A FLOCK OF BLACK SWANS
A note of criticism from a client reads, “We think your letter is designed to scare us into more silver and gold.” Truer words were never said. My objective is to convince people that a great crisis lies ahead. This coming financial disaster will level us. If you don’t have silver or gold, you may not make it through without falling into poverty. That’s how serious it will be.
Am I just peddling self-interest without the credentials to sound an alarm? Here’s my track record. In the late 1970’s I wrote warnings about double digit inflation. In the fall of 1999 I warned about a coming collapse in the NASDAQ. My novel Full Faith and Credit (published in 1999), depicted a housing collapse, a financial crisis and $1,000 gold. Readers have posted comments that I accurately predicted the future as nobody else had done.
I didn’t dream my gloomy forecasts up by myself. I believed the warnings of the great free market economists and thinkers. Henry Hazlitt (1894-1993) wrote many books and columns for Newsweek and the N.Y. Times. He warned, “If the welfarist-socialist-inflationist trend of recent years continues in this country, the outlook is dark. It is a prospect of mounting taxation, snowballing expenditures, chronic deficits, a budget out of control, an accelerating rate of inflation, a collapse of the dollar and increasing world currency chaos.”
Professor Hans Senholz (1922-2007) was an Austrian School economist who published numerous books. He wrote, "The ultimate destination of the present road of political fiat is hyperinflation with all its ominous economic, social and political consequences. On this road, no Federal plan, program, incomes policy, control, nationalization, threat, fine, or prison can prevent the continuous erosion and ultimate destruction of the dollar."
The great economist Ludwig von Mises (1881-1973) warned time and time again of the dangers that follow debt monetization. “The monetary policies of all nations are headed for a new catastrophe.” And “A thing cannot serve as money if the government has the right to increase its quantity ad libitum.” And “People must learn that the only means to avoid the recurrence of economic catastrophes is to let the market – and not the government – determine interest rates.” And finally, “Continuous inflation must finally end in the crack-up boom and the complete breakdown of the currency system.”
Leonard Read (1898-1983) was a philosopher and economist. There was no greater enemy of socialism. He wrote, “Inflation makes the extension of socialism possible by providing the financial chaos in which it flourishes. The fact is that socialism and inflation are simultaneously cause and effect; they feed on each other!”
Another great Libertarian economist professor Murray Rothbard (1926-1995) warned about Keynesian central banks that permitted all countries to inflate together. That’s exactly what’s happened. He warned, “At the end of the road would be a horrendous world-wide hyperinflation with no way of escaping into sounder or less inflated currencies.”
The inflationists in charge of the U.S. monetary system are setting an example that’s leading the entire world into an inflationary holocaust. In that event, paper will become worthless. No bond, no insurance policy, no savings account, no annuity and no currency can hold value in the face of unbridled money printing. Furthermore, a stock boom predicated on easy money invariably turns into a bust. That leaves silver and gold and nothing else to protect you.
The world (led by the U.S.) is printing billions every month and trillions every year. They are spending wildly on programs that can never be reined in. They are financing socialism that inhibits commerce and crushes the economy. They are launching a jihad against the rich and poisoning the public’s view of capitalism. They are ensuring the ruin of the nation, the death of the dollar and the collapse of the economy.
The consensus among bankers, politicians, business leaders and most economists is that money printing is a sound policy. Can these leaders with their advanced degrees, high positions and public persona be in error? For most of mankind’s existence, it was thought that the world was flat. Up until a century and a half ago doctors would drain the blood out of a sick patient in order to cure them. Myths like this are common throughout history. Creating trillions to prop up the economy is the same kind of blunder.
This is the greatest monetary crime in history and the punishment will be the greatest in history. Our central bank is not backing off from this great inflationary binge one iota. Thus, the sorry consequences are inevitable. All that’s missing from the equation is when. It could be soon. We see that certain nations are already loading up with gold and people the world over have a renewed interest in silver. They are sniffing an inflationary wind that will ultimately lead to crisis and panic. When this great conflagration of paper begins gold and silver will be expensive, if you can get it. For now, everyone should have 10% to 20% of their net worth in silver.