Normally, I take Friday mornings off from writing – but find time to “fit” an article in on Friday afternoon, Saturday, or Sunday. However, I’m writing this Friday morning – as not only is my wife’s family coming to town; as her ballet school’s dance recitals are held; but Sunday is Father’s Day. To that end, at nearly 45 years of age, it’s just my second Father’s Day – and who could have known how rewarding it would be?
Before I met Diana on New Year’s Eve 2001, I had no interest in having children. However, she did; and when I proposed in February 2002, it was a “deal breaker” if I didn’t agree to parenthood. We couldn’t have children ourselves, so we started what was supposed to be an 18-24 month adoption process in May 2006, when we still lived in New York. And when all was said and done, it was July 2013 when we finally met our precious Sylvie; who, I might add, is likely one of the last healthy children to leave China via its international adoption program.
Deep in my heart, I knew I’d love her very much – even as someone who had never been a “child person.” Then, again, until we rescued “Giselle” in October 2007, I was decidedly a “cat person” – who has since become the world’s biggest dog lover. Regarding Sylvie, every parent I knew told me I’ve fall in love with her; and finally, at nearly 43 years of age, I was mentally ready for the challenge. And after nearly two years of “parenting” – which I state in quotes, as I find it more of a pleasure than a “job” – I can confidently say that nothing I’ve come across could prepare me for the love I’d feel. Below is a picture of Diana, Sylvie, Giselle, and “daddy” from a month ago – all doing fine, prepared for any challenge the world throws our way. To all the fathers out there, enjoy your weekend – and cherish what you have! Remember, “in the end, the love you get is equal to the love you give.”
As for the polar opposite of the love of family and friends – i.e., the economic hell politicians and bankers have sentenced us to – I’m going to try and take it down a notch on this “pre-Father’s Day” Friday. I mean, at some point one needs to step back and view things from one’s “eye in the sky” – rather than a microcosmic, data driven standpoint. And sadly, no matter how I view it, the result is the same. Which is, that unfettered fiat currency creation – combined with population growth, demographic shifts, and technology improvements – makes it virtually impossible for any other outcome than an historic, global economic depression.
Or better put, continuation of the depression that commenced in 2008, when history’s largest fiat currency scheme started to subtract from economic activity rather than add to it. Which since mid-2011, when “TPTB” accelerated the post-2008 money printing orgy to unprecedented levels, has expanded parabolically. Consequently, as I write, the world is at its economic weak point of our lifetimes; with more industrial overcapacity that at any time in history; as well as more debt; more “under-employment”; and an unprecedentedly high cost of living. And yet, bankers, politicians, and their “economist” and “newsletter writer” henchman continue to tell us “deflation” is the problem – aided in their “presentation” by cooked economic data so transparent, even a reasonably intelligent ten year old can see through it. Then again, the power of the printing press can be quite intoxicating before it inevitably implodes – particularly to the “1%” that not only receive the bulk of its “benefits,” but own the means of commentating on it. In other words, no one’s complaining of record stock, bond, and high end real estate prices – even if they bears no resemblance to the record low fundamentals supporting them, getting worse with each passing day.
Of course, the “fatal flaws” of such thinking – i.e., that artificially supported financial asset prices (and suppressed gold and silver) can yield prosperity, or even the perception of such – is that in actuality, it yields heightened economic “deformations,” which eventually, must be “paid back” with reduced profits, production, employment, and financial stability. Not to mention, historic wealth disparity; heightened trade and currency wars; and proliferating social instability. Which, by hook or crook, must come to a head, no matter how powerful the “weapons of mass financial, accounting, and media destruction” utilized. In other words, “Economic Mother Nature” cannot, and will not, be denied.
Which is exactly where we stand today – as the “holes in the dyke” of perception manipulation have become too large, and voluminous, for said “powers that be” to manage. Economically, the “unstoppable tsunami if reality” is gaining momentum far faster than Central bankers can hit “print,” and market manipulators “buy” and “naked short.” It couldn’t be more obvious than in the commodity markets – where prices are on the verge of taking out 2009’s spike bottom lows. Or in the currency markets, as the average currency is down more than 40% since the Fed started exporting inflation en masse in mid-2011; and incredibly, more than 90% for the four “BRICS” currencies not pegged to the dollar.
Economically, even historically cooked GDP calculations are flat to lower across the vast majority of the world; and hyper-inflation notwithstanding – which frankly, is a very realistic scenario the way things are going – once the “oil PPT” loses control of its paper crude goosing operation, the political, economic, and social ramifications, worldwide, will be “unspeakable.” And as for “markets” – which, too, I state in quotes, given how nearly all financial assets are either directly or indirectly manipulated – look no further than the toilet paper we call “money” to realize the “final currency war” is not only raging, but dramatically expanding. Or the fixed income markets, where interest rates are inexorably rising – particularly in “weak link” nations – despite economic depression and history’s most maniacal Central bank monetization schemes. To wit, just two months after the ECB launched its €1.2 trillion QE scheme (in March), it was forced to increase its scope by nearly 10%. And yet, European sovereign yields – particularly in the “PIIGS” nations the program was supposed to “protect” the most – are, across the board, higher than when the program started!
As for “stock markets,” there’s only so much more to say of the supposed “economic discounting mechanisms” that today – care of history’s most lethal combination of money printing, market manipulation, and moral hazard – are trading at their all-time highest valuations, amidst the all-time weakest fundamentals. I mean, geez, yesterday’s news that the ongoing “Greek tragedy” may well end in European cataclysm this weekend coincided with the a NASDAQ sporting more unprofitable, fly by night companies than ever closing above its 2000 internet mania highs. Then again, such madness may well “ring in” the beginning of the end – if today’s 6.4% Chinese stock plunge is any indication. Then again, no one could have imagined the madness would have gotten this far; so perhaps it will reign a bit longer – until, inevitably, history’s most ill-begotten gains are erased, via either hyperinflation or crash, more spectacularly than at any time in history.
As for gold and silver; well, all I can say is this. I have been 100% invested in the sector for 13 years – during which, I have inadvertently become a “leader” in the global movement to exploit financial truth. And given my unique skill set as an experienced Wall Street analyst, I can actually put logic behind my arguments – as well as the sobering realism learned over a 26 year financial market career. Including, I might add, six years working for mining companies – where I saw first-hand how difficult the business is in the best of times; let alone, the worst, which is where history’s most capital starved industry has operated for the past two years.
Having fought the “Gold Wars” for so long, I’ve learned a thing or two about how they work – and how to best protect oneself from the crossfire. To that end, the experience of 2008 is one I’ll never forget – as holding my entire net worth in the form of mining shares, I was nearly destroyed. During that time of maximum Cartel attacks – to prevent PMs from being viewed as the safe haven assets they have been for thousands of years – a funny thing happened. Sure, mining shares were obliterated – and thankfully, I was able to exit them when they “dead count bounced” into 2011 with minimal losses. Which, I might add, all but ensures gold and silver production will decline in the coming years, just as demand starts to parabolically rise. However, physical metal essentially “sold out” when the crisis peaked – with premiums on physical metal exploding (to nearly 100% for silver), causing paper prices to recoup their initial, Cartel-inspired losses just as the crisis really kicked in in early 2009.
Consequently, this time around, I not only hold 100% of my liquid net worth in physical metal – much of it in Miles Franklin’s Brink’s Montreal vault – but have hitched my livelihood not to mining companies, but one of the industry’s largest, most well respected bullion dealers. And thus, for all the misery, frustration, and angst the Cartel puts me through – which frankly, is more intense than ever – I sleep the “sleep of the just” each night; knowing full well that not only am I “infallibly” protected from what’s coming – but care of exploding mining costs, epic capital starvation, and vanishing inventories – the only possible outcome, potentially far sooner than most can imagine – is outright shortage. Ultimately, today’s relentless propaganda of gold and silver’s “worthlessness” will be replaced with “pricelessness”; and no matter how difficult the world becomes, I’ll know I have done all I possibly can to prepare. Not to mention, with the “added bonus” of having helped so many others do the same, via the equally “priceless” – i.e., FREE – Miles Franklin Blog.
As I head into this beautiful, sunny Father’s Day weekend, I cherish all the great things life has provided me. Many of which, the vast majority of the world’s population will never have the opportunity to enjoy. However, it’s difficult to not realize extremely difficult times are ahead – sort of like Sarah Connor’s drive into an ominous future, at the end of Terminator. To that end, I’ve done all I can to protect myself – and my precious family – from what’s coming. Have you?