$GLD, $SLV, $USD
FLASH: The Dem’s Green New Deal is silly and not worth our attention. But it implies we can have anything we want if the Fed extends credit.
FACT: The 2 biggest US stock market rallies happened when the budget deficit was disappearing or had disappeared.
Calvin Coolidge led the US through most of the Roaring Twenties. And he is perhaps the 2nd-least well-understood president of the 20th Century behind Warren Harding.
President Coolidge was perhaps the biggest saver known to mankind. He ran the country like he ran a household budget, austere.
Some may recall the President Clinton was not well-liked by government employees. He kept telling people to “do more with less.” No money for trips, no money for projects, no money for boondoggles.
Go look at the budget figures from the 1990’s. The government size remained pretty constant. It was the closest to government austerity in nearly 70 years.
Today it is different.
If Modern Monetary Theory (MMT) were implemented, foreign exchange markets would have their say about it, that is if we still had floating exchange rates.
FACT: No matter how much money the Fed prints, or what they do with their balance sheet, you cannot spend more money than you make.
You can make up a shortfall with debt, but after a while, creditors will have had it with you.
Governments have always found the temptation to borrow, overspend, and tamper with the value of their currency.
So, savvy investors take protective measures
The way you protect yourself from plans to demolish every house and kill all the cows is is with Gold, miners and other hard assets.
In Y’s 2009–2011, people thought it was really important to own that stuff because of the Fed’s QE stimulus and the onset of inflation to protect assets.
People who buy Gold do it for a reason.
Some people say that gold does not track inflation well. But 1 thing it does well over time is maintain buying power, with some minor variations.
Today, Venezuelans wish they had some of Gold & Guns, Yes?
It is silly to have 100% of your portfolio in Gold, and it is also silly to have 0% of your portfolio in gold.
We are bullish Gold and miners here, and believe that it is responsible to have a bit of Gold.