Hubris is a deadly sin. It is an arrogance and conceit of the highest degree that eventually leads to failure. As we reach the final stages of the current economic cycle, hubris is prevalent everywhere. Central bankers and bankers believe that they can continue to create wealth by printing and borrowing money. Since it has worked so well for 100 years in this latest cycle, why can’t it continue? Throughout history, governments have attempted to set aside the natural laws of sound money by manipulating the financial system using criminal methods like counterfeiting and creating money out of thin air. With their hubris, they believe they can get away with their evil deeds. All they would need to do is to look at history. Long term, no one has ever got away with creating a system based on fake money, unlimited debt, zero or negative cost of money with the government and the bankers being the main beneficiaries. They will of course not succeed this time either but the power and massive wealth created by a small elite make the “Powers That Be” so corrupt and so arrogant that they can’t even see the consequences.

Last week, we were again reminded of the global instability and disequilibrium. In the UK, the conservative Prime Minister Theresa May decided 9 weeks ago to call an election. This was done due to the conservatives being 20 percentage points ahead of their Labour rivals in the opinion polls which would have led to a strong backing for the Brexit negotiations as well as another five years in power. But things went disastrously wrong. An extremely badly run campaign by Mrs May and an opportunistically clever campaign led by the Labour leader Corbyn have led to a hung parliament. Like all socialists, Corbyn promised the earth and no one cared about that this would bankrupt the country. The conservatives are now dependent on a small Northern Ireland party as well the Scottish conservatives. The effect of the election is total political chaos that will weaken a UK which is already in a mess with a high debts and untenable budget and trade deficits. But the EU bureaucrats led by Mr Junker are of course delighted. They know now that Mrs May who was for a hard Brexit will have to go at some point and the EU will have the upper hand to reach a soft Brexit or no Brexit at all.

The general public doesn’t like hearing what some of us who are Cassandras have to say. Because our message is does not fit in with the choir of propaganda and lies. We are predicting a future for the world which is unpleasant for most people and therefore few believe our predictions. It is part of human nature to believe that the current state of affairs will go on forever. And that is the case whether times are good or bad. In bad times, everyone believes that it will never end. I remember vividly the 1970s in the UK when it felt like the severe recession was going to be permanent. It is the same now; conventional wisdom says that the economy will continue to grow at a steady pace and so will assets such as stocks and property. Very few realise that the growth we have seen in the last few decades is totally false and based on credit and printed money.

Time and time again we are seeing fraud taking place in the precious metals’ market. Thousands of tonnes of paper silver and paper gold are being dumped over just a few hours or days. For anyone who doesn’t understand what is happening, let me categorically state that this has nothing to do with the real […]