No matter what happens, I am confident the Iran war will be a major tailwind for gold. Here is an overview of how I see the conflict unfolding and its major financial implications. Investment Outcome #1: The US Dollar Will Lose Its Privileged Position “When the world’s dominant power that […]
“The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” — Ernest Hemingway Thanks to the fiat currency system, governments at war can tap into a […]
The way I see it, the US has two unappealing choices: President Trump can choose option #2, but it would be widely perceived as a defeat. International relations scholar John Mearsheimer put it best: “Most of them say that President Trump should quickly declare victory and withdraw from the war. […]
Air power alone is not going to secure Hormuz or remove the Iranian government. Their command-and-control structure is a decentralized mosaic governed by preapproved wartime protocols, with a backup plan for every leader, including three to seven predesignated successors. Air power could not even dislodge the much smaller and poorer […]
Crassus was one of the richest and most powerful men in Rome. He rose to the top alongside Julius Caesar and Pompey as part of the First Triumvirate, an informal three-man alliance that dominated Roman politics even though it was not an official office. Crassus wanted military glory to match […]
There are eight key indicators to watch as the US government falls deeper into the self-perpetuating debt spiral. Indicator #1: Federal Budget Deficits The chart below shows the actual and projected federal budget deficits. It’s important to note that these projections rest on the ridiculous assumption that there will be no […]
“Whenever governments are granted power to purchase their own debt, they never fail to do so, eventually destroying the value of the currency.” – Ron Paul Let’s take a step back and look at the big picture so we can assess the US government’s financial situation, where it’s likely headed, and […]
The Trump administration has made no secret of its desire to push the monetary easing pedal to the metal, even as the engine is already near the red line. They intend to push the system as hard as possible today and worry about the consequences later. One reason may be […]
The University of Michigan Consumer Sentiment Index is one of the clearest windows into how the average American actually feels about the economy. Each month, the university surveys households across the country, asking straightforward questions about personal finances, job prospects, inflation, and expectations for the future. Those responses are distilled […]
“You can’t taper a Ponzi scheme.” Financial commentator Max Keiser originally said these simple yet profound words. A Ponzi scheme is an unsustainable scam that relies on a continuous influx of new money to keep it going. The scheme collapses if the flow of new money slows down or tapers. […]