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Being in the “BUSINESS OF TRUTH,” I am besieged by the MSM’s pabulum as much as Washington, Wall Street, and the gold Cartel’s LIES.  You know, drivel like “gold is a barbarous relic.”

GATA’s Moron of the Year, or MOTY award, recognizes those that best misrepresent reality in the Precious Metals world – via either an agenda or plain old stupidity.  I am not aware of such an award in the broad economic sense – although it would clearly be hotly contested.

If I were on such a “steering committee,” I would seek the person that initially coined  the BRAIN-DEAD mantra that has guided global investors since “Maestro” Greenspan discovered the siren call of an unfettered printing press amidst a global fiat regime – “DON’T FIGHT THE FED.”

In essence, this myth states that one must always invest in financial assets when the Fed is easing; as markets cannot possibly go down…

The ‘Don’t Fight the Fed’ myth

In the short-term, stocks usually do rise with falling “official rates.”  However, over longer periods, the track record is less sanguine.  For example, if you invested in the “DOW JONES PROPAGANDA AVERAGE” when the Fed commenced its current “easing cycle” in October 2007- PPT support and all…

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…you would have gone NOWHERE in nominal terms (actually, 5%-10% lower when incorporating the survivor bias related to deleting GM, AIG, and Citigroup)…

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…while in REAL terms (again, excluding survivor bias), you would have LOST 7% adjusting for government-published CPI inflation…

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…42% assuming REAL, Shadowstats.com calculated inflation…

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…and a whopping 58% compared to REAL MONEY – PHYSICAL gold…

dow-gold-ratio

The reason I bring this up is that while at the gym last week, I saw the phrase “Don’t Fight the Fed Rally” scrolling across CNBC.  In other words, admitting the recent equity rally has been fueled more by MONEY PRINTING than actual fundamentals.  Better yet, it made me think of the equally ridiculous PROPAGANDA that gold cannot also rise under such conditions – when NOTHING could be further from the truth…

In the END GAME, “IT’S NOT THE ECONOMY, STUPID!” that drives PM prices; but MONEY PRINTING – and the associated debt and deficits that go hand in hand.  Once such debts become “unpayable” – as they are now across the ENTIRE WESTERN WORLD; the only way to service them is with the PRINTING PRESS.  That is, until “Economic Mother Nature” demonstrates her wrath

Research shows ALL paper money systems failed

So go on, keep buying stocks because the Fed is “always” correct…

DELUSIONS OF A FED CHAIRMAN

…but don’t cry when your PURCHASING POWER disappears

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…into the hands of those prescient enough to “FIGHT THE FED!”…

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PROTECT YOURSELF, and do it NOW!

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.