BlackRock Loads Up on Silver Stocks...
BlackRock Inc. Acquires New Holdings in Pan American Silver Corp. $PAAS (The firm bought 8,393,564 shares or 2.01% of the company)
BlackRock, Inc. reports 25.52% increase in ownership of CDE / Coeur Mining, Inc .... ownership of 127,773,599 shares of Coeur Mining, Inc. (US:C $CDE) valued at $2,085,265,136 USD
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Doug Casey: Many Americans still believe Donald Trump is a solution to what ails the US.
They still think he’s a maverick who will smash the Deep State. That’s understandable since, even though he’s devoid of moral or philosophical principles, he’s at least a cultural conservative who wants the country to resemble the happy days of yesteryear, when Mom, apple pie, and Chevrolets were more important than Diversity, Equity, and Inclusion.
Many of us believed him when he said that he would abolish the income tax, never involve the U.S. in foreign wars, and generally cut back the size of government. Those hopes are as dead as Elon Musk’s noble DOGE.
Trump is a nationalist, a traditionalist, and business-oriented. But so was Mussolini, who also liked the idea of massive State involvement in business. Most Americans are unaware that the U.S. government under Trump has taken equity positions in over a dozen corporations, with many more on the runway.
Unfortunately, that works to cement the Deep State further into position.
Trump has, almost necessarily, surrounded himself with Deep State players—like Commerce Secretary Lutnick, Treasury Secretary Bessent, and Fed Chairman Warsh. They’re all denizens of the swamps and cesspools in and around the Washington Beltway, Wall Street, Academia, and the media.
Trump is not about to abolish government agencies (although it’s nice to see what happened to USAID), or fire many government employees. He sees these things as resources, minions, to do what he fancies.
His lack of a moral core guarantees that instead of trying to abolish the State (in the manner of Argentina’s Milei or Ron Paul), he’ll just use it in ways he thinks are righteous. The proof of that is the trillions of new government spending and deficits he’s approved so far.
He’ll spend trillions more over the next two years. And all of it will feed the Deep State.
On the bright side, though Trump’s rhetoric and actions are generally horrible, they’re less objectionable than Kamala’s. Kamala, and the people behind her, would have worked overtime to collectivize the US.
On the not-so-bright side, I suspect the Democrats will win the mid-terms come November. They’ll impeach Trump, and tie him in knots for his numerous illegalities and massive grift. They’ll regain control of the apparatus of the State, and won’t give it up again.
The Deep State, however, doesn’t really care who’s in office. Although they prefer the Dems at this point because Trump has turned into a loose cannon. He’s become totally unpredictable, except when it comes to his own pocketbook, and a certain foreign country. The Deep State, the Establishment, will get even fatter and happier when the Dems take control, while the average American slides further into the Slough of Despond.
That’s what they’ll work for. And that’s the way to bet.
What does this mean for us? Stay long commodities, and particularly gold and oil stocks.
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Your Enemy, The Deep State
By Doug Casey
The Deep State controls the State, i.e., the government. It’s as old as history itself. But the term “Deep State” originated in Turkey, which is appropriate since it’s the heir to the totally corrupt Byzantine and Ottoman empires.
And in the best Byzantine manner, our Deep State has insinuated itself throughout the fabric of what once was America. Its tendrils reach from Washington down to every part of civil society.
Like a metastasized cancer, it can no longer be easily eradicated.
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What stage is the Imperial Debt-Dollar in?
How Does a Reserve Currency Collapse?
Behind every Ponzi/fiat currency, you’ll find debt. The modern Western economic model is based on debt production—no new loans, no GDP growth.
For a government/economy to function, the Treasury must issue government bonds, which must then be bought by investors in the primary and subsequently secondary markets.
You can easily recognize the collapse of a reserve currency by looking at who the buyers are:
1. Bonds are bought by all market participants because they trust the issuer, the interest rate is attractive, the market is liquid, and government bonds hold the highest credit rating.
2. Bonds are bought by friendly entities in a “you buy my bonds, I buy your oil” system.
3. Bonds are bought by entities in a submissive position—central banks, commercial banks, pension funds, and other institutions in foreign countries where legislation permits or mandates such purchases. (It is the “duty” of colonies to buy the hegemon’s debt!)
If the government doesn’t wake up and continues spending like a drunken sailor, the process escalates:
4. The central bank of the issuer steps in as the “buyer of last resort” (debt monetization, aka money printing).
5. The cost of servicing the national debt rises sharply, requiring the issuance of new, more expensive bonds to cover previous ones. The issuer falls into a debt trap.
6. At this stage, the fate of the currency is sealed, and debt holders begin to sell off their holdings.
From here, the collapse accelerates:
• Bond prices fall → Interest rates rise → Government spends even more → Debt monetization intensifies → Trust in the issuer erodes → Sell-offs continue → More bonds are issued → Bond prices fall further…
This loop has always ended the same way throughout history. Economics and mathematics are beautiful sciences.
Now, take a guess: at which stage is the US dollar right now?
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The daily action is more of a casino than it is of a free market. In fact, the Fed has turned all markets into a casino with their interventions and manipulation of rates to asset-debt prices. That’s on top of the other games they play (NY Fed).
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They Slam Gold on Fed Day On Purpose — The Rate Hike Story Is a Distraction
Fed hiking rates doesn’t really crush gold like they tell you. Gold don’t pay interest, so yeah, higher rates should make it look dumb next to a T-bill. But that’s only half the story. If inflation is running hot at the same time, the “real” rate, what you actually keep after prices eat your money, barely moves. Sometimes it even goes the other way. That’s why gold and rates both ripped in the 70s, and why gold still went crazy even while the Fed was jacking rates in 2022.
The big drops you see right before, during, and after Powell/Warsh talks?
That’s not Grandma selling her jewelry. That’s paper gold on the COMEX getting dumped, futures, huge leverage, stop-loss hunting. Bullion banks have already been caught doing this. JPMorgan paid almost a billion bucks for spoofing gold and silver for years. So when gold gets smashed $50–$70 in ten minutes around a Fed speech, don’t act shocked. They lean on the tape, scare the weak hands out, then the physical buyers show up on the cheap.
Watch inflation and real rates, not the headline hike. And don’t let a slam on Fed day talk you out of the metal.
Now you know.
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Warsh's 1/2 hour speech focuses on concerns of high inflation; nothing really new in what he has said prior.
Nonetheless, Precious Metals... Silver prices were smashed back $70/ounce, before finding strong buying again between $68-69/ounce.
Now with Warsh is done speaking, see how strong the silver market is here short-term. Can it hold the $68/ounce area and reclaim $70? Or is a larger pullback going to take place?
I remain on the bullish camp... the bulls will show their strength buy the shortness of price-drops.
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