Today's global political and economic landscape, I can't help but notice a burgeoning trend: the increasingly problematic liaison between corporations and governments. It's a high-stakes drama where democracy is often sidelined, and power dynamics take center stage, with a better chance of becoming a flop than a blockbuster.
Some crucial information, which should be fodder for public discourse, seems to have taken an indefinite hiatus. The mainstream media's omission of discussions about policy blunders, misuse of emergency powers, and suppression of dissent feels like an exclusive party - where truth is an unwanted guest.
It reminds me of a skewed Monopoly game where some players start on Park Place while others can barely afford a spot on Baltic Avenue. The powers that be continue to print money, like being a contestant on "Who Wants to Be a Millionaire?" except this game is called "Who Wants to Inflate the Currency?" But it’s not a game show and the stakes are real for all of us.
The Federal Reserve, in its attempts to manage the economy, uses terms like "Supplementary Leverage Ratios" - what the hell does that mean? It’s just wordplay to keep the everyday citizen confused and hence uninvolved.
We’re now spectators in an arena where cycles of debt and inflation threaten to destabilize our economic equilibrium as effectively as a mythical unicorn might disrupt a horse race—both are fantastical, with one adding a touch of glittering impossibility.
I find myself gravitating towards assets like gold - of course, I do. But precious metals do appear to be the grown-ups in a room full of kindergarten fiat currencies. Theys maintain their value while the rest seem to play a ceaseless game of tag with economic reality.
The irony couldn’t be thicker as corporate media and central banks snuggle up with big government. It's less a conspiracy and more a tragicomic love triangle where the casualty is often public trust and fiscal prudence.
The selective silence on various fronts by mainstream media is golden for those in power but leaden for the public good. The abrupt disappearance of critical COVID policy discussions from the public sphere and the hushing of dissent against governmental overreach are cases in point. Liberties and freedoms are paraded around only when convenient, but are quickly shelved when they threaten the status quo.
Remember the promises of temporary quantitative easing? Jerome Powell's recent backpedaling on rate cuts and monetary policies is akin to a politician recanting election promises. Nothing new about either of those things.
The US Treasury and the Fed have become master illusionists, crafting more dollars with the flair of seasoned magicians pulling rabbits from hats. But the tricks are wearing thin, and the audience—us—is growing weary of the spectacle.
The Congressional Budget Office's projections of a recession-free future with lower interest rates seem as fantastical as their other economic forecasts. The expected buyers of U.S. debt appear to be that same imaginary unicorn.
As this slow-motion financial calamity unfolds, I'm not tempted by fleeting market trends or ephemeral asset bubbles. Instead, I’m drawn to tangible, reliable assets like gold—not because I'm a nostalgist, but because in a world increasingly dominated by digital fantasies, the real value of solid assets becomes ever more apparent.
If something seems too good to be true, it probably is. As we watch the curtain fall on another act of financial wizardry, it's wise to remember that in finance, as in magic, the hand is quicker than the eye. Thus, keeping one's eyes on the tangible—like the luster of gold—might just be the safest bet. Now, if you'll excuse me, it's time to check on my own stash of real assets.
Greetings Paul,
I've gotten a lot from the last few times you've been on Jimmy's show. I wanted to ask you about inflation/dollar devaluation. I understand that the Fed prints money and this creates inflation. Do the banks also play a role in money printing? I was listening to some old talks given by Professor Warner on the topic and from what I gathered banks reclassify debt from a loan/mortgage issuance as a deposit (for the bank itself). Banks in the UK do not have to follow normal accounting practices, I'm wondering if the same applies to US banks? If it does, would this also "create" money?