This year will mark the 50th anniversary of President Richard Nixon severing America – and the world – from its last tie to the gold standard. The rapid devaluing of the dollar is the most obvious result. But another consequence has been an enormous national debt that continues to grow at a staggering pace. Most people don’t realize it, but this is a direct and intentional result of the current fiat money system.
During testimony before the Senate Finance Committee, Treasury Secretary-nominee Janet Yellen talked out of both sides of her mouth. She acknowledged that too much debt is problematic, but in the same sentence, insisted we need to “act big” to rescue the economy.
With the coronavirus pandemic serving as a backdrop, 2020 was a record-breaking year in many ways. And some of the economic records that fell were, shall we say, less than ideal. In fact, the impacts of these records will almost certainly ripple through the economy as we move into 2021.
Here are three records that fell last year that didn’t get nearly as much attention as they should have.
How will the outcome of the US election impact the price of gold moving forward?
Of course, there is no way to know for sure. US politics is just one of the myriad factors that influence the gold market and you never know how things will play out. But there are reasons to believe the future will remain bullish for the yellow metal no matter who ends up sitting in the Oval Office.
While most people generally understand that the stock market and the economy do not move in lockstep, there is still an underlying belief that a strong market reflects a strong economy. But according to that logic, our current economy must be historically strong. If this strikes you as strange, given that we are in the midst of a destabilizing and polarizing pandemic, and a period of political risk that threatens the foundations of the Republic, that’s just because you don’t understand how the fundamental relationship between the stock market and the economy has changed. Believe it or not, strength on Wall Street is now driven by weakness in the broader economy.
Less than two months after reopening, Regal Theaters will shut down all 536 of its locations on Thursday (Oct. 8).
The company said the closures reflect “an increasingly challenging theatrical landscape” due to the coronavirus pandemic. Regal says the closures are temporary, but the company has not set a date to reopen.
The shutdown reflects broader problems in the retail marketplace that have been exacerbated by COVID-19 and stabs another knife in the narrative of a quick economic recovery.
Gold had another precipitous drop on Wednesday (Sept. 23), falling through the support level at $1,900 to a 2-month low. That has led some to ask – is the gold bull dead?
The concern is understandable but I think it’s too early to declare last rites. In order to believe the gold bull run is over, you have to believe the Federal Reserve is actually going to tighten monetary policy and the dollar is going to remain strong.
That seems rather unbelievable.
Can you believe it’s already Labor Day weekend?
In some ways, 2020’s stay has dragged on seemingly forever — like an unwanted aunt visiting “for a while.” But in other ways, 2020 has just flown by. I mean, it’s already fall — although I live in north Florida so it feels like anything but fall.
What is inflation?
When analysts, politicians and pundits talk about inflation, they usually mean rising consumer prices as measured by the consumer price index (CPI). Peter Schiff and Jim Rickards debated this on Kitko news. Rickards also used this definition, insisting there is no inflation right now. Peter said, “Of course there is. The Fed is inflating like crazy.”
The ensuing debate led Peter to address the issue of inflation on his podcast. Peter called the modern mainstream definition of inflation a “false” definition.
Gold and silver had an abysmal day on Tuesday (Aug. 11). The price of gold dropped more than 5%, falling far below the $2,000 level. It was the worst single-day rout in seven years. Things stabilized somewhat on Wednesday with apparent support above $1,900, but the big selloff fueled speculation that the gold bull run could be over.
Here are three questions you should ask yourself before declaring the gold bull dead.