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Perspective
By Rich Checkan
Bitcoin was invented in 2008. Bitcoin’s first use as a currency was in 2009.
Bitcoin’s most famous use case as a currency was in May of 2010, when Laszlo Hanyecz bought two Papa John’s pizzas (costing $41) with 10,000 Bitcoins.
Nearly fourteen years later, with Bitcoin trading just over $87,000, nobody wants to spend Bitcoin at all. Not on two pizzas. Not on anything.
This is a point Porter Stansberry made last fall in Miami. We were both speaking at Joel Nagel’s Annual President’s Week conference. You know the feeling. You have something of value, but there is virtually nothing that would make you part with it.
Gold and Bitcoin are similar in that way because of their hardness. Over time, there will be less and less of both. Sourcing more in the future will be at a minimum more difficult… and potentially, impossible. As a result, they should both benefit their owners over time as stores of value.
After five thousand years, gold is clearly established as a store of value. Bitcoin may get there some day, but it is currently trading as a speculation… at least that is what the price action tells us.
Why Sell?
If you own gold, you understand the emotion that comes with letting go of an asset that is proven to hold purchasing power. And since fiat currencies like the U.S. dollar are mismanaged by fiscally irresponsible politicians, you know that feeling you get in your gut when faced with selling gold that you know will command more dollars in the future.
So… why are people selling gold here?
If nobody wanted to sell, why would they? It seems completely 180 degrees out of phase with what they should be doing… especially in the early stages of a bull market in gold.
The only answer I can think of is they have no choice.
Think about it. To compel you to do something you have a visceral objection to doing, you need to believe you have no other alternative.
And that is where we are today.
Despite the rosy picture we hear about the economy, things are pretty tough out there for the middle class.
First off, Chairman Jerome Powell’s shallow assessment that American household savings and finances are strong because consumer spending has increased reveals how out of touch he is with the reality most Americans face.
American consumers are spending more because prices are higher this year than they were last year. Last year’s prices were higher than prices two years ago. Prices two years ago were higher than prices three years ago.
You get the picture.
Sure, up until the end of last year, the rate of inflation has come down, but prices are still climbing in an environment where consumers were already tapped out. Now, on top of that, the rate of inflation is on the rise again over the past few months.
Second, when everything you need costs more, you spend more to get it. But when wages are not keeping up with inflation, you must find the money somewhere else.
Home equity is where struggling Americans went first. They refinanced their homes, pulled some cash out of the equity, and met the rising costs of their needs.
With the increase in interest rates, refinancing means moving from a three percent mortgage to an eight percent mortgage. Nobody is willing to do that.
Credit cards are where struggling Americans turned next. Now, we have a record high credit card debt of $1.211 trillion with credit card interest rates averaging over twenty percent. Nobody is willing to do that any longer.
Where Do American Consumers Turn?
Gold and silver.
Gold and silver are two of the most liquid assets on earth. If you need cash for an emergency – no mater how large or how small – your wealth insurance is there for you.
Remember, gold as wealth insurance is a store of purchasing power, with high liquidity, for a potential financial crisis you hope to never have.
None of us hoped the politicians would vastly outspend revenue. None of us hoped the Federal Reserve would expand the money supply hyperbolically (the very definition of inflation). None of us hoped the Federal Reserve would aggressively hike interest rates to tame the price inflation they created.
None of us hoped for the financial crisis we are in as a result.
But gold is the solution regardless for many. That is what wealth insurance does. That is what your gold is there for.
So, despite that horrible feeling in the pit of your stomach when you contemplate selling gold, Western investors are doing just that.
Bankruptcy and default are very compelling motivators.
What to do?
If you need to sell, sell. Do not hesitate. Gold and silver can help. We can help.
If you are fortunate not to need to sell, consider buying here. Better yet, let us know – with a quick call or an email – that you are in the market for gold and silver. As clients sell, we can reach out to you with strong pricing.
This bull market has a long way to go. As I mentioned last month, none of the indicators of a transition to a bear market are even close to signaling the turn from bull to bear.
Dips are opportunities to buy well.
Visit our online store. Send us an email. Call us toll free at (800) 831-0007 so we can help you Keep What’s Yours!
And… to get a better grasp on the economy, the markets, and how to position yourself going forward, be sure to join us next Wednesday, March 12th, at 7PM EST for the next editionof On the Move. Adrian Day and I look forward to a vibrant exchange with Peter Schiff.
Register Here to join us…
—Rich Checkan
Editor's Note: Peter Schiff is a best-selling writer and economist who is one of the few forecasters who accurately and publicly predicted the 2007 housing market collapse, plus the subsequent 2008 financial crisis. He will be the featured guest at our next On the Move webinar on March 12th at 7 pm ET. Register for FREE today.
Feature
They Completely Missed the Point on Inflation
By Peter Schiff
Once again, the media missed the real story.
The Wall Street Journal and New York Times, among many others, reported that consumer prices, as measured by the Consumer Price Index, rose 3% year-over-year.
And everybody seems to accept that story, that annual inflation is now up to 3%. This is a small uptick from the annual rate that was reported in December, which was 2.9%.
Federal Reserve Chairman Jerome Powell even told Congress yesterday that we’re “close” to the 2% inflation target, “but we’re not quite there yet,” as if things were moving in the right direction. And lawmakers just nodded along. No one challenges the Fed Chairman. Not the politicians. Not the media.
But anyone who actually looks at the full inflation report can see the real story.
It’s true that the annualized inflation rate increased from 2.9% to 3%. But month-over-month, prices increased 0.5% just between December 2024 to January 2025.
That 0.5% monthly increase in prices works out to be over 6% inflation on an annualized basis.
And in case you’re thinking that was just a single month aberration, it wasn’t. Look at the data. Over the past several months, inflation has been accelerating.
Last June, inflation actually didn’t rise at all month-over-month, i.e. 0.0%.
But then from June to July, it started to increase again, to 0.2%.
And then as the months went by the month-over-month numbers stayed at 0.2%, until November when they rose higher to 0.3%, then 0.4% in December, and now 0.5%.
This is clearly a trend. Inflation is accelerating.
Yet, bizarrely, Jerome Powell claims it’s in a “good place.”
There’s literally nothing in the data to suggest that inflation is in a “good place,” and I don’t understand how he can possibly say that with a straight face.
Honestly, this might go down on the Jerome Powell greatest hits list, right alongside when he claimed there were no problems in the financial system two days before Silicon Valley Bank went bust.
The Fed just doesn’t seem to get it. The politicians who are supposed to provide oversight don’t get it. The media which is supposed to hold all of them to account doesn’t seem to get it.
But you know who does get it?
The gold market.
Gold has been making fresh all time highs for most of the last year. And yet there has been a strange disconnect between the gold price, and gold-related companies. Traditionally, if the price of gold surges, gold-related companies will also increase in value— i.e. big mining companies see their stock prices surge.
But that hasn’t happened this time around.
And that’s because investors, up until now, seem to have believed that the gold bull market was going to come to an end and that gold prices would fall.
This inflation report proves the opposite.
Inflation is not over, which is very bullish for gold. And now we’re finally starting to see investor interest in gold companies.
Take Barrick Gold, for example. They just crushed earnings expectations, are flush with cash, and announced a $1 billion share buyback.
And other major producers are seeing their stock prices surge as well.
Investors are starting to wake up to the reality that the gold bull market is just beginning. And gold companies are laughably cheap.
Again, we’ve been saying this for a while: the fact that gold is at an all time high, and gold companies are cheap, is an opportunity that won’t last.
That window may finally be starting to close.
Editor's Note: Dennis Miller is regular contributor to MarketWatch, as a “RetireMentor”. This article was originally published on February 20, 2025. Visit Miller, On the Money to subscribe to his retirement investing newsletter today.
Hard Stuff
When The Scorekeeper Lies, We All Lose
By Dennis Miller
This ZeroHedge article grabbed my attention:
“Why Nobody Believes The ‘Data’:
As inflation remains painfully high for American consumers, the Consumer Price Index (CPI) is woefully inadequate in terms of reflecting reality.
…. CPI excludes several significant costs faced by households today – ranging from property taxes to soaring interest payments.”
The Bureau of Labor Statistics (BLS) is the inflation scorekeeper and “Nobody Believes The Data.”
Wolf Street adds:
“Inflation Festers in Core Services.
… The PCE price index…started accelerating again. …. The driver of inflation has been and still is in “core” services, which, at 3.8%…remains substantially higher than before the pandemic.
…. There hasn’t been any progress on inflation since May, with the Fed’s favored inflation measures well above its 2% target. ….”
I contacted John Williams, publisher of “Shadow Government Statistics”, defined as “Analysis Behind and Beyond Government Economic Reporting”.
John calculates inflation using the same method used in 1980, no substituting hamburger for steak; he keeps score without changing the rules.
John explained two government agencies produce the statistics. The Bureau Of Economic Analysis (BEA – inside the commerce department) produces the inflation numbers the Fed relies on. The BLS, (inside the labor department) produces the Consumer Price Indes (CPI) which “nobody believes.” Neither reports reflect reality for most of us.
Bill Bonner chimes in:
"Anyone who thinks economics is a science must have a Ph.D. or a hedge fund to promote. The rest of us know it’s voodoo. ….
‘History shows no clear correlation between real prosperity and the keeping of macroeconomic statistics,’ writes Reuven Brenner.”
PJ Media reports:
“The Bureau of Labor Statistics had to come clean and heavily revise downward its wildly inflated job numbers. …. The report revealed that the Biden-Harris administration brazenly overstated job creation by a staggering 818,000 between March 2023 and March 2024.”
Latest update:
“…. The Bureau of Labor Statistics (BLS) released the latest jobs report,…there was a scandalous downward revision to the jobs numbers that were reported during President Biden’s final year in office.
…. The BLS has adjusted its previous estimates, revealing that on average, the Biden administration overestimated the monthly employment numbers by an average of roughly 626,000.
…. Even the bogus numbers are worse than what we were originally told.”
Friend Chuck Butler constantly warned us the reported jobs number was bogus; the scorekeeper was lying while politicos trumpeted their policies were working.
Some History
John explained the government continually changes their headline inflation calculation methods; generally followed by quiet downward revisions later.
Inflation is the government’s friend. Before the 1980s, Social Security benefits weren’t indexed to inflation; each month’s check bought a little less.
Inflation also allowed the government to raise taxes without having to pass unpopular tax increases. Taxpayers moved into higher tax brackets, more money to the IRS – called “bracket creep.”
The high-inflation Carter years changed things.
Citizens were angry, demanding social security and tax brackets be indexed for inflation.
Some excerpts from John’s Consumer Price Index (CPI) reports:
“Individual use of a CPI measure generally is tied to personal financial decisions…targeting financial returns that would stay ahead of inflation.
Accordingly, individuals look to the government CPI as a measure of the cost of living – maintaining a constant standard of living.
The CPI at one time met those parameters however, the government turned the CPI away from measuring the price changes in a fixed-weight basket of goods and services, to a quasi-substitution-based basket of goods, which destroyed the concept of the CPI as a measure of the cost of living of maintaining a constant standard of living.”
He explains why scorekeepers unilaterally fudged the calculations:
“Because the Politicians Wanted It. In the early-1990s, political Washington moved to change the nature of the CPI.
…. The plan was to reduce cost of living adjustments for government payments to Social Security recipients, etc.
The cuts in reported inflation were an effort to reduce the federal deficit without anyone in Congress having to do the politically impossible: to vote against Social Security.
The inflation-calculation changes had the further benefit to government fiscal conditions of pushing taxpayers artificially into higher tax brackets, thus increasing tax revenues.
[Katherine] Abraham, the Clinton (BLS) commissioner, remembers sitting in Republican House Speaker Newt Gingrich’s office:
He said to me, ‘If you could see your way clear to doing these things, we might have more money for BLS programs.'”
Politico Shell Game!
Congress passed a law indexing Social Security benefit increases to the CPI; then instructed the BLS to quietly create phony calculations and take it back.
A 2012 Gallup poll asked, “Please tell me how you would rate the honesty and ethical standards of people in these different fields …. Their findings? “The bottom of the list is populated by the obvious: car salespeople and members of Congress.”
Unethical politicians do a lot more damage than shady car salespeople!
John shows us the impact of the phony numbers. The red line is the reported BLS numbers. The blue line is Shadowstats’ calculation based on the methodology used in 1980.
In late 2024, using the 1980 calculation methods, inflation was still well above 10%. Consumers were being told everything was under control. We knew better, “Nobody believes the data”.
Government Piles On!
While the intent was to screw Social Security recipients, the impact of the scorekeeper lies affects much more.
There are two benchmarks for the public to gauge inflation in helping with financial planning to protect wealth; government statistics (known to be false) and gold prices.
Ed Steer and the Gold Anti-Trust Association have been vocal about gold price suppression:
“Their objective is to deprive the independent observer of any reliable benchmark against which to measure the eroding value, not only of the US dollar, but of all fiat currencies. Equally, they seek to deny the investor the opportunity to hedge against the fragility of the financial system by switching into a freely traded market for non-financial assets.”
Governments don’t want the public understanding the true inflation number and buying precious metals as a hedge. They want investors buying bonds, financing their ever-growing government spending. When they couldn’t hoodwink enough investors to buy bonds, they simply printed money to make up the spending shortfall.
Don’t be fooled by the Fed’s stupid 2% target! The real target should be zero, calculated as John does, a constant basket of goods, no change in the basket, just their prices.
In 2015, the government BLS showed zero inflation. John’s real numbers indicated true inflation around 7.5%. T-Bills were paying around 2%; investors were losing approximately 5.5% in buying power holding US government debt. Keep that up and you’ll go broke!
Phony government statistics don’t pay the bills!
The End Game.
The new administration can scream from the rooftops about the previous administration publishing blatantly phony stats; politics as usual. It’s going to take radical change to get things turned around.
Bill Bonner asks:
“Can you really get ‘there’ from ‘here?’ Here we are… a late, degenerate empire sitting on a debt bubble that is ready to blow sky high… run by people who benefit from inflation and deficits.
‘There’ is a peaceful, ‘soft landing’… bringing debt under control without a depression… avoiding a meltdown and controlling inflation.
Javier Milei, in Argentina, seems to be headed ‘there.’ Inflation has been reduced by 90%. Government payrolls have been trimmed (significantly) …. And the nation ran its first budget surplus in 123 years.
But Milei did not start from ‘here’…he started from a much different place, with 250% inflation and half the population living in poverty.”
Argentina, once one of the most prosperous countries in the world, allowed their politicos to spend them into oblivion, creating historic inflation; half the country is now in poverty. Middle class, gone….
The majority of American voters are screaming, “enough is enough!” We don’t need a 50% poverty rate…. Will the politicians listen and do their job?
ZeroHedge quotes Ludwig von Mises:
“There can be no secret way to the solution of the financial problems of a government; if it needs money, it has to obtain the money by taxing its citizens…(or) by borrowing it…. But most governments, think there is another method for getting the needed money; simply to print it.
…. The gold standard offers a strict check against the inflationist tendencies of governments. In such a system, the government cannot create new units of money to finance its spending, so it must resort to taxation, which is notably unpopular.”
If politicos can’t justify tax increases to cover their spending, then don’t spend the money. Kitchen table, common sense economics, plain and simple.
John compares the gold price to published inflation numbers concluding, “The Market Price of Gold Broadly Continues to Confirm the Level of the ShadowStats Alternate Inflation Updated for the Latest Daily Gold Price in 2024.”
Note the red dot when phony CPI calculations began. The gold price has not only beaten the phony numbers, gold has kept up with true inflation as calculated consistently for the last 45 years.
Recession or depression? Who knows – hedge your bets. Friend Chuck Butler and I continually preach “Got Gold?” Gold is doing its job!
Editor's Note: ASI Co-Founder Michael Checkan would like to direct your attention to a worthy cause... the Roberto Clemente Health Clinic, a philanthropic endeavor of The Oxford Club's former CEO & Executive Publisher Julia Guth.
The Inside Story
Nicaragua's Hidden Health Gem: The Roberto Clemente Health Clinic
By Michael Checkan
My recent journey to Nicaragua's Southwest coast revealed more than stunning landscapes and unspoiled beaches. It unveiled a remarkable healthcare initiative that’s been transforming lives for nearly two decades, in a region where access to quality medical care is often scarce.
A Legacy Born from Tragedy
The Roberto Clemente Health Clinic stands as a living tribute to a baseball legend whose humanitarian spirit continues to inspire. Named after the Pittsburgh Pirates star who died in a plane crash on December 31, 1972, while delivering aid to earthquake victims in Nicaragua, the clinic embodies Clemente's dedication to serving others.
What began as a vision has flourished into a vital community resource. My friend and long-time colleague - Julia Guth, Chair of The Oxford Club's Advisory Council - recognized the critical need for healthcare services in this underserved area and took action. With support from the Pittsburgh Rotary International, The Oxford Club, and Rancho Santana resort owners, she established a 501(c)(3) nonprofit organization based in Maryland to bring this vision to life.
From Humble Beginnings to Healthcare Hub
When the clinic first opened its doors in 2004, it operated with just one doctor and one nurse. Today, it has blossomed into a comprehensive healthcare facility employing 24 staff members who provide around-the-clock care, 365 days a year. Under the skilled medical direction of Dr. Hazel Ruiz, the clinic has expanded both its reach and capabilities.
My tour of the facility revealed an impressive operation. The executive team, including their operations director, comptroller, and programs director, demonstrated clear vision and commitment to their mission. Their professionalism and dedication were evident in every aspect of the clinic's operations.
Witnessing Community Impact Firsthand
I was fortunate to visit during the Clinic's annual Health Fair—a vibrant demonstration of their community impact. Hundreds of parents and children lined up for free check-ups and received necessary medications at no cost. The Ministry of Health contributed significantly by bringing a large mobile facility providing much-needed dental services.
The atmosphere was festive despite the serious healthcare purpose, with plenty of entertainment for children including a clown, piñata, and various games. The fair also showcased the collaborative spirit of the region, as other notable non-profits serving the community in education and sports maintained informational booths throughout the event.
Serving Those Most in Need
The impact of the Roberto Clemente Health Clinic extends far beyond its walls. Thousands of families in the surrounding communities now have access to both emergency and primary healthcare services that were previously unavailable or inaccessible. For many residents, the clinic represents their only option for quality medical attention without traveling substantial distances.
The clinic's 24/7 availability ensures that medical emergencies can be addressed promptly—a crucial factor in a region where transportation challenges can make reaching distant hospitals difficult or impossible in critical situations.
Facing Challenges with Determination
After two decades of continuous service, the clinic's physical infrastructure is showing signs of wear. The building has weathered numerous storms and the harsh Central American climate, creating the need for significant renovations. The executive team is now planning a comprehensive facility upgrade and equipment modernization to ensure they can continue providing quality care for years to come.
These renovations aren't merely cosmetic—they're essential to maintaining the clinic's ability to serve its growing patient population effectively. Modern medical equipment and a structurally sound facility are fundamental requirements for delivering the level of care that the community deserves. Anything you can donate to support this renovation goes directly to the Clinic, and a dollar still goes a long way there.
A Model Worth Replicating
What makes the Roberto Clemente Health Clinic particularly remarkable is its operational model. By combining international philanthropic support with local healthcare expertise and leadership, the clinic has created a sustainable approach to community healthcare that could serve as a blueprint for similar initiatives elsewhere.
The Spirit of Roberto Clemente Lives On
It seems fitting that this healthcare initiative bears Roberto Clemente's name. Just as he was known for his excellence on the baseball field and his humanitarian heart off it, the clinic strives for excellence in healthcare while embodying a deep commitment to service.
As the clinic continues its mission, it honors not only Clemente's memory but also his belief that to truly help others, one must give their best. For the staff and supporters of the Roberto Clemente Health Clinic, giving their best means ensuring that quality healthcare remains accessible to all who need it—regardless of their circumstances.
For more information, check out www.nicaclinic.org. If you are interested in donating, it is tax-deductible….and the clinic accepts all forms of payment, including precious metals.
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