Submitted by QTR's Fringe Finance
I was incredibly honored to welcome my good friend Andy Schectman of Miles Franklin Precious Metals back onto my podcast this week. I haven’t talked to Andy since May and wanted to get his take on the upcoming election and the state of gold and silver markets for my readers.
In our discussion this week, we talked about:
the potential impact of recent left-wing policy proposals, including price controls and taxing unrealized gains, on the economy and markets.
concerns raised about the negative effects of taxing unrealized gains, such as market destabilization and capital flight, which could harm economic growth
criticism of policies like increased capital gains taxes, down payment assistance, and tax credits, arguing they could accelerate inflation and economic instability
discussion on how immigration policies are perceived to be overwhelming the U.S. system, raising costs, and impacting the economic balance
claims that mainstream media is gaslighting the public into believing misleading narratives, affecting public opinion and policy support
analysis of current geopolitical issues, including U.S. relations with Russia, Ukraine, China, and the Middle East, and how these might be impacted by the election outcome
insights into gold and silver markets, including central bank purchases, delivery dynamics on exchanges, and the potential impact of Federal Reserve policies on precious metals
descriptions of the perceived decline in the quality of life and infrastructure in U.S. cities compared to Europe, citing issues like crime, homelessness, and deteriorating public services
predictions about possible future economic scenarios, including the decline of the U.S. dollar's reserve currency status and the rise of a new global economic order centered around commodity-backed currencies
Andy expresses strong opposition to several economic policies proposed by the Harris administration. He argues that these policies are "anti-American" and could have disastrous effects on the economy.
Schectman criticizes taxing unrealized gains as one of the most "ridiculous anti-American things" he has ever heard. He explains that taxing unrealized gains would force those with significant investments to liquidate their holdings, potentially causing market crashes. "You crater the market, whatever market that is," Schectman warns, emphasizing the destabilizing effects such a policy could have on job creators and investors.
Another policy under scrutiny is the proposal to increase capital gains tax for those earning over a million dollars. Schectman argues this would lead to further market collapses as investors are compelled to sell assets to cover tax liabilities. He describes this approach as "stepping on the inflation accelerator" due to the government's simultaneous attempts to provide various tax credits and incentives, which could exacerbate fiscal irresponsibility.
Schectman also criticizes the use of tax dollars for reparations and first-time homebuyer tax credits, which he sees as fiscal irresponsibility at a time when the country is facing severe economic challenges. He also points out the contradictory nature of increasing taxes while simultaneously providing substantial fiscal incentives, describing the overall approach as a recipe for economic disaster.
We also highlighted the overwhelming costs associated with unchecked immigration, which Andy claims is putting immense pressure on the country's social systems. He criticizes the approach of raising taxes rather than trimming government spending, stating, "It's a pretty sad state of affairs."
Schectman touches on the influence of media in shaping public opinion and perception, particularly among those he sees as being misled by controlled narratives. He claims that much of the public is "gaslit" into believing narratives that support these policies, contributing to a divided and misinformed electorate.
He then discusses his concerns about market stability, particularly in relation to the Federal Reserve's actions and broader economic indicators:
Andy speculates about the Federal Reserve's potential actions, suggesting that the market is expecting a more aggressive rate cut than the anticipated 25 basis points. He argues that with debt levels soaring and inflation much higher than reported, lowering rates could spur temporary gains in the stock market but would ultimately devalue the dollar in terms of real purchasing power.
From there, we talk about precious metals. Obviously, Andy is bullish on gold, citing its performance relative to other assets over the past 25 years. He notes that significant amounts of gold and silver are being drained from Western exchanges like COMEX and LBMA, indicating a strong demand driven by concerns over economic stability. "The biggest money in the world understands this," he states, pointing to central banks' large-scale gold acquisitions as evidence of a shift in economic strategy towards hard assets.
The discussion also delved into geopolitical issues, particularly how international relations and conflicts could affect economic stability.
We highlighted multiple geopolitical conflicts, including tensions between the U.S. and Russia, China-Taiwan relations, and Middle Eastern conflicts. Andy argues that these conflicts, combined with the current U.S. administration's policies, have damaged the United States' international standing. "This current administration has done more to destroy our image internationally than any external foe could have ever done," he claims.
Andy then discusses the potential consequences of the U.S. losing its status as the world's reserve currency. He suggests that countries are increasingly moving away from the dollar due to its perceived instability and the U.S. government's policy decisions, such as weaponizing economic sanctions. He warns that this could lead to a severe decline in the U.S. standard of living and economic power.
And he’s pessimistic about the future unless there is a significant change in policy direction. Andy outlines the severe consequences of the U.S. potentially losing its status as the world's reserve currency. He argues that such a loss would devastate the U.S. economy, leading to hyperinflation, a collapse in the value of the dollar, and a significant reduction in the standard of living.
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