Welcome again to my current view of the economic collapse in the USA. This is my weekly report from the perspective of Austrian Economics (AE). AE is a school of thought that uses reason, natural law, and conclusions based on the principles discovered by studying markets acting freely and without manipulation by centralized governing authorities.
We all have just participated in a trauma-based training event that disrupted the debt markets, causing turmoil and, most importantly, wealth transfers through falling stock market prices. Those losing wealth will never be compensated or see their wealth replenished.
While other people with advance warning (insider information) greatly benefited from the $trillions “wiped out.” U.S. stocks see biggest 2-day wipeout in history as market loses $11 trillion since Inauguration Day. In this scripted drama, we have witnessed a preliminary step toward training Americans that our current financial/economic system is unstable (and costly) to foster an encouraging and more positive attitude about the coming change in our monetary system when the final crisis is presented to the public; A change that will be forced on Americans — like it or not.
Most people will not have researched the years of planning and trauma-based training necessary to bring about the unconstitutional “Federal Reserve” Act of 1913. However, most of us remember the stolen $16 Trillion (a tiny version of the real amount) that resulted from the banking “collapse” of 2008.) Keep in mind the same people who engineered the enormous wealth transfer of 2008 have planned the final fleecing of the American middle class that is now actively in progress.
To be on the winning side of the financial system’s transition, it is essential to think like bankers, not investors. The US dollar is under pressure to devalue at an accelerating rate. Central Bankers and their controllers have a schedule, and time is quickly running out. To survive well enough that each of us need not take the first “solution” that is passed out will require that we preserve some of our current wealth – isolate it from being stolen and then use it wisely to ideally bypass the banker’s unconditional surrender demand preventing any further centralize monetary systems coming into existence. Now let us look at current conditions.
The Market Report
The burgeoning national debt and unfaltering embrace of fiat currencies are symptomatic of an ill-fated economic trajectory. Gold’s indomitable rise to over $3,000 per troy ounce—a significant uplift from the previously observed $2,074 peak—is not merely a reflection of its desirability but also a harbinger of waning confidence in conventional financial instruments.
Short-Term Speculations Amidst Long-Term Precipices
In the short term, the precious metal’s buoyancy will likely ebb and flow with market sentiment, reacting to policy shifts, international tensions, and equity market fluctuations. Still, silver, palladium, and platinum, as reported on the NYSE, are enjoying a resurgence of interest as investors diversify away from an overvalued and vulnerable stock market whose fortunes are increasingly decoupled from underlying economic fundamentals.
In the long term, the enduring lure of precious metals is anchored less in the vagaries of trending market sentiment and more in the substantive yearning for assets unburdened by counterparty risk and the overreach of government fiat. As Austrian Economics teaches, the actual state of the economy is not found in transient stock benchmarks but in the enduring wealth vessels that precious metals represent.
Cryptocurrencies: Digital Mavericks in a Debt-Dominated World
Bitcoin and other cryptocurrencies, the avant-garde of competitive currencies, are progressing in adoption and recognition, even receiving begrudging respect from businesses and regulators alike. As a digital antithesis to debt-based fiat systems, their ascendancy represents both the disruptive potential of innovative decentralization and the broader quest for financial autonomy.
Yet, their volatility and regulatory uncertainty complicate the narrative, making them curious bedfellows to traditional precious metals in diversified portfolios. Nevertheless, cryptocurrency’s experimental foray as an alternative to fiat currencies must be acknowledged as an evolution in the eternal quest for a robust monetary framework.
Political Machinations and Economic Cascades
The political landscape, not unlike the financial, is fraught with policy decisions that exacerbate economic vulnerabilities. Tariff uncertainties have roiled markets and induced defensive positioning, with precious metals often benefiting as geopolitical strife engenders a rush to safe havens. The ‘Mar-a-Lago Accord’ has been surprisingly bullish for gold, counterintuitively owing less to policy efficacy and more to the disquietude it signals about international commerce and monetary stability.
Conclusion: A Clarion Call to Conscious Caution
With the expansive reach of central banks and the omnipresence of fiscal stimulus, an Austrian Economics proponent would argue that the runway for the current debt-based economic model has reached its terminus. Currency devaluation, ballooning public debt, and artificially low interest rates have brought economies to the precipice of profound systemic risk—a risk to which precious metals’ prices are acutely sensitive.
Prospects for the financial market segments seem bifurcated: On one hand, traditional equities totter on the brink of overvaluation, while precious metals and certain digital assets capture growing interest as potential bastions against monetary malaise. In the spirit of Rand, Mises, and Rothbard, austerity and responsibility may appear draconic yet necessary precursors to renewed financial health and stability.
In sum, while the veneer of prosperity may shimmer, the looming debt typhoon and the shining ascent of gold—and its pantheon of precious peers—remind us that the time is now to enact measures designed to protect, rather than imperil, long-term economic well-being.
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.