No surprise as we learned this week that our world's collective debt pile has mushroomed in 2020 to a new record high number. The world collectively between household debts, corporate debts, and government debts are together on track to total having $277 trillion in present value fiat Federal Reserve notes of debt.
Let's put these figures into context...
Thank you Veterans, and hang in there by focusing on the ongoing good fight, which is the fight for Honest, Constitutional money! Some call it Sound Money, and some call it God's Money, but as required by the US Constitution, it's specifically called Gold & Silver. Interestingly, despite this election uncertainty, Gold & Silver have not benefited from the "fear trade"...
No winner has been declared in the election, and it appears there may not be a winner declared for days if not weeks. On that note, here are a few different election outcome scenarios and their potential impacts on gold & silver....
Everything is breaking down.
Of course, it's not like this wasn't expected, but perhaps the fact that the breakdowns are already happening is what is alarming? That is to say, sure, most people have been expecting post-election chaos, but it looks like the chaos has already begun, and we're still a week away from the election....
We start this week with some highlights from a current billionaire bond king, Scott Minerd recorded this past Monday, October 19th, 2020. In an hour-long discussion courtesy of bond and investment house Guggenheim Partners, entitled, "The Long Road to Recovery".
It sure looks like "market participants", that is, stock market traders and investors, are getting anxious over the next round of so-called fiscal "stimulus".
When the week began on Monday, the mainstream financial press was reporting that House Speaker Nancy Pelosi had set a hard deadline of Tuesday to come to an agreement between the House, the Senate, and the Trump Administration in order to pass a stimulus bill prior to the election on November 3, but that deadline obviously came and passed to no avail. Today, Wednesday, October 21, 2020, the mainstream financial press is reporting that the Tuesday deadline has been extended, big time....
Before the last major financial crisis, supranational banking institutions such as the IMF or the World Bank often release general forewarnings about the deleveraging and bankruptcy events about to hit the fan.
Trading has been choppy with precious metals neither really breaking out nor breaking down.
What's changed over the last week?
It's more like what hasn't changed!
In no particular order, we see the fundamental drivers of the market are in the same state of suspended animation as last week:
So as we can see, in my opinion, right now, gold bullion & silver bullion...
Be it before this 2020 US election or in the perhaps the turbulent months that follow.
One way or another, more ∞QE and stimulus are coming to further ramp silver prices and gold prices.
To begin this week, take a look at that second headline illustrated here, which states, "The Dow is now positive for 2020".
To say the last week has been odd for the markets is perhaps the understatement of 2020, and that's saying a lot because, well, it's 2020.
Last Friday, in the early morning hours, President Trump informed the public that he and the First Lady tested positive for Covid-19, and on Friday evening, it was reported that President Trump went to Walter Reed (military hospital) where he could be isolated and yet continue to work, all the while being monitored by top doctors. On Monday, October 5, President Trump returned to the White House from the medical center saying that he felt better than he did 20 years ago.
Why does this matter for the markets?
