Feb 19, 2019

More Signs Of Economic Weakness

Look at the data coming out: (we had) the biggest drop in retail sales in one month since 2009 when we were in the Great Recession. 

Look at the numbers we got out on delinquencies in auto loans: they are at an all-time record high, on people who are 90 days or more behind in their car payments.

I just read today that restaurant sales are falling now for four out of the last five months at the fastest pace in more than 25 years. That means that restaurant sales now are weaker than they were in the 2001 recession or in the 2008 recession.

Feb 18, 2019

The Real National Emergency

Of course the real national emergency is not the lack of a wall, the failure to build a wall but building up the national debt to $22 trillion! We eclipse that dubious milestone earlier in the week and again when you talk about the national debt at $22 trillion we're talking about the tip of a huge iceberg. 

This is just a funded portion of the debt and it doesn't include liabilities like what the government owes for social security, guaranteed bank deposits or student loans. That's not there, those are contingent liabilities and they're just as real but they're not even part of the national debt.

So, when you look at all the liabilities that the US government is on the hook for, you're talking about well over a $100 trillion or $200 trillion. Twenty trillion is maybe five or ten percent of the debt but that debt that is the real national emergency.

Feb 14, 2019

Portfolio Allocation: "I Have A Lot Of Money In Gold Stocks"

I have a lot of money in gold stocks, more the senior producers. But I also have a lot of global stocks that pay good dividends. 

I could be 40 percent gold stocks and the rest are non-gold stocks, some of those are energy stocks too. But overall they're just good businesses I like around the world in currencies I like. I get a lot of dividends coming.

US Dollar: The Catalyst For The Big Drop

As the US economy weakens and the Federal Reserve starts monetizing all those debts again, which they will, there's gonna be no demand for dollars and the US Dollar is gonna fall like a stone.

Feb 12, 2019

The US Economy Is A Gigantic Credit Bubble

I think the longest bull market in history already ended. We're in a correction right now, the first correction of the new bear market.

This idea that the US is the cleanest dirty shirt in the hamper is a bunch of nonsense. I mean the US economy is a gigantic credit bubble. Debt is at an all-time high on an individual level when you look at credit cards, student loans, auto debt... But more importantly the national debt: we're now running $100 billion per month deficit spending. We are borrowing more money now during this recovery than we did at any point during the Great Recession!

Feb 8, 2019

We Are In A Bear Market!

The financial media still doesn't get it. They are referring to the current decline in the stock market as a correction. It is not. We are in a bear market. The rally was the correction!

Feb 4, 2019

The Best Way To Use Gold

One of the best ways that man has figured out how to use gold is as money. Gold has been money for thousands of years and the reason it's lasted so long is because it works so well. But governments often try to control our lives and one of the things they try to do is control money, change money and substitute money for what we now use as fiat currencies.

Fiat currencies are just pieces of paper that governments declare as legal tender and which have value purely based on faith and confidence in tradition. But they don't have any value based on the intrinsic properties that they possess because they don't possess any. They are simply pieces of paper, there's no difference between a hundred dollar bill and a one dollar bill other than the number of zeros that's written on the paper.

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