Dear Reader:
I hope you have a little savings to cover an emergency.
Increasingly, Americans live paycheck to paycheck and are maxed out on their credit. But so is the U.S. You cannot keep rolling over debt if creditors will not lend you money. The same is true for the country.
As the graph below shows, central banks globally are buying gold, but since 2021 [Biden Administration], foreign official purchases of the U.S. Treasury bill, once considered the safest form of investment, have plummeted. Confidence in the U.S. as the world’s economic powerhouse is crumbling.
Unlike you, if the U.S. government cannot find buyers for its bonds, it can simply “print” (or digitally create) money. The result is dilution of the value of all existing dollars (inflation).
What should you do?
Richard Maybury, who generally provides a lot of investment advice in Early Warning Report, says in the April/May issue to “continue sitting on your hands.”
“I do not have the foggiest notion what to forecast except more runaway uncertainty.” This could cause a plunge in the velocity of money, a strong deflationary signal.
He suggests stocking up on emergency equipment and supplies. He warns that the destructive effects of ObamaCare are continuing, and that good medical care will be increasingly hard to find. “Befriend as many medical professionals as you can.”
Additional Information:
About the author: Jane Orient, M.D., Executive Director, Association of American Physicians and Surgeons, and may be reached by email at jane@aapsonline.org
Editor’s Note: While few could argue with a current analysis of “runaway uncertainty,” the reset of trade relationships is continuing, but likely to settle soon in the consumer’s favor. Economists in many nations are sighing in relief that President Trump is calling out China’s practices. In truth, no producer in a free society can compete with a producer using slave labor under threat of torture and death. This is the reason Tulsa Today urges a boycott of all China products until the Chinese Communist Party (CCP) is removed.