- Next Wednesday’s PCE report could provide the first hint of the amount of coming stagflation. The US government’s tariff tax tantrums are the catalyst for it, but this stagflation was cyclically due to occur anyway. The full picture of how much inflation and economic growth slowdown lies ahead probably won’t become very clear until the 90-day moratorium on new tariffs has ended.
- Even then, there could be new tariffs and new moratoriums, adding to the already-enormous amount of confusion for millions of American small businesses… businesses being relentlessly pounded by the president’s bizarre scheme to make the final stage of the American government and fiat empire great.
- The US government should levy taxes on Americans and the rest of the world, but only indirectly. If a tiny transaction tax was collected on every electronic movement of the dollar (to replace all other forms of taxes and government fees), the revenue would be gargantuan, the IRS goon squad would be no more, and America would quickly become a super-sized Monaco, with millions of business builders racing to incorporate there.
- Sadly, the carrot is of little interest to most governments, and the stick is worshipped with gusto.
- Stock market investors feel the excitement, but not in a good way. Still, a huge “rally of surprise” may be about to occur, and it could be so big that it convinces amateur and professional investors alike that the decline is over… when in fact what has occurred so far is probably just the tip of the bear cycle iceberg.
- Please click here now. Click to enlarge this US stock market chart. The indicated action is a massive bear market, and it’s probably now the most likely scenario.
- Please click here now. Click to enlarge this horrifying CAPE/Shiller inflation-adjusted PE ratio chart. Even before the government began blasting the nation’s citizens and businesses with its tariff tax cannons, the US stock market was vastly overdue for a stagflation-oriented crash.
- Even after the latest meltdown, the stock market is still as overvalued now as it was at the peak of 1929. The Fed should hike rates pre-emptively to empower savers and reduce the inflationary horror that lies ahead, but that’s unlikely to occur.
- Please click here now. Click to enlarge this long-term cycle averages chart. The carnage likely continues until around the year 2032 and is followed by an extended basing period before a new bull run of significance begins.
- The rush to “Sell America” is on; the bond market is falling, and doing it while the stock market incinerates. The bond and the dollar are the fiat world’s safe havens, and both have failed.
- Please click here now. Months ago, I suggested that the USDX (dollar index) was poised to plummet to par, and it would be accompanied by $3200-$3500 gold.
- That has transpired, and now the psychologically important threshold of 100 has failed. The bottom line is that more than just de-dollarization, “Sell America Permanently” is the investor theme.
- It began as de-dollarization with Obama’s vile FATCA scheme, gathered steam with Biden’s hideous debt-funded wars and mandatory drag queen shows for the nation’s youngest and most vulnerable children, and it’s reaching a crescendo with “Pirate Donnie” and his maniacal tariff tax attacks.
- A daily focus on the big picture is critical for investors as inflation, tariff taxes, a wildly overvalued stock market (that is now on fire), debt ceiling horror, empire transition, and potential gold revaluation dominate the investing landscape.
- Tactics for fiat and gold? Well, please click here now. Click to enlarge this yen vs dollar chart. While a short-term pause is likely, a surge to 80 and then par 100 is probably coming.
- The yen may get new legs as a safe-haven fiat, and if that happens, a rally to par probably is accompanied by gold hitting my long-term $6000 target price…
- But there could be an overshoot as the “Sell Anything America” theme gathers steam, and the US stock market collapses while rates begin to soar. Investors need to be open to numbers like $10,000, $15,000, and $20,000 for gold as a 40-year inflation and rising rates cycle plays out.
- For frightened dollar holders, the yen, the Swiss franc, and the euro are probably the best choices for fiat, but the Canadian dollar could become a fiat leader if oil soon embarks on my projected rise to all-time highs.
- My suggestion is to stay focused on gold, and on that note, please click here now. Click to enlarge. Gold looks like a runaway train, and basis the chart maestros Edwards and Magee, when that happens, one tactic to consider is placing a stoploss under the previous day or week’s low.
- In the current situation, that would be about $3193. Having said that, please click here now. Click to enlarge. Gold’s superiority versus fiat is so great that it’s generally a waste of time for investors to try to call fiat price tops for gold.
- There have been only four times in the past 50 years when Fiat has managed to consolidate or rally against gold. It’s far more prudent to focus on buy zones… to get more supreme money gold!
- On that note, please click here now. Click to enlarge. Small buys can be made at $3350 and $3250, and bigger ones at $3167 and $3050. Supreme money accumulators should use simple tactics and avoid the use of too many price projections, trendlines, etc. Gold is supreme, which means it’s also a much simpler item to handle than many investors realize.
- Miners? Please click here now. Click to enlarge this GDX versus gold chart. Miners are the most undervalued sector now… and arguably the most undervalued in the entire history of markets! For a look at the monthly GDX chart, please click here now. Click to enlarge.
- The $55-$67 area is significant resistance, but what is likely to occur is more of a pause than a crash… followed by a surge to the $100-$120 target zone highs. Short-term traders can book profits as the price nears and enters the resistance zone, but they should also be sure they own lots of supreme money gold!
Thanks!
Cheers
St