When You Add It All Up…
…It looks like a great time to buy gold and silver!
The Federal Reserve has its sights on the stock market and is about to pull the trigger and bring the bull to its knees. At the same time, the European war has food prices rip-roaring higher. Because people would rather pay high prices than starve, just wait until price indices like the Consumer Price Index have to start acknowledging food shortages and the prices they usher in. And then there is the issue of the dollar’s declining role in the global monetary order.
When you put it all together, it screams GOLD! Let’s start with the Fed’s plans for the stock market. Here are a couple of headlines to set the stage:
“Band of America warns ‘recession shock’ coming…” “Rate Surge Starts to Ripple Through Economy…”
Bill Dudley, the former president of the New York Fed, is explicit in his warning of pain to come for Wall Street: “It’s hard to know how much the U.S. Federal Reserve will need to do to get inflation under control. But one thing is certain: To be effective, it’ll have to inflict more losses on stock and bond investors than it has so far.”
Dudley is saying, according to MarketWatch, that the Fed “won’t get a handle on inflation that’s running at around a 40-year high unless they make investors suffer.”
Where does all that Wall Street money go when blood is flowing in the stock and bond markets? It must go somewhere. May we suggest gold.
Now let’s turn to one of our favorites, former Reagan budget director David Stockman to get his view on “the coming stock market crash of biblical proportions.
We haven’t been in these kinds of uncharted waters for a long time, not since the 1970s….
If you go back to March 2000, when the dot-com bubble collapsed, the NASDAQ peaked at 4600, and the market dropped by 30% in the next 15 days. And after that bone-rattling drop people said it’s all over. The worst has happened, and you should buy the dip. You’re going to make a lot of money.
And over the next two years, they kept buying the dip, but over the next two years, the NASDAQ went from 4,600 to 3,300, all the way down to 800. An 80% plus decline and all that dip buying resulted in massive losses and pain.
I think we’re going to go through the same thing again.
Meanwhile, you can expect food prices to take a toll on people around the world. US Senator Joni Ernst, from Iowa, is talking about an “impending famine.” Here are her remarks on Fox Business News:
About 40 to 45 percent of the production in Ukraine will be decreased this year because of the war and the scarcity of supplies that go into the planting season. And we know that Ukraine also supports about 400 million people around the world with its food products. So, we do see that we have an impending famine. And I’ve heard from David Beasley at the World Food Bank that he’s now going to have to take from the hungry to feed the starving.
Skyrocketing food prices spell higher gold prices as well, especially when global food producers aren’t keen on a failing dollar. And on that note, we will finish with Ron Paul’s summation of the dollar’s predicament in the global economy:
America may soon pay the price for attempting to fund a massive welfare-warfare state with fiat currency, America’s ham-fisted intervention in the Ukraine-Russian conflict has caused more countries to seek alternatives to the dollar. This increases pressure for the dollar to lose its world reserve currency status. When that happens, the US will face a major economic crisis featuring hyperinflation, massive unemployment, and the growth of authoritarian political movements. The only way these problems can be avoided is if the people demand the federal government stop trying to run their lives, run the economy, and run the world.
Visit with a Republic Monetary Exchange precious metals specialist today to find out more about what will add up to higher precious metals prices.