full of goodies!

Courtesy: Zerohedge.com

Homebuilders are telling us that millennials are entering the HOUSING MARKET; are you going to keep listening to the doomsday crowd, which keeps telling you that millennials don’t have two nickels to RUB TOGETHER, or will you look at facts, objectively?

I’ve been investing in real estate since 2010 and it’s been a GOOD INVESTMENT the whole time.

Don’t listen to the macroeconomic doom forecasts; see what’s happening ON THE GROUND.

Huge alerts coming from us!

The post RAY DALIO IS DANGEROUS! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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HIT PLAY: BUCKLE UP – PARABOLIC MOVE IMMINENT!

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

I want you to understand that stocks have MUCH MORE appreciation ahead of them, as a whole. What you’ll see below is that households STILL OWN about a fifth of their wealth IN BONDS!

In my mind, that’s a bubble! There is ZERO JUSTIFICATION to park 20% of society’s net worth in bonds that don’t generate a return, are exposed to inflationary erosion, and can’t be relied upon for the years to come. On top of that, having 15% in cash (now even more) creates a situation where investors have TOO LITTLE EXPOSURE to stocks.

There are trillions of dollars on the sidelines. I’m telling you that in 2018, equities BEGAN TO see outflows from stocks and inflows to bonds, a trend that HASN’T REVERSED until present day. That’s not a smart move to sell equities and own bonds instead.

My message isn’t that stocks are a REAL BARGAIN, but that if you see an opportunity to own a high-quality company at a reasonable price, the attitude of WAITING FOREVER until its price returns to some historical norms MIGHT COST YOU big-time since you’ll never get exposure. Stocks might not return to those P/E ratios of the past.

Courtesy: AwealthofCommonSense.com

Instead, consider a TRIED AND TRUE strategy of splitting your purchases in increments, BEING METHODICAL about two elements:

  1. Total Position Size – Figure out PRECISELY HOW MUCH you’re going to invest into a given security, why you’ll SELL IT (for a good or bad reason), what the ideal entry price would be, and then execute a tactic of buying 10%-20% of the OVERALL SIZE.
  2. DROP-SIZE STEPS – Companies either experience INCREMENTAL REDUCTIONS in price or one-day BIG DROPS. The incremental ones are created because of collective views about the company or its industry, while DRAMATIC SELL-OFFS that occur instantly are reactions to news releases.

You need to be ready to capitalize on these INSTANT DROPS and one of the best ways is to set limit orders.

Courtesy: Zerohedge.com

As you can see, the OVERWHELMING NUMBER of equities is owned by the top 10% of wealthy households and that’s A HUGE MISTAKE that the rest are making.

My one wish for families who have low-wage incomes is that they would save 5%-10% of their net income every month and buy equities. Even if their careers never take off, they’ll SAVE THE NEXT GENERATION from poverty!

Save, invest, REPEAT!

Escape poverty in 25 years or less and be the hero of your dynasty.

 

The post HIT PLAY: BUCKLE UP – PARABOLIC MOVE IMMINENT! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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CAUGHT W/PANTS DOWN: Stocks Get DESTROYED!

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

The first few days of September were EXACTLY AS PREDICTED. We issued two separate alerts on the reasons why September will be horrible for the markets, and right out of the gate, investors got it HANDED TO THEM.

I don’t think it’s the end of it, either. The fact of the matter is that the VIX has gone up to its highest level in three months, which TELLS ME that profit-taking isn’t over.

Because of that, Future Money Trends is taking UNPRECEDENTED STEPS to add exceptional value to you:

  1. We’re creating our FIRST-EVER tech-focused watch list, which is a MUST-OWN sector. Some segments in tech are so disruptive that not having exposure to them is a CARDINAL SIN.

In order to achieve this, we’re masterminding with tech funds that we have a personal relationship with, and that’s going to be PUBLISHED in 7-10 days from now!

Our three WATCH LISTS we’ve published since the MARCH PANIC have returned high double-digits yields, so I want to stress which stocks are STILL BELOW our buy range. Here are the watch lists: ONE, TWO, and THREE.

As you can see, the gains have been JUST PERFECT. The number of companies that are still attractive to me has shrunk drastically, but there are still a few that are below the limit orders: Ciena, Cisco (close enough to its limit order), Spirit Aerosystems (not Spirit airlines), and there are four companies that are getting close: A.O. Smith (below $42), Resmed (below $160), Chubb (below $122), and TFI International (below $39 on NYSE).

Courtesy: Zerohedge.com

As you can see, insiders see the WRITING ON THE WALL and know that at these prices, they’d be NAÏVE NOT to take advantage of their options and stock compensation.

A vulnerable tech sector opens the door for the natural resource industry TO SHINE!

Therefore, for the first time in our company’s history, we’re publishing a resource portfolio comprised of 4 companies: a MEGA-CAP, a seasoned miner, a new IPO, and a speculative high-flyer. This is our ideal combination of companies.

Courtesy: Zerohedge.com

With China continuing to decelerate its TREASURY HOLDINGS and the dollar’s weakness in 2020 at the same time as gold and silver are the BEST PERFORMERS, resource stocks have done amazingly well for us.

Therefore, we embarked upon our GREATEST PROJECT in company history and came up with four company profiles that comprise this portfolio, which will eventually grow to between 10 and 15 stocks.

 

Get FULL ACCESS to the portfolio HERE!

The post CAUGHT W/PANTS DOWN: Stocks Get DESTROYED! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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Think It’s Bad Now? “It Doesn’t Matter Who Wins, The Dollar Is Going To Be DESTROYED!”

In an interview with SGT Report, Doug Casey explains that we’re in the midst of the “greater depression” and the real chaos, both societal and economic, is dead ahead.  If we think things are bad now, just wait until after the election, because “it doesn’t matter who wins, the dollar is going to be destroyed!”

Most of our readers already understand the dollar is being destroyed and it’s being done on purpose by the Federal Reserve to bring on their new fully centralized, unbacked, digital dollar, which will be a system of complete control and enslavement. When the dollar finally falls for good, things will get so chaotic, it’ll be unimaginable. Casey says we’ll see financial chaos, economic chaos, and societal chaos.

This is not a matter of if the dollar will crash, but a matter of when, it won’t make any difference who is chosen to be the next banker puppet (president) when that finally happens.

Casey says that gold is still one of the best ways to protect your wealth.  Preparedness will help you get through the chaos of a destroyed dollar.  Most people won’t know what’s coming, but those who have precious metals will have a better chance of getting through.  Silver is a “high tech industrial element” and could end up being in high demand.  Casey predicts silver will of over $50 per ounce.

These next few years are going to be chaotic.  But you can try to become as wealthy as you can to insulate yourself from the chaos. Casey says old and silver are the best way to do that.

SGT Report asks Casey about the democrats destroying the dollar and Donald Trump swooping in as a savior and returning us to sound money. Casey says: “Well, I wouldn’t plan my life around Trump doing anything that’s terribly intelligent economically, although I very much appreciate his efforts to deregulate the economy and fighting against the deep state.”  Casey then says he doesn’t necessarily think Trump will win.

As we’ve stated before, presidents are chosen, and if Trump can give the Federal Reserve what they want, and as long as he won’t stand in the way of their destruction of the current system as we know it,  he will be reelected. The economy is going to get much worse by the time the election comes, and that will weih heavily on voters.

Both sides will be cheating, and “I’d gear up for stormy weather,” says Casey of these times leading up to election.

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SUDDENLY SEIZED-UP: Gold Presumed DEAD!

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

Gold stocks might have peaked for the COMING WEEKS. On August 5th, we may have SEEN THE TOP for the time being.

Just how amazing was the RALLY, which started on March 18th?

  1. The GDX index, which is comprised of the world’s BIGGEST AND most recognized gold and silver miners, has gone from $19 to $44.50, a 134% return in LESS THAN five months.

Year-to-date, the GDX index is up 37%, compared with the NASDAQ 100, which is up only 33%!

With all the noise that the media is making about tech being the GREATEST PLAY ever, a simple low-fee position with GDX has beaten all of these cloud-servicing, Artificial Intelligence and payment processing wonder kids of the cyber world.

  1. The GDXJ index looks to have ALSO TOPPED, and is up 34.9% in 2020, but HOLD YOUR HORSES; that’s 400% more than the average S&P 500 annual return, so I assume you’re not feeling TOO BAD about that!

Still, in a mature BULL MARKET, the GDXJ would handily beat the GDX, so the fact that it isn’t is indicative of FURTHER UPSIDE POTENTIAL.

Courtesy: Zerohedge.com

The way American finance works, with the FEDERAL RESERVE having so much authority to CREATE CURRENCY, the markets have ceased to be “free.”

The big problem with the rich getting richer isn’t that the poor are FRUSTRATED, since entrepreneurs COULD INSPIRE the masses to follow them; the problem is that the wealthy aren’t doing anything that’s REPEATABLE or leaves a trail of guidelines, since all they’re doing is capitalizing on their UNIQUE ACCESS to cheap credit.

When the poor don’t HAVE A PRAYER to join the rich, elevating the collective wealth of the nation, something IS WRONG!

If someone is doing ALL HE CAN and still gets nowhere, we have a structural failure.

For now, this entire CREDIT ORGY is fueling a great party, but what the participants don’t know is that once the music stops, they’ll be asked to pay for this shindig and it WON’T COME CHEAP!

A country like the USA can create many trillions in currency to offset the revenues and the income lost by the pandemic, but it can’t put the genie back in the bottle; this is CURRENCY DEBASEMENT.

Courtesy: Zerohedge.com

The credit expands and generates wealth for equity holders, while the average person GOES DOWN!

No country can thrive as a bastion of capitalism when its citizens have no part in the FUN OF PROFITS, but only toil from dusk ‘til dawn to make ENDS MEET.

I own gold, silver and other safe havens for this reason.

THINGS ARE NEARING a breaking point; it’s just the way it is, unfortunately!

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EXTERMINATED: WE’LL WIPE THE FLOOR WITH DOLLARS!

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

The three GREAT TRUTHS of these economic times are:

  1. Governments and central banks MUST GROW the currency supply or risk SOCIETAL COLLAPSE.
  2. ZERO interest rates can’t BE ALTERED.
  3. China is FAST BECOMING the world’s most formidable economic power.

Anything and everything you do, whether it is in your career or in your investment portfolio, MUST GIVE ROOM to these facts.

For instance, TRUTH #1 was evident in March and April, when we saw central banks, especially the Federal Reserve, GO ALL-IN.

We published WATCH LIST #1, experienced OUTSTANDING GAINS, then published WATCH LIST #2, which has also delivered HUGE RETURNS, but many assume that with indices at ALL-TIME HIGHS the big profits are behind us.

That’s NOT TRUE!

Courtesy: Zerohedge.com

As you can see, owning the S&P 500 or just the BIG FIVE has been FAR BETTER than owning laggards. Within the ranks, there are SOME SOLDIERS who have yet to become generals, so we are publishing WATCH LIST #3, our newest one, to tackle this opportunity HEAD ON!

Understand that the decision to REFLATE at ALL COSTS, which is truth #1 on our list, has pushed STOCKS, BONDS AND GOLD into all-time highs, at the SAME TIME.

This past July marked this event, A TRIFECTA of new highs (stocks, bonds and gold), which has occurred LESS THAN ten times in the last THREE DECADES.

In each of the previous times, these trends continued for another TWELVE MONTHS at least, with stocks never being down after such an event.

It’s EXTREMELY DIFFICULT to bet on stocks after their best 100-day stretch in history, after the SHORTEST BEAR MARKET ever and news that SHORT POSITIONS are at their lowest since 2005. But the SECOND TRUTH of our times is that rates aren’t going higher, as you’d expect them to in times of ASSET BUBBLES.

Courtesy: Zerohedge.com

As you can see, since the September 11th attack in 2001, there’s been a CLEAR DECOUPLING in America. While rates have been SLASHED BRUTALLY, creating a bonds and equities bubble, more Americans have been laid-off, driven out of participating in the labor force, WIDENING the wealth gap!

Truth #2 is that it is ACTUALLY the CORPORATIONS that are now addicted to zero rates, even more than governments are.

Governments can ABSORB HIGHER interest payments, but businesses and households really can’t.

December 2018 was when this truth was finally put to the test and markets showed the Federal Reserve that if it intends to raise rates above 2.25%, then stocks are worth at least 20% less than current prices.

If you knew that bonds would pay no yield for the NEXT DECADE, would you bid up stocks further? YOU BET, and that’s exactly what’s happening.

Courtesy: Zerohedge.com

This brings us to our THIRD TRUTH, one that is clear to many, but some still REFUSE TO BELIEVE it.

Throughout human history, China’s economy has been responsible for between 20% and 25% of global GDP, with the only exception being the majority of the 20th century.

Don’t make the FATAL MISTAKE of eating with a spoon the falsehoods of Western reporting of the Chinese economic way of life; while the control that government exercises over the individual is OUTRAGEOUS, their financial engine works FOR THEM.

They’re growing like nothing the world has ever seen and we BEST ADAPT to it. China will have a dominant role in the 21st century, yet its chief objective isn’t to TOPPLE DOWN the West, but to find equilibrium.

What investors must realize is that TWO EMPIRES have never worked together for the benefit of mankind. If leadership on both sides finds the path to co-existence, prosperity AWAITS US ALL.

As part of embracing major NEW TRENDS, which the post-Covid-19 world is birthing, we’ve found a BOMBSHELL OPPORTUNITY, which we’ll be updating on this week. It’s a huge moment for investors, so be ready!

The post EXTERMINATED: WE’LL WIPE THE FLOOR WITH DOLLARS! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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BUFFETT GOT GOLD: Now I’ve SEEN IT ALL!

This article was contributed by James Davis with Future Money Trends

Warren Buffett doesn’t see the point of holding physical gold. He acknowledges that when there’s GENERAL FEAR out there, investors gravitate towards it BRIEFLY before realizing that the world isn’t ending, thus dumping their holdings and reentering stocks, real estate or private equity. His bottom-line message is that stocks DO BETTER than gold.

We totally agree with the Oracle of Omaha. In fact, in Berkshire’s annual meeting, which I was supposed to attend, my goal was to ask both Warren and Charlie why they’re making a COLOSSAL MISTAKE of comparing gold with stocks in the FIRST PLACE.

Berkshire Hathaway now has about $130bn in cash and short-term bonds. My point is that if he’d CHOSEN TO store the shareholders’ purchasing power for future acquisitions in gold, the company would be GREATLY BETTER OFF.

Buffett is a numbers guy, so it wouldn’t take more than two seconds for him to understand that he has A BLIND SPOT when it comes to gold.

Courtesy: Zerohedge.com

Central banks are the FORCE TO RECKON WITH in today’s world. The confidence that the actions they’ve taken have inspired has been FAR GREATER than anyone could expect.

It seems that the notion that the VERY FABRIC of the financial system could fall apart isn’t a piece of the equation that more than a select few are entertaining AT THE MOMENT.

For us, the Berkshire position in Barrick Gold, worth $564M, is a TESTAMENT of the strength of the GOLD MINING INDUSTRY.

Buffett buys value and he buys FUTURE CASH FLOW estimates. He, obviously, believes that mining gold is good business – that’s a BIG STATEMENT. In the big picture, it means that the fund managers who run Berkshire’s investment portfolio have detected a multi-year trend for the precious metal.

This serves as a STAMP OF APPROVAL for so many others to get into the game.

Buffett’s 1998 purchase of silver, along with Bill Gates’, marked the lows for silver. They understand value, and this action, like their late 1990s expedition into silver, SPEAKS VOLUMES.

Courtesy: Zerohedge.com

Next, I want to focus on 10-year Treasury notes’ real rates because according to the correlation with China’s Credit Impulse, they will be higher in the future, being that they lag by a FULL YEAR!

Not this time; the U.S. Treasury is issuing RECORD AMOUNTS of debt at the same time as the Federal Reserve is monetizing the bonds.

Inflationary pressures are building, but rates won’t rise by much from here.

Courtesy: U.S. Global Investors

I’m not certain if the trend of stocks beating gold is over, as the chart above implies, but I know that the trend of MINING STOCKS going higher from here is certainly real because the greatest investor of all time has CHANGED HIS VIEW and has begun to see what we see: MONEY-PRINTING doesn’t happen in a vacuum.

The one thing that’s unique about the COVID-19 CRISIS is that it hasn’t seemed to bring countries together. It hasn’t seemed to help in alleviating differences. If anything, IT EXPOSED the root problems of many countries.

COVID-19 is also the first crisis in which CREDIT EXPANDED, not contracted.

There are many aspects to think about and consider going forward, but one issue that I find EXTREMELY TROUBLING is that no major country has stopped and said that DEBT IS THE PLAGUE – it’s the real disease.

If you want yet another reason to hold gold, know that there isn’t one politician in the world that has REAL POWER and is challenging the STATUS QUO of printing new debt; there are no guards at the front gate!

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R-RATED: DON’T LOOK AT THIS!

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

In 2008, I went on a rafting trip on Colorado’s Green River. It was exhilarating and combined calm waters with LEVEL-4 rapids. We spent a total of four days on the river bank where guides would prepare our meals. When we approached these LEVEL-4 rapids, the guides would dock the rafts and walk to a nearby scoping point, in order to get a visual and to discuss how to row through the TREACHEROUS WATERS.

On one such occasion, my brother and I rowed AS HARD AS we could, since guides told us to pass a giant boulder from the right, but as hard as we tried, the current pulled us left. We escaped unharmed, fortunately, but it was a CLOSE CALL.

One of the guides, though, got stuck in a swirl; for over a minute, he fought the SUCTION MOTION of the waters, while the rest of the guides were YELLING AT HIM, motivating him to push his hardest. He escaped but was traumatized by the ordeal.

As you can see, the Federal Reserve saw the swirl that came at us in March this year, and it offered a line, sent a rescue boat and all but tried to whisk us out of danger, by simply ensuring stocks can’t GO DOWN!

Courtesy: Zerohedge.com

What comes next has a lot to do with the chart below. As you can see, the dollar index MOVES IN TANDEM with the DEFICIT/GDP ratio.

When the economy is slower and accumulates more debt than the growth of Corporate America can provide for, the dollar weakens.

We’re entering exactly that kind of period. The markets are at all-time highs, but that doesn’t really reflect GDP growth; it can’t, since unemployment is SO HIGH.

Courtesy: Zerohedge.com, TheFedlerReport.com

Silver’s ONE-DAY puke, which happened this week, is not indicative of any change in the landscape, in our view.

In fact, it only serves to show how much correlation there is between the dollar and silver.

Therefore, when you see this happening again, remember that big picture, which is that the dollar is in a BEAR MARKET.

Courtesy: Zerohedge.com

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GOLD $2,057, SILVER $28.05: PRINTING RAGES ON!

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

One summer ago, exactly on this date, my wife and I visited the picturesque port town of Portofino, near Genoa on the Ligurian Sea of Italy. It is considered one of the most beautiful destinations in the Mediterranean; mega-yachts park right next to the restaurants and pedestrians come up close to check them out.

We arrived around lunch and walked up to the lighthouse, outside the town, where the most romantic little bar was set up, with its own touch of wizardry and charm. We sipped on champagne (my wife) and white Belgian beer (myself), as we gazed towards the villages of Cinque Terre and the coastline and crystal clear waters.

At evening time, the place becomes so romantic, as tourists watch the gorgeous sunset.

I fell in love with Portofino that day, just as blind opera singer, Andrea Bocelli sang in his beautiful voice, when he performed in town a few years before.

I thought I’d never see anything more beautiful, but I’ve put ALL THAT ASIDE because seeing GOLD $2,057 and SILVER $27.86 is much more EXQUISITE!

Courtesy: Zerohedge.com

I haven’t been THIS GLUED to the trading screens since I issued the MARCH 2017 alert on Ethereum at $12/coin – just SIX MONTHS later, it was selling for over $1000/coin, a 8,000% return.

It looks as if markets have realized that the RULES OF ENGAGEMENT have changed in the financial system; everyone has BECOME ENLIGHTENED on the notion that central banks are done with ever RAISING RATES.

The nature of the retail investor has COMPLETELY CHANGED. Investors are holding onto stocks for a few weeks, before selling them. People are gambling that someone else will buy their ALREADY-EXPENSIVE position for more.

The only REAL INDUSTRIES that are available at sensible prices are mining and energy.

Companies can’t have annual meetings anymore, since the people who own the businesses today are already out a month later; IT’S INSANE.

The retail investor’s strategy is built solely on higher prices and that’s BEYOND UNSUSTAINABLE.

Bonds are irrelevant, stocks are in a bubble and real estate is going through RENTER STRIKES.

It’s the PERFECT TIME for gold, silver, and mining shares.

Courtesy: Zerohedge.com

The sooner it DAWNS ON YOU that interest rates are basically PEGGED TO ZERO, the more money you’ll make.

This is already our BEST YEAR ON RECORD, yet the 1,000% gains are ahead of us.

We will reach outer space sooner than Elon Musk – the mining sector is MOON-BOUND!

 

 

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Central Banks Economy Ethereum Financial System Gold Headline News Intelwars investors markets prices rise Silver spot ogld Stocks The Fed Wealth

GOLD $2,057, SILVER $28.05: PRINTING RAGES ON!

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

One summer ago, exactly on this date, my wife and I visited the picturesque port town of Portofino, near Genoa on the Ligurian Sea of Italy. It is considered one of the most beautiful destinations in the Mediterranean; mega-yachts park right next to the restaurants and pedestrians come up close to check them out.

We arrived around lunch and walked up to the lighthouse, outside the town, where the most romantic little bar was set up, with its own touch of wizardry and charm. We sipped on champagne (my wife) and white Belgian beer (myself), as we gazed towards the villages of Cinque Terre and the coastline and crystal clear waters.

At evening time, the place becomes so romantic, as tourists watch the gorgeous sunset.

I fell in love with Portofino that day, just as blind opera singer, Andrea Bocelli sang in his beautiful voice, when he performed in town a few years before.

I thought I’d never see anything more beautiful, but I’ve put ALL THAT ASIDE because seeing GOLD $2,057 and SILVER $27.86 is much more EXQUISITE!

Courtesy: Zerohedge.com

I haven’t been THIS GLUED to the trading screens since I issued the MARCH 2017 alert on Ethereum at $12/coin – just SIX MONTHS later, it was selling for over $1000/coin, a 8,000% return.

It looks as if markets have realized that the RULES OF ENGAGEMENT have changed in the financial system; everyone has BECOME ENLIGHTENED on the notion that central banks are done with ever RAISING RATES.

The nature of the retail investor has COMPLETELY CHANGED. Investors are holding onto stocks for a few weeks, before selling them. People are gambling that someone else will buy their ALREADY-EXPENSIVE position for more.

The only REAL INDUSTRIES that are available at sensible prices are mining and energy.

Companies can’t have annual meetings anymore, since the people who own the businesses today are already out a month later; IT’S INSANE.

The retail investor’s strategy is built solely on higher prices and that’s BEYOND UNSUSTAINABLE.

Bonds are irrelevant, stocks are in a bubble and real estate is going through RENTER STRIKES.

It’s the PERFECT TIME for gold, silver, and mining shares.

Courtesy: Zerohedge.com

The sooner it DAWNS ON YOU that interest rates are basically PEGGED TO ZERO, the more money you’ll make.

This is already our BEST YEAR ON RECORD, yet the 1,000% gains are ahead of us.

We will reach outer space sooner than Elon Musk – the mining sector is MOON-BOUND!

 

 

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INTERNAL DOCS LEAKED: Dollar Begging FOR MERCY!

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

The Federal Reserve’s Chairman is actually thinking about THE NEXT CRISIS. Jerome Powell is waving the WHITE FLAG and he is basically admitting that the Federal Reserve doesn’t know how their interest rate policy will impact INFLATION NUMBERS, so it wants to find new tools to handle the next downturn since it won’t be able to RAISE RATES beforehand.

Put differently, the world’s leading central banker is ADMITTING DEFEAT, saying that the bank can’t hike rates, so it must use UNCONVENTIONAL tools when the next recession calls it into action.

The boom and bust cycle, which defined the past 100 years of central banking, IS OVER.

Please don’t take this lightly; sit for an hour and think about the fact that there will NEVER BE a normal cycle again.

Courtesy: Zerohedge.com

The Treasury bond is never going to DELIVER POSITIVE YIELD ever again!

What is the FAIR PRICE of gold, silver, stocks and real estate, if bonds never again BEAT INFLATION in your lifetime?

Only three out of every one hundred bonds generate a 5% return in today’s world. Just three decades ago, three of four bonds did that!

Negative-yielding debt is again ON THE RISE; there’s a clear trend and I can hear the drums – that is, if cash and bonds never DELIVER YIELD to retirees again, and gold is worth at least 50% more. And if gold is worth $3,000, even at 60:1, silver is worth FIFTY BUCKS.

Courtesy: Zerohedge.com

This is an amazing 23yr chart, which shows that the dollar had BROKEN THROUGH support and could see a 25% drop in the present business cycle (2020-2027).

Have you TRULY GRASPED this?

Cash will cost you a -20% RETURN, so imagine the rush into HARD ASSETS.

This is a very different crisis than in 2009 and we believe that most investors have still NOT COMPREHENDED this reality and applied it to their calculations – herein lies our opportunity.

Courtesy: Zerohedge.com

Money-market accounts are currently LOADED WITH CASH.

There’s $5tn sitting in them – more than ever before – and Portfolio Wealth Global believes that smart money is figuring out that we’ve entered a new monetary phenomenon and that putting money into gold now is SUPER-SAVVY of them.

The dollar is the measuring stick for everything the global commerce machine buys or sells.

In 2009, when gold enjoyed reflation and rallied from $850 to $1,921, it was at the end of an 11yr BEAR MARKET for the dollar.

 This time around, reflation is happening with a dollar BEAR MARKET just getting started!

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