BALTIMORE – We checked. We checked again.
Despite our recent open letter to him, the person not sending us an email was Donald J. Trump.
But let’s check with the markets before we return to politics…
While the world’s attention is fixed on Mr. Trump, Mr. Market is playing it cool.
U.S. stocks have barely budged for months. Yet the ground beneath the stock market’s feet is giving way.
Corporate earnings are down 15% over the last two years.
And China – which economists told us was the “engine of growth” for the global economy – continues to dig itself into a debt hole as its order book goes blank.
Meanwhile, U.S. homebuyers are mortgaging themselves up again… just like they did in 2007. And the average ratio of rent to income is also back at pre-crash levels.
It’s hardly surprising. U.S. economic growth – if there is any at all – is leprous and weak… its spindly legs buckling under the weight of debt, cronies, and misleading price signals. Most likely, the economy will slip into recession in 2017.
This will pose a big problem – and a big, bogus opportunity – for the new president. Because the Fed is still fighting the last recession seven years after it ended. Its key rate is still near zero, with little room for more EZ money.
Only the pulp is left in the monetary orange; the next administration must react to the next crisis by squeezing fiscal policy.
Most likely, President Clinton will get the crisis she wants. Then, she’ll be able to spend! Spend! Spend! Until the whole economy is coated in the sweet, sticky juice.
Wars at home. Wars abroad. Infrastructure “investments.” Subsidies. Payoffs. We’ll hear a lot about “protecting families and children” and “keeping campaign promises.” And we’ll soon have deficits over $1 trillion a year. You go, girl!
What will hold her back? The conservatives are all gone. Congress is full of careerists and hacks. The press loves her; journalists give 27 times more money to her than to Trump. Nobel Prize winners back her. And the feds can borrow for practically nothing with the Fed providing the money! What’s not to like?
Who will stop her? Now, “it’s too late” for Mr. Trump.
That’s what the political commentators say. “Barring a near-miracle,” they hedge, “‘The Donald’ is finished.”
All through the campaign, we half expected Mr. Trump to “get his act together”… and speak seriously to the millions of Americans who have been victims of the Establishment Elite, aka the Deep State or the Parasitocracy.[Editor’s Note: Go here to watch Bill’s full presentation on how the Deep State is rigging the entire system and will eventually destroy the U.S. economy.]
Several times he teased us with feints in the right direction…
Mr. Trump sounded as though he might like to get the zombies off our backs… and the cronies out of our pockets. He promised to cut taxes. He suggested that maybe he would pull out of America’s pointless wars in the Middle East.
He even floated the idea of term limits for members of Congress.
But there was never any coherent strategy or follow-through. And the showman was soon back to his usual content-free carnival palaver.
Still, many of our smart friends got behind him, hoping he would shake up the system. Even we, like Rhett Butler near the end of the war, put away our cynicism and offered to help.
With a little coaching, Mr. Trump could still shake things up – simply by speaking directly and honestly to the American people… about money, war, and the Parasitocracy.
He could show a few simple graphs illustrating how the economy changed after the ’70s with runaway debt and declining income gains. And how the rich got richer while 90% of adults grew poorer.
And how our “wars” – against poverty, drugs, and terror – are losing propositions meant to transfer more money and power to the elite, at our expense.
He could even explain how government – like heroin and debt – is subject to the Law of Declining Marginal Utility… and how a little may be a good thing, but too much is deadly.
Would this frank talk put him over the top?
We don’t know… but we’d like to find out.
But so far, nothing from Team Trump. The Republic is doomed.
By E.B. Tucker, Senior Analyst, The Casey Report
Right now, there are three major catalysts that could send gold to the moon:
1. A new “gold law”…
Right now, the World Gold Council is working with the Accounting and Auditing Organization for Islamic Financial Institutions, which sets the standards for Islamic financial law, in order to create an entirely new standard for gold trading.
This is huge. In short, we could be looking at $3 trillion piling into the gold market later this year.
You see, Islamic law bans certain “immoral” trades… things like alcohol and tobacco stocks. It also includes gold… even though gold holds a special place in Islamic culture.
So, until now, gold has been “off limits” to Muslims for the past 42 years.
In other words, one-quarter of the world’s population – among it the world’s most enthusiastic gold buyers – has hardly touched a single gold investment.
But that could all change…
This new standard would allow close to a quarter of the world’s population to trade gold investments just like any other.
When that happens, all of that pent-up demand will be unleashed.
2. China has taken control of pricing gold…
China is the world’s top importer, producer, and consumer of gold.
Earlier this year, China opened the Shanghai Gold Exchange. It’s a “shot across the bow” to the world that they want to dominate the global gold market.
If estimates are right, China’s gold reserves are almost double those of every other major country combined.
And obviously they think they should set the price. Not banks in the West.
China wants a price set on actual physical gold. Not on paper contracts, like futures.
This is truly game changing. For the last 40 years, the Libor and COMEX exchanges priced gold based on futures contracts.
Right now, there are 252 ounces of gold claims per ounce of deliverable gold.
China will change that when it becomes the center of gold trading.
And every single trade on the Shanghai Exchange will be backed by the equivalent amount of physical gold.
In combination with the new Islamic law, gold has a legitimate shot at rising to levels we haven’t seen in our lifetime. In fact, the Chinese are quietly opening yuan “clearing banks” in Middle Eastern countries… including a new yuan bank in Dubai – the financial hub of the Middle East.
3. “Peak gold” ties everything together…
Peak gold is similar to the concept of peak oil. The idea is that, at some point, the easy-to-extract oil will be gone. Exploration and development costs will soar. And production will decline over time.
The thing is this can be applied to all finite resources. None more so than gold.
Right now in the gold sector, the production of gold is rapidly shrinking… just as demand is soaring.
The experts are saying “peak gold” is here. Last year, Goldman Sachs warned that there’s “only 20 years of known minable gold reserves.”
The “known” part is key.
That’s because the costs of mining exploration have surged tenfold even as new discoveries become few and far between. This has caused exploration to plummet in recent years, simply because the cost isn’t worth it.
BlackRock, the world’s largest asset manager, agrees we’ve reached “peak gold.” It predicts gold production will decline by 20% every year moving forward, even with higher prices.
The bottom line: This “trifecta” of gold events is creating a perfect setup for gold investors… one that will see the price of gold explode higher. And that’s why my team put together a special presentation to help readers take advantage of this once-in-a-decade opportunity.
Has World War 3 Already Started?
You probably haven’t heard this extraordinary piece of news. But for the first time since 1941, German tanks are rolling toward Russia. It’s part of what military commanders are calling Operation Anaconda.
Deutsche Bank: A Democratic “Sweep” Is Now Possible
With Hillary Clinton surging in the polls and the Republicans’ grip on the House and Senate no longer being a sure thing… the chances of a “sweep” by the Democrats is rising.
The “Originario War” Claims Its First Victim
Here in our little world, a miniature version of this epic battle goes on… Crime pays. And it pays even better when you do it with the help of the government.
Currencies expert Jim Rickards released a new video, but it isn’t another warning about the dollar.
Jim says we’re about to see a complete rewrite of the global financial rules… and the ultimate end of the American Empire.
Trump may be down in the polls, but he still has plenty of supporters among Diary readers…
The smack talking about Trump is not well-informed, fact-supported reasoning. It’s opinionated shooting from the hip.
– Robert L.
The choice in this election is between a lying, corrupt, incompetent socialist and an imperfect businessman.
The establishment Republicans seem to be more comfortable with the Democrats than conservative Republicans. They have had control of Congress since November 2014 and have done nothing. And they caved in to the Dems on the budget.
If we don’t cut back on government spending, the dollar will collapse. If Hillary is elected, we are doomed.
– Jack M.
Was disappointed in your diatribe on Trump. He may lack diplomacy of speech, among other flaws, but he is certainly a far better choice than HRC.
He may succeed in making the U.S. a more attractive place for business, giving multiple companies that fled overseas incentive to return and for those here to expand, resulting in a marked improvement in the employment picture.
His Supreme Court choices are individuals who respect the Constitution and the law. Those choices alone will affect us for the better long after his term of presidency has ended.
– Dave B.
I am not a registered Republican, but I believe Trump is right for the presidency. We need a strong person who is not afraid to speak the truth and not afraid to make the changes necessary to create and keep a great country that we need.
The American people have waited and endured bad leadership too long. Enough is enough. Our country is worth a fight to keep it alive and well and great!
– Mary M.
Please don’t exaggerate. Trump did not promise to put Hillary in jail. He said she ought to be in jail and that he would appoint a special prosecutor. Given what she seems to have done, that is perfectly reasonable.
Your distortion of the facts about Trump will help elect Hillary… and maybe that is to your best interest. Your position that the two candidates are equally bad is not supported by the facts (which you like to champion) and makes you seem disingenuous.
You seem to be hiding something. I don’t think that Trump is some champion of liberty, but he’s much better than Hillary who would deal a major blow to Western Civilization.
– John B.
Your trashing of Trump tells me you are trying to get people roused or are simply ignorant of what HRC will do to this country. I can’t believe we are still here after eight years of BHO. Sometimes I feel like we are living in a nightmare.
People can’t honestly believe that HRC will be better than Trump. Our grandkids will suffer greatly in many ways if HRC is elected. Only God could help us then.