DUMPING CASH: Doubling Gold Exposure – DEFICIT DEEPENS!

We Bring You This Critical Alert, Contributed By WealthResearchGroup.com and Their Founder, Lior Gantz, Who Our Staff Looks At For Accurate Economic Forecasting.

In 2003, we had SARS virus. In 2020, we have coronavirus, right before the GREATEST migration in human history – the Chinese New Year travel week, is about to happen.

More than 17,000 flights a day are taking off from China, carrying nearly 80 million people around the globe.

SARS had a definitive impact on GDP in 2003, when China was a much smaller nation and when traveling wasn’t even a quarter of what it is today.

Copper prices are ALREADY plummeting and the LIKELIHOOD of rate cuts is getting to a point where it’s CERTAIN.

Another important indicator, which is a LEADING signal, is LEI, which computes several data points and predicts recessions with precision not offered by many charts.

This is another reason that markets are pricing in rate cuts. On top of that, the FED is keeping the Repo agreements until April, so they’re definitely on high alert.

This is a tremendous time to double gold exposure.

The chief reason to do so is PEAK GOLD, which is officially upon us. The major gold producers on the public markets are acknowledging this, as well as the world’s No.1 producer, which happens to be China.

The secondary reason is that the FED has no idea when inflation is coming; it has admitted that it is unaware of when unemployment rates will bottom and when they’ll SPARK inflation.

The third reason is hedging volatility.

The fourth reason is negative rates.

The fifth reason is political uncertainty.

Courtesy: Zerohedge.com

As you can see, gold’s ACTUAL correlation is with real rates, not with the U.S. Dollar’s strength or weakness.

Mega-billionaire investor, Ray Dalio, just told the Davos crowd that when the time comes to jump out of stocks, he will not bounce into cash – that’s his MAIN argument.

Yes, stocks are really expensive and will go into mania, thanks to buying from the retail investors, but when the dust settles and the bust occurs, if the FED slashes rates in response, cash will be TRASH.

Courtesy: Zerohedge.com

Because of wealth DISPARITY, in the next downturn, not only will the bottom 90% not have much equity to fall back on, but they will also WATCH as the elite consolidate on equities and even OWN more assets.

The way I see it, the (1) rise of automation, (2) progress of A.I., (3) outsourcing into cheap labor pools and (4) the access to virtually non-existent interest-incurring debt, have allowed companies to become efficient, at the same time as eliminating much of the value that employees provide.

Most workers are expendable, unfortunately, and that has put much pressure on wages and, therefore, on the ability to save for retirement.

This is the primary reason that mainstream investors now see the reason to own gold, even though it has performed remarkably for 50 years already.

In other words, they see that EVEN after a decade of both an economic recovery and an equities bull market, governments are getting further away from balancing the books.

Courtesy: U.S. Global Investors

In less than a year, if Trump is re-elected, you’ll begin hearing MUCH MORE about the unsustainable deficit.

If the Democrats win in November, then a number of wild cards are at play.

Volatility will become part of the norm this year, as surveys zig and zag on who is the favorite to win. We will keep you updated on this in a major way.