With the average duration of employment sitting near record highs - at more than twice the average of the prior three decades - the nation's largest "growth industry" has become advertising on mindless websites; where the hordes of unemployed - and sadly, the employed as well - congregate to pass time between entitlement checks.
But those days are long over, replaced by an era in which "markets" have been commandeered by the same printing presses that are simultaneously destroying economies and nations alike. The unfolding collapse of China's historic "shadow banking" bubble is case and point of how printed currency funnels through economic systems like a financial cancer; as is the Ukrainian revolution, catalyzed by a financial collapse that enabled "big brother" Russia to exploit it; or, for that matter, the expanding collapse of the Brazilian Real, which caused S&P to downgrade it yesterday to just one notch above junk status.
taxes foisted upon citizens - and not just "traditional" taxes like those on income and sales, but
capital controls such as the oppressive FATCA rules being implemented by the U.S. government; and when things get bad enough, "bail-ins" and other wealth confiscation measures. As economies weaken, and governments grow, the inexorable push towards fascism, socialism, and eventually communism gains momentum. And when the dominant monetary system - or, in today's world, the only monetary system - is based on fiat decree; surging taxation is matched only by the smoke pillowing from the printing presses.
For example, the great Michael Snyder details a whopping 97 taxes currently paid by Americans- essentially all of which are rising - of which none are considered in the CPI or other government "inflation gauges." And on his heels, the Sovereign Man notes that when accounting gimmickry is excluded, the U.S. government is spending 26% of all incoming tax revenues on Treasury interest payments; i.e., far above the levels that have annihilated equally powerful empires over the ages. Worse yet, the national debt is starting to rise parabolically; and amidst a rapidly weakening global economy, the odds of tax revenues materially increasing in the coming years are close to ZERO. Putting the "icing on the cake," the only reason this percentage is not far higher is the dollar's role as "reserve currency" - which to date, has made many nations reluctant to sell it en masse; and, of course, the Fed's unending "quantitative easing" program, which enabled it to purchase close to 100% of Treasury issuance in 2013, and something not far from that figure today.
Care of QE, the Fed has countered the aforementioned inflation and debt explosion - not to mention, expanding global hatred of the U.S. - by artificially suppressing Treasury yields torecord lows. Thus, we'll leave it to you to decide which way yields are likely to move in the future, particularly if the Fed were actually to attempt to end QE - which it can't, and won't. Not to mention, the likely change in demand for dollars relative to gold, silver, and other items of real value.
Frankly, the "global hatred" of the U.S. and its dollar cannot be underestimated. American military, economic, and particularly monetary imperialism has left the world on the brink of ruin. This is why "anti-dollar" blocs are being established; and thus, when Obama calls for Russia to be ejected from the G8 economic co-operative, the emerging BRICS bloc forcefully protested. It is also why Russia, in turn, signed an historic energy trading agreement with China this week, with another with India on the cusp. And not to be underestimated, expansion of the world-destroying currency war that will ultimately define the end of the dollar's reign; with China's recent decision to weaken the Yuan serving as an ominous sign that the "race to debase" is about to take a dramatic turn for the worse.
Hence, the inexorable growth in global demand for real money; i.e., PHYSICAL gold and silver. Here at the Miles Franklin Blog, we have explicitly demonstrated this trend for more than a decade and said trend is accelerating with each passing month. Yesterday, we wrote of how Russia and Iraq alone were major buyers in March; and today we learned the blockbuster news that China's February gold imports (via Hong Kong) were an astounding 109 tonnes - or three times the Ukraine's entire, supposed gold reserves. In 2014's first two months, the pace of Chinese gold importation ran so hot, it was on a pace to shatter the 2013 record, which itself was double the previous record, set just a year earlier. To wit, for the first two months of 2014, Chinese net gold imports through Hong Kong totaled a whopping 193 tonnes, up nearly 140% from the 81 tonnes imported in the first two months of 2013.
Remember, in the unending "sea of lies" perpetrated by the "evil troika" of Wall Street, Washington, and the MSM - such as today's vicious PAPER attack just after the 10:00 AM ESTclose of the global PHYSICAL markets, just hours before expiration of the COMEX April gold contract - your best defense is the TRUTH; and, of course, a healthy amount of PHYSICAL gold and silver to protect your assets from the inexorable march of inflation. Why buy gold (and silver), we ask? Let us count the ways...