Protecting Wealth in an Era of Unchecked Fiscal Recklessness: Stand By For More Fiscal ‘Easing’ | Silver Savior
Today’s economic landscape is fraught with indicators that tell a story not just of immediate concern but of impending crisis. As we interpret the economic signals, such as the staggering debt markets and the ominous trend in the velocity of money, we arrive at a daunting conclusion: our economy may be on the precipice of a drastic transformation—one that could see the eradication of wealth for the unprepared.
Note: On Wednesday, September 18th, the Fed will announce rate cuts. Rate cuts are exactly the opposite of what has to be done to save the US dollar, and with that said, I can tell the intention is not about saving the dollar but finishing it. The end game will include destroying dollar purchasing power and creating a crisis in which the central banks will have a ready-to-go solution. Rate Reductions will kick inflation into a higher gear. The race to convert assets from paper backed and failing to protective monetary assets will light up as the final acts of this play are about to take the stage.
As a dedicated observer of gold and silver markets with over three decades under my belt, I can affirm that the current state of our fiscal health is less than sterling. Take a moment to comprehend these harbingers of economic health: gold stands at a robust $2,541.9 per ounce, and silver—a typically more volatile metal known for its industrial applications and monetary uses—registers at $29.03 per ounce. The gold to silver ratio (g/s) sits at 87.58, a numerical testament to silver’s potential undervaluation and opportunity for the astute investor.
The US 10-Year Bond Yield, an essential temperature gauge for the nation’s financial wellbeing, is found lingering at 3.699%. Investors often look to bonds for safety, but when yields are low, the attractiveness of these securities diminishes, hence the turning of many towards commodities. Bitcoin, that barometer of speculative fervor, stands at $57,534.35—its volatile nature starkly contrasts the steady reliability of precious metals.
Crude Oil and Propane, at $68.79 and $0.57, respectively, affect individual consumers and signal pressures within the larger economic engine. Here, we see energy costs, so integral to the fabric of daily commerce, nipping at the heels of economic growth.
Reflecting on the numbers above, it’s imperative to acknowledge another critical variable in this economic equation—the velocity of money. A climbing velocity ratio, now at 1.37, suggests that money is circulating through the economy more rapidly, emblematic of inflationary pressures in many economic models. A rising velocity of money coupled with sagging confidence in paper currencies could spell trouble for long-term value storage in mere fiat denominations.
Beyond these data points lies an undercurrent of political machinations that influence our economic systems. We do not reside in a realm of free-market sanctity but rather in a domain where interventionist policies muddle market outcomes. Central banks across the US and Western economies have played a central part, disrupting the natural order of supply and demand through artificial interest rate suppression and indirect market participation.
The prudent course of action that has been the clarion call of my weekly discourse is to embrace precious metals with the same intensity that one would remain in a storm cellar during a tornado. History has shown these metals to be islands of stability when the waters of fiat currencies become volatile. With an increase in agricultural indexes signaling an uptick in inflationary pressures, the stockpiling of commodities seems far from reactionary; rather, it is strategic.
In an environment where fiscal reforms are but a distant echo, empowering personal finance becomes an act of sheer necessity. I reiterate the advice for diversification into tangible assets that can withstand the test of turbulent markets. Gold and silver, immutable in their value retention capabilities, are the stalwarts in this endeavor. Moreover, I emphasize the acquisition of physical holdings instead of paper representations of precious metals; this ensures direct control over your assets in a climate of increasing uncertainty.
As we compile insights from local metal dealers and forecasts from financial giants like Goldman Sachs, we can’t help but discern a pattern: The undercurrents are shifting, and those equipped with precious metals—be they bars, bullion, coins, or ‘junk coins’ with intrinsic metal value—are the ones best poised to navigate through what may well be a financial dilemma on the horizon.
Thus, if you permit the expression, my call to arms remains unwavering. It is incumbent upon each individual to take the reigns of one’s financial future firmly. Amidst the backdrop of potential debt market collapse and a liquidity crisis that could tease out a dramatic drop in dollar purchasing power, readiness is key. With gold and silver acting as the dependable harbingers of wealth preservation and portents of economic downturns, turning your gaze and your resources towards these assets appears not just advisable but an act of financial sagacity.
Let not the complexities of high finance daunt you. In the realm of economic survivalism, simplicity often reigns supreme. Allocate your assets into what is tangible and historically secure. With this strategy, we can fortify ourselves against the onslaught of fiscal irresponsibility and curate a resilient financial sanctuary amidst the storms of economic peril.
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.
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