Month: December 2021

“On Tuesday, [Fed Chairman Jerome Powell] backed away from the phrase [“transitory”], which he said had become unnecessarily confusing…If you’re confused, you’re not alone.”

— John Karow, Scottsdale Bullion & Coin Precious Metals Advisor

This week, Federal Reserve Chairman Jerome Powell backed away from using the phrase “transitory” to describe the nature of inflation in the country. As we’ve talked about in previous videos, all year we have found this term to be confusing, misleading, and perhaps even a direct lie.

Now we see Powell trying to backtrack, revealing the true nature of what’s going on: the current inflationary trends are not “of brief duration” as the Fed would like us to believe, but a symptom of a much deeper and more systemic problem in American banking.

The truth is that the dollar is backed by nothing except confidence in the government. And with a government that tells half-truths, how confident are we, really?

If you’re confused by Powell’s messaging, you’re not alone. Watch the video to learn what’s really going on from Scottsdale Bullion & Coin Advisors Eric Sepanek and John Karow.

Why Has the Fed’s Language Been Unnecessarily Confusing?

Why would the Fed use a word like “transitory” in the first place, when it’s been clear all year that inflation is on the rise? Isn’t it a fact that inflation hit a three-decade high last month? Why would Powell need to explain his language if he weren’t trying to obfuscate the truth?

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Saying inflation is “transitory” doesn’t make sense. We think he’s known it all along, but he has been trying to assuage the American public into believing that things aren’t really as bad as they are.

Just look at the price of gas and food. We can all feel the hit to our wallets as the cost of these essential goods has gone up over the course of 2021. (And these metrics are not even included in the official inflation numbers.)

Why is Powell now making language changes in the middle of a crisis? We think it’s because there’s no longer any way to deny the massive inflationary pressures that are ravaging the market.

The truth is that the dollar is unstable, and if it weren’t being regulated by the central banks, our entire currency system would collapse.

Don’t Wait to Buy Gold—Buy Gold and Wait!

When people ask, “Why hasn’t gold gone up more now?” there are a few things we want the public to understand.

First, the central banks control the prices of the dollar and therefore of gold. The dollar has nothing backing it except confidence, and if the price of gold were allowed to truly soar, it would easily show the weakness of the greenback. Of course, the Fed doesn’t want that, so gold prices are artificially manipulated to some degree by bullion banks.

Second, gold is slow money. Gold is a long-term investment. Gold provides physical security against the whims of an unstable market. Fifteen years ago, we had clients exclaiming that buying gold at $500/oz. seemed crazy. Now, gold is holding around $1,800/oz. They key to owning gold is to buy gold and then wait for the inevitable price increases over time.

But don’t wait to buy gold! Buy gold before the eventual market forces send gold higher. Learn how to protect yourself now from rising inflation with this free guide.

You can avoid reality, but you cannot avoid the consequences of avoiding reality.

–Ayn Rand

The Federal Reserve and US Government continue to avoid reality by manipulating market prices and skewing economic numbers in favor of their cause. (In addition to changing the formula over the years for determining the inflation rate, food/energy/rent are not included in the equation. I mean, give me a break. What can be more detrimental to the average Joe on Main Street than higher food, energy and rent prices? In another “give me a break” moment, the Fed announced today that our inflation is not transitory, but in fact has deeper roots. Of course, it took the highest rate in 31 years for the Fed to come out with their insightful diagnosis. The Fed began in earnest avoiding reality in 2008, when the mortgage crisis morphed into the Great Recession. After a decade of REALLY “kicking the can” down the road, the can is now bigger than a house. Ultimately and unfortunately, the Fed has no other choice, but to continue printing gobs of money. Otherwise, the whole world will shut down.

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As reported for years, the Powers-To-Be, and most noticeably the Bullion Banks, have been repressing gold and silver prices on the “paper” exchanges, including the NY COMEX and the LMBA in London. And since August of 2020, the price manipulation has been especially aggressive. It is believed by some very smart people that the daily bombing raids on gold and silver are a sign that the bullion banks are acting out of desperation. Why? Because at these forced lower paper prices, big money investors and Central Banks worldwide are buying as much physical gold as they can get their hands on. Indicative of this strong demand are the higher premiums in the physical gold and silver markets, as well as, dwindling physical supplies. Can you imagine how high the premiums will get and how much worse the tight supply situation morphs as the public increasingly suffers the rising inflation pinch and demands more gold and silver?

For anyone concerned about bank solvency, a doomed US Dollar and a growing state of stagflation that is looking more like the 1970’s every day, owning physical gold and silver is the ultimate no brainer. And with manipulated gold and silver prices being so artificially low, anyone looking to get started or add to their position is being offered a gift. For anyone frustrated that gold and silver are not sharply higher, keep the faith. According to Alasdair Macleod, arguably one of the premiere gold analysts’ worldwide, gold and silver could be close to busting out. Macleod points out that physical gold in the LMBA vault has been drawn down at a time when the bullion banks need to be adding to their reserves. You see, January 1 is the deadline for all London related bullion banks to be in compliance with the BIS (Bank of International Settlements) newest regulations. Simply put, the bullion banks must begin to slow down or halt altogether the practice of holding and dumping the paper silver and gold contracts, AND they must increase their physical holdings in order to avoid stiff “penalties”. MacLeod insists this is “good news for anyone who knows why they are buying gold and silver.”

Further confirmation of higher prices to come was expressed this weekend by Andy Schectman, CEO of Miles Franklin. Schectman claims a “massive moment is coming for silver.” Very large silver (and gold) buyers are taking delivery and possession in mass quantity. With the biggest money in the world accumulating physical metals, Schectman believes in his soul that mathematics and logic will catch up to the gold and silver prices. Schectman also mentions that more and more of his clients don’t want to leave their cash in the bank. In the bigger picture, Schectman advises paying attention to your inner voice. And, the physical gold and silver shortages are only going to get worse. In closing, Schectman says, “the already low supply chain can disappear overnight.”