Gary Christenson: Silver and Sanity

Silver is real money, not a debt-based fiat currency that will eventually fail. Silver bullion production requires capital and effort to mine and refine. We use it for solar panels, iPhones, cruise missiles and thousands of other items. Silver is monetary sanity.

Prices for silver rise as currency units are devalued. Silver sold for $1.29 in the 1960s. Today’s price is around $18.00 because dollars buy less. The continual devaluation benefits the political and financial elite who own most paper assets – stocks and bonds. The bottom 90% pay higher prices for necessities plus interest on their debts. Savings in silver coins will offset devaluation and loss of purchasing power.

Why do dollars buy less? The banking cartel borrows and “prints” too many of them into existence. More debt means more dollars in circulation.

How much debt have our bankers created? The St. Louis Fed tracks total credit market debt. Current US debt is about $74 trillion, over half a million fiat dollars per US worker. Insanity! The debt will be extinguished via default or hyperinflation.

Total debt increases rapidly. But one might think the debt increases because population rises every year. To prove otherwise, divide total credit market debt by US population and see the rapid rise in population adjusted debt.

Population adjusted credit market debt increases, and dollars buy less every year. See the Chapwood Index.

Do you remember?

A cup of restaurant coffee cost ten cents in the 1960s. Today a coffee costs two bucks.

A pack of Marlboros cost twenty-five cents in the 1960s. Today that pack of cigs will cost $6 – $12 depending on taxes.

A new truck in the 1960s cost $2,000. Today a new truck costs $50,000 to $80,000. It may be a better truck per government statisticians, but you still pay $50,000 to $80,000 in devalued debt-based dollars.

WHAT ABOUT SILVER?

Take the above population adjusted total credit market debt and price it in silver ounces. Use the average of daily closing prices for each year to create an annual price. Debt increases faster than the price of silver, which is no surprise. The world runs on credit and debt, and currencies are debts (Federal Reserve Notes are debts of the Fed to you, the holder). The banking cartel creates billions in new debt every day. Silver prices, except in the 1970s, have not kept pace with debt creation. That will change.

Take the same data and plot it as silver price (annual average times 10,000) divided by population adjusted debt.

CONCLUSIONS FROM ABOVE:

Debt, adjusted for population, increases faster than silver prices. Fake money (debt-based currency) has prevailed since 1980 versus real money—silver.

Silver prices will “catch up” someday, perhaps soon, when fake money is recognized for what it isn’t. Investors and savers will scramble to buy a tiny supply of real silver and bid prices far higher.

Silver prices have increased since last May. Silver’s low price in May was under $14.50. Closing price on Feb. 21 was $18.53.
Palladium prices spiked higher, defying expectations. Perhaps the parabolic palladium price increases foreshadow silver prices in the next one—five years.

BUT LET’S BE CONSERVATIVE IN OUR EXPECTATIONS:

Population will slowly increase. Use the past ten years as a guide.

Debt will increase, unless you think bankers will change their behavior, governments will balance budgets, congress will become fiscally responsible, and Pentagon spending will diminish as peace descends upon the world.

The silver to population adjusted debt ratio will rise to the upper trend channel. However, the ratio could move far above the trend channel.

We need not assume a total financial reset or hyperinflation. Silver prices must rise in a debt-based fiat currency world.

Assume the ratio will rise from 0.77 to 3.0 by 2025.

Using these mild and reasonable assumptions, the average price of silver (annual average of daily closes) could rise to $85 by 2025. Since price spikes can be three times larger than the annual average price (as in January 1980) the spike price of silver could be $250 without assuming global war, hyperinflation, global pandemic, central banks fighting recession with QE4ever, electing a tax and spend socialist in 2020, Universal Basic Income, MMT, negative interest rates for most of a decade, and other insane fiscal and monetary policies.

- Source, Silver Bear Cafe

USA Watchdog: Huge Bank Bailouts Are Coming Because of the Coronavirus

Wayne Jett is an accomplished lawyer who has argued cases in front of the U.S. Supreme Court. Jett is also an expert on the Federal Reserve. 

If the derivatives market blows up because of the China virus chaos, will people lose their money in the banks? Jett says, “That is correct. 

That is exactly what the design is. As a result of the tremendous amount of derivative risk big banks have taken on, it exposes the FDIC and it would wipe it out in a moment. S

So, there would be another need for another bailout. It would make the $700 billion bailout of 2008 look like chicken feed.”

- Source, USA Watchdog

Pope Francis, Cancels SECOND Day of Engagements After Being taken ill as Coronavirus Sweeps Italy

POPE Francis cancelled events for the a second day in a row today after falling ill.

The Vatican said the 83-year-old pontiff had decided not to go ahead with official audiences after he skipped a church service yesterday.

It comes as Italy is reeling from a worsening coronavirus outbreak which has so infected more than 500 people.

The Vatican declined to say whether the Pope will be tested for the virus.

A spokesman said he celebrated Mass as usual this morning and will go ahead with some private meetings.

Yesterday he was too unwell to travel to a mass on the other side of Rome and stayed in the Santa Marta guest house where he lives in the Vatican.

His spokesman said he had a "light indisposition".

Concerns for his health had been raised the day before after he was seen coughing and blowing his nose during an Ash Wednesday service in St Peter's Basilica.

Earlier on Wednesday - the first day of Lent - Francis appeared in good spirits as he greeted a large crowd at a general audience in St Peter's Square.

Many of the faithful wore face masks, but others did not as they kissed the Holy Father and shook his hand.

On Sunday Francis mingled with 40,000 faithful in Bari, hugging and kissing people in the crowds after expressing his support for those infected by coronavirus and health workers treating them.

The Argentine pope has generally enjoyed good health.

But he lost part of one lung after suffering TB as a young man in Buenos Aires, and suffers from sciatica, which makes walking difficult.

- Source, The Sun

Ron Paul: Chaos Abounds, Coronavirus, Assange, Financial Markets

Will the "bipartisan consensus" in Washington blame the coronavirus for the coming economic downturn? Why does the US media seem so uninterested in Julian Assange's extradition hearing today? Today's Liberty Report is all about the chaos exploding all around us...

- Source, Ron Paul

ABC News Suspends Reporter On Eve Of Project Veritas Exposure

ABC News has suspended a reporter involved in an upcoming Project Veritas video the evening before the project is set to be released.

Project Veritas, a conservative watchdog group, plans to release a video Wednesday exposing bias at ABC News, founder James O’Keefe tweeted. Veteran reporter David Wright was suspended Tuesday evening ahead of the project’s release, according to a person with direct knowledge of the situation. ABC News did not respond to a request for comment from the Daily Caller.

They have previously received insider videos exposing network biases in numerous networks, including CNN and ABC News. The watchdog group has also aired videos of a Democratic Vermont Sen. Bernie Sanders’ staffer promoting violence against his political opponents.

The upcoming Project Veritas video “will expose ABC News’ agenda to mislead voters and push their own narratives,” O’Keefe tweeted.

The video will air tomorrow. Project Veritas previously exposed ABC News over allegedly covering up reporting on deceased accused child sex trafficker Jeffrey Epstein.

- Source, The Daily Caller

Dow plunges nearly 900 points, gives up gain for the year

Stocks fell sharply on Monday, with Dow Jones Industrial Average losses reaching more than 1,000 points. The number of coronavirus cases outside China surged, stoking fears of a prolonged global economic slowdown from the virus spreading.

The Dow traded 889 points lower, or 3.1%, after being down more than 1,000 points earlier in the day. The S&P 500 slid 2.9% while the Nasdaq Composite traded 3.3% lower. It was the biggest percentage drop for the S&P 500 since August and it was the biggest Dow point drop since February 2018. The Dow also gave up its gain for 2020.

“The second-largest economy in the world is completely shut down. People aren’t totally pricing that in,” said Larry Benedict, CEO of The Opportunistic Trader, adding a 10% to 15% correction in stocks may be starting. He also said some parts of the market, particularly large-cap tech stocks, appear to be over-owned. “It seems like there’s much more to come.”

Airline stocks Delta and American were both down more than 6.5% while United traded 3.3% lower. Shares of casino operators Las Vegas Sands and Wynn Resorts dropped at least 3.8% each. MGM Resorts slid 5%.

Chipmakers were also down broadly. Nvidia shares were down more than 6% while Dow-component Intel traded 3% lower. AMD dipped 6.4%. The VanEck Vectors Semiconductor ETF (SMH) was down by 3.9%.

“The market had been sanguine about the spread of the coronavirus,” said Quincy Krosby, chief market strategist at Prudential Financial. “That sanguine stance is being tested today.”

“Companies are assessing their suppliers and their supply chains and seeing whether or not their revenue is going to slow,” Krosby said. “Because of that, this has become a sell-first, ask-questions later type of market.”

Apple and its suppliers took a hit as well. Shares of the iPhone maker were down by 4.3%. Skyworks Solutions and Qorvo dropped more than 3% each.

Overseas markets fell sharply. The European Stoxx 600 dropped more than 3% while Korea’s Kospi index slid 3.9%.In Hong Kong, the Hang Seng index fell 1.8%.

Legendary investor Warren Buffett said the coronavirus spread has softened up the U.S. economy, but noted it its still healthy. “Business is down but it’s down from a very good level,” Buffett told CNBC’s Becky Quick on “Squawk Box.” “You look at car holdings —railcar holdings, moving goods around. And there again, that was affected by the tariffs too because people front-ended purchases, all kinds of things.” Buffett added he still recommends buying stocks for the long term...

- Source, CNBC, read more here

Nearly 1 in 3 American Workers Run Out of Money Before Payday, Even Those Earning Over $100,000

For about a third of Americans, this is a regular financial stress, with 32% running out of money before their next paycheck hits, according to a new survey fielded by Salary Finance of over 2,700 U.S. adults working at companies with over 500 employees.

- Source, Wall St for Main St

Gold Miners Need to Focus on Self Funding and Creating a Stable Business

Coronavirus Slams Airbnb, Airlines, Hotels, Casinos, San Francisco, Other Hot Spots

It’s not only Chinese tourists, business travelers, and property buyers who’re not showing up, but also travelers from all over the world who’ve gotten second thoughts about sitting on a plane.

- Source, Wolf Street Report

George Soros: "Remove Zuckerberg From Facebook Now... He'll Get Trump Re-elected"

In a brief but scathing letter to The Financial Times, billionaire George Soros demands that both Mark Zuckerberg and Sheryl Sandberg should be removed from their leadership roles at Facebook or else President Trump will get re-elected.

The two Facebook leaders are, according to the leftist puppet-master, allegedly “engaged in some kind of mutual assistance arrangement with Donald Trump that will help him to get re-elected.”

Full letter below:

Mark Zuckerberg should stop obfuscating the facts by piously arguing for government regulation (“We need more regulation of Big Tech”, February 17).

Mr Zuckerberg appears to be engaged in some kind of mutual assistance arrangement with Donald Trump that will help him to get re-elected. Facebook does not need to wait for government regulations to stop accepting any political advertising in 2020 until after the elections on November 4. If there is any doubt whether an ad is political, it should err on the side of caution and refuse to publish. It is unlikely that Facebook will follow this course.

Therefore, I repeat my proposal, Mark Zuckerberg and Sheryl Sandberg should be removed from control of Facebook. (It goes without saying that I support government regulation of social media platforms.)

George Soros

Paris, France

Soros' exultations follow his late January NYTimes op-ed also saying that Mark Zuckerberg should not be control of Facebook, claiming that the social media company is going to get Trump re-elected - because it’s good for business.

"I repeat and reaffirm my accusation against Facebook under the leadership of Mr. Zuckerberg and Ms. Sandberg. They follow only one guiding principle: maximize profits irrespective of the consequences. One way or another, they should not be left in control of Facebook. "

One can't help but think that Soros' feathers are ruffled here for him to come so hard after Zuck - does he think it's all over for Dems in November?

- Source, Zero Hedge

Investing In Gold: The Biggest Upside With the Smallest Risk

On Wednesday, colleague E.B. Tucker held his Explosive Profits Summit… and pulled back the curtain on what he calls “the most explosive securities in America.” They’re a little-known type of security that, for just pennies on the dollar, can deliver double- and triple-digit gains in months.

For example, his subscribers are already sitting on 867% gains – and counting – from a single investment E.B. recommended last February. And he has plenty more opportunities like those on his radar… So don’t miss the replay of E.B.’s big event. Then read on for this weekend’s Diary guest feature…

E.B. taps into his background as a gold-industry insider. And he shows you why he’s convinced gold will surpass its $1,900 all-time high this year…

I am very confident about gold right now.

After spending six years in a crippling bear market, gold came to life over the summer.

With little press attention, gold quickly shot from $1,270 in early May to nearly $1,550 in early September.

I’ve gone on record predicting gold will surpass its 2011 high of around $1,900. That’s about a 22% gain from here. And I expect that to happen in 2020.

A new bull market is underway… and I don’t see it slowing down anytime soon.

Gold mining stocks – which provide leverage to a rising gold price – will surge. I’ll explain why in more detail below.

But they’re not the only way to profit as this rally gains momentum.

Today, I’ll show you another way to participate in the coming gold boom. It involves miners… but it can limit your risk.

First, let me break down why the gold mining industry is a good bet right now…

World’s Worst Business

As we say all the time, gold mining is the world’s worst business. It’s capital-intensive. It’s labor-intensive. If a gold mine turns up in a difficult country, its leaders endlessly extort the operators.

So if it’s such a bad business, why would you invest in it?

Because the best feature of gold miners is how they perform when gold surges higher in price.

For example, take gold’s current price of about $1,556 per ounce. Many mining companies do not make money, or barely break even, at that price. However, if the price moves $100 higher, they’ll be in the black. That means a small move higher in gold has the potential to turn a mining firm from a money-loser into a money-maker almost overnight.

Few industries offer that kind of operating leverage. Gold miners are ultra-sensitive to movements in the price of gold. When it moves higher, they surge.

By and large, the gold mining industry hasn’t seen profits for years. That doesn’t get into the industry’s terrible track record of what to do with the profits in those infrequent cases.

After years of this, investors had enough with the industry. The 2013-2019 downturn in gold prices shown in the chart above was the final straw. Companies had little ability to raise money to run the business, much less look for new sources of gold.

That’s a key part of the mining industry. It takes about 10 years to develop a gold mine. And every ounce mined is one fewer sitting in inventory.

Imagine a shoe store owner runs out of money. He stops ordering from suppliers. And he sells existing inventory to pay bills. After a while, the shelves get thin. If shoe demand unexpectedly surges, he won’t be ready for it.

Each year, the gold mining industry pulls close to 110 million ounces from the ground. But, starved for investment capital, the industry has neglected the business of replacing the ounces it pulls from mines each year.

Pierre Lassonde, co-founder of Franco-Nevada (FNV), recently pointed this out. He said that for the ’70s, ’80s, and ’90s, in each decade, the industry found one 50-million-ounce gold deposit, several 30-million-ounce deposits, and numerous 5- to 10-million-ounce deposits.

He went on to say:

But if you look back at the last 15 years, we found no 50-million-ounce deposits, no 30-million-ounce deposits, and only very few 15-million-ounce deposits.

As the chart below shows, mines currently in production are running out of ore. Just four years from now, the 100-plus million ounces produced from existing mines today will fall to fewer than 90 million.

This is Economics 101. When supply dwindles at the same time demand surges, you’ve got the makings of a frenzy.

Where will new gold supplies come from? Remember, it takes a decade to permit and develop a mine.

That could spark an even bigger surge in the demand for gold. If it does, the gold market – and gold miners – would jump higher quickly. There’s simply not enough supply.

That’s why gold miners are a great option for getting some exposure to the gold boom. But there’s an even better way to play this trend…

- Source, Silver Bear Cafe

This stock market rally is not real, but the gold sector is going to explode

The equities markets have been propped up artificially by liquidity injected by the Federal Reserve, but the mining sector is going through a transformative phase, this according to Chris Mancini, analyst of Gabelli Gold Funds. 

“From a fundamental perspective, what’s changing is that the gold mining companies are now thinking of themselves as investment vehicles that generate free cash flow and can pay dividends,” Mancini said.

- Source, Kitco News

John Rubino: If Anything is Allowed to Fail, Everything Fails

Despite trade wars, dreadful economic indicators, and epidemic containment shutting down China's manufacturing, stock markets keep hitting record highs, deliriously counting on the Fed and world central banks to keep drowning any real problems that pop up with a flood of debt-fueled cash. 

Businesses, retirement funds, and investors are starting to believe that, “All news is 'Good News' now.“ Soberly translated, the central banks' actions reveal that things have become so distorted, so interconnected, and so poised on a knife’s edge, that, “Nothing fails until the currency fails - and then everything fails.”

- Source, Reluctant Preppers

The Coronavirus Is A Nightmare For The Global Economy

As China now has placed over 400 million of its citizens under quarantine, China's economy is grinding to a halt. Workers can't leave their homes. Factories are idle. 

Most (if not all) of China's ports are no longer shipping. International flights are increasingly banned from the country. 

When the world's #2 economy hangs up a big "CLOSED" sign, that's going to result in a major negative impact on global trade. 

As the manufacturing powerhouse to the world, you'll be challenged to think of ANY industry that won't experience serious supply chain interruptions and shortages from China's woes. 

Did you know China makes the vast majority of our prescription pharmaceuticals? 

A MASSIVE hit to the global economy will directly result from the damage the coronavirus is currently doing. And it may get worse, a lot worse.

- Source, Peak Prosperity

The Ultimate 2020 Forecast for Gold

Daniela Cambone (Kitco News), Frank Holmes (US Global), Rick Rule (Sprott US), Grant Williams (Vulpes Investment Management) and Peter Schiff (Euro Pacific) sit down at the VRIC 2020 to discuss their outlook on gold and gold stocks.

- Source, Peter Schiff

Gold demand: this is the biggest story of the decade says the Perth Mint

As the Perth Mint saw record sales last year of gold coins, fueled by strong retail demand from Germany, but the big buyers of physical gold to emerge over the last decade remain central banks, this according to Jerry Hicks, sales and business development manager of the Perth Mint. 

“Certainly, the big story over the last decade has been central bank buying of gold. For the 10th year in a row, central banks have been net buyers, and I think a lot of private investors are saying if central banks are buying gold, shouldn’t we also do the same?” Hicks told Kitco News.

- Source, Kitco News

Ted Butler: Silver Shorts Are In a Bind

Renowned precious metals analyst Ted Butler, founder of ButlerResearch.com, returns to Finance and Liberty / Reluctant Preppers to update us on the developing imbalance of short vs. long interest on the COMEX, and specifically the plight of concentrated short sellers, who may now be subject to a major squeeze as geopolitical, economic, financial, and global coronavirus epidemic crises are simultaneously coming to a head.

- Source, Reluctant Preppers

The Bullish Uptrend for Gold has Much Further to Run

Justin discusses his early interest in finance and what led him to study various trading strategies. 

Stage Analysis answers many questions about how markets perform and can be an excellent strategy to minimize risk. Bottom picking stocks can be risky since resistance often takes a long time to overcome. 

He is waiting for the next breakout in gold, and lastly, he gives his opinion on uranium.

- Source, Palisade Radio

Global Recession is the Best Case Scenario for the Coronavirus

The full damage is not being appreciated at this time.

- Source, Silver Fortune