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Where have I been?

 

I am glad to be back blogging. Over the last couple of years I got away from it, mainly because I felt the opportunities have been nearly non-existent. Over the last couple of weeks I have come to the conclusion that this is the new normal. The "central banking powers that be," will do everything and anything in their power to avoid a deflationary spiral. To spite the economy here in Canada (and the US) not doing that well, the markets are at an all time high. How does this make sense? Simply put, money printing.

This is the new normal. Get used to it. Interest rates aren't going anywhere. Stock prices aren't going to take a long term tumble and we will continue to stay in stagflation.  I find when talking to family and friends there are two types of people. People who get that there is something wrong and feel it.  And those who currently don't feel it, because they work for the government, work in an industry supported by government, or are lucky enough to work in a rare industry that is striving.

 

Those of us who work in the private sector and haven't seen raises in years get it. Not only are our incomes stagnant, but inflation is worse than we are told. Things aren't good. And so long as the "central banking powers that be," continue to effectively steal from us with each and every round of money printing, those of us who aren't the lucky ones will continue to feel it.

 

About 2 years ago when I quit blogging, I decided to become a "gold bug" after watching a video presentation on YouTube by a man named Mike Maloney. This was a big change in direction.  I never had any sense of how central banking worked.  But in this video, I found someone who could communicate the way central banking works to me.  I couldn't sleep for weeks. I was engaged.  I remember telling people to check it out, because this would change the way they think. But it didn't. Most of them told me Mike Maloney was a slimy salesman.  Most of my friends and family thought I was crazy.   But then again, most of them worked for the government or in an industry supported by government.

 

Prior to this discovery I had turned around $7000 into over $40,000 with an ability to pick smallcap stocks.  But after watching  this video, I thought I had the world figured out and precious metals had to be my next big trade. I sold almost everything and went big. Today I can admit I have lost about 50 percent of my portfolio on those trades and I'm ready to concede I need to move on.

 

Now you might think I was taken by this slimy salesman Mike Maloney? But that couldn't be further from the truth. I think he is giving the world a great gift. He is explaining how central banking works in simple terms. And it's something we all should understand and not take for granted.  I still think precious metals are going to go on a hell of a run, I just don't know when, and for now I need to move on.

 

Something interesting happened to me this week. My mother, one of the people who seemed to think I was crazy contacted me to tell me about a video about how money works. And sure enough it was a video Mike Maloney put out that has 500,000 views on YouTube in just 5 days. This is probably the best video ever created on explaining central banking. I have never seen a video about monetary policy grab this kind of momentum this fast. So either this slimy salesman has gotten even slimier, or maybe people are starting to wake up?

 

The funny thing is, if you had a crystal ball two years ago and told me everything that has happened would happen , but didn't tell me anything about the price of precious metals. I would have gone bigger.  I mean, open ended quantitative easing ( printing a trillion dollars a year indefinitely). What would have happened if the US printed two trillion a year?  Would gold be trading at $750 an ounce?

 

In other words, trying to predict what will happen to precious metals in the coming months is nearly impossible.  Things are going to end badly, I just don't know when that will be. Until then, I am going back to small caps.

 

 

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