The first half of this year was arguably the worst in recorded financial history. Every financial asset group is down, while the price of everyday things are up. People's savings are down while prices for things they need are up. That's fubar.
Everybody is getting poorer, and it looks like there's nowhere to hide. Not even gold is holding up against the pressure. The price of gold is being hammered lower as I write this. It's down on the year by 2% in US dollar terms.
The price of Bitcoin is down more than 50% on the year. Bonds are down 30%. Stocks are down 20%. The only safe haven appears to be the US dollar, but that too is down relative to everyday necessities.
It's safe to say that no-one is getting any richer in this economy, except for a handful of corporations with special ties to the Federal Reserve.
A total of 250 million US dollars are brought into existence by the Fed every day, with no other purpose than to be handed over to crony corporations. The purchasing power given to these corporations is necessarily taken from the general public, because the Fed does not produce anything except for the dollars that they type into existence.
People holding dollars are being robbed to the tune of $250 million every day from this one mechanism alone. No wonder everything is getting more expensive.
This fact alone proves that the US dollar cannot remain a safe haven for long, so the US dollar isn't a safe alternative to other assets. It's merely holding up well due to a scramble for dollars that are being taken out of circulation by the Fed. Because the Fed doesn't only give millions to its crony friends. It's also draining liquidity out of the main street economy through higher interest rates.
The Fed is actively engaged in a two-pronged attack on the consumer. Money is made scarce on main street while made plentiful on wall street. The little guy is put under pressure to sell whatever assets he has to cover his debt.
This will result in a transfer of wealth from the little guy to the Fed's cronies on wall street. The recipe is taken from Vladimir Lenin who famously said that "the way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation".
Once we realize that the Fed and its cronies are in fact the deep state, it makes perfect sense that the Fed would play the role of Lenin in the west. The goal is the sort of feudalism that Lenin envisioned. The deep state is to own everything and the little guy is to own nothing.
The purge of the middle class has been ongoing for decades, so this is not new. I write about it in my book on personal economy. However, the ferocity of the purge these last two years has been extraordinary. People have been trapped inside their houses. They have been lured into speculative bets in the markets, and they are now being hammered by rising costs combined with a withdrawal of liquidity.
The only safe haven is as I write in my book: Debt must be paid. Assets must be sold, and remaining proceeds must be invested into gold and/or silver. The reason for this is that debt is the engine used to produce the recurring booms and busts, and any asset registered with the state is open to taxation and ultimately confiscation.
We must ignore the fact that both gold and silver are being suppressed at the moment, and buy it anyway. This becomes easier to do once we realize that the suppression is happening in the paper market for precious metals. The physical market doesn't reflected the prices in the paper market.
My local gold dealer used to have two pages of physical gold products in store. This is now reduced to less than one page. The physical market is tight, and has been tight for some time. People are searching for gold and silver online. There used to be a great interest in speculative assets such as Bitcoin and Tesla stocks, but interest is shifting towards gold and silver.
We're not alone in thinking that something horrible is being done to us, and that the only safe place is physical gold and silver. Precious metals, held privately in hand, is the only safe option for savers in a world where government is reaching for total control over our lives and our belongings, and people seem to know this intuitively. There's an evil staring right at us, and we better act accordingly.
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| Vladimir Lenin |
By Pavel Semyonovich Zhukov (1870-1942) - [1], Public Domain, Link
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