Since March, five major banks have collapsed. Pressure is building up in the economic system while our government crosses the Rubicon with how they handle policy. Something's going to blow.
Have you ever considered that the stock market now references its value as increasing due to the investment money that enters the market daily, the product of retirement and pension funds?
The stawk market is nothing more than a massive psychological operation (psyop) used as control mechanism for the sheeple. Your article supports that premise if you just summarize what you said.
Summary: In the face of glaring facts and indicators that everything is wrong, the market just keeps holding its on or goes even higher.
There is no "market." To think that the common stock exchanges of our day represent people buying and selling as they research and learn about companies that are making profits due to their product line, management teams, advantage over competition, cash flows, debt to asset ratios, PE, price to sales ratios, etc is a demonstration of an inability to think. Not saying you fall into that category. I am talking about the populace as a whole. 98.4% of the sheeple in this country have no idea what is going on around them.
Anyone with any sophistication of market mechanism knows that a handful of companies like FAANGS, the VIX, or S&P futures can single handedly move the "markets" one way or the other. Everyone is familiar with the concept of the PPT......plunge protection team. Then when you factor in all the program buying and selling......algorithms.......and what I believe exist in the outright posting of numbers by manual manipulation, there is NO WAY what we see today is a "market" based on buying and selling of "supply and demand."
Just look at what is happening. Things are blowing up, melting down, coming unraveled..... So how do you get the sheeple to just ignore those events and keep on grazing? You run a flag.....called the stawk market....... up the pole they can all take a quick glance at and assume everything is awesome. There are a couple of generations out there right now that believe banks can go under, energy giants like ExxonMobil could go bankrupt, 50% of the country can go on welfare, and people can quit paying their mortgages, car loans, college loans, rent, utility bills, and be paid just to stay home.......and as long as AAPL, MSFT, GOOG, Meta, NFLX, AMZN, TSLA, NVDA are doing fine, then the world is fine.
Sheeple look at their retirement and 401k, and as long as they are going up, everything is awesome. They will be oblivious to everything else as long as they believe they are making money.....getting somewhere. Our entire society has been bought off. Money is a means of control. There is only a small portion of us that are "working" and trying to make our own way. Everyone else is on the take.....and in reality the money we "working" people are making is money we get from the people that have been bought off by "control money," therefore, we are caught up in benefiting from the "control money" indirectly. The day is quickly approaching where any money you "earn" or "make" will be earned or made from a source of government handout. We are close now. I have said multiple times that if the welfare was cut off, Walmart would be bankrupt in two weeks. Think of all the welfare that Walmart collects and calls it "capitalism."
We cannot look simply from the perspective of money and economy and understand what is going on in our world. If money is a control mechanism, what is the purpose of the control? Take a look around. Here's just one example. People are being forced.....by their government and employers......to agree that a man can be a woman or a woman can be a man. Why? So that the entire society can be conditioned to be told what to think.......no matter how fkg ridiculous it is. People can be told a LIE and made to go along with it. We are on a fast track of, "Agree with us, parrot what we tell you to say, never even think of disagreeing or dissenting........or we will cut your money off."
Freedom is the ability to make choices. In our society, money gives you the ability to make choices. Money is a medium of freedom. Build a society where 90% of the sheeple have to buy everything (food, water, clothing, energy, transportation, etc.), and the other 10 percent (the corporate oligarchy) are in control of all the production and sales.....and......they are part of the scheme to control and limit the freedom of the other 90%,.........and a small group can use the money to control millions. Money is the control mechanism of the military, the government, elections, foreign policy, etc.
When you can see that that scenario is playing out right before your eyes, then you will understand how the things we call "fundamentals of economy" can be non-existent, and the stawk market can hit another all-time high.
As always I appreciate QTR's input. I completely agree with you. I personally like the junior miners like $GDXJ and $SILJ. I think that they are poised to benefit the most. Specifically because there is a lot of M&A and consolidation that needs to happen in the sector. I just wrote an article about this on my substack.
There is real wisdom in this thread and in the main post. I would suggest that ETH is another place that could see upside due to the circumstances you've brilliantly set out. ETH has a strong use case and a solid development base, and under certain circumstance (i.e., staking) it pays a nice yield.
Trust in a currency is like trust in any relationship. Without it, you don't have a relationship. The blind guides running our economic house of cards have squandered that trust on an international basis like dementia Joe has abused the SPR for political points. In the very near future we are going to show up at the international market and the seller is going to say, "no thanks - I don't trust your weaponized, toxic fiat - gold only". At which point the term "and suddenly" will harken back to the days of Lehman.
I've invested through several gold price runups, and was frustrated each time that the miners' stock price languished - or even fell. It's a small club, and they buy each other out (merge or buy deposits), issue stock like crazy - diluting shareholders but making themselves wealthier by soaking up huge numbers of new issue for executive stock options (not, heaven forbid, for the employees actually doing the digging). And worst of all, at the first sign of a price run-up, they sell their production forward for several years, and you watch the price run up for those several while the miners' revenue stream (forward earnings) stays constant. I vowed 'never again'
Don't believe me? Bring up the 'forever chart' back to before 2007 on Fidelity or whoever you use and pull up the graph of GDX and GLD (the fund that holds actual gold in vaults).
It's an eye-opener!
Mark Twain: "A gold mine is a hole in the ground with a liar standing next to it."
The inertia in this system is beyond the comprehension of most observers however according to the definition of a system, "a set of principles or procedures according to which something is done; an organized framework or method:" systems collapse when the principles are violated (fraud) or the procedures become subjective (politics). These aberrations manifest as instability and lead to systemic failure.
Spot on. We have normalized bank failures and are socializing losses through government “loans” that will never be paid back. Banks will continue to consolidate, leading to worse service (have you tried sending a wire transfer lately) and more government overreach into your financial life. This is the trend I see.
This is the most rational offering you've offered to date. Free of the usual Libertarian and ultra conservative talking points this financial/markets commentary is on target no matter one's politics. Both major political parties have been drinking from the same punch bowl, using during arguments for increasing the national debt, for a couple of lifetimes now. This writer believes you're on target. How close to the bullseye is yet to be seen.
You simultaneously covered both the attractive qualities that make gold an alternative solution (scarce; cost of production; track record), and exactly why it would fail at achieving individual wealth sovereignty (prone to confiscation; illiquid; third-party security). Very happy to hear that Larry Lepard has caught your ear on Bitcoin- which solves these issues while keeping the exact same commodity properties as gold (albeit in a digital space).
There are huge sums of money from overseas flooding into US assets right now out of fear keeping prices high as well. As Europe and Japan go into bankruptcy capital will flow in panic to the US like it did during WW2 as we are the best looking horse in the glue factory. It will drive the perceived, safest large US stocks quite a bit higher.
The US Treasury market is 10 x bigger than the stock market, where will all of that money go as we either default or print to infinity? Its going to go to the largest safest DOW blue chip stocks, the BRIC countries cannot even begin to handle these massive sums of money. Would you feel comfortable parking tens of trillions of dollars in China, India, Brazil and Russia?
But when the hyperinflation of the USD makes fuels too expensive for the power companies to buy, and the consumers of electricity, both homes and businesses of all kinds cannot afford to pay their light bills, what will happen to the banks? Don't the bank's computers run on electricity? How about the smart phones and card readers that are used to make purchases? EVERYTHING that either runs on or is dependent upon electricity in any way, will stop operating! ALL of the cryptos will go back to where they came from, which is nowhere! Without electricity to run the water pumps and processing plants, where will you get any water to drink? Where will you buy your food from? How will you get anywhere, if you have a place to go to? If you get stuck somewhere that is more than about 8 hours walking time away from your home, your chances of getting there will be almost nil!
Like I warned earlier in comments: "The board of Australia's Newcrest Mining has recommended the latest takeover offer of bigger sector player Newmont, which last month valued the target company at $19.5 billion." I haven't seen one in the last 30 years that resulted in higher stock value for investors down the pike. As the gold price rises, there will be more - when you dig through details, with huge payouts to acquired company's managements.
I very much agree with everything you say, but I would like to add one comment regarding Brent Johnson's "milkshake theory". I certainly don't want to speak for Brent, but from what I understand of his theory, he believes that the dollar will maintain its value against a basket of other currencies until it doesn't. In other words, there will come a point where people around the world no longer want the dollar. At that point. some of them will sell out of the dollar into a BRICS coin or into their own fiat currency or into gold, etc., but many of them will bring their dollars to the US and use them to buy anything and everything. The flood of euro-dollars added on top of the massive amount of dollars printed (and to be printed) by the Fed will lead to hyper-inflation in the US and the eventual collapse of the dollar. So, not only with the dollar depreciate against gold as you say, but it will depreciate against all other currencies at the same time.
Have you ever considered that the stock market now references its value as increasing due to the investment money that enters the market daily, the product of retirement and pension funds?
The stawk market is nothing more than a massive psychological operation (psyop) used as control mechanism for the sheeple. Your article supports that premise if you just summarize what you said.
Summary: In the face of glaring facts and indicators that everything is wrong, the market just keeps holding its on or goes even higher.
There is no "market." To think that the common stock exchanges of our day represent people buying and selling as they research and learn about companies that are making profits due to their product line, management teams, advantage over competition, cash flows, debt to asset ratios, PE, price to sales ratios, etc is a demonstration of an inability to think. Not saying you fall into that category. I am talking about the populace as a whole. 98.4% of the sheeple in this country have no idea what is going on around them.
Anyone with any sophistication of market mechanism knows that a handful of companies like FAANGS, the VIX, or S&P futures can single handedly move the "markets" one way or the other. Everyone is familiar with the concept of the PPT......plunge protection team. Then when you factor in all the program buying and selling......algorithms.......and what I believe exist in the outright posting of numbers by manual manipulation, there is NO WAY what we see today is a "market" based on buying and selling of "supply and demand."
Just look at what is happening. Things are blowing up, melting down, coming unraveled..... So how do you get the sheeple to just ignore those events and keep on grazing? You run a flag.....called the stawk market....... up the pole they can all take a quick glance at and assume everything is awesome. There are a couple of generations out there right now that believe banks can go under, energy giants like ExxonMobil could go bankrupt, 50% of the country can go on welfare, and people can quit paying their mortgages, car loans, college loans, rent, utility bills, and be paid just to stay home.......and as long as AAPL, MSFT, GOOG, Meta, NFLX, AMZN, TSLA, NVDA are doing fine, then the world is fine.
Sheeple look at their retirement and 401k, and as long as they are going up, everything is awesome. They will be oblivious to everything else as long as they believe they are making money.....getting somewhere. Our entire society has been bought off. Money is a means of control. There is only a small portion of us that are "working" and trying to make our own way. Everyone else is on the take.....and in reality the money we "working" people are making is money we get from the people that have been bought off by "control money," therefore, we are caught up in benefiting from the "control money" indirectly. The day is quickly approaching where any money you "earn" or "make" will be earned or made from a source of government handout. We are close now. I have said multiple times that if the welfare was cut off, Walmart would be bankrupt in two weeks. Think of all the welfare that Walmart collects and calls it "capitalism."
We cannot look simply from the perspective of money and economy and understand what is going on in our world. If money is a control mechanism, what is the purpose of the control? Take a look around. Here's just one example. People are being forced.....by their government and employers......to agree that a man can be a woman or a woman can be a man. Why? So that the entire society can be conditioned to be told what to think.......no matter how fkg ridiculous it is. People can be told a LIE and made to go along with it. We are on a fast track of, "Agree with us, parrot what we tell you to say, never even think of disagreeing or dissenting........or we will cut your money off."
Freedom is the ability to make choices. In our society, money gives you the ability to make choices. Money is a medium of freedom. Build a society where 90% of the sheeple have to buy everything (food, water, clothing, energy, transportation, etc.), and the other 10 percent (the corporate oligarchy) are in control of all the production and sales.....and......they are part of the scheme to control and limit the freedom of the other 90%,.........and a small group can use the money to control millions. Money is the control mechanism of the military, the government, elections, foreign policy, etc.
When you can see that that scenario is playing out right before your eyes, then you will understand how the things we call "fundamentals of economy" can be non-existent, and the stawk market can hit another all-time high.
As always I appreciate QTR's input. I completely agree with you. I personally like the junior miners like $GDXJ and $SILJ. I think that they are poised to benefit the most. Specifically because there is a lot of M&A and consolidation that needs to happen in the sector. I just wrote an article about this on my substack.
There is real wisdom in this thread and in the main post. I would suggest that ETH is another place that could see upside due to the circumstances you've brilliantly set out. ETH has a strong use case and a solid development base, and under certain circumstance (i.e., staking) it pays a nice yield.
Excellent summary.
Trust in a currency is like trust in any relationship. Without it, you don't have a relationship. The blind guides running our economic house of cards have squandered that trust on an international basis like dementia Joe has abused the SPR for political points. In the very near future we are going to show up at the international market and the seller is going to say, "no thanks - I don't trust your weaponized, toxic fiat - gold only". At which point the term "and suddenly" will harken back to the days of Lehman.
I've invested through several gold price runups, and was frustrated each time that the miners' stock price languished - or even fell. It's a small club, and they buy each other out (merge or buy deposits), issue stock like crazy - diluting shareholders but making themselves wealthier by soaking up huge numbers of new issue for executive stock options (not, heaven forbid, for the employees actually doing the digging). And worst of all, at the first sign of a price run-up, they sell their production forward for several years, and you watch the price run up for those several while the miners' revenue stream (forward earnings) stays constant. I vowed 'never again'
Don't believe me? Bring up the 'forever chart' back to before 2007 on Fidelity or whoever you use and pull up the graph of GDX and GLD (the fund that holds actual gold in vaults).
It's an eye-opener!
Mark Twain: "A gold mine is a hole in the ground with a liar standing next to it."
There is no reason to buy gold, except that it has been spotlighted as a safe asset in the past.
Bitcoin also seems to have gone up because of Fed's emergency loans, and I think it's going to go down again soon.
The inertia in this system is beyond the comprehension of most observers however according to the definition of a system, "a set of principles or procedures according to which something is done; an organized framework or method:" systems collapse when the principles are violated (fraud) or the procedures become subjective (politics). These aberrations manifest as instability and lead to systemic failure.
Spot on. We have normalized bank failures and are socializing losses through government “loans” that will never be paid back. Banks will continue to consolidate, leading to worse service (have you tried sending a wire transfer lately) and more government overreach into your financial life. This is the trend I see.
This is the most rational offering you've offered to date. Free of the usual Libertarian and ultra conservative talking points this financial/markets commentary is on target no matter one's politics. Both major political parties have been drinking from the same punch bowl, using during arguments for increasing the national debt, for a couple of lifetimes now. This writer believes you're on target. How close to the bullseye is yet to be seen.
You simultaneously covered both the attractive qualities that make gold an alternative solution (scarce; cost of production; track record), and exactly why it would fail at achieving individual wealth sovereignty (prone to confiscation; illiquid; third-party security). Very happy to hear that Larry Lepard has caught your ear on Bitcoin- which solves these issues while keeping the exact same commodity properties as gold (albeit in a digital space).
There are huge sums of money from overseas flooding into US assets right now out of fear keeping prices high as well. As Europe and Japan go into bankruptcy capital will flow in panic to the US like it did during WW2 as we are the best looking horse in the glue factory. It will drive the perceived, safest large US stocks quite a bit higher.
The US Treasury market is 10 x bigger than the stock market, where will all of that money go as we either default or print to infinity? Its going to go to the largest safest DOW blue chip stocks, the BRIC countries cannot even begin to handle these massive sums of money. Would you feel comfortable parking tens of trillions of dollars in China, India, Brazil and Russia?
But when the hyperinflation of the USD makes fuels too expensive for the power companies to buy, and the consumers of electricity, both homes and businesses of all kinds cannot afford to pay their light bills, what will happen to the banks? Don't the bank's computers run on electricity? How about the smart phones and card readers that are used to make purchases? EVERYTHING that either runs on or is dependent upon electricity in any way, will stop operating! ALL of the cryptos will go back to where they came from, which is nowhere! Without electricity to run the water pumps and processing plants, where will you get any water to drink? Where will you buy your food from? How will you get anywhere, if you have a place to go to? If you get stuck somewhere that is more than about 8 hours walking time away from your home, your chances of getting there will be almost nil!
Like I warned earlier in comments: "The board of Australia's Newcrest Mining has recommended the latest takeover offer of bigger sector player Newmont, which last month valued the target company at $19.5 billion." I haven't seen one in the last 30 years that resulted in higher stock value for investors down the pike. As the gold price rises, there will be more - when you dig through details, with huge payouts to acquired company's managements.
I very much agree with everything you say, but I would like to add one comment regarding Brent Johnson's "milkshake theory". I certainly don't want to speak for Brent, but from what I understand of his theory, he believes that the dollar will maintain its value against a basket of other currencies until it doesn't. In other words, there will come a point where people around the world no longer want the dollar. At that point. some of them will sell out of the dollar into a BRICS coin or into their own fiat currency or into gold, etc., but many of them will bring their dollars to the US and use them to buy anything and everything. The flood of euro-dollars added on top of the massive amount of dollars printed (and to be printed) by the Fed will lead to hyper-inflation in the US and the eventual collapse of the dollar. So, not only with the dollar depreciate against gold as you say, but it will depreciate against all other currencies at the same time.