Financial Considerations

Inflation, Debt, Gold and Silver

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Inflation in prices can be due to many factors, but there are 2 elephants in the room that play a major role:

  • Energy Prices. Modern economies run on energy, so when the price of energy goes up it impacts everything, from the cost of raw materials (energy to mine minerals and oil/gas), manufacturing and transportation of the goods to you. Energy is used to create fertilizers, run farm equipment, etc. The 1970s inflationary death spiral occurred when the US government started creating too many dollars unbacked by gold. The response of the oil producing countries, who did not want depreciating dollars, was to create the OPEC cartel and almost double the price of oil overnight.

  • Government Debt. The US government has failed to control its spending, and tax revenues have not kept pace, this we have ever-larger deficits that in 2024 are running close to 1.8 Trillion dollars. That's 1,800 billion dollars. To pay for this overspending .gov sells Treasurys, adding to the debt.


The bottom line is inflation (currency deflation/devaluation) is here to stay as there seems to be no political will for .gov to control its spending.

Watch the1st video. While we aren't in total agreement with the investment suggestions, he covers the salient points. In the 2nd video, Joe Brown explains why the government will choose currency debasement/inflation over fiscal discipline and default. (Make no mistake: paying debt back with cheaper dollars is an insidious form of default).

The Great Melt-Up will Strike the USA: My advice to You. 10m. Explains the debt crisis, income, budget. Why the FED cut the interest rate - Government cannot afford high rates on a big debt. Link: https://www.youtube.com/watch?v=4NYZRRyuXvk.

Capital Controls are Coming, and You Need to Prepare for it Now. 16m. Heresy Financial. Explains how the government will "deleverage" - via shifting the debt to the public by devaluing the currency (money printing, and paying interest rate lower than the rate of inflation). Shows how they have done this and why it will happen again. Link: https://duckduckgo.com/q=youtube+heresy+financial+capital+controls&t=brave&iax=videos&ia=videos&iai=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3D5sg2fgo2a0g

Risks and Strategy

There are several things we think need to be kept in mind as you look at your finances and how you might navigate the impacts of the following:

  • Banking Sector fragility, the risk of cascading bank failures, and the underfunded FDIC and SIPC accounts

  • Continued currency devaluation with climbing inflation and ways to offset the loss of purchasing power

  • Risks associated with title of your brokerage assets being moved to a 3rd party, and how those might play in a major turmoil

  • Risk associated with Social Security and other social payment that will be materially impacted by a devalued dollar

  • Popping of the stock market bubble (50% declines have occurred 2x since 2020), and the potential for significant declines in the housing market due to recession and an already escalating mortgage default trend plus higher long term interest rates (higher mortgage rates put significant downward pressure on housing prices) as do foreclosures.

Be Informed