Moral Decline Eliminates Hope for Better America

The wishful thinking by equity investors who wanted to think inflation had peaked and that the Fed would soon stop raising rates proved to be a costly assumption when an assumed 0.1% monthly decline turned into a 0.1% monthly increase, leaving the CPI at a smoking hot 8.3% year over year. Stinging equally hard was the Core PPI that rose to 7.3% Year over Year and that compared to a 7.0% market expectation. With rose-colored glasses removed, stocks were hit extremely hard on Tuesday and didn’t even have much of a dead- cat bounce during the next two days. Let’s see what happens on Friday.

Michael Oliver said on my show he thinks gold will need a massive decline in stocks before it heads higher. His prediction that it might head lower along with stocks has proven true this week with the yellow metal falling below $1,700.

Billionaire and CEO of Starwood Capital, Barry Sternlicht, warned the co-authors on CNBC on Thursday morning that if the Fed doesn’t pump the brakes on is rate hikes, the U.S. economy is facing a serious downturn. He said, The economy is braking hard, and if the Fed keeps this up, they are going to have a serious recession and people will lose their jobs.

My response is, of course the Fed won’t stop until they are staring over into the abyss. Then they will pivot, and real money, not dollars, will likely be the last place to hide. Simon Hunt summarized the Fed’s options best. He said its choices are simple. It opts for either hyperinflation or recession. If history is a guide, the Fed will seek to take the short-term easy way out and opt for inflation. But unlike past episodes, this time the inflation cat is likely to leap out of the bag for reasons I hope to have Alasdair clarify on my weekly radio show next Tuesday. Listen live here,, or go to the following day to listen to the podcast.

To be completely honest, I’m pretty much giving up on any hope for things getting better in America because of the obvious moral decline that has afflicted the very top levels of our government and corporate institutions. Immoral monetary policies were turned loose when Nixon removed gold from money. But the words of the prophet Jeremiah (chapter 5:30-31) seem to apply to America right now. “‘An appalling and horrible thing has happened in the land; the prophets prophesy falsely, and the priests rule as the people direct; my people love to have it so, but what will you do when the end comes?’” Whether you believe the bondage of the people of Judea was divinely orchestrated for punishment against the Jews for turning against God or if you simply can make the connections between immoral behavior and economic hardship or bondage under foreign rule, it is very clear to me that the happy and prosperous days of America are numbered, unless things change. And I don’t see it happening under Democrat or Republican rule.

Nevertheless, we must carry on as best we can, even though heavy market manipulation by the ruling elite makes it very difficult for those of us who are not privy to inside information to stay afloat. Michael may be right. It may be that we will have another big run-in gold. But so, what, if our increasingly fascist government decides who can own property and who is not permitted to do so? Increasingly in my old age, I’m committing to leave it joyfully in God’s hands. Really, what other choice do any of us have?

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.