MARKET BRIEFING
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Forest fires are a natural and healthy phenomenon. Forest fires eliminate dead growth which fertilizes and allows nature to “reset” so to speak. It provides a clean slate for a healthy new forest to regrow. Bailouts on the other hand, are like fire suppression. Instead of allowing the dead growth to burn and become fertilizer, it allows all that dead growth to accumulate... And eventually you have so much dead growth that you can’t afford to have a forest fire. That’s because the fire would become too large and too out of control. We saw this several years ago in California, when practically the whole state was on fire. Decades of fire suppression in state parks and elsewhere, created so much dry, and flammable fuel that a single spark from a cigarette They had a front row view as trillions of dollars were printed during COVID and the enormous inflationary crisis that it created. Everybody knows something has gone terribly wrong, but most people don’t really understand what to do about it. So to fight inflation, as we know, the Fed embarked on the fastest and most aggressive rate hiking policy in history. That caused the value of U.S. Treasuries to plummet by as much as 50%... turned into a disaster for the state. That’s where our country is today. And many Americans have woken up.
PORTER: Amy, when I first made my End of America documentary in 2011, I thought I had already seen the peak of monetary insanity. Of course, things have only gotten worse since then. But I believe that 2008 was a significant turning point that we’ll look back on as the moment when the general American public received a front row view of how our government and the Federal Reserve distort our money and our economy. Americans got to see first-hand how Wall Street was bailed out, and even received huge compensation packages. Meanwhile, virtually no relief was offered to millions of Americans who lost their homes, their jobs, and in many cases their lifesavings in the aftermath of the mortgage crisis. And now they get to have their savings wiped out by inflation. And I think that was the moment when Americans, maybe even people reading this today, knew that something was not right with our money. The Occupy Wall Street movement was an early manifestation of that. So was the creation of bitcoin around the same time in 2010. Now of course, I wasn’t the first to predict or see this inevitable outcome... My mentor Doug Casey, for example, first warned that America was heading in this direction back in the 1970s. When Nixon severed the tie to the gold standard, Doug could see what the government was doing to our money. But it wasn’t until the aftermath of the mortgage crisis when Americans, and people internationally too, began to seek an alternative to the U.S. dollar. AMY: And you think that was a critical turning point? PORTER: 2008 was definitely the critical turning point. It was the most obvious time where the whole world could see, “Oh, America is not going to make good on these debts. They’re going to keep printing money.” I think the best way to explain it is to borrow a metaphor from the chief investment officer of Universa Investments, Mark Spitznagel, who’s a genius. Amy, when the government bails out banks, like they did in 2008... What they are doing is akin to suppressing a forest fire.
Remember, these are the same “risk free” assets that banks were forced to hold after the mortgage crisis. And the same assets so called “experts” have told retirees to hold for decades in a traditional 60/40 portfolio. And as these bonds crashed in value, it led to a run on banks
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