The Economic Collapse

It feels like someone has pulled a plug, because the U.S. economy is suddenly caught in an extremely alarming downward spiral.  As I discussed at the end of last week, investors are flocking to gold and silver because they can see that a storm is coming.  We have reached a point where most of the country is experiencing significant economic pain, and as a result people are starting to get really careful with how they spend their money.  The cost of living crisis has caused most of us to tighten our belts, defaults are absolutely soaring, and food bank lines are getting even longer.  If conditions continue to deteriorate like this, what will 2026 look like? (Read More...)

Consequences often do not show up for an extended period of time, but when they finally arrive they can be exceedingly painful.  For decades, our leaders have been making incredibly foolish decisions, and for decades people like me have been ranting about it.  But most people thought that everything must be okay because the consequences of those incredibly foolish decisions did not hit us right away.  Sadly, a time of reckoning is now upon us, and that is the primary reason why gold and silver are skyrocketing.  The price of gold has hit $4,300 for the first time ever, and the price of silver has hit $53 for the first time ever.  It is exciting to see gold and silver prices rapidly increase, but it is imperative to understand that what we are witnessing is a flight to safety.  At this moment we are facing a government shutdown, an unprecedented global trade war, a liquidity crisis, a cryptocurrency catastrophe, a housing market implosion, a cost of living nightmare and mass layoffs all over the nation.  Economic time bombs are starting to explode all around us, and the outlook for the months ahead is not promising at all. (Read More...)

When hundreds of America’s admirals and generals gathered at a military base in Virginia on September 30th, Secretary of Defense Pete Hegseth instructed them to “prepare for war”.  Unfortunately, he was not exaggerating.  We are on the brink of war with Venezuela, President Trump is threatening to take military action if Hamas does not disarm, our relations with China are rapidly deteriorating, and if we give Tomahawk cruise missiles to Ukraine that will put us just one step away from a nuclear war with Russia.  I am entirely convinced that the months ahead will be extremely dramatic.  Let us hope that global leaders make wise decisions during this time, because a single miscalculation could lead to the unthinkable. (Read More...)

What do you think is going to happen when tens of millions of impoverished Americans suddenly stop getting their food stamp money from the government? It doesn’t take a genius to figure out that a lot of them will be extremely angry. Unfortunately, if the current government shutdown stretches into the month of November, we really will be facing a nightmare scenario. Vast numbers of extraordinarily frustrated people will be demanding their money, and if they don’t get it I have a feeling that we could see rioting and violence. (Read More...)

Was this just an isolated incident, or is this the beginning of the Big Crash?  The carnage that we witnessed on Friday was absolutely breathtaking.  The largest single day wipeout in the history of the cryptocurrency industry was accompanied by a tech bloodbath of epic proportions.  Many investors that were very highly leveraged got absolutely monkey-hammered.  In particular, wave after wave of forced liquidations caused a cascading cryptocurrency crash that was unlike anything that we have ever seen before.  Approximately 19.2 billion dollars in leveraged positions were suddenly liquidated, and as a result the collective value of all cryptocurrencies fell by almost 800 billion dollars in just 24 hours… (Read More...)

Did we just witness the economic trigger event that will cause the dramatic stock market crash that we were just warned about?  On Friday, U.S. stock prices absolutely plummeted once President Trump announced that China’s new rare earth export restrictions would be countered by “a massive increase” in tariffs on Chinese imports into the United States.  If tariff rates go above 100 percent, many Chinese-made goods that are currently filling our stores will no longer travel across the Pacific at all.  In addition, whatever does come over from China will cost a lot more.  For example, you may have noticed that many things that were priced at $1.25 at Dollar Tree are now priced at $1.50 or $1.75.  Of course this is just the beginning.  Once the new tariff rates on Chinese-made goods go into effect, we will see price shocks like we have never seen before. (Read More...)

Are the financial markets about to be greatly shaken? The housing market is imploding, corporate bankruptcies are surging, there are all sorts of warning signs in the employment market, and much of the population is feeling our seemingly endless cost of living crisis very keenly. But so far the stock market has seemed immune to the growing problems that are plaguing the real economy. We have witnessed an AI-driven stock market boom in recent months, and those at the top of the economic pyramid have greatly benefited. (Read More...)

It is exciting to see the price of gold soar to unprecedented levels, but we should also be horrified by what is happening to the U.S. dollar.  For years, many of us warned that debasing our currency was a really bad idea.  There are two primary ways that our leaders have done this.  Firstly, we have added more than 27 trillion dollars to the national debt since 2009.  Borrowing money that we do not have and pumping it into the economy temporarily raises our standard of living, but it also debases our currency.  Secondly, the Federal Reserve created trillions of dollars out of thin air and used it to buy bonds.  A lot of pundits hailed “quantitative easing” as a wonderful thing when it was introduced, but it has had very serious consequences.  Now the wealthy are swimming in cash, but the value of our currency has plummeted and our standard of living has crashed.  The first half of 2025 was the worst first half of a year for the U.S. dollar in more than 50 years.  In other words, the purchasing power of your money has gone way down. (Read More...)