Politically Incorrect Insights - Gary Christenson

July 19, 2016

• The winner of the 2016 US Presidential race will be the person that the financial elite deem the most effective tool to implement their policies AND whose team was most successful in programming the voting machines.

• “If voting changed anything, they would make it illegal.” Attributed to several, including Mark Twain.

• Negative interest rates are another phase in the continuing transfer of wealth to the financial elite.

• A simple mathematical analysis will show that EXPONENTIAL growth in any system, whether it is debt, population, military expenses, energy use, or currency in circulation, cannot continue indefinitely. However, leaders pursue policies that suggest exponential growth will continue forever. This will end in blood and tears.

• The US official national debt doubles approximately every eight years. Debt in November 2016 will be about $20 Trillion, and debt in 2040 will grow to about $160 Trillion if the trend from the past 100 years merely continues, instead of accelerates. Unfunded liabilities are much larger than the official debt and will also grow much faster. This suggests the purchasing power of the dollar will accelerate its multi-decade decline. ($100 for a cup of coffee … ?)

• Social Security payments are funded by contributions (taxes) from current workers. Ponzi scheme payouts are funded by contributions (investments) from current investors. Ponzi schemes are illegal and always fail. What does that suggest regarding Social Security?

• The crisis of 2008 was mostly about excess unpayable debt and insolvency. The “solution” was more debt – about $70 trillion globally since then. Clearly more debt was not a solution but an “extend and pretend” scam encouraged by the financial elite for their benefit.

• The laws of motion for large bodies, such as bowling balls and ICBMs are very different from the laws of quantum mechanics that govern tiny particles at the atomic level. It is the same in politics. The laws relevant to important politicians (large) are different from the laws for ordinary (tiny) people – as indicated recently by the FBI.

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• Bill Holter:

“Nothing has been fixed, nothing has changed.” Hint: We should expect more of the same, such as another crisis worse than 2008.

• John P. Hussman, PhD:

“In the U.S. alone I fully expect that $10 Trillion of paper wealth will be erased from U.S. equity market capitalization over the completion of the current market cycle.”

“… it follows that yield-seeking speculation, intentionally encouraged by the Federal Reserve, is perhaps the single most destructive force in the U.S. economy and in the lives of the American people.”

“… the implication of roughly zero, or even negative, expected total returns on the S&P 500 over the coming 12 year period is broadly consistent with other reliable valuation measures that are most closely related with actual subsequent market returns.”

“When one stops to realize that the amount of global debt yielding negative interest rates now exceeds $12 Trillion, it should be clear how extreme central bank distortions have become.”

“Central bank intervention is not a benefit to long-term economic prosperity.”

• David Stockman:

“The inexorable effect of contemporary central banking is serial financial booms and busts… At length, the world becomes poorer.”

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• History shows that gold and silver have been money and valuable for thousands of years. History also shows that unbacked paper currency systems always fail, yet all major economies use unbacked paper currency systems. A paper and digital currency system based on debt encourages the transfer of wealth from the people to the financial elite. Hence global economies use systems that history shows will fail.

• The gold in the Fort Knox Bullion Depository has not been audited in 60+ years. Is seems likely that most of the gold was removed years ago. There is no outrage and there will be no audit because few in the US realize the value of gold when trillions of US digital dollars have been (and will be) created by the banking system.

• What happened to their gold after Iraq and Libya were invaded and where is it now? Those who know apparently aren’t telling.

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All of the above should encourage purchases of silver and gold as insurance against exponentially increasing debt, the demise of debt based fiat paper currencies, “missing” official gold, and guaranteed-to-fail financial and political policies.

On the other hand, all of the above might be misinterpretations and misunderstandings, and it is possible writers such as myself are “peddling fiction.”

Regardless, a silver and gold insurance policy seems prudent.

GE Christenson is the owner and writer for the popular and contrarian investment site Deviant Investor and the author of the book, “Gold Value and Gold Prices 1971 - 2021.” He is a retired accountant and business manager with 30 years of experience studying markets, investing, and trading. He writes about investing, gold, silver, the economy, and central banking. His articles are published on Deviant Investor as well as other popular sites.

The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.