🗽 2023 Mid Year Investment Report

King Solomon, the wisest and wealthiest man who ever lived said…

🛡 “In an abundance of counselors there is safety.” – Proverbs 27:6

At the halfway point of 2023, here’s what the world’s foremost Financial expert’s are saying…

Debt Crisis Explosive! #1 Aden Forecast Newsletter. “The debt bubble is going to implode. It simply can’t keep on its current path. It’s not sustainable. Yet year after year the debt ceiling is raised and the government keeps spending more money that it doesn’t have. The debt bubble has been ready to burst for years. It hasn’t happened yet, but someday it will.”

U.S. Debt Obligations To Hit $200,000,000,000,000 if Entitlements Are Not Cut As Demographic Storm Looms: Stan Druckenmiller.

Legendary investor Stanley Druckenmiller is warning that America’s fiscal situation could force the nation to give up on much of its social programs and entitlements.

Druckenmiller, famous for working with billionaire financier George Soros in the 1990s, says that most analysts are kidding themselves when they ignore or rationalize the U.S. level of indebtedness.

Druckenmiller says that if you account for what the government owes to the future senior citizens of America, the U.S. is actually closer to $200 trillion in debt, nearly 7 times the official number.

“The fiscal recklessness of the last decade has been like watching a horror movie unfold. During the last decade, our debt grew from $15 trillion to $31 trillion today… a level of indebtment only comparable to that after WWII. But what is worse is that this debt does not account for what the government has promised it will pay in terms of social security and Medicare.”

U.S. Government Debt Rises 25% to Reach $652B as Higher Interest Rates Bite – Bloomberg.

U.S. Racks Up $652 Billion in Debt Costs as Rates Hit 11-Year High. Higher interest rates mean bigger debt servicing costs. U.S. budget gap widens 170% in first 9 months of year. Through June, the federal deficit hit $1.39 trillion, up some 170% from the same period the year before.

U.S. National Debt Spiked by $851 billion in One Month, to $32.3 Trillion. Flood of New Debt Coming in Q3 to Refill the TGA, Pay for Raging Deficits | Wolf Street

Federal debt explodes by $1 trillion in 5 weeks since deal suspending limit became law | Fox News.

Total national debt now sits at $32.6 trillion and counting. The national debt has increased $4.9 trillion since Biden took office in January 2021, and is expected to keep rising in the face of annual budget shortfalls of at least $1 trillion per year.

US Debt

Source: usdebtclock.org Numbers as of 7/26/23

Instead of falling back to 2019 levels, federal spending is not expected to dip below $6 trillion again. Treasury Department projections expect that the government will spend more than $7 trillion by 2025 and will exceed $8 trillion in spending by 2028, accompanied by more borrowing that is fast approaching $2 trillion per year.

Fitch downgrades the United States to AA+ from AAA, citing fiscal deterioration over the next three years and repeated down-the-wire debt ceiling negotiations that threaten the government’s ability to pay its bills. (Bloomberg)

In Fitch’s view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025,” the rating agency said in a statement.

In a previous debt ceiling crisis in 2011, Standard & Poor’s cut the top “AAA” rating by one notch a few days after a debt ceiling deal, citing political polarization and insufficient steps to right the nation’s fiscal outlook.

After that downgrade, U.S. stocks tumbled and the impact of the rating cut was felt across global stock markets, which were in the throes of the euro zone financial meltdown.

With government spending out of control, a runaway fiscal train headed straight towards an economic crash is inevitable.

Second Wave of Banking Crisis Incoming, Crash Could Be Worse Than 2008 Global Financial Crisis, Says Expert – Benzinga.

“A significant rise in bank borrowing from the Federal Home Loan Bank (FHLB) system and the recently established Bank Term Funding Program (BTFP) is compelling evidence of another potential wave of banking failures. Banks resorting to this program are in a dire financial situation. It’s very likely that you see more of these banks go bust, possibly taking us into an environment that is very similar or even worse than the global financial crisis,” he said…

  • There are 43 banks on Fed watch list.
  • A commercial real estate meltdown looms, triggered by high downtown vacancies in major cities.
  • Prices have plunged up to 70% since 2019!

Rising defaults may well trigger major turmoil in the credit markets later this year.”

The U.S. Dollar ‘will die’ with BRICS new currency, warns Robert Kiyosaki.

“BRICS nations announce gold backed currency. Trillions of U.S. $ rush home. Inflation through the roof. Buy Gold, Silver.

Giant crash coming. Fake money-aka [fiat] currency to die. BRICS meeting in S. Africa August 22 to put the nail in the coffin of fiat…fake money,” he said.

Why BRICS Currency Will Devalue Dollar, Other Fiat Currencies – Economist Mike Maloney has pointed out, “It would be virtually impossible to institute a gold-backed currency at current gold prices, when you consider the vast amount of global currency compared to the scarcity of gold.

Since the world’s gold supply can’t be doubled or tripled, gold’s price would have to increase substantially to accommodate such a currency.”

U.S. Economy To Reach Hyperinflation if BRICS Becomes Global Currency.

Heritage Foundation economist E. J. Antoni warned that the U.S. dollar is on the brink of losing its reserve currency status. Antoni explained that if developing countries ditch the dollar and trade in BRICS currency, the debt ceiling crisis could worsen.

The economist rang the warning bells saying that if America fails to fund its deficit, 70 years of deficits could flood the U.S. economy. He said that if such a situation arises, the U.S. economy might fall into hyperinflation where prices of all commodities would skyrocket. It also means we could no longer export inflation abroad. So we’d bear the full cost of future inflation ourselves,” he said to the Daily Caller.

The U.S. stock rally has no fundamentals and Fed rate hikes will ‘break the back’ of something in markets, top economist David Rosenberg says.

In a CNBC interview Thursday. The veteran economist has been warning a recession has already hit U.S. corporate profits, and that stocks will plunge back into a bear market when a broader downturn sets in.

Investors Should Start Preparing for Stock Market Losses: Goldman Sachs predicts a potential 20% or more stock market sell-off in the coming months. 5 reasons now is the right time to prepare for a downturn… Downside protection is attractively priced. Narrow market rally suggests drawdown risk is elevated. Valuations are high in absolute and relative terms. Equities already price an optimistic outlook. Positioning is no longer a tailwind to equities.

Warren Buffett’s favorite market gauge hits 171%, signaling stocks are overvalued and a crash may be coming. (Yahoo.finance)

The Buffett Indicator has surged to 171% as investors bet on AI, rate cuts, and a soft landing.

The famed investor has touted the gauge as “probably the best single measure” of stock valuations.

Warren Buffett’s favorite market gauge is flashing red, signaling that US stocks are overpriced and in danger of plunging.

Don’t miss the last Great buying Opportunity in the world’s Cheapest asset 💴

Chart shows gold’s fiat currency price now at $3,668/oz. (M2 money supply) When value catches up with the amount of pandemic money printed by tbe Fed…

This catapults gold to $2,500 and then $5,000 by 2026 – Midas Touch Consulting | Kitco News.

Gold has been gearing up for its breakout to $2,500 for the past 12 years, and it must now break the final resistance level to open up its “phenomenal” upside, according to the research company.

Since 2011, gold has been in some form of consolidation pattern,” he said. “All it takes for gold is to break through this $2,070 level. From $1,920, gold can rally $600 in the next 6 to 8 months easily.” From a technical perspective, gold can reach $2,500 an ounce quickly and then advance to $3,500 and $5,000. “The upside is phenomenal,” Florian Grummes, Managing Director at Midas Touch Consulting said.

You are going to see more and more problems cracking up in the real economy over the next few months,” he said. “And at some point, they will be forced to lower rates again.” (Collapse] is the final outcome in any fiat money system … The only question is how long it takes,” he said.

Gold, silver and oil will skyrocket if U.S. economy pulls off a soft landing – Jim Wyckoff | Kitco News.

“A recession-free soft landing for the U.S. economy will send commodity prices skyrocketing as global demand picks up” according to Kitco Senior Market Analyst Jim Wyckoff.

“We’ve seen a solid rebound in the gold market, and a strong rebound in the silver market,” he said. “There’s a growing notion in the marketplace that there may be only one or two more small Fed rate hikes before this tightening cycle is over. That’s good for the U.S. economy, that’s good for the world economy. It means strong demand for commodities.”

Gold/Silver: A breakdown in two-year treasury yields triggers the next bull market | Kitco News.

The Fed will be forced to pivot on rates. At that point, Treasury Yields will have “peaked,” marking a top in the U.S. Dollar and a bottom in Gold.

Gold then up $650 to $2,500 in the next 12 months. The recent correction gives us another excellent opportunity to add to core positions. As we expect Gold to make new all-time highs and Silver to break $35/oz.

🏦 Fed will raise rates to 6% in 2023, gold could hit $10k by 2025 – Tom Luongo | Kitco News

“I think he [Powell] will raise again, and possibly even raise multiple times before the end of the year,” Luongo told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. “We’ll wind up somewhere around 6% by the end of the year.”

Luongo had correctly forecast in 2022 that Fed Chair Jerome Powell would continue to hike into the 4.5 to 6% territory in 2023, when many analysts were forecasting a pivot or pause.

Banking ‘Implosion.’

As the Fed tightens monetary policy, Luongo expects more bank failures across the United States.

“I just see the entire banking system imploding, detonating like a nuclear bomb,” he said.

Luongo sees commercial real estate loans, which many regional banks are exposed to, as a catalyst for the next series of bank failures.

Gold. As the banking system collapses and the economy enters a recession, Luongo is forecasting that hard assets like gold will benefit.

“If we look at the 1970’s as a model, we are looking at $8,000 to $10,000 in gold minimum, over the next couple of years,” he forecast.

Gold investment will quadruple as precious metals return to four decade mean Rick Rule – Kitco news.

The worlds #1 commodity expert Rick Rule, who runs the world’s largest fund, said…

“The run up in gold prices has just scratched the surface of precious metal’s potential” according to the former CEO of Sprott Holdings and founder of Rule Investment Media.

“It’s important to consider how far gold can go,” Rule said. “Precious metals-related investments comprise less than 1/2 of 1% of all savings in investment asset classes in the United States. The four-decade mean market share is 2%. Debt and deficits will propel gold’s investment market share to the 4-decade mean at a minimum. “If that’s correct, demand for precious metals-related assets will increase 4-fold, which is precisely what I think is going to happen.”

The U.S. Congressional Budget Office acknowledges the dollar is losing 7% of its purchasing power per year. What’s always driven the gold price, more than anything else, is people’s concern about the maintenance of their purchasing power in more conventional savings instruments,” he said. “There is nothing that should worry savers more than interest rates which are insufficient to keep pace with inflation.”

$50,000 gold is likely once the monetary system returns to a gold standard – John Butler | Kitco News.

“As the world transitions to a gold standard monetary system, the price of gold will skyrocket to $50,000 per ounce,” said John Butler, Head of Treasury at TallyMoney.

Physical gold & silver represent a safer, sounder store of value than debt instruments denominated in fiat Federal Reserve notes – which are a fraud perpetrated on the American people.

Federal Reserve notes, masquerading as dollars, have supplanted Constitutional U.S. dollars which were backed by specific quantities of gold and silver.

A wise person prepares for the future, while a fool ignores the facts and faces the consequences. – Proverbs 27:12

Throughout history, every fiat currency ever issued has become worthless… Printed into oblivion by the government who issed it, with an average life span of just 27.5 years.

💵 When the link between the U.S. dollar and gold was severed in 1971- that limited the amount of currency our government could print, based on the amount of gold reserves to back its value – the fate of the U.S. dollar was sealed.

Over the last 50 years the U.S. dollar has lost over 90% of its purchasing power, while gold has increased 58 times in value!

The relationship between the price of gold and the U.S. national debt, shows a clear long-term trend. As debt continues to expand, gold continues to be the ultimate safe haven for investors seeking financial security.

💰 Gold has maintained its value over time better than any other asset on Earth. That makes it the best place to store wealth.

As history shows over the long term, gold retains its purchasing power better than fiat cash or debt in any form. It has stood the test of time as the longest reigning hedge against inflation, economic turmoil, and uncertainty in the global financial markets.

In fact, during the Great Recession in 2008 and 2009. The value of more common stores of wealth like stocks and real estate plummeted, but during that time, the price of gold nearly doubled.

On April 1st 2019, Gold was reclassified to being a zero-risk tier 1 asset. It was put in place by the G20 as a result of what happened in the banking crisis of 2007-2008. Making it a critical component to every Investment Portfolio.

Gold provides proven asset protection that safeguards money from stock market declines, global economic crisis, financial bubbles and currency devaluation. (inflation)

According to a study by Ibbottson & Associates (A division of analytic giant MorningStar) investors who had 20% of their assets in physical gold and silver, experienced significantly higher returns with less risk and Market volatility than those who didn’t.

Because gold shows virtually no correlation to stocks and bonds. Meaning it can rise when paper assets fall.

Unlike a fiat currency, gold’s value can never be hyperinflated away. Unlike a bond, it can never default. And unlike a publicly traded company (stock) it can never go bankrupt.

Investors have been diversifying with gold and silver for centuries to limit their exposure to poorly executed monetary and fiscal polices.

Precious metals are a safe, sound and practical means of preserving and increasing wealth.

Summary: In 2023 the stock, bond & real estate bubbles will continue to deflate. And money in the bank will lose much of it’s value, as inflation makes our dollars worth less every day. But, gold will continue to protect and grow savings as it has for 5,000 years.

It is dangerous to own risk assets such as stocks at artificially inflated valuations. It is especially hazardous to own false safe havens such as bonds, when their yields are so low that they are guaranteed to deliver negative real returns. (inflation)

Repositioning IRA/401K retirement-savings out of risk assets (stocks, bonds) and dollar denominator accounts (money market CDs annuities) into gold & silver now, could be the best financial decision you can make.

Gold offers unparalleled profit potential, a proven track record of appreciation, privacy and wealth preservation. It’s the perfect way to protect your money against inflation and overpriced stock market.

Today, more Americans are protecting their IRA/401k savings with physical gold & silver. A money that has no default risk and cannot be inflated away.

Unlike risky mining stocks, or paper gold ETFs, which may not have the metal as promised (Bloomberg) Physical gold & silver are investments that you hold in your hands.

U.S. gold & silver coins have been a popular method of storing wealth for generations, which is no surprise considering that they have outperformed the S&P 500 for the past 25 years ( PCGS 3000 Index) and appreciate at an average rate of 23% in years where inflation is at least 3%.

Gold & silver markets have also produced spectacular returns during periods of relatively high, and rising, nominal interest rates. That’s exactly what happened during the inflationary 1970s, as gold values increased 20 times during the decade. While stocks and real estate prices collapsed.

Don’t wait for the markets to crash. Use inflation and the great dollar devaluation, to make once in a generation returns in guaranteed gold.

Since 1982 Liberty Financial has helped thousands of American Secure their financial future by rolling over their IRA/401K out of the risky stock market into tangible Investments that provide a safe and predictable way to build wealth and protect retirement savings.

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