Dear all,
A lot is happening in the world of economics and politics which I am spending a lot of time tracking and trying to understand what the implications are. I have been keeping people informed primarily through my YouTube show with Martin North on the ?In the Interests of the People?.
Whether in Australia or globally, inflation is now raging and some central banks are weakly attempting to fight inflation, while others refuse to address it (i.e., the Bank of Japan and European Union).
Given that we have the largest debt bubble in world economic history, the raising of interest rates (by small amounts relatively) has already seen major collapses or selloffs in cryptocurrencies, equities (shares) and bonds at arguably the fastest pace in world economic history.
The dramatic effects over the past few weeks were driven by the exposure of the monstrous lie that inflation had peaked in the United States and the follow-up of a 0.75% increase in official interest rates by the US Federal Reserve.
In the United States, consumer confidence is at the lowest level ever, economic investment is falling through the floor, production is slowing and household consumption is starting to wane. This process is expected to intensify as interest rates are expected to be lifted in the US by another 0.5% or 0.75% in July 2022.
In the Australian context, where we have the largest household hyper debt bubble in Australian history, the impacts are going to be swift.
While stating that official interest rates wouldn?t increase to 2024, the current interest rate rise is both aggressive and quick and we are seeing in real time that:
However, even though the impact of these interest rate rises are just beginning, they are significant enough that some Australians who have been reckless with debt will go under. The pain for Australian households will continue to gather pace as market economists expect the Reserve Bank of Australia to raise official interest rates by 0.5% in July and August 2022 respectively.
However, the question is going forward is whether global central banks (in particular western central banks like the United States and Australia) are willing to go all the way in fighting inflation?
Such a campaign will very likely result not just in a deep recession but risks a major financial crisis (whether locally or globally) through uncontrollable liquidity and credit risk events (especially major debt defaults)?
My view to this fundamental question is no ? the ruling establishment (including central banks) are not willing to bankrupt themselves by shrinking the debt bubble through deflation. Even though it is correct public policy to pursue, the political and financial implications for the ruling establishment are too great for them to retain their power.
At some point into the future when the economic and financial risks and pain becomes too much, central banks such as the US Federal Reserve and the Reserve Bank of Australia, coupled with their national governments, will capitulate and go back to ultra loose economic stimulus policies such as zero to negative nominal interest rates, quantitative easing, yield curve control, etc which will keep inflation at much higher levels than their stated inflation target.
The question is when will this capitulation occur and what will be the economic ramifications from it? How bad will the stagflation in the coming years be?
Gold and Silver from As Good As Gold Australia
As you would be aware, I have been concerned about inflation and a devaluation of fiat currencies such as the Australian dollars for years.
This is why I have been a keen advocate for precious metals (especially silver) and I have been the Chief Economist with As Good As Gold Australia since mid-July 2018 (coming on 4 years).
Within the context I have painted above, precious metals (physical gold and silver) are currently at very attractive prices and are likely to rise higher once central banks signal their intention to end tightening monetary policy and resume their easing campaign.
This is why I continue to accumulate more physical gold and silver bullion at current prices.
If anyone would like assistance in obtaining more physical gold and silver bullion to protect their wealth during the current inflation, please feel free to contact me and I will be able to assist.
Upcoming Seminars in Adelaide and Newcastle
It has been over 12 months since I have been able to present at an As Good As Gold Australia seminar given the tumult of the COVID-19 lockdowns over the past 12 months.
Nevertheless, I am happy to announce that I will be back presenting at two specific seminars in the next 2-3 weeks ? they being in Adelaide (South Australia) on 13 July 2022 and in Newcastle on 20 July 2022.
The theme of the seminars will be ?Staying Free in a Dangerous World ? Australia is heading into the Abyss.? At these seminars, I provide my latest economic and political thoughts in relation to both Australia and as well as to the world at large.
If you would like to attend wither one of these events, you can purchase a ticket via the following links:
Adelaide: https://www.eventbrite.com.au/e/370494909247
Newcastle: https://www.eventbrite.com.au/e/371265634507
Tickets to our Adelaide seminar is almost sold out.
Donations
Finally, for those who wish to support my efforts to fight on your behalf and on the behalf of the Australian people (which I don?t get paid for), any financial donation is much appreciated.
You can make a donation by going to www.adamseconomics.com and hitting the ?donate? button. If someone would like to provide a donation through another mechanism other than Paypal, please feel free to approach me.
All donations which are made helps me to continue to doing the work which I have been doing over the past 4 years.
How to Follow Me?
If you haven?t yet, please feel free to follow my work either through subscribing to the ?In the Interests of the People? channel on YouTube or by following me on Twitter, Facebook (I have a dedicated Adams Economics Facebook page) or Telegram.
I often post on social media multiple times a day where I post key updates or my thoughts on breaking events.
With regards to YouTube, if you wish to receive notifications of when Martin and I post a new show, make sure you following two step process:
On Telegram, my dedicated group is ?Adams Economics? and we have over 11,200 followers. If you are currently on Telegram and would like to join, feel free to join up on the group through the following link: https://t.me/AdamsEconomics
Lastly, if you a member of ?Adams Economics? on Telegram and for some reason you have been blocked (maybe through the anti-spam bots) please contact me and I will ensure that your account is unblocked and that you will be able to resume making comments in the group chat.
All the best for now,
Cheers,
John Adams
A lot is happening in the world of economics and politics which I am spending a lot of time tracking and trying to understand what the implications are. I have been keeping people informed primarily through my YouTube show with Martin North on the ?In the Interests of the People?.
Whether in Australia or globally, inflation is now raging and some central banks are weakly attempting to fight inflation, while others refuse to address it (i.e., the Bank of Japan and European Union).
Given that we have the largest debt bubble in world economic history, the raising of interest rates (by small amounts relatively) has already seen major collapses or selloffs in cryptocurrencies, equities (shares) and bonds at arguably the fastest pace in world economic history.
The dramatic effects over the past few weeks were driven by the exposure of the monstrous lie that inflation had peaked in the United States and the follow-up of a 0.75% increase in official interest rates by the US Federal Reserve.
In the United States, consumer confidence is at the lowest level ever, economic investment is falling through the floor, production is slowing and household consumption is starting to wane. This process is expected to intensify as interest rates are expected to be lifted in the US by another 0.5% or 0.75% in July 2022.
In the Australian context, where we have the largest household hyper debt bubble in Australian history, the impacts are going to be swift.
While stating that official interest rates wouldn?t increase to 2024, the current interest rate rise is both aggressive and quick and we are seeing in real time that:
- mortgage interest rates are rising aggressively;
consumer confidence has plummeted;
mortgage/rental stress is going up; and
property listings in NSW ? Sydney and surrounding regions are rising at a faster pace.
However, even though the impact of these interest rate rises are just beginning, they are significant enough that some Australians who have been reckless with debt will go under. The pain for Australian households will continue to gather pace as market economists expect the Reserve Bank of Australia to raise official interest rates by 0.5% in July and August 2022 respectively.
However, the question is going forward is whether global central banks (in particular western central banks like the United States and Australia) are willing to go all the way in fighting inflation?
Such a campaign will very likely result not just in a deep recession but risks a major financial crisis (whether locally or globally) through uncontrollable liquidity and credit risk events (especially major debt defaults)?
My view to this fundamental question is no ? the ruling establishment (including central banks) are not willing to bankrupt themselves by shrinking the debt bubble through deflation. Even though it is correct public policy to pursue, the political and financial implications for the ruling establishment are too great for them to retain their power.
At some point into the future when the economic and financial risks and pain becomes too much, central banks such as the US Federal Reserve and the Reserve Bank of Australia, coupled with their national governments, will capitulate and go back to ultra loose economic stimulus policies such as zero to negative nominal interest rates, quantitative easing, yield curve control, etc which will keep inflation at much higher levels than their stated inflation target.
The question is when will this capitulation occur and what will be the economic ramifications from it? How bad will the stagflation in the coming years be?
Gold and Silver from As Good As Gold Australia
As you would be aware, I have been concerned about inflation and a devaluation of fiat currencies such as the Australian dollars for years.
This is why I have been a keen advocate for precious metals (especially silver) and I have been the Chief Economist with As Good As Gold Australia since mid-July 2018 (coming on 4 years).
Within the context I have painted above, precious metals (physical gold and silver) are currently at very attractive prices and are likely to rise higher once central banks signal their intention to end tightening monetary policy and resume their easing campaign.
This is why I continue to accumulate more physical gold and silver bullion at current prices.
If anyone would like assistance in obtaining more physical gold and silver bullion to protect their wealth during the current inflation, please feel free to contact me and I will be able to assist.
Upcoming Seminars in Adelaide and Newcastle
It has been over 12 months since I have been able to present at an As Good As Gold Australia seminar given the tumult of the COVID-19 lockdowns over the past 12 months.
Nevertheless, I am happy to announce that I will be back presenting at two specific seminars in the next 2-3 weeks ? they being in Adelaide (South Australia) on 13 July 2022 and in Newcastle on 20 July 2022.
The theme of the seminars will be ?Staying Free in a Dangerous World ? Australia is heading into the Abyss.? At these seminars, I provide my latest economic and political thoughts in relation to both Australia and as well as to the world at large.
If you would like to attend wither one of these events, you can purchase a ticket via the following links:
Adelaide: https://www.eventbrite.com.au/e/370494909247
Newcastle: https://www.eventbrite.com.au/e/371265634507
Tickets to our Adelaide seminar is almost sold out.
Donations
Finally, for those who wish to support my efforts to fight on your behalf and on the behalf of the Australian people (which I don?t get paid for), any financial donation is much appreciated.
You can make a donation by going to www.adamseconomics.com and hitting the ?donate? button. If someone would like to provide a donation through another mechanism other than Paypal, please feel free to approach me.
All donations which are made helps me to continue to doing the work which I have been doing over the past 4 years.
How to Follow Me?
If you haven?t yet, please feel free to follow my work either through subscribing to the ?In the Interests of the People? channel on YouTube or by following me on Twitter, Facebook (I have a dedicated Adams Economics Facebook page) or Telegram.
I often post on social media multiple times a day where I post key updates or my thoughts on breaking events.
With regards to YouTube, if you wish to receive notifications of when Martin and I post a new show, make sure you following two step process:
click on the bell which can be found near the notification button
ensure that your YouTube settings have been enabled so that you can receive notifications.
On Telegram, my dedicated group is ?Adams Economics? and we have over 11,200 followers. If you are currently on Telegram and would like to join, feel free to join up on the group through the following link: https://t.me/AdamsEconomics
Lastly, if you a member of ?Adams Economics? on Telegram and for some reason you have been blocked (maybe through the anti-spam bots) please contact me and I will ensure that your account is unblocked and that you will be able to resume making comments in the group chat.
All the best for now,
Cheers,
John Adams
