The Fedcoin has bipartisan support. Jay Powell, appointed as Federal Reserve Chairman by President Trump, said in October that the Federal Reserve is conducting research into issuing a digital currency, on its own and also in partnership with other central banks and the Bank for International Settlements.

Janet Yellen, appointed as Fed Chair by President Obama, said last week, “It makes sense for central banks to be looking at issuing sovereign digital currencies.”

They give different stated reasons. Powell is more conservative, and his focus is on addressing the potential competitive threat of bitcoin and digital currencies from countries such as China. However, if he really wanted to make the dollar more competitive against the yuan, then he would just abuse the Fed’s credit less.

Yellen nods to a progressive idea, saying that a Fedcoin, “could help address hurdles to financial inclusion in the U.S. among low-income households.” However, if she really wanted the “unbankables” to be able to open accounts, then she would just repeal anti money laundering and other regulations that penalize a bank for crimes committed by its clients.

Both Powell’s and Yellen’s statements are disingenuous. A Fedcoin is coming, because it’s necessary. Allow us to explain the two real reasons. The first is sinister. The second is more pernicious.

Why Fedcoin? The Real Reasons

The first reason is the pathological fall of interest rates over the last four decades. Interest in the US dollar has not gone negative yet, though it has in the Swiss franc, the euro, the pound, and the yen. Interest will continue to fall.

When the rate goes negative enough, the banks will not be able to hold the line on paying zero interest in deposit accounts. They will be forced to pass through their pain to depositors. This will provide the first incentive to withdraw cash from the banks—thus pulling out capital—since the 1930’s. The paper dollar bill has zero yield. People will prefer zero to negative yield. Free is better than paying to hold your money.

The central banks have three ways to try to fight this. One, they could try to impose losses on dollar bills. They could create an algorithm that deducts from the face value, based on serial number. If they roll this out to point-of-sale devices, then every merchant will know the legal tender value of your cash. That “twenty” could actually be worth $19.93. But this seems impractical and confusing.

Two, they can demonetize cash. People are given until a certain date to turn in their cash for a credit to their bank accounts. After that, the paper will have no legal tender value. But, as Yellen noted, many people are kept out of the banking system.

Or, three, they could issue a Fedcoin and force everyone to trade their paper cash for Fedcoins. Fedcoin would be nothing like bitcoin.

Fedcoin would be programmed to erode at a rate to match the Fed’s negative interest rates. Thus, it would not provide a haven to anyone seeking to hold cash to avoid the erosion of bank balances. They will have you totally trapped.

This is an extension of the same idea behind banning gold in 1933. The people were disenfranchised, unable to opt out of the government’s debt. The most conservative saver was forced to hold government bonds, rather than gold. Indeed, after that, the definition of risk-free asset is the government bond.

After 1975, you can hold gold. But now, it’s not a dollar balance. It has dollar price volatility. Hence, it’s unsuitable for many conservative savers (and financial institutions). If you have a billion dollars of cash, and a liability to pay a billion dollars in two months, then you cannot take the risk on gold. As we write this, the price of gold has dropped $244 dollars since the start of 2021, or about 13% in about two months.

An individual may be able to escape the system by buying gold (or bitcoin), however the dollars are trapped in the system. The seller of the gold (or bitcoin) is the new owner of those dollars. And faces the same awful choice of the tiger or the tiger.

The Fedcoin will be designed to further tighten the noose. Even cash will become entirely electronic, and subject to slow confiscation. Not by inflation. But by negative interest rates that reduce the account balance.

Direct download: Keith_Weiner_11.Mar.21.mp3
Category:general -- posted at: 8:01am EDT

We received an important email from our good friend Rick Rule. He stated, "For those of you who don't already know, this communication amounts to a retirement announcement of sorts. Actually, I prefer to think of this as a 'redirection announcement'..."

Rick indicated that he was tired of spending his days doing things he found frustrating or unfulfilling, such as dealing with regulators, etc. Now he's entering the next phase of his career and will be starting Rule Investment Media, picking up the baton from Sprott Media. 

We talked a lot about change and lessons of life. Usually those lessons come from investment losses. In the 1970's Rick went from insolvency to colossal success, but most importantly he learned how not to repeat those mistakes in the future. And that is perhaps the most important lesson we can learn from Rick, don't keep making the same mistakes over and over, while calling it fate. Always take ownership of your situation and look for workable solutions. But if you're following your passions will it will make the process much easier. 

With that we wish Mr. Rule the best of luck and success in his new undertaking. 

Direct download: Rick_Rule_10.Mar.21.mp3
Category:general -- posted at: 8:00am EDT

Boom in consumer purchases in durable goods. Surging imports and price increases. Container shortage. Triggered by stimulus money.

Tracking the Fed, still buying bonds. Short term rates are locked down, but they’re encouraging higher long term rates, they’ve tripled so far. They could go up to 2% for 10 year and then they’ll cap it. 3% would be a major problem. We’re getting over 2% inflation. Long term rates are okay up to the inflation rate for now. The Fed has spoken with a unified voice that they’re accepting higher rates for now. As has Treasury Sec Yellen. Rising growth and rising rates are okay as long as they don’t go up too fast and too high.

Wolf sees it as the Fed’s minor way of bringing order back to the markets. Look for a slightly depressed housing sector. Clamping down on exuberence, pulling the punch bowl away. It could go pretty far if inflation and expectations continue higher. Eventually they will step in to stop long term rates from increasing higher.

Precious metals have already benefited from this beginning inflationary cycle. They might very well have gone up in anticipation of the beginnings of the cycle. If it turns out to be bigger and badder, then there could be another run-up. A lot of interest in cryptos could have drained demand for precious metals. Cryptos can’t be compared to anything else, by design. Supply is unlimited. Copycats galore. If enough hedge funds and asset managers buy it, the sky is the limit. There’s more cryptos than stocks now.

Everything is inflated except bonds, excluding junk bonds. Hard to recommend buying anything at this point. Everything is overvalued. Hang on to what you have and buy productive assets, those that generate a cash flow.

Direct download: Wolf_Richter_10.Mar.21.mp3
Category:general -- posted at: 8:01am EDT

Andy has been working 20 hours a day. That’s how intense the demand is for precious metals. Last month every bullion deal shut down due to a major dump of metals contracts into the market. Physical metal is being drained from the SLV and the Comex. Same with the London Metals Exchange. Price is misdirecting the public as the powers that be use the opportunity to drain the metal out.

Spend, spend, spend. All the talking heads talk about is spending money. Debt issuance goes up and the Fed prints the difference. While rates have gone up, Andy believes they’re not going much higher. We’ll be paying more in interest than they receive in taxes. Hello inflation. The real rate will stay negative. The best environment for precious metals ever. What could really kill the gold price, 17-18% interest rates. We’re looking at YCC (yield curve control) in spades. There’s no way out. Pullbacks are an opportunity to continue to stack.

Inflation is running rampant. Tax receipts hardly cover the interest. Let’s get rid of taxes and let the Fed print the difference. It’s easy to become discouraged when we see so many precious metal smackdowns. It’s been going on for years now.

US mint has had a tough time meeting demand. They’ve been swamped by demand. Andy heard a rumor that there’s a high probability that the mint will shut down for two month hiatis to retool their equipment for new bullion coins. The Canadian mint has also had supply issues. Without the Perth Mint and UK Mint supply would really be at issue.

Direct download: Andy_Schectman_10.Mar.21.mp3
Category:general -- posted at: 8:00am EDT

Chris Vermeulen joined us to share his views of where the markets are at and why being on the sidelines in cash is not such a bad thing. For the Stock Market - Sector rotation into the Dow and Transport Index doing well. It’s flock not a shift. Stuck under the 50 day moving average. Small caps and Dow are holding up well vis-a-vis the Nasdaq. Where can you go and find value? There’s so much money searching for the next move. It could be getting a little overheated. Energy is the way to go. It’s leading the way and where the money’s flowing. 

No Bonds for You - Bonds Away. Fear is creeping in. Investors not trusting US Bond Market. People are indifferent to bonds. Investors aren’t buying any defensive positions. We’re getting closer to a deeper correction. Not a whole lot of changes in interest rates. The market is getting long of tooth. 

Along with the $1400 Robinhood Subsidy Check record flows going into the market and coming out. Just a matter of time till it runs out of steam. Another market push coming. Next leg down is coming. Where’s the money going? 1-2 weeks. Avoid the chop. Big moves equal big haircuts.

Gold and Silver could see the bottom fall out. A running consolidation. Silver still has a bearish consolidation. Stay on the sidelines and get in when the dust settles. Majority of investors have been very tech heavy. If you’re in it you’ve probably seen the worst. A little more to come. Long term bull flag patterns. Dollar is playing a big part in it. Fear among big investors. Global money is moving to the dollar. Charts are saying move to cash. Music is coming to an end. Sidelines are a great place to be when corrections rear their ugly head. 

Direct download: Chris_Vermeulen_08.Mar.21.mp3
Category:general -- posted at: 8:01am EDT

Saudi oil terminal bombed, oil at $70. Rising inflation and rising commoditiy prices are happening now. 

YCC can it work and what are the unintended consequences. Let’s see what happens to yield curve control when the inflation rate kicks up like it’s doing now? 

NFTs using blockchain you create a digital asset.Non-fungible token.

Jack Dorsey is turning the first Tweet into a NFT  https://www.cnbc.com/2021/03/06/jack-dorsey-is-offering-to-sell-the-first-tweet-as-an-nft.html

Labron James dunk video sold for $200,000

Banksey painting! Burned and turned into NFT $90,000 becomes $400,000 

There are too damn many dollars sloshing around! Normal stuff doesn’t exist any more. 

Direct download: John_Rubino_08.Mar.21.mp3
Category:general -- posted at: 8:00am EDT

Our 2020 trip to Silver One’s (sponsor) Hawthorne, Nevada Candelaria Project demonstrated that the company was on to something big. Candelaria is one of richest silver mines in Nevada history and is now ready to enter its next phase. Recent drill results intersected 1,032 g/t Ag over 3.05 Meters with a 12.2-meter zone averaging 407 g/t along with 0.55 g/t of AU. Nearly two-thirds of its 15,000-meter program have been drilled. Twenty-five out of 30 holes were successfully finished. The assays of 13 holes have expanded the down-dip mineralization an additional 250 meters to the north at Mount Diablo and an additional 100 meters to the north-northeast of the Northern Belle pit. This is great news because it has proven Crowe’s belief that mineralization is far more extensive than previously believed and that there’s lots more yet to be discovered.

The news keeps getting better, last year Silver One updated its 43-101 technical report on its abandoned heap leach pads. Pad 1 has 30 million ounces of silver and pad 2 has 15 million. This combined with other parts of Candelaria means that production options have been greatly expanded

For a combination of cash and stock, Silver One is transferring its Mexican properties to Silverton Metals, thus increasing its cash hoard to help further fund its ambitious drill programs.

Cherokee and Phoenix, it’s two other projects are moving quickly ahead as well. Drill targets have been identified at Cherokee and geologic mapping has been completed on over 90% of the claim block.

Crowe is especially excited about Phoenix where a 417-pound fragment containing up to 70% silver recently found. Another smaller vein fragment returned almost 50% silver or 14,688 ounces per ton. They’re studying and surveying the area looking for more rich targets. On a nearby adjoining property, a porphyry copper deposit is being developed. Phoenix’s silver-bearing polymetallic veins may also be associated with a porphyry copper system at depth. So, stay tuned for more good news. We’re very happy shareholders.

Direct download: Greg_Crowe_24.Feb.21.mp3
Category:general -- posted at: 10:54am EDT

Mark Singer has been working with individuals and their families for over 30 years. He's served as a relentless retirement guide to thousands of individuals since 1986. He believes the secret to his longevity has been asking the questions other advisors simply don’t ask; it’s what allows him to make the best decisions for each client’s unique situation and help to assure them that their dreams are in capable hands. We talked about semi-retirement being the best path for many aging boomers and X'ers to follow. You get the best of work and retirement. Your mind stays focused and life stays meaningful. If your money outlives you, the question is did you live your best life? 

 

Direct download: Mark_Singer_04.Mar.21.mp3
Category:general -- posted at: 8:00am EDT

He specializes in recruiting and training new and experienced insurance agents to become top producers utilizing proven sales and marketing systems. Humble Beginnings In Selling Insurance

Dave began his insurance career in 2011, jumping into the final expense business as an act of desperation.

His existing business (BodyElite Personal training) in the fitness industry was going down the tubes financially due to the negative economic factors of the Great Recession.

David has had ups and downs in the industry.

Due to David not following the system of success in final expense, he failed out within his first year, and had to hold down a job for a year before getting back into final expense sales full-time.

Direct download: David_Duford_03.Mar.21.mp3
Category:general -- posted at: 8:01am EDT

Interest rates, do you believe they’ve stabilized? What affect do you think they will have on stock prices? Is Wall Street is klepto-maniac machine? Is it like a page out of Charles Dickens’s novel Oliver Twist? Octavio doesn’t necessarily embrace that view. But he does believe that inflationary pressure will continue to increase and that the suppression of interest rates will not last. And there are a lot of professionals who actually do serve the public. 

Direct download: Octavio_Marenzi_02.Mar.21.mp3
Category:general -- posted at: 8:00am EDT

The advent of 5G means a veritable bonanza for existing cell tower property owners who lease their land to cell companies. That's where Hugh Odom comes in. With over 20 years of legal experience in real estate and telecommunications, Hugh has a vast range of expertise in acquiring, disposition, and managing both real and personal property assets.  In 2010, he founded Vertical Consultants, a telecom consulting firm specializing in property owners' monetary rights within their cell tower and rooftop telecom lease agreements.  With the need for connectivity more essential than ever, Hugh is poised to discuss the significant changes in wireless services due to COVID-19 and how property owners can navigate through all the financial, legal, and development aspects of a cell tower deal. 

Direct download: Hugh_Odom_02.Mar.21.mp3
Category:general -- posted at: 8:01am EDT

New commodity super-cycle and the end of the super-debt cycle. Real rates are starting to rise and funds will move from equities to other more value oriented options. The change was inevitable. The Fed will do every thing it can to hold down rates, but inflation is coming and perhaps is already here. The currency will eventually be in trouble. All commodities are rising. Malls are collapsing around the country. Gold and silver are consolidating. Get ready. 

Direct download: Gordon_T_Long_02.Mar.21.mp3
Category:general -- posted at: 8:00am EDT

CPA Bob Wheeler says that, “We all deal with financial issues and choices every day. Most of what we learned about money came from our family. How they thought and reacted to money choices shaped our thinking today.

But, have you ever stopped to consider that maybe they didn’t know what they were doing? Maybe you set unrealistic goals based on other’s ideas and mandates. If you are overwhelmed with credit card debt, can’t seem to save money and feel hopeless and afraid just thinking about money – it is time for a change.”

It’s time to stop financial self-sabotage and go for it. You need to identify false beliefs and prevail over them. It requires some work, you need to hear what you’re telling yourself and change it. Listen to the undervoice. You need to know where they came from and how you got where you are today. 

Direct download: Bob_Wheeler_01.Mar.21.mp3
Category:general -- posted at: 8:01am EDT

Dems are already working on another stimulus package after the one with the $1400 checks. Stocks are rallying but is this how you deal with rising inflation and spiking interest rates? Big $2 trillion infrastructure plan on the way. 

Warren Buffett: bond investors world-wide ‘face a bleak future’. Higher rates for the next decade. 

Return of the bond vigilantes have been comatose for so long and last week they’re back with a bang. 

People are picking on the ARK fund now that it’s seeing massive redemptions. Cathy Wood is the pied piper of this speculative bubble, being fully invest in the most bubblicious of assets. Possible that they’ll be forced to sell major holdings, causing them to fall further, and so on…

Citi says bitcoin is at a “tipping point” and will become the global trade currency of choice.

 

Bill Gates is now the world’s biggest owner of farmland…does the Great Reset include the 1% monopolizing the food supply?

 

http://www.financialsurvivalnetwork.com

Direct download: John_Rubino_01.Mar.21.mp3
Category:general -- posted at: 8:00am EDT

Stock markets reversed course for the month: Dow added 3.2% to 30932, S&P 500 up 2.6%, Nasdaq finished up 0.9%, Russell 2000 chugging higher at 6.1%, TSX added 3.9% TSX.V up another 10.5%. VIX down to 28. Dollar was .5% to 90.94 and Euro down .5% to. 10 Year yield skyrocketed to 1.44%. Bitcoin went parabolic again up 38.2% to a record 47672. Gold off 6.1%  to 1735. Silver went off 1% to 26.70. PT up 10.8%. PD rose 3.2%  for the month to 2229. Dr. Copper up again 18.3% to $4.19, breaking $4 per pound. WTI up another17.8% to 61.50. Brent up a bigly 18.3% to 55.88. Natgas up slightly 8.2% to a still anemic 2.77. Uranium kept losing down 5.3% to $27.88. 

Ratios: Au/Ag 65 - Pt/Au .68 - Pt/Pd .53 - BRT/WTI 1.08 WT/HH 22.2 and AU/WTI coming back down to earth 28.4.

Direct download: Mickey_Fulp_01.Mar.21.mp3
Category:general -- posted at: 4:38pm EDT

First, no Brian is not concerned about Friday's gold/silver price rout. He  is focused on the companies. The stocks are not getting hit as hard as physical metal. The investment argument for gold and silver has never been better, especially in light of the rampant money printing. Inflation isn’t like a light switch, you just turn it on or off. It’s a process that once started has to run its course. It’s a chain reaction and we live in a complex world. No one knows how it will resolve itself. Are we headed to a monetary apocalypse?

Brian has 17 companies in his portfolio of which 14 are precious metal concerns. He’s shifted his focus away from base metals. He’s bullish on copper and nickel. $27 nickel was the high, will we hit it again? In his opinion, FPX Nickel is the best nickel play out there. Copper recently broke $4 and is headed much higher. A copper gold company is an ideal investment in today's market. Copper-gold porphyries have the best prospects of any mine out there. A lot of great investment info here. 

Direct download: Brian_Leni_27.Feb.21.mp3
Category:general -- posted at: 8:00am EDT



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