The Fed is prioritizing preventing debtor defaults over stable purchasing power or full employment, manipulating the system to keep credit flowing even at the cost of debasing the currency at a 2% annual rate.
20% of corporate debt was “zombie” (insufficient profits to cover interest payments) before recent rate hikes, with the 30% increase in rates pushing many more companies into sub-marginal territory.
Significant lag effects in the rate hike cycle mean 5-year debt issued in 2019 is coming due now, while companies that issued debt in 2022 won’t face issues until 2027.
Gold is making new highs despite Fed rate cuts, with the basis indicator showing firm fundamentals and robust demand in Dubai even at $2550 per ounce.
Silver, the “working man’s gold,” is tracing gold’s price movements but offers more accessibility for those investing 10% of their paycheck in metals, despite high premiums for small gold amounts.
The Fed’s dual mandate of stable purchasing power and full employment is deemed incompatible and unsustainable by Keith Weiner, with the Fed’s actions being conveniently ambiguous.
Companies are reluctant to cut payroll despite potential downturn, having been burned by Fed head fakes in the past, contributing to a lag in layoffs.
The gold market is exhibiting a different dynamic than in the past, with anecdotal evidence and price action suggesting a shift in how the market treats gold.
The US is rapidly increasing government debt, projected to reach $36.3 trillion by Christmas, potentially leading to a dollar crisis and gold price increase.
With a negative savings rate and a budget deficit over $2 trillion this year, the US economy may be slipping into recession.
The US dollar’s trade-weighted index has fallen sharply, indicating foreigners are reducing purchases of US dollars and debt, which could necessitate rising interest rates to fund the deficit.
China has been secretly accumulating gold since 1983 and has become the world’s #1 gold miner, potentially preparing for a gold-based economy.
Russia’s high 18% deposit rate reflects lack of trust in the ruble, but implementing a gold standard could reduce rates to 3-4%, benefiting the economy.
The US has been in a debt trap for decades, with government intervention in the economy dating back to FDR’s New Deal in the 1930s.
The US dollar’s 100-year reign as reserve currency may be ending, with China and Russia potentially taking over, though China may be reluctant due to the responsibilities involved.
The current global financial system is described as a “psyop” and “propaganda scheme” that transfers wealth from the masses to the elite class.
The book predicts that the US dollar will be replaced as the world’s reserve asset before 2030, due to its size being too large to be backed by gold.
Multi-asset bubbles in stocks, bonds, and housing, created by the US Federal Reserve, are expected to unravel and trigger a global currency crisis.
The author argues for a return to the gold standard, claiming the world can no longer sustain the US dollar as the primary reserve asset.
A bold forecast suggests gold prices could reach $24,000 per ounce or higher in the coming years as the US dollar’s foundations weaken.
See Bob Moriarty’s full review entitled, “This is the best book on Gold yet written.”
Cut through the clutter and mainstream media noise. Get free, concise dispatches on vital news, videos and opinions. Delivered to Your email inbox daily. You’ll never miss a critical story, guaranteed.