The US Economy Continues To Crater Under The Pressures Of Long Term Debt And Misallocated Government Resources

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Posted in: Silver & Gold Weekly Report
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Silver and Gold Market Outlook for Week of August 22 | Jack Mullen

Silver and gold prices are not determined by free market price discovery but are rather tightly controlled by the entities that control the credit and issuance of private Federal Reserve Notes, America’s currency since 1913. It’s important to keep this point in mind when discussing the silver and gold markets and the manipulated prices presented.

Silver was forced below its 50 day moving average last week and prices of commodities and stocks traded on the market are falling due to credit market stress showing up as rising yields in the 10 year note.

The battle against rising interest rates is being fought with a weapon of limited efficacy: debt purchases using inflation causing currency.

Short-term successes are possible at great costs in the long term.

This tactic appears to be losing as rates continue to move higher with only short-lived moves to the downside.

Meanwhile, the US economy continues to crater under the pressures of long term debt and misallocated government resources.

The effects of massive long term debt in the USA has resulted in diminishing returns – it now requires nearly $5 of debt for every $1 of Gross Domestic Product produced.  Meanwhile, in June, Americans' personal borrowing increased over 10% over May and on an annual basis, consumer credit surged by 10.5 percent, following an upwardly revised 6.3 percent increase in May.

Americans are likely to continue to increase borrowing as many are trying to maintain a standard of living that is quickly being eroded by rising inflation. US retail gross sales rose greater than anticipated in July, as soon as gasoline and automobile purchases have been stripped out. Americans are getting much less for his or her {dollars}, however they’re nonetheless spending them.

According to a study done by digital.com, who surveyed 1,000 owners and co-owners of small businesses with 500 or fewer employees, 62% of small businesses started during the “pandemic” will likely fail and 32% of all small business in the USA will likely close in 2022.

And, do not expect any reduction inflation due to the “Inflation Reduction Act” because according to the Penn Wharton Budget Model …the Inflation Reduction Act would reduce non-interest cumulative deficits by $248 billion over the budget window with no impact on GDP in 2031.

The impact on inflation is statistically indistinguishable from zero.  

It is evident that the Fed and Blackrock have become the spenders of last resort and conversely nation is insolvent. It’s only the time factor we cannot predict, but at some point coming soon, the government will offer Americans a new more restrictive and highly despotic form of currency to replace the dollar when inflation has had its way and the purchasing power of the dollar has reached its predicted value related to the price of paper and ink.

On the bright side, however, you can take actions that protect your wealth, and also give yourself the option of refusing the new social-crediting system based on digital currencies.

You can own money off-the grid in the form of silver and gold.

Silver and gold are now priced at bargain basement prices.

In my opinion, this is the time to take this opportunity and convert some of your paper assets into long-term physical assets.

As a last note, we see massive draw downs of gold and silver from the comex and backdoor take out orders from SLV. In August alone we are told that 280 million ounces of physical silver have been drained from London and Comex combined. With reports of millions of ounces being back-doored out of the SLV silver fund.

Many believe a silver squeeze is progress and, if that is the case, prices and availability can change dramatically over a short time.

Click here to learn more about how to secure your future with gold and silver.

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