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Too Low For Too Long

We have had an epic inflation since 2001. One need only shop on occasion to know this to be true let alone attempt to purchase healthcare either privately or through your employed.

With rates still at the Zero Bound and the Fed now saying if effect "never" when it comes to raising rates to a mere one quarter of one percent clearly the Fed is willing to risk yet another massive inflation and debt apocalypse for reasons that simply defy logic.

Do not fight the Fed.

Tin is up over twenty percent in three months and Silver up ten percent in one week. What they both have in common is that they are excellent conductors of electricity. Tin in fact is an excellent superconductor of electricity when in a liquid state.

Aluminum is a substitute for silver in for example use as a "converter" of sunlight directly into electricity.

Aluminum is also having a good day...at least today.

This says to me paper assets are being substituted for hard assets and one should not be long indeed not even be a buyer of ANY debt.

This includes "debt substitutes" such as pensions and healthcare sadly. Unless and until the Federal Reserve in fact raises rates as it has repeatedly said it will and then does not one must assume the goal is to "inflate away the debt"... never a good thing given the amount of debt and " debt obligations" that Governments invariably create.

The best option of course remains backing the US dollar with a financial asset such as gold and silver.

Since Governments may have determined "it is too late to do that" it is never too late for you the investor/monied interest to buy gold or silver outright.

I like silver the best since it has had such a dramatic fall from its record high of fifty dollars an ounce and also because it has an industrial demand "kicker" (meaning potential commercial scale buyer.)

I do not believe shorting the market is a profitable idea since there is so much liquidity being created (I.e. the natural gas boom, moving the internet to the cloud, displacing the metals complex with carbon fiber, displacing traditional fabrication methods with Three Dimensional "printed" parts, etc...)

Yet another reason to avoid all debt of any kind.

Sadly this does include Government "obligations."

I expect interest rates to rise materially for the remainder of the year. While ultimately good for savers in the immediate term there could be some dramatic shocks along the way.

Historically this comes in the form of Bankruptcies I.e Detroit and Puerto Rico.

I would expect more of that...perhaps much more actually...going forward.

Stick to what you know...in particular that the dollar is still the global Reserve. You can never have too many US dollars.