Declining Stocks, A Falling Dollar And Rising Gold/ Silver Prices… Welcome To 2019

January 8, 2019

Summary

Stock prices have become synonymous with economic growth and prosperity.

In truth, the stock market is nothing more than a reflection of the inflation/currency devaluation caused by the Fed’s money printing and lascivious enablement of rampant credit creation.

If the stock market was "big fat ugly bubble" in 2016, what is it now?

The stock market has become the United States’ “sacred cow.” For some reason, stock prices have become synonymous with economic growth and prosperity. In truth, the stock market is nothing more than a reflection of the inflation/currency devaluation caused by the Fed’s money printing and lascivious enablement of rampant credit creation. 99% of all households have not experienced the rising prosperity and wealth of the upper 1%. The Fed’s own wealth distribution statistics support this assertion.

It’s been amusing to watch Trump transition from tagging the previous Administration with creating a “big fat ugly stock bubble” - with the Dow at 17,000 - to threats of firing the Fed Chairman for “allowing” the stock market to decline, with the Dow falling from 26,000 to 23,000. If the stock market was big fat ugly bubble in 2016, what is it now?

If the Fed pulls back from its interest rate “nudges” and liquidity tightening policy, the dollar will sell off, gold will elevate in price rapidly and the Trump government will find it significantly more difficult to finance its massive deficit-spending fiscal policy. Welcome to 2019...

SBTV, produced by Silver Bullion in Singapore, invited me onto their podcast to discuss the Fed, the economy and, of course, gold and silver:

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The periodic symbol for gold is AU which come from the Latin for gold aurum.