It’s been an incredible two days, as Marifil Mines (TSX-V: MFM & US: MFMLF) more than doubled.
The FED is desperately going to attempt to hold the line, but when it comes down to a choice between letting inflation officially run as high as 2.5%, or announcing rate hikes to block inflationary pressures – and risk blowing the stock market into smithereens – Jerome Powell has already revealed what he’ll do. On air, he has said that he’d rather let inflation overshoot.
Nothing scares government and central bank fat cats more than a Washington insider who moves into the private sector and exposes the corruption and fiscal mismanagement he sees in today’s highest ranks. Armed with information that few possess, such an individual is free to lead the cause against criminal activity – and stir up a lot of controversy in the process.
We buy physical gold for various reasons, but the most obvious one is to protect our purchasing power. This is especially true in the face of currency printing, $1.1 trillion annual deficit spending, and the phenomenon termed “De-dollarization.”
The economy, like all other aspects of life, is governed by cycles. These can last for years or even decades, and like the ocean tide, they will ebb and flow irrespective of human sentiment or fleeting whim. The best investors don’t try to fight it; instead, they’re keenly aware of the cycles and take their positions accordingly.
A big change happened in 1971 when the U.S. Government decoupled the dollar from gold and based it on “fiat”: a decree saying that these pieces of paper have value just because the government said so. Historians now call this event the “Nixon shock,” and for good reason – the federal deficit quickly doubled, stagflation hit, and the price of oil skyrocketed.