Why am I so confident about spiking prices for cryptocurrencies, silver and gold? Because The US M1 Money Supply rose from $3.963 trillion on December 30, 2019 to $6.742 trillion on December 28, 2020. That is a growth of $2.782 trillion in a year. That is an M1 Money Supply growth rate of 70.1% per year. M1 Money Supply is defined as cash, coins, checking account, NOW accounts and Traveler’s checks.
Investors have decided to realize profits and pay taxes under the Donald Trump regulations and tax rates. Those asset sales have ballooned the M1 Money Supply. So what happens in January? Even if the Congress revolts and elects Trump to a second term on January 6th, I doubt that investors will pile $2.7 trillion into the stock market. I found this little tidbit on the Internet: “The current S&P500 10-year Price/Earnings Ratio is 33.89. This is 72% above the modern-era market average of 19.6, putting the current P/E over 1 standard deviation above the modern-era average.”
There is one other growth market and that is real estate in areas where urban dwellers are fleeing to from covid lockdowns and high taxes in Big Cities and white liberal governors. In particular lots of people have been buying property in rural areas in preparation for societal collapse and possible Civil War.
Spiking prices for silver and gold and mining shares will stampede Central Bankers to diversify out of US Dollars in their reserve accounts to gold. Central Bankers will have to calculate how many hundreds of billions in reserves are they willing to lose by holding Dollars. The conversion of Central Bank assets form Dollar to Gold Reserves will spike prices even higher.
I do expect silver to go up faster than gold because it has a much smaller market and an inflow of a $100 billion would push prices higher and faster in silver than in gold. Gold will pick up additional steam as Bankers flee Dollars and pile into gold.
But cryptocurrencies will have the greatest spike because their markets are smaller even than silver’s.
And then there is the rise of Central Bank DigiCash. China might be the first to issue a digital currency to rival private cryptos. Some have said Helicopter Money will take the form of a Federal Reserve DigiCash pumped directly into your account at the FED. If you had a Federal Reserve DigiCash account, the federal government would see where you spent your money. And, if they did not approve of what you were doing, they could close your account until you reported to Camp FEMA to be re-educated.
Spiking prices in cryptocurrencies might push Central Banks into adopting digital money sooner rather than later as a defensive move against private cryptocurrencies. The Federal Reserve has said that in the future they will no longer print physical Federal Reserve Notes. DigiCash is coming. Just a matter of when.
I should warn you that I am not a financial advisor and I am just sharing an opinion on the alarming rise in the M1 Money Supply. I should point out that the M2 Money Supply is $19.30 trillion. And it is up 25.42% from last year. M2 Money Supply consists of M1, certain overnight repurchase agreements and certain overnight Eurodollars, savings deposits (including money market deposit accounts), time deposits in amounts of less that $100,000 and balances in money market mutual funds (other than those restricted to institutional investors).
I should also remind you of my previous prediction that food prices will spike much higher as we have entered a Grand Solar Minimum. During the Maunder Minimum (1645 – 1715) food prices in the UK spiked as much as 400% higher in certain years due to colder weather and poorer harvests. In France in 1709 the ground froze to a depth of one meter (approximately 40 inches.) Food prices rose 650% higher that year. Of course there were 7.3 billion fewer people then than now.
I suppose many investors and nations will invest in food related commodities to protect themselves against inflation and to make profits. Of course nations like China will have to continue buying hundred of tons of food wherever they can find a willing seller so they can feed their people.
In a Grand Solar Minimum there are fewer sunspots as Edward Maunder discovered several hundred years ago. But in the modern era Dr Valentina Zharkova has noted that the sun’s magnetism is less powerful during a Grand Solar Minimum. This allows many more cosmic rays (nuclear particles from distant starts) to strike the earth. In the atmosphere cosmic rays can form clouds and cause more rain. China was severely damaged by flooding last Spring and Summer. Cosmic rays also strike the earth and energize both earthquakes and volcanoes. I have been telling people for a while that it is time to move away from the US West Coast and the the New Madrid fault zone running from Memphis to St Louis.
That Big Freeze in 1709 that spiked food prices 650% higher was caused by the eruption of 3 volcanoes in Europe. A volcano in Indonesia in 1815 caused the “Year without a summer” in 1816. There were nearly 7 billion fewer people then than now so I would expect billions of people to die from starvation, suicide, riots, rebellions and civil wars over the next few decades.
I should point out that the earth’s poles are also less powerful magnetically speaking than in the past. This allows to Jet Stream to wander about causing floods in China and Saudi Arabia while keeping the US Southwest in drought.
I must repeat what David Dubyne said that no Chinese government has ever survived a Grand Solar Minimum. That should make our Woke politicians cry because they have sold out to the Chinese Communist party. I include some Republican Senators, governors and congressmen in that cesspool of traitors in the DC Swamp.
I must also repeat what I have said previously about America being over populated. Walrasian input output economists would consider America as becoming over populated when its population surpassed 150 million in 1950 and we had to start importing natural resources like oil.
When the US Dollar is no longer a Reserve Currency, our politicians will no longer be able to print up trillions in Federal Reserve Notes and buy free stuff from overseas to make Americans think they are not impoverished. Face it. The Powers That Ought not To Be stole $50 trillion dollars from us and overpopulated our country. When the Dollar Dies, wages and pensions will be permanently cut 60%. As I said many times before, I expect Nationwide Food Riots to be followed by the destruction of every city in the US.
I should also point out that the coronavirus was made in a lab according to Luc Montagnier of the Pasteur Institute who won the Nobel Prize in Medicine in 2008. The US was funding Gain of Function research on coronaviruses to make them spread more easily and thus kill more people. President Obama and Anthony Fauci gave a $3.7 million grant to the Chinese level 4 lab at Wuhan to continue their research into Gain Of Function for a coronavirus that had been developed at a lab at the University of North Carolina. This pandemic and the lockdowns were planned in order to get supposed Christians to take the Mark of the Beast which is that digital passport or suggested implanted chip or even a digital tattoo to make sure excessive freedom does not get in the way of the dictates of the Billionaires. The lockdowns are destroying small businesses and bankrupting the middle class. The Great Reset is just another attempt by billionaires to convince commoners that slavery is good for them.