murphy metal monday

Rising inflation has clearly grabbed hold and it appears we are heading right into another scenario similar to the 1970’s.  (High inflation, high interest rates and stagnant economy).  As part of a continued attempt to maintain order, almost all markets are being price manipulated, resulting in an overvalued stock market and an undervalued gold and silver market.  It makes no sense to have a large portion of your assets in stocks and bonds.  And it makes perfect sense to own a good chunk of physical gold and silver. There is no turning back from a scenario that has been building for many years.  As we approach the end game, I strongly encourage you share this information with family and friends.  Mike Savage of Raymond James Financial does a wonderful job of laying things out and a longer version of the piece below can be found in  Clearly, big changes are in store and time is running out …

Every fraud has its own demise built in.  The ponzi scheme that is the Chinese Wealth Management Product is blowing up. Retail investors were led to believe that these products were like bank deposits and backed by the banks. In reality, these products were unsecured units in a pool of loans that could be invested in almost anything the pool manager wanted to invest in. Most of these funds are in the real estate sector. The reason it is a ponzi is that when the investors wanted their money back the plan sponsors would sell more Wealth Management Products and would pay off the original investor not with their funds but newly raised funds.

Many of the companies that have been the beneficiaries of these investments have seen their bonds crash 30-50% overnight. This is not just Evergrande but many other companies also.  The trillions of dollars invested in these funds have led to a massive bubble in Chinese real estate and other sectors in the economy. The scheme is now blowing up not only because the flow of new investors is drying up but, even more importantly, the real estate market and other areas where these funds have been invested, prices have not only stopped rising but are actually contracting.

I believe China is in deep trouble as prices are rising uncontrollably (fastest pace in 26 years), there are rolling blackouts because of a lack of coal, gas and oil to produce the needed electricity. When you have over 1.3 billion citizens and many starting to struggle financially the threat to the regime becomes all too real. Throughout history, such circumstances leads to blaming others for the problems that exist and many times have led to war. It appears to me that the focus on Taiwan could be the result of the economic troubles being experienced there and may lead to action against Taiwan sooner than many have expected.

This is important to us here in the USA because not only are we reliant on China for many of our necessities, but we are also, by treaty, expected to defend Taiwan in the event of a Chinese attack.  I believe that the breach of Taiwan airspace that is taking place daily may be practice for an invasion. I remember in WW2 when the allies ran the same game. They would mount daily excursions behind enemy lines for weeks and months. On the day of the actual attack the Germans, believing it was the same as any other day, just disregarded the raid. It was a massive victory for the allies with virtually no opposition. Is history repeating?

Another episode in history comes from the old USSR. Right up until their collapse the economic numbers were excellent. Too bad the people there were living in a different reality than the “reality” that was being presented to them by their “leaders” and those complicit in the media.

I remember reading about shortages of virtually everything and long lines to get the necessities of life. I even remember reading about starvation in the late-stage USSR while crops rotted in the fields because nobody would harvest them.    

I believe that history may be repeating itself right here and right now in the USA. It appears that the supply chain disruptions are a direct result of “printing” money and paying people to do nothing. It’s not enough that the act of conjuring up “money” out of nowhere which produces NOTHING but when that “money” is spent on real goods and that real good is consumed and there is not enough laborers to replace that item- shortages occur. If this lasts long enough the shortages become chronic.

Day after day I hear about how great we are doing but anyone who is paying attention knows that the numbers we are being fed by our “leaders” and the complicit media have no bearing on reality.  Unemployment Rate -5.4%. Yeah ok! Try over 15% (Shadow Government Statistics).  Inflation 5.2%.  Try 13%.  Of course, everyone has a different inflation rate based upon what they actually buy or consume. The reality of both of these numbers is STUNNING. Basically, wages are not rising anywhere near where the cost of living is going up and there appears to be no end in sight at this time.

I believe part of the supply chain disruptions can be blamed by the global shutdown of the economy. This was a man-made disaster. The virus is real (like all other viruses). However, based upon the numbers and statistics the shutdown of the economy was a DISASTER.  In addition, the trillions sent out globally to keep people fat and happy on their couches has led to consumption (something for nothing) and not enough products being produced to replace what we just consumed. By the way, these governments didn’t have that “money” lying around. The world went even deeper into debt.  Remember that we were “printing” money in the trillions to retain the illusion of normality LONG before we ever heard of Covid 19. The USA is the greatest debtor nation in world history and digging deeper and deeper into debt by the minute. This is what will be the likely cause of our demise.

Unfortunately, I believe this charade will continue until the day, like the USSR in 1990, we will finally be exposed as the frauds that we are. It is already apparent to many that the numbers don’t add up, but we won’t admit it until the last moment. Anyone who has not made preparations at that time will likely be VERY disappointed. This outcome will cause pain to everyone but those that made provisions will have a lot better chance at getting through the chaos that is likely to ensue.

The IMF is issuing $680 Billion in SDR (Special Drawing Rights). This is a global currency that is actually a basket of currencies. Central Banks around the world continue to conjure up tens of trillions of currency units (at virtually no cost or labor). This appears to me to be a last-gasp attempt to keep the underlying rot in the system covered up.

The fact of the matter is that many individuals, companies, townships, cities, states, and federal governments have made “promises to repay” that can only be kept if the value of what you are being repaid IN is drastically reduced. (IE …. inflation rising more and more).  What this means to me is that the “printing” we have seen so far will be dwarfed by what they need to do right now to avoid implosion.

What is the VALUE of an asset that costs nothing to create and is being created in unlimited amounts? And how long will it be before the populace recognizes they have been fed a pack of lies?  However you may answer those questions I know that owning gold, silver and other hard assets allows me to not have to answer those questions. I also believe that the answer is that the fiat currencies will all fade away and real stuff will still have real VALUE. Focus not on price but VALUE and I believe you will be far ahead of the game.