Air continues to seep out of the housing bubble blown up with the Fed’s artificially low interest rates in the wake of the pandemic.
Sales of previously owned homes fell by 1.5% in September, according to a National Association of Realtors report. It was the eighth straight month of declining home sales.
The world loves dollars. Whenever there is a problem, people flock to the dollar as a safe haven. But the US has problems of its own. In a podcast, Peter Schiff said America’s problems will eventually catch up to the dollar and at that point, the greenback will crash.
Ben Bernanke was one of the architects of the inflation you’re suffering from today. He won a Nobel Prize for his efforts.
Bernanke rolled out quantitative easing to rescue the economy in the wake of the 2008 financial crisis. At the time, he swore it was a temporary emergency measure and that the Fed would eventually sell all of the bonds it was accumulating on its balance sheet. He insisted that it was not a debt monetization scheme.
The US government ran a $1.38 trillion budget deficit in fiscal 2022 despite government receipts at near-record levels. This further highlights the federal government’s out-of-control spending problem. It’s also a big problem for the Fed as it tries to fight inflation.
The Federal Government ran a $430 billion deficit in September. It was the largest monthly deficit since March 2021 when the last Covid stimulus bill was passed. The massive surge this month was due to another Biden giveaway in the form of $437 billion in student loan forgiveness.
The price analysis of gold and silver last month discussed the technical damage done and highlighted how support had become resistance. It concluded, “When everything is so lopsidedly bearish, it can signify capitulation. That said, beware of trying to catch a falling knife. Because of the technical drivers in gold and silver, moves tend to extend beyond what seems possible as momentum carries the move forward… The paper market is driving prices and the spec traders don’t see a Fed pivot anywhere, which suggests more time before a turnaround.”
The short-term picture is still rather mixed despite the incredible physical demand on the Comex. The data below helps provide some context.
Inflation is raging. The economy is teetering on the brink. Government spending is out of control. All of this has a root cause. Our money is broken. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about what broke our money and the only way to fix it. He also reveals the illusion of rising wages and breaks down Whoopi Goldberg’s inflation blame game.
Let’s say you were a country or a group of very wealthy individuals and Covid hits. You see governments around the world print money like crazy. It makes you think there might be some inflation to deal with and you want to protect yourself. Gold and silver are the logical choices. So, if you decide to accumulate a whole bunch of precious metals, how would you do it?
Gold is nature’s money.
Aristotle listed four characteristics of sound money: it must be durable, portable, divisible, and have intrinsic value. Gold possesses all of these characteristics, which is why gold has served as money for thousands of years.
You’re making more money. But you can’t buy as much stuff.
Why?
Because inflation continues to eat away at your wages.
