A deal has been pushed through at the 11th hour regarding the collapse of Credit Suisse after it was revealed that UBS would take over the troubled bank for $3 billion along with a guarantee of $8 billion francs from the Swiss government and $100 billion liquidity backstop from the Swiss National Bank. In spite of all this, bank runs continue. 'Fortunately', the bankers at Credit Suisse have been guaranteed their bonuses before the handover. Mass layoffs are set to take place as a result of the takeover, on top of the 9,000 people C.S. already laid off in the last 12 months.
How about that? The bank is a complete failure but those guys at the top are still getting their bonuses, just like those over at Silicon Valley Bank, who got their bonuses paid out literally in the final 24 hours of operation. Yet, there's one problem with UBS buying C.S.. UBS was bailed out themselves after the Great Financial Crisis in 2008. On top of that, the Swiss National Bank lost $142 billion in 2022 gambling in stocks and currency speculation. According to Egon Von Greyerz of Matterhorn Investments, the SNB is the world's biggest hedge fund and the least successful.
This banking merger will just kick the can down the road and only delay the inevitable. There are those who see what's coming. Are they the ones who pushed gold above $2,000 USD overnight? I can tell you that as soon as we get news that yet another bank is in trouble, it will propel gold even higher.
Bitcoin continues to charge upward, touching $28,486 overnight. At time of writing, Bitcoin has retreated to $27,894. The USD Index is down about half a percent to 103.307 after rising a full point just as the weekend hit.
As for oil, you've probably noticed gasoline prices retreating a bit. WTI is down to $66.24, down $10 in the last month while Brent Crude is down to $72.54 which suggests a drop in demand. Usually, a drop in demand this noticeable means we're entering or are in a full blown recession. In the meantime, enjoy the lower prices at the pumps. You certainly deserve it.
Did you know that in 2022, four oil companies collectively had record total sales of $1 trillion as gasoline prices hit record highs? You might think this is a bad thing but actually, it's a good thing. The previous few years were horrendous for the oil companies and to see a rebound like this is encouraging because they'll need that cash for re-investment.
Investment in energy is incredibly depressed and at 30 year lows! The green movement is failing and we'll need oil and gas to survive whether the green movement likes it or not as there simply is not enough rare earth metals to fuel the green electrification movement.
Finally, there's silver. While everything is coming undone and so out of whack, here's poor silver languishing at just $22.43 at time of writing. This is a precious metal and for good reason. It is a monetary metal as well as an industrial metal, yet here it sits at this ridiculously low price. I can almost guarantee that it won't stay at this low price for much longer. Just as we're seeing bank runs with people standing in long lines to get their cash, we are starting to see runs for silver (and gold). A lot of dealers are reporting that they're running out of silver products. Andy Shectman at MilesFranklin.com warns in a Youtube video uploaded this weekend that gold and silver supplies are drying up.
I'll tell you right now, there isn't enough silver to go around. There's no more time to waste. At these stupid low prices, you can buy 3 ounces of silver for a $100 USD note at retail prices. We've seen explosive inflation. We've seen war erupt. We're now seeing banks collapse, sparking bank runs. We're now seeing mass layoffs (Facebook, 10,000 employees gone in the last week) and store closures such as retail giant, Walmart closing stores across the U.S.A..
Don't wait until everything comes unglued. If you're just one second too late, then it's all over. Gold hit a record high against the Australian dollar late last week. Since gold went over $2,000 overnight, I can guess they just broke their own record and within a few short days. Soon, we'll see record highs against silver.
It's silver's time to shine. It's undervalued status should be clear to everyone by now. Bix Weir of roadtoroota.com exposed the fact that 1.4Boz of paper silver derivatives were dumped on the silver futures markets in the last month. Somebody's desperate to clear out their positions, huh? That amounts to almost 2 years of mined silver and it was all just paper illusions / promises. All too often, they break their promises.
Another thing I've caught wind of is that the Chinese have started calling their homeland as 'the land of empty containers'. Even CNN was getting wind of this almost one year ago. This is the biggest hint that world trade is slowing down and fast!
It's time to consider investing in precious metals with silver being the bargain of a lifetime. The silver to gold ratio is at about 88 to 1. At this point, it takes 88 ounces of silver to buy one ounce of gold. Historically, the ratio is 15:1 while the geological ratio is closer to 8:1.
If you're looking for an inflation buster, you've just found it!
Peace and love to everyone.
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