Dear Reader, We live in an age of disruption. Nearly everywhere you look, technology is bringing down or reworking old business models. But perhaps the biggest disrupter of all, is US President Donald Trump. He is an outsider. And he’s disrupting US politics like no other president before him. I know that Trump isn’t the most popular guy around. Some of his past behaviour is indeed questionable. I’m not excusing that. Nor am I excusing some of his more boorish antics since he entered the White House. But much of the recent criticism and framing of Trump’s general behaviour and policy decisions is a result of how the media has brainwashed us to think about him. An article in The Spectator Australia last week pointed that out starkly: ‘Authors L. Brent Bozell and Tim Graham have now anatomised the US media’s Trump jihad in Unmasked, Big Media’s War Against Trump. They document from the start of the Hillary/Donald race to the Mueller report last March. Typically, 90 per cent of Trump items per month are negative. ‘This bias washes to Australia daily and unrelieved, with added spin from ABC autocue writers and US correspondents. There’s not so much cover here about record job rates for US blacks, Latinos and women, four million fewer needing food stamps, America’s biggest-ever corporate tax cuts, regulations cut by tens of thousands and US shale gas unleashed after eight years of Obama’s obstructions.’ Trump is waging a war on the elites and the institutions that they run. He is ‘draining the swamp’ and putting a lot of powerful people’s noses out of joint. The establishment media are a mouthpiece for the elites. They try to brainwash us every day with the ‘orange man bad’ narrative, while ignoring the positive benefits of Trump’s presidency. But independent thinkers, like you, can see through this. You can see under the surface. If you take up this offer to have a no-obligation peak at my newsletter, Crisis & Opportunity, you can read the three part series I wrote at the end of last year, ‘Trump’s Undoing Project’. In it, I wrote that the US Federal Reserve is one of the key institutions in the centralisation of financial power and dominance of the banks. It all started with the Fed’s creation in 1913. Soon after, the war against gold started. We’ve gone from gold being money in the hands of the people, to gold only being money in the hands of central banks. The ownership of gold has been centralised, and as a result, the financial system has become completely debt dependent and extremely fragile. Now, Trump’s war against the Fed is stepping up… And this is very good for GOLD Last week, Trump announced his intent to nominate Judy Shelton to the board of the Federal Reserve. Shelton is a vocal advocate for gold. The New American has an article quoting Shelton’s comments on gold in a range of publications. For example, in 2018, she wrote in a piece for the Cato Institute: ‘In proposing a new international monetary system linked in some way to gold, America has an opportunity to secure continued prominence in global monetary affairs…’ Here’s more from The New American article: ‘Shelton blames the Federal Reserve for worsening the 2008 financial crisis. ‘“No other government institution had more influence over the creation of money and credit in the lead-up to the devastating 2008 global meltdown,” she wrote in a Wall Street Journal op-ed. “And the Fed’s response to the meltdown may have exacerbated the damage by lowering the incentive for banks to fund private-sector growth.” ‘In addition, Shelton has expressed skepticism of central banks and spoken of the dangers of the politicization of the Fed. ‘“What concerns me is that central banks around the world, the ECB, the Bank of Japan are now buying corporate assets,” she told Fortune in 2016. ‘“I’m wondering how far away we are from the Fed thinking it needs to branch out and buy corporate assets. Will these corporate assets be those from firms that are politically connected?”’ This is just another reason to be bullish on gold. And to buy into the right junior gold stocks, BEFORE they experience sustained up-trends. To be clear, I’m not a fan of returning to a gold standard type arrangement. You can’t fix prices in a free market economy. But it definitely sounds like the Trump administration sees gold as part of the solution to a global financial system that is addicted to credit and debt. One way to correct the huge debt imbalance that exists is to re-price gold much higher. That can either happen by government decree (which I think is highly unlikely) or via the market gradually pricing gold higher in anticipation of monetary reform. In my view, that’s a more likely outcome. Especially as I see a 2020 Trump re-election as highly likely. The Democratic candidates are a rabble. Even with the left wing, establishment media in their corner, they are completely incoherent. The point is, it’s all coming together for gold. In the short term though, the gold price is correcting based on fears that the Fed might not cuts rates as drastically as previously expected. It’s important to try not to get caught up in this narrative. If you look at the chart below, the reason is clear. As you can see, the rally from late May was considerable. The breakout in June added more momentum but there was always going to be a correction. It just needed an excuse. Source: Optuma [Click to open in a new window] That excuse was interest rates. But whatever the cause, the chart paints a bullish picture for gold. I anticipate higher prices in the months ahead. And I anticipate that these small gold stocks could do very, VERY well as a result. Regards, Greg Canavan, Editor, The Rum Rebellion |