Why President Trump’s administration will create the greatest windfall in history for gold and silver IRA investors.
By Barry Bates – Registered Republican and part of the “Anyone but Hillary” movement.
Most stock and bond investors are realizing that under Trump’s administration inflation fighters like gold & silver are the place to be. President Trump inherits a national debt that has surpassed $20 Trillion. His plan calls for Trillions in increased infrastructure and military spending, but lower tax revenues. While stimulus is required to keep the country afloat a bit longer, the fact remains that these three objectives alone are estimated to add another $5.9 to $15.4 Trillion to the national debt, in just 10 years.
So let’s learn the top 5 reasons why Gold & Silver IRA’s will skyrocket during President Trump’s time in office.
#1 The Petrodollar agreement will most likely dissolve by the second half of President Trump’s first term.
The U.S. dollar is the world’s reserve currency in large part due to the Petrodollar agreement between Saudi Arabia and the United States. This deal forged in 1974, guarantees that OPEC nations will only accept dollars for their oil. In recent Trump statements he’s been very critical of the relationship.
Now let’s see how this relationship is regressing prior to Trump taking office. In his 2015 book “Crippled America”, Trump said, “I’ve never understood why, with all of our own reserves, we’ve allowed this country to be held hostage by OPEC, the cartel of oil-producing countries, some of which are hostile to America.”
And then there are the Twitter posts by @RealDonaldTrump and Saudi Prince Alwaleed bin Talal.
We all know China’s currency the yuan has recently been added to the International Monetary Fund (IMF) basket of currencies. Now, imagine the ramifications once China or the IMF replace the U.S. dollar as the world’s reserve currency. This would cause upwards of 4 Trillion dollars (fiat currency IOUs) to come flooding back home. The U.S. financial system would collapse overnight and Russia and China would be the biggest winners because they already have their own oil agreement in place. For more information please read the Forbes article titled “The ‘Colder War’ And The End Of The Petrodollar”.
#2 The Asian Trade Conflict: President Trump does not eat Chinese food, but he seems willing to serve them their lunch.
There is already a war brewing between China and President Trump. This war is about trade and China devaluing the yuan to make their goods and services more affordable to the citizens of the world.
Trump told a reporter, “It sounds good to say ‘we have a strong dollar’. But that’s about where it stops.”
Many economists believe President Trump will try the back door approach of devaluing the dollar against foreign currencies to make U.S. firms more competitive internationally. Seasoned investors know that gold & silver have always had an inverse relationship to that of the dollar. This is why there are reports of major firms such as J.P. Morgan Chase betting big with buys of 500 million ounces of physical silver.
Trump also touched on the subject with Fox Business’ Neil Cavuto during a debate, “We’ve lost anywhere between 4 and 7 million jobs because of China.” Trump added, “A lot of that is because they devalue their currency.”
Trump also added: “Japan, the same thing. The Japanese were driving down the value of the yen, and giving domestic manufacturers such as tractor maker Komatsu an unfair advantage against U.S. competitors such as Caterpillar. Friends of mine are ordering Komatsu tractors now because they’ve devalued the yen to such an extent that you can’t buy a Caterpillar tractor. And we’re letting them get away with it, and we can’t let them get away with it.”
For their part, China has always been critical of President Trump’s in your face brand of criticism and has officially stated that Twitter is no place for diplomacy or policy and that Trump should close his Twitter account at once.
Why Protectionism and Ignorance is Pricy but not Sound Policy.
Ronald Reagan, while speaking about Protectionism said, “The message I want to leave with everyone here tonight is simple. It’s a lesson history has taught us again and again. Protectionism hurts everyone, but free trade benefits all.”
General Motors is a multinational corporation that sold two-thirds of its automobiles outside the U.S.A. in 2016. In fact, GM sales in China have surpassed GM sales back home. It’s not a conservative stance to slander or single out U.S. firms before policy has even been set. And bullying American companies to take ten steps backwards is not going to stimulate U.S. job growth. President Trump should also consider that over 3 million Americans hold pensions with U.S. automakers. The value of these pensions is tied to the corporate stock which can fluctuate dramatically from a single off the cuff Tweet.
On matters of international trade and cultural awareness President Trump has presented himself as a fish out of water. Let me give you an example and some supporting data.
President Trump called Apple CEO Tim Cook and asked him what it would take to bring jobs back to the USA. President Trump was apparently unaware that Foxconn Technology Group, the company that manufactures Apple and Samsung products just laid off another 60,000 Chinese workers because production has switched from human to robots. The product has less imperfections and production has increased with robots in operation 24/7, a Foxconn executive reports.
This is the big trend in manufacturing and in fact with most repetitious human processes. And it’s not just 1,000s of factories across China that are replacing human jobs with robotics, it’s happening here in the U.S. too.
On Fox Business News, former McDonald’s CEO Ed Rensi said, “I was at the National Restaurant Show yesterday and if you look at the robotic devices that are coming into the restaurant industry — it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who is inefficient at bagging French fries — Robotics are going to cause a job loss across this country like you’re not going to believe”.
President Trump has said things like computers are not safe and it’s better to use a courier to communicate important information. Denying the future and technology advancement, where American companies lead the way, is not a strong trade or growth stance.
Does President Trump next go after any technology advancement in AI or robotics that will eliminate jobs? Drivers of cars and trucks are the next to go and we know that history is never kind to those that attempt to stifle human advancement. If so, it’s a liberal entitlement mentality because protectionism is not a conservative value. In reality protectionism and communism go hand in hand. You can not guarantee every one a pay check, only those willing to do what is required to succeed.
#3 The swamp is so crowded now, that even a crocodile is likely to lose a limb or two.
On June 28, 2006, Henry Paulson was sworn in as the 74th United States Secretary of the Treasury. To divest, Mr. Paulson cashed in 500 million worth of Goldman Sachs stock (where he stepped down as CEO to take a lower paying government gig) and because his new boss President Bush changed the rules, Henry’s windfall was tax free.
Let me mention that in his first public appearance Paulson stated that at the top of his list was correcting the prosperity gap between the wealthiest and working class Americans. Mr. Paulson mentioned the same issue in 2015 and in this 35 second video (posted below) he almost swallowed his tongue laughing so hard over the concept of the gap between the richest and working class Americans. The video is hysterical and tragic at the same time.
Fast forward to the U.S. subprime mortgage debacle of 2008, when it’s Paulson who is the conductor urging our politicians that the survival of the country is dependent on bailing out the big banks, insurance companies and investment firms (his colleagues). After a while even the auto manufacturers started to get in line for a slice of some good old American corporate welfare.
Did these money titans humble themselves before the American taxpayers that paid for their rescue? No, they paid some of the largest bonuses in their respective firms’ histories.
Do you think the board of Goldman Sachs was glad they sacrificed their CEO to run the treasury? It’s clearly a strategy that has worked for them because this time they have 7 current and former Goldman employees running the U.S. financial system and advising the Trump administration.
There is a good case that President Trumps administration could almost be called the Goldman Sachs administration.
One issue that really got me on Trump’s side was that he villainized these Goldman Sachs investment bankers that were a major culprit in the last financial crisis. How many times did Trump say Crooked Hillary was under total control of Goldman Sachs? It was like music to my ears right up to the point he proceeded to add one Goldman Sachs elitist after the next.
- Steven Mnuchin, the new Treasury Secretary, is a 2nd generation, 17-year veteran of Goldman Sachs, his father spent 33 years with the firm and his brother was a VP. In 2009, Mnuchin led the purchase of failed subprime mortgage lender IndyMac. The bank was renamed One West and received a 900 million dollar bailout. Last year, One West was acquired by CIT bank where Mnuchin sits on the board and owns 100 million in stock. Mnuchin is now a Hollywood producer.
- Gary Cohn, is stepping down as Goldman Sachs’ president and COO, he‘s a 27 year veteran with the firm and has been named as the Director of the National Economic Council.
- Stephen Bannon, named as Trump’s Chief Strategist in the White House is a former M&A VP at Goldman Sachs.
- Jay Clayton, a Wall Street defense lawyer from the Manhattan law firm Sullivan & Cromwell, who advised Goldman upon accepting a 5 billion dollar TARP bail-out has been tapped as the Chairman of the Securities and Exchange Commission (SEC). Clayton’s wife Gretchen is currently a VP at Goldman Sachs.
- Dina Powell, a partner at Goldman Sachs, has given up a 2 million dollar a year gig to become a senior adviser to both Ivanka Trump and her husband Jared Kushner.
- Erin Walsh, worked at Goldman Sachs since 2010 as Executive Director in charge of its Office of Corporate Engagement for Asia Pacific and is now part of Trump’s transition landing team for the State Department.
- Anthony Scaramucci, a former VP of Private Wealth Management at Goldman Sachs was named to Trump’s Presidential Transition Team Executive Committee.
Now let’s look at how Goldman Sachs stock started to move the day Trump won as if someone knew that he was going to load his team with their current and former employees. This is certainly insider trading because all of us believed he was actually going to drain the swamp.
When the major investment banks need another bail-out, do you think they will get it? Of course they will. It’s why these investment bankers leave a 20 million dollar a year job for a $205,000 a year government post in the first place.
Have you ever met a retired billionaire? Nobody has.
These billionaire crocodiles in the swamp are going to make sure that they eat plenty, and what’s left over is going to their cronies and not you and I. With this group of Trump advisors I’m personally not counting on there being enough meat on the bone for the trickle down effect. It’s the 2017 version of a perception deception and you would be wise to own gold & silver and not to expect these Goldman Sachs elitists to (finally) do the right thing for the working man or women.
#4 Increased spending and decreased revenue means more debt. It’s just basic math.
Let’s talk numbers. President Trump inherited $20 Trillion in debt which is more than our nation’s total annual output (GDP). But wait, the U.S. politician is generally sneakier than you and I. There are many things that they don’t count on the running debt, so lets look at some numbers from USDebtClock.org to get a better understanding of how much we really owe.
“A Promise Made is a Debt Unpaid” – Robert W. Service
According to USDebtClock.org, and Cato.org, the total debt is staggering. Similar to the Roman Empire which fell because of government handouts and debt, today’s runaway liabilities may mean the end of America the great.
And when you eliminate the 52% of Americans that are already on some form of government assistance and pay no taxes, each contributing taxpayer would have to come up with an impossible $1.9 million dollars to pay off this debt.
The interest on this debt alone grows by $78,000 per year for each capable taxpaying citizen.
Passing the buck to your grandchild isn’t when you give them money in a card for their birthday, it’s when you straddle them with a cool $1.9 million in debt the day they were born.
President Trump’s plans call for increased spending on infrastructure, military and a decrease in tax revenues. While I for one appreciate paying lower taxes like billionaires do; there is no doubt that the increasing debt levels are heading to the stratosphere.
President Trump’s stimulus will add another $5.9 to $15.4 Trillion to the debt in just the next 10 years. This is why the growing debt is #4 on my list of why gold and silver will skyrocket within Trump’s first term in office.
#5 War Is Coming: You don’t load the bus with generals if you’re going to a soccer game or Disneyland.
War is last on my list as to why gold & silver will skyrocket only because it’s harder to see on the horizon than other events when one peers toward the future. Here’s who President Trump and his team have decided to target first: China!
In his confirmation hearing to become the 69th Secretary of State, Rex Tillerson took an extremely hard stance on the subject of the South China Sea by stating “We’re going to have to send China a clear signal that, first, the island building stops,” he then continued “And second, China’s access to those islands also is not going to be allowed.”
The Global Times, a Chinese Government sanctioned newspaper, swiftly and aggressively responded by saying “unless Washington plans to wage a large-scale war in the South China Sea, any other approaches to prevent Chinese access to the islands will be foolish.”, They continued, “Tillerson had better bone up on nuclear power strategies if he wants to force a big nuclear power to withdraw from its own territories.”
Although the situation in China is escalating rapidly, Trump and his new Secretary of Defense, General James Mattis, may have their sights on easier targets first.
General Mattis who has historically been very critical of Iran has stated, “Iran remains the single most belligerent actor in the Middle East,” whose “consistent behavior from 1979 through today shows no signs of changing.” According to General Mattis, Iran is “the single most enduring threat to stability and peace” in the Middle East.
Trump has called the U.S. nuclear deal with Iran a “disaster” and “the worst deal ever negotiated”, he also said it could lead to a “nuclear holocaust.”
“Every morning I woke up and the first three questions I had, had to do with Iran, and Iran, and Iran.”
– James Mattis
General Mattis’ hard-lined stance on Iran coupled with Trumps’ desire to “rip up” the “disaster” of a nuclear deal place Iran firmly in the cross hairs of this administration.
Another potential conflict is brewing with North Korea.
As I mentioned, I can’t be positive when President Trump will go to war, but you can be sure I will have plenty of gold and silver on hand before we find out. If you agree with me that President Trump will make a fortune for gold and silver investors, then call a Certified Gold Exchange advisor today at 1-800-300-0715 and find out how a self directed IRA or 401k can help secure your future. Thanks for sharing and joining the conversation in the comments section of this blog. Happy investing!