The economic underpinnings of the United States, and by extension, the Western world, are quivering under the dual pressures of a swelling debt burden and a monetary system tethered to relentless borrowing. As we sift through the layers of economic reports and analyses, the patterns crystallize into a narrative of profound concern—an economy flirting with the terminal stages of a dollar-based debt currency cycle.

The US 10-year Bond Yield is still elevated at 4.288%, but it is lower due to what could only be an enormous outpouring of ‘out-of-thin-air’ money creation. But this still high rate reflects a nearly insurmountable task of maintaining stable and serviceable rates in the specter of debt creation out of desperation. Historically, such yields signal investors’ flight to safe-haven assets in anticipatory defense against potential downturns. However, this is also a symptom of a broader malaise: a spiraling national debt, which serves as a barometer for the long-term viability of our economy. For a quick look at the enormity of the debt plaguing Americans, check out the national debt clock – it is fascinating.

With the Federal Reserve’s efforts to lower rates through escalated asset purchases faltering, we encounter symptomatic responses to an endemic problem. It is the dance of dips and rebounds, where momentarily calmed interest rates spring back with renewed vigor, heralding a market apt to anticipate and react to the path of least resistance—higher rates born of inflationary pressures and the deteriorating trust in our debt instruments.

Inflation is not rising prices (to repeat myself from previous discussions) but rather the result of currency “production.” The endless creation of currency and delivery to the debt markets through buying basically everything of value of others.

Concurrent with excessive currency creation, we are also experiencing an increased velocity of money, an economic indicator reflecting the rapidity with which currency transacts through the marketplace. Historically, a low velocity denotes an economy in stagnation, with currency lingering in pockets rather than facilitating exchange. Conversely, rising velocity hints at heightened transactional activity, potentially indicative of inflationary environments where the value of currency depreciates sooner, promoting quicker disposals of cash in exchange for goods, services, and, critically, tangible assets. Keep this in mind as we move into a period of hyperinflation. People feel money velocity as an urge to spend money faster because it buys more now than later.

In the face of these financial events, the sanctuary of solid assets such as precious metals becomes ever clearer. Gold today stands as a bulwark at $2911.82 per ounce (the price being carefully held below $3000.00 for as long as possible). At the same time, silver shines at $31.756—an impressive rally from past months, underscoring their roles as wealth preservers in a landscape rife with currency devaluation (silver prices are also fully manipulated, and its price is held low – which for the silver buyer is not a bad situation.) The current gold-to-silver ratio (g/s) is noted at 91.69, shouting out that silver, in particular, may hold a disproportionate potential for growth given historical norms.

The value propositions of the sister metals palladium ($933.352) and platinum ($972.26) round out a precious metals portfolio, offering industrial-demand-driven diversification. Even humble copper, at $4.589, is much more than an industrial bellwether; it is a testament to the enduring necessity for physical infrastructure in which investments can solidify over the long term.

Yet, the economic strain extends to cryptocurrencies. With Bitcoin perched at a formidable but much lower $87792.06, we bear witness to an emergent digital asset class that some investors favor instead of gold. However, all that glitters is NOT gold, and at the end of this game, Bitcoin and paper dollars will not shine like real-physical gold and silver. Although decentralized currencies remain volatile, the substantial price underscores the desire for assets unaligned with traditional financial systems.

This matrix of market conditions is exacerbated by the political mechanics that stifle market dynamics. The interventions by central banks and governments distort outcomes, leading to inefficient markets divorced from the reality of supply and demand. The sovereignty of freely moving capital is impeded, and the result is a marketplace skewed toward the precepts of policymakers rather than the organic oscillations of unfettered markets.

We must acknowledge this systemic rigging and respond appropriately. As oil ($68.86) and propane ($0.57) prices prevail on the energy front, we are reminded of the interconnectedness of commodities and stability. Essential preparation for post-debt market economies involves a repossession of financial control via gold and silver and a rigorous approach to self-sustenance.

Please consider these insights when revisiting your investment strategies. Tracking spot prices or eye-passing trends is not enough; the depth of our dive must uncover the invisible currents that drive markets in unforeseen directions. Today, the prescience of preserving Wealth through tangible assets such as gold and silver, alongside other solid commodities, could hardly be more pertinent.

Proactive measures are indispensable in these prospective final months of reliance on a dollar-dominated debt currency. The embracement of tangible wealth preservation and diversification reassures one’s standing against the eventuality of market shifts, economic contractions, or a currency reset. Should a liquidity crisis catalyst send shockwaves through our servicing structures, the grounding force of physical precious metals and prudent planning will be the bulwarks by which we may navigate the uncertainties ahead.

As you maintain vigilance and adapt strategies, the dynamics of an economic downturn point to the foreseeable utility of prudent investing in commodities with intrinsic value. This is not a sales pitch, as I have already made provisions for a time when dollar-based “money” will not buy a solution to the increasing problems caused by inflation and shortages.

As I continue to monitor and distill the trends that shape our financial landscape, the resonance of precious metals within the asset conversation should echo in your considerations, armoring your portfolio against the tremors of an overextended debt system.

With your economic fortitude and prudence foregrounded, maintain a sterling alignment with the tangible certainties of precious metals while preparing for a paradigm shift in monetary dominance. In doing so, the resilience of your Wealth can be architected to withstand the tumult of an economy that may soon be called to account for years of fiscal imprudence.

Be not deceived – be prepared ~ Silver Savior

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• Note: We are not giving advice; we only give our opinion; we are not financial advisors. This article only represents our thoughts about the economy.