Banking Crisis Indicates Hard Landing Ahead
It’s Gold’s Time To Shine. Take Action Now.
A hard landing is now the consensus.
Two weeks ago, the Federal Reserve was going to raise interest rates by 50% basis points. Today, despite inflation at 6%, a 25 basis point cut is being considered. The Fed is now in the unenviable position of having to fight inflation by decreasing the supply of money while also infusing the banking system with liquidity at the same time.
Today banking crisis reeks of times past.
Yesterday, the major banks got together to provide a $30 billion bailout for First Republic Bank.
Pay attention. This was exactly what occurred to Bear Stearns in ‘08 when J.P. Morgan saved them with an emergency weekend buyout 15 years ago this week.
We remind our subscribers that it wasn’t until six months later that Lehman Brothers would fail and the Great Financial crisis would unfold. Our equity markets fell 50% and didn’t recover for more than three years. Gold soared and tripled in value.
The entire purpose of the Federal Reserve is to become a lender of last resort when people lose faith in the banking system. Anyone who has read The Great Devaluation knows of the banking crisis of 1907. It was the crisis that forced the founding of the Federal Reserve to begin with.
The big question is will the Fed come to the rescue if you are a depositor in a small bank?
During a Senate Finance Committee hearing yesterday, Treasury Secretary Janet Yellen was grilled by Oklahoma GOP Senator James Lankford over the Biden administration's handling of the banking crisis.
Yellen said uninsured deposits would be covered only if a "failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences, which would be decided by a supermajority of the FDIC's board members, and the President.”
Depositors are racing to get their money out of the regional banks and into the Big 5 (J.P. Morgan, Bank of America, Wells Fargo, Citigroup, and HSBC).
We all know where this is headed. Very soon all deposits will be fully insured regardless of size of the account.
The Great Devaluation predicted a world of unlimited money printing. Gold is up two-to-one on the Dow Jones since Gold Is A Better Way was published. What seems crazy in normal times becomes necessary in a crisis.
Today banking crisis reeks of times past.
Never forget that our dollars are Federal Reserve Notes. They are a "promise" of the Federal Reserve. That promise is to keep our money stable in value. It’s a promise impossible to maintain when we must keep printing new money to cover the bad debts we’ve already accumulated.
Gold is the anti-dollar. It cannot be printed out of thin air.
Now a hard landing is almost assured.
We see a very volatile and tough time ahead. The Fed overcooked the goose. They are now stuck. Do they raise rates more, or save the banks by providing unlimited liquidity? They cannot do both.
Oil is pricing in a recession.
The 10-year Treasury is pricing in a recession.
Precious metals are pricing in a recession.
Gold prices are up nearly $200 in the last ten days. Silver is up 15% in the last week.¹ This is just the beginning. The Great Devaluation foretold of an entire decade where currencies would devalue against gold and tangible assets. We are only in the third inning of that prediction.
If you don’t own physical gold and silver there is only one question…
WHY?
Are you someone who doesn’t have enough to invest? Okay, fair enough.
Are you a trader who doesn’t care about the medium or long term? Okay, fair enough.
For everyone else, be aware that the last week has witnessed the greatest demand for gold and silver in the history of our firm, Advantage Gold. During the pandemic, people were buying gold out of uncertainty. Today our clients are telling us that they “can see where this is all going.”
The biggest hesitation when buying gold is not knowing how. This is where we at Advantage Gold specialize. It's why we have become the highest-rated precious metals firm in the country according to real reviews on verified review sites like Trustlink.
We believe that GOLD IS BETTER. We expect that will continue so long as we have unpayable debts that we attempt to print away.
If you are someone who agrees and would like to learn how to protect your portfolio, please click the button below and schedule an appointment with one of our representatives. We appreciate your patience and promise we will reach out to you as soon as we possibly can.
It’s time to take action.
Written by Adam Baratta
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