Kerry Lutz's--Financial Survival Network

There’s nothing new in the market, but we’re seeing financial violence again. The public has never been more engaged in the market. Bob hasn’t seen anything like it since the 1960’s. There’s no numbers one can put on it, but Bob says it’s the great public participation. The difference between inflation in the financial aspects versus a rising CPI and cost of living. Bob’s classical definition of inflation, which is in an inordinate increase in credit, not prices. You’ll get them switching off periodically, such as the 1970’s. The reckless Fed and its buying of treasuries to keep rates down parallels that era. Newly created credited flows into the economy in different ways, often unpredictable. Bob isn’t predicting Weimar level inflation, runaway inflation this time. Bond markets are not facing extinction this time. It won’t happen with the reserve currency and main economy. We are at a cyclical peak for financial assets and commodities. Watch the gold silver ratio, if it goes up take note, we’ll be heading for a crisis. US Dollar pattern could lead to a rise, especially in light of history which favors the reserve currency. The greatest financial crisis in history is coming this fall.

Dr. Michael Busler is an economist, columnist and teacher. Economics is his specialty and free markets are his passion. He had a long standing relationship with the late Milton Friedman and has followed in his path. What ails the country and the world in his opinion is the refusal by our leaders to govern less and let the markets decide. This philosophy is what made America the greatest economic power the world has ever known. And the deviation from these core values is what's causing it to fail now. We talked about fraud and how the government is a great facilitator of it. Much more here worth listening to. 

When it comes to being a successful trader you fail your way to success, it's really that simple. Like all aspiring traders, Chris blew up his account several times until he figured out the key to success. Now he's teaching others and trying to help them avoid failing their way up in the process. It's not easy to learn, especially trading options, but if you stick to it and use Chris's system, you might just succeed your way to success. 

The market is setting up for quite an advance in April. What the March crash did was reset sentiment. It’s a slingshot sending markets higher. Totally counter-intuitive. This is how markets work. It puts so many of us into the wrong side of the market. It’s emotional and you need to stop trying reason with the market. 

Back in 2017 Avi set a target of 2200 before the rally began its ascent to just below 4000. It’s been playing out very accurately. Elliott Wave Theory simply tracks human psychology. It’s been guiding Avi extremely well. Other systems have validity too. 

The Russell 2000 still has much upside left to go. Tremendous opportunity in the next few month. 

Precious metals, big time bottoming coming up over the next week or two. That could lead to a major move in metals and miners this coming year. A similar set-up to 2016.

Rates may go higher, but look for a yo-yoing in bond prices. Stay away. Once the rally is complete in 2023 (S&P 6000), looking for a rising rate deflation. There’s potential for really bad pro-longed bear market, but there’s time. 

All Roads Lead To Precious Metals 

Never fear more stimulus is on the way. Reddit/Robinhood are getting their checks and don’t forget the infrastructure program that’s on the way. $4 trillion coming into the market. Very stimulative and inflationary too. Cities and states are having their debts paid off by the government. Is the stimulus uneccesary? Will it be more harmful than beneficial. Lumber, copper, everything is going up. Maybe Dr. Copper is right after all. Watch out for inflation. The perception of an inflationary economy is here. What if it doesn’t work? We already have an overleveraged economy with adjustable rates. Higher rates might well slow down the economy. 

Higher rates equal lower bond prices. Real estate could take a hit from higher rates. The amount of currency in the world dwarfs the quantity of precious metals. 

The big picture. Gold bottomed at 1050 and just about doubled to 2063 in August 2020. It has now retraced 30 percent of its gain, exactly. The decline was orderly in the metal and the stocks as well.  We had a parabolic move in gold and of course it’s going to retrace. It’s a very healthy correction. I could come down and test the 1580-1600 level. The algos. As predicted from 1850 down to 1670

The Dow Jones Industrials have become the stock market leader. The louder the cries of a crash, the more the shorts are going to get hit. Yields have had  an impact. But Friday, gold had an upside reversal in spite of yield. The gold miners started showing relative strength in the face of the metals decline. 

Silver has been holding its own. It hasn’t broken $30 yet, but that’s a major resistance point. It’s not even close to it’s $50 high. It’s maintaining. The silver juniors predicted the move. They’re building a base to go higher. It’s always a bullish sign when silver shows strength in the face of lower gold prices. 

This is actually a gift. All the juniors are cashed up. Money keeps pouring into the sector. A lot of quality juniors have corrected 30-40%. But they’re up several times. They’reat a great entry point. It’s an amazing time. In spite of or maybe because of the trolls.

Dr. Copper is sounding the alarm on inflation, among other things. Rising rates are supposed to kill commodities, but the converse is true. Rising rates are actually a net positive for metals. 

David sold a few stocks for company specific reasons and to raise cash ahead of the Fed. 

Today's stock market is the same as the old one, just with new tools, Robinhood, apps, etc. But emotional excesses have always occurred and still do today. The 1999-2000 Internet Bubble is a perfect example. Not really that much different than the Gamestop short squeeze. Jack believes that the shorts are doing a service, by helping to uncover fraud. 

We all must become better risk managers. That means, you need to decide whether it’s an investment or a trade. If you don’t want to do the work, just go out and buy an index fund, especially after a bad period in the markets. Being a trader it’s very different. Your time horizon is shorter and your potential risk is greater. For a trader you must pick your stop point before you get into the trade. 

Never, ever forget, it’s okay to fail. Just keep coming back and you may very well ultimately succeed. Always begin with a smaller stake, never risk your entire nest egg. Avoid impulse trading. It's a sure way to lose. 

And perhaps most importantly, remember that while markets may change and technology is always leaping further ahead, emotions remain the same and in the end they move the market. 

Kevin Drover, CEO - Aurcana Silver (sponsor) is extremely excited about imminent silver production at it's Ouray, Colorado mine this summer. He personally moved there to oversee the final production steps. 130 people are working the mine as we speak. The initial annual silver production target is 3.1 million ounces. That level would anticipate processing 270 tons per day at their underground mill (slightly more than 50% capacity). Plans are already underway to increase that total and to drive up production even higher. But Kevin is taking the cautious approach to assure that Aurcana achieves its production goal. Average all in costs are around $9 per ounce, which means big profits are ahead. 

The company is cashed up with $46 million and is starting plans to reactivate its Shafter mine in Texas. As shareholders we are expecting big things from Aurcana soon. 

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.

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. 

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.

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.

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. 

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. 

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.

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? 

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.

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. 

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. 

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. 

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. 

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

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.

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. 

I have been investing for the past 4 decades often with great success. During that time I’ve studied thousands of companies’ financial statements, in search of value that others had missed. I know we’re in the age of the Tech Giant and value investing is out of vogue, that’s often the case in frothy markets, but in the long run the market always returns to value. This is why I’ve taken a position in Trillion Energy CSE:TCF  OTC:TCFF

 (sponsor). Listen to my interview and hear CEO Art Halleran explain that there is about US $300 million in natural gas production assets (drill rigs, platforms, pipelines, processing plant, etc.) that is completely absent from Trillion’s balance sheet.

Art is a petroleum geologist with 38 years of experience who’s built a number of successful energy companies. He’s never been more excited than he is about Trillion. And in this cynical investor’s opinion, he’s a straight-shooter who tells it like it is. If a mid-tier natural gas producer wished to acquire the SASB asset, Art said they would pay at least $100 million, or slightly less than $1 per share (as of Friday share price was 11.44 cents and the market cap was about $14 million). But the company isn’t for sale, for the simple reason that in Art’s opinion its value is far greater. That’s because the SASB natural gas field that it’s currently developing is worth several times that number. Art has the experience and the ability to bring that field into production, as well as numerous other promising targets in the area. Best of all, there’s very little capex required, since the platforms and necessary infrastructure are already in place.

Most of Trillion’s assets are in the Black Sea, in Turkish waters. However, they’ve been dealing with the Turkish Government for over a decade and relations have been extremely cordial. They are partners with the Turkish State Oil Company (TPAO). Trillion’s expertise in drilling underwater wells is well demonstrated and they provide skills that aren’t easily obtainable. Right now, the majority of Turkey’s natural gas comes from Russia. All of the SASB production will be purchased by TPAO to reduce the country’s reliance on imports.

Trillion already has cash flow coming from existing oil wells in the area. It knows how to effectively operate in this part of the world. Perhaps most important, Trillion’s gas sells from $6-8 per million btu’s, unlike North America where the same gas is selling for $2.77 per million btu’s. Equally as important, global natural gas consumption is steadily rising, which means future returns over the years could increase greatly.

For all of the reasons above, I’ve taken a position in Trillion and I’m very excited about its future.

Company website: www.TrillionEnergy.com