China Will Buy Oil, Not U.S. Treasuries

It looks like the Chinese are getting smarter, and will be buying oil instead of U.S. Treasuries. This is just the beginning, as soon the entire world will be buying real stuff instead of Treasuries. That means the Federal Reserve will buy more Treasuries as Americans buy a lot less stuff.

U.S. Economy: There Is No Way To Go Back To Where We Were

It wasn't fine before the crisis. We didn't have a solid economy. We had a bubble. That's the problem. And the bubble has been pricked. There is no way to go back to where we were. It's like trying to unscramble an egg. It can't be done.

Record Initial Claims

Another 6.648 million Americans filed for unemployment last week, shattering the record set the prior week. With generous new benefits for losing one's jobs, and powerful incentive (likely to be extended) to remain unemployed, don't expect people to return to work any time soon.

Gold Isn't A Fear Trade

The media coverage, what little there is, of why people are buying gold, is wrong. Gold isn't a fear trade, or a hedge against the stock market. It's the best way for savers to protect their purchasing power when central banks are intent on destroying it by printing paper money. 

Thoughts On Trump's Infrastructure Spending Plans

President Trump thinks it's the perfect time for the government to borrow trillions more to improve our infrastructure. That's like a guy who just lost his job deciding it's the perfect time to take out a second mortgage to put in the swimming pool he's always wanted.

You Are Paying For The Bailouts!

If you don't know who is paying for the massive stimulus bill and bailouts, it's you. There's no free lunch. Everyone who saves or earns dollars will have their purchasing power stolen to fund an unprecedented increase in government spending. If you don't want to pay, buy gold.