Corona Virus: Is More Debt The Solution?

  1.  The decline of the American empire continues relentlessly. The citizens look towards their government for guidance and all they see is maniacal debt worship.  Monkey see…monkey do:
  2. New statistics show that credit card debt of millennials now rivals total student loan debt.
  3.  Please click here now. The nation’s so-called “leaders” now appear to function mainly as debt clock operators.
  4. They look like deck hands on a titanic ship of debt.  There are gaping holes in the hull, but the focus is on “making growth great” by loading the overloaded ship with even more crates of debt.
  5. The US government seems obsessed with providing debt-oriented welfare handouts to banks, the military, and stock market investors.
  6. Anyone poor who gets sick is told they don’t need medical welfare, but they will be miraculously healed if they put all their savings into the stock market. 
  7. Please click here now. The growth rate of Corona cases outside of China is alarming.  Corona is widening the horrifying path of destruction created by the debt virus.
  8. “It is big. It’s going to paralyze China. It’s going to cascade throughout the global economy…We should pay more attention to this. And we should try and resist our inclination to buy the dip,” -Mohamed El-Erian, chief economic advisor for Allianz, Feb 3, 2020.
  9. Please click here now. Double-click to enlarge this US stock market chart.
  10. While debt and Corona spiral out of control, America’s leaders waste time drafting legislation to encourage citizens to invest their savings into the stock market… after a ten-year bull run!
  11.  What do India’s citizens think about the situation?  For the answer to this key question, please click here now. When the going gets tough, the tough get going, and go for the gold!
  12. When Indians engage in fear trade (ETF) buying rather than love trade (jewellery) buying, it’s a major red-light signal for the world’s risk-on markets.
  13. Please click here now. Double-click to enlarge.  The world’s “Queen of Assets” is breaking out to the upside from a beautiful symmetrical triangle pattern.
  14. My $1670 target zone could be hit quite quickly as governments race to print and borrow money to support stock markets and stop already-pathetic GDP growth numbers from turning negative.
  15. I’ve urged investors to drop the fantasy that the US government will make them great with more spending and more debt, carry lighter positions in the stock market, and add some bullion for comfort.
  16. It’s plain common sense, given the late stage of the business cycle, global obsession with debt, and the rise of Corona.
  17. The bottom line: The citizens of India understand, but does anyone else?
  18. Please click here now.  Double-click to enlarge this spectacular silver chart.  I’ve highlighted an impressive inverse H&S bull continuation pattern, and both investors and stop loss enthusiasts are getting some great entry opportunities.
  19. Note the bullish volume pattern at the bottom of the chart.  As Corona worsens globally, governments and central banks will resort to what they do best: printing and borrowing more money.
  20. Trump’s tariff taxes pounded the global economy but the Fed bailed him out with a blast of rate cuts and “QE that is not QE”.  Now, Corona could be the final nail in the GDP growth coffin.
  21. The IMF chief predicts that China will have a V-shaped recovery from the virus, and growth will surge towards 10%.  That’s possible, and it would create enormous love trade demand for gold and silver.
  22. Unfortunately, it’s too early to predict the end of Corona.  I also think that while the QE and interest rate policy “welfare programs for the rich” have created a stock market that no longer represents the mainstream economy…governments and central banks can still print and borrow enough money to promote a higher priced stock market.
  23. Gold bullion will remain the star of the global assets show until stock market analysts become convinced that no matter how horrible earnings and GDP growth becomes, they will get bailed out with more QE and lower rates.
  24. Until that happens, my focus in my newsletter is helping investors pick individual stocks that are leaders of the pack.  Once the bailout view becomes universal, mining stock ETFs like GDX, GOEX, GDXJ, and SIL will stage upside breakouts, and join individual leaders and gold bullion in major bull runs.

By Stewart Thomson

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form. Giving clarity of each point and saving valuable reading time.

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