Unlimited Fed Printing vs Gold, Unemployment, COVID

There’s so much to cover, it’s hard to know where to start. So let’s start with what’s not being said. No one, and I mean no one, is dragging out Buffett quotes. Have you noticed that? Instead, I’ve seen Churchill quotes being passed around like candy at a third grader’s birthday party.

Churchill = war

Churchill = living in bunkers and empty metro stations

Churchill = feeling like you’ve lost control of your life

Holy Cow! The unemployment numbers are so big that it’s hard to wrap your head around them. But I did (source).

  • 3.3 million newly unemployed (three weeks ago)
  • 6.9 million newly unemployed (two weeks ago)
  • 6.6 million newly unemployed (last week ending April 4th)
  • 16,800,000 new unemployed in the last three weeks!!!!! 

The United States has never had weekly numbers like these! 

Versus 8,453 COVID-19 deaths (source, source) over the past five weeks (February 29th was the first confirmed death of COVID-19 in the US to April 4th, the ending of the last unemployment numbers.) To put these 8,453 deaths in five weeks in context… on an average day in America, 6,571 people die (this is all deaths).

So… for every COVID-19 death there approximately 2,000 people who’ve had 100% destruction of their income and livelihood. They’ll get their unemployment checks in the next few weeks, but at what cost to their life?

1 death = 2,000 livelihoods destroyed.

All I’m saying is—and I’ll brace for the hate mail—6,571 die in the United States every day and over the span of five weeks, the USA had 229,985 deaths (in total).

Do you see what I’m seeing?

COVID-19 deaths are 3.6% of all deaths over the past five weeks (February 29th to April 4th). Not 3.6% more deaths. Just all the liver-disease, lung-disease, heart-disease, and diabetes-disease deaths are now being called COVID-19 deaths. 

But I’m willing to bet you that at the end of 2020, not a single additional person will have died in this country. This country will still hit its 2.4 million annual deaths (or less). No more. 

I just don’t get it. Quarantine EVERYONE. And crash the economy. And then send everyone some money?

Now look—my mom is in the “high risk” category and so are some of my favorite people in my life. And guess what, she (and they) have been quarantined for four weeks. I call her every morning and ask her if she is still quarantined and talk to her for ten minutes. 

I believe the way our government reacted to this is going to go down in the history books as “what not to do.” This whole reaction reminds of 2009 when people were saying their Prius brakes stopped working. And then Toyota got sued. And guess what was found out? The people who were driving those Prius’ were not driving their own cars. 

They were rentals or their spouses or someone else’s. Those people were hitting the gas pedal and not the brake pedal the whole time. But since they were panicking they didn’t know it. And they died. It’s sad. But it’s not Toyota’s fault. Malcom Gladwell has an amazing podcast on this whole fiasco called “The Blame Game”. 

I could go on but I’d probably alienate even more people. The point is, the cure is worse than the disease. And people know it. And they are mad as hell. 

This is what I’ve got for you this week:

  1. Unlimited printing by the Fed. Get ready for them to start buying stock ETFs. It’s coming. 
  2. Gold, GDX, and Silver have finally (hopefully) gotten fed up with unlimited money printing. It’s about time.
  3. Why buybacks are dead. So… who’s going to buy the stock market?
  4. The Airline Industry
  5. Cruise Line stocks
  6. How low-volatility ETFs fell so much harder than the “dangerous” Nasdaq
  7. Five indicators to know if we have bottomed

…and so much more.  

You can watch it all in this week’s video:

Would you be willing to spend $95 to make $950? $9,500? With one click, I’ll show you how to get control back over your life. 


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