We are witnessing peculiar movements within the financial world in this chaos of economic activity, where the Federal Reserve’s levers and pulleys (the little men behind the curtain) strain beneath the weight of a debt-laden society. Just weeks after the Federal Reserve ramped up asset purchases to clamp down on surging interest rates, its grip has slipped — rates are inching up once more. Now, the enigmatic US 10-Year Bond Yield has edged even higher to 4.502%.

The Bedrock of the Precarious Economy

The Federal Reserve’s propensity to spool up the printing press has had a noxious effect — the money supply is swelling, and even more bewildering, the velocity of money, often sluggish in recent years, has begun to quicken its pace. In the midst of this, spot market prices render a sobering picture:
– Gold: $3249.52
– Silver: $32.895
– Platinum: $989.54
– Palladium: $953.521
– Copper: Trending nimbly above its recent lows

The uncensored truth is as follows: With the gold-to-silver ratio perched at a lofty 98.78 and the flimsy strength of paper currencies on full display, my counsel advises everyone to move towards the sanctuary of physical precious metals.

Precious Metals – A Steadfast Guard

Gold’s lustrous sheen, often a fortress of safety, has only intensified in the glare of economic discord, and its price reflects a rising demand for security. Silver, too, mirrors this impulse, with premiums expanding as supply chains face their uphill battles against disrupted production and soaring demand.

There exists a vestige of untamed might within precious metals. They remain impervious to the vagaries of central bank policies, fluctuating bond yields, and the erosion of fiat currencies. In stark contrast to its historical average, the gold to silver ratio suggests silver, in particular, might be grossly undervalued.

The Cryptocurrency Conundrum

Amid this backdrop of traditional safe havens, Bitcoin has erected its monument, towering at a staggering $104,311. Ethereum and other digital assets such as XRP and Stellar hold ground, hinting at a new age of diversity in asset refuge.

Fraying Dollar Dominance

The dollar once was the linchpin of international trade and finance. Nowadays, its supremacy is perilously close to being usurped. A rising money velocity suggests inflation could soon permeate every crevice of the economy, eroding the handicap that has kept the dollar afloat.

Today’s highly touted “good news” regarding inflation is just another manipulated data fairy tale, as each of us can attest to the continuous rise in prices across the board. A grocery or a routine trip to Walmart leaves us with far less cash than on previous trips for supplies.

Let’s hold our applause for the still rising but “not as fast” inflation because the truth of the matter is this: The dollar is losing more than 9% of value every year. In a scenario like that we will soon not be able to afford new shoes. Anyone checked the price of quality shoes lately?

The Political Theatre

Yet, untangling this skein without fingers pointing towards Capitol Hill and beyond is impossible. Policies have been mired in political jockeying, with little heed to the enduring lessons from Austrian economics. Such a course has only exacerbated market manipulations, distorting outcomes, and leaving economies that sputter rather than roar in their wake.

A Survivalist’s Creed

For those that stand in the camp of survivalists, be you tenderfoots or grizzled stalwarts, here is a word of advice — now is not the time for delay. The debt markets are sounding their knell, and a liquidity crisis looms as a dark specter over the dollar’s purchasing power.

Prepare for a world post-crash where self-reliance isn’t just admirable, but necessary. Hoard not just gold and silver, and their pre-1965 brethren, but the knowledge of how to prosper when the paper promises of yesteryear lie as relics amongst the detritus of a failed fiscal policy.

The Economic Prognosis

In my weekly articles, I have examined the many tentacles of our economy—housing, automotive, and job markets—each a critical piece of a jigsaw that currently looks more like a Pollock splatter than a Monet landscape.

I extend an invitation to journey with me, as I track these indictors, laying bare the clues that lead us to the crippling conclusion: The United States may well be in the twilight of a dollar-centric age. We stand on the brink of a tectonic shift, a transformation to a new architecture in global finance, likely metal-backed currencies, where paper notes echo a bygone era.

To conclude, the trifecta of rising bond yields, the velocity of money, and precious metals premiums is the light for those seeking refuge in solidity. They invite a principled migration from the phantom wealth of numbers on screens to the tangibility of assets that carry the permanence of elemental value.

We forge ahead with a keen eye and a steady resolve, for the current tribulations may herald not just the downfall of an economic empire but the genesis of financial reawakening.

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.