Labor Day Ushers In Potential For A Wicked Economic Winter

As the dog days of summer begin to wind down, consternation begins to set in with the harsh potential reality of a nuclear winter and an early and wicked economic winter. As a short business week gets under way, it’s plain to see that the U.S. economy is in for a beating:

  • North Korea has gone beyond saber-rattling with H-Bomb test
  • U.S. factory orders posted their biggest drop in 3 years
  • Debt ceiling discussions historically go hand-in- hand with economic downturns
  • Hurricane Harvey will weigh heavily on upcoming debt ceiling discussions
  • Fed misses August inflation and unemployment targets, substantially
  • Banking industry derivative exposure higher & more dangerous than ever
  • Week begins with a weak market, weaker dollar, and solid gains in crude oil

In addition to everything listed above, the Trump administration continues to show no ability
to generate fiscal reform and the President’s aggressive verbiage about trade, immigration
and North Korea has only served to enrage Jong-un, as well as Putin, Jinping, and Nieto. Due
to a lack of follow-through on many threats made by the American President, we are
witnessing greater aggression on the part of Jong-un and greater support by Moscow and
Beijing.

Geo-political tensions are at a high on an across-the board basis. Safe-haven products are
being snatched up on a quick and growing basis. The availability and lower prices of gold
and silver have generated an investor malaise that’s been tough to shake, but reality has a
way of crashing through all barriers. Now that gold has broken through the $1,300 barrier,
the next stop may not be until $1,370 or $1,400. Silver could run through the $18 barrier and
start to make up ground on the absurdity of a 75:1 gold to silver ratio.

But regardless, the American economy is in for a rough stretch and any investor not prepared
for rapid and potentially devastating market movements is sure to learn a lesson the hard
way. Banks can’t offer protection. The stock market has become the problem instead of the
solution and precious metals offer the only real protection to a world gone mad. Whether the
currency collapses, the market collapses, or governments collapse, precious metals will be
there to offer asset protection to those with the foresight to own. Don’t get caught without a
seat when the music stops!

Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.