The Tsunami Running Up a Canyon

No matter where you look, everyone is heading for the exits. [The Rude Awakening] April 04, 2023 [WEBSITE]( | [UNSUBSCRIBE]( The Tsunami Running Up a Canyon - It’s not just Russia and China moving on from the USD. - The Indian rupee has become the surprise currency of choice. - The Global South doesn’t want sanctions and unpayable interest. [New Biden Bucks Follow-Up Available Now]( Hey, it’s Jim Rickards. Since posting my original Biden Bucks presentation online, millions of people have viewed it. Snopes and the Associated Press have even attempted to “fact check” me and claim my warnings are false: Point being, my message has raised a storm and caused a lot of controversy. But in the time between my message and now, a lot of new developments have come to light. That’s why I’ve just released an update to my original prediction… one which will likely be even more controversial. [>> Click here now to access my new 2023 Biden Bucks follow-up](. [Click Here To Learn More]( [Sean Ring] SEAN RING It’s another gorgeous morning here in Il Piemonte. I hope the sun shines on you and yours and the coffee is fresh and aromatic. Following on from yesterday’s monthly asset class report, where we brought good tidings for gold, silver, and bitcoin, I want to follow up with more information. I saw some cracking videos and tweets this weekend that corroborate the theory that the USD will weaken substantially over time and that gold and silver will hit all-time highs. Much to my shock, Bitcoin may do the same because that chart went from “broken” to “maybe we’ll hit $48,000” quickly. I will put what I saw in a logical and easily digestible order, so that you can see what I see. The upshot is this: because the dollar’s demand abroad is falling rather fast, those dollars will flood the US domestic market, driving inflation far higher than even Jay Powell suspects. That inflation will drive the prices of gold, silver, and Bitcoin much higher than they are right now. So even if you haven’t bought any of those yet, you have time. Let’s begin. The News The fact that countries want to escape sanctions and high interest is not really news. But what is new is that there’s an alternative to the US dollar taking shape. Most Western economists agree that unseating the USD is a near-impossible task. But none of these countries are listening to these economists. In fact, it seems like the Global South will do anything short of madness to escape the grip of the USD… and USG. It certainly helps when [Russia forgives your debt, as they have in Africa]( to the tune of $20 billion. When was the last time the Western world did that? And don’t give me the appropriately named Band-Aid stuff. As in a “Band-Aid” on a broken leg. The BRICS (Brazil, Russia, India, China, and South Africa) are [working on a currency to displace the dollar](. ASEAN (Association of Southeast Asian Nations) comprises Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Laos, Myanmar, Cambodia, and Vietnam. The association is discussing reducing dependence on the US Dollar, Euro, Yen, and British Pound from financial transactions and moving to settlements in local currencies. From the [ASEAN Briefing]( Indonesian President Joko Widodo has urged regional administrations to start using credit cards issued by local banks and gradually stop using foreign payment systems. He argued that Indonesia needed to shield itself from geopolitical disruptions, citing the sanctions targeting Russia’s financial sector from the US, EU, and their allies over the conflict in Ukraine. Moving away from Western payment systems is necessary to protect transactions from “possible geopolitical repercussions,” Widodo said. Of the ASEAN nations, just Singapore has enforced sanctions on Russia, while all other ASEAN nations continue to trade with the country. There has been alarm at being caught up in US-led secondary sanctions, as are short to impact Central and South Asia countries involved in cotton manufacturing, a major industry in the region employing millions of people. Before you dismiss these two economic blocs, have a look at their populations: BRICS Nations: - Brazil: 213.8 million - Russia: 144.5 million - India: 1.366 billion - China: 1.394 billion - South Africa: 59.6 million - Total BRICS population: 3.178 billion ASEAN Nations: - Indonesia: 276.6 million - Vietnam: 98.3 million - Thailand: 69.8 million - Philippines: 108.1 million - Malaysia: 32.8 million - Singapore: 5.7 million - Brunei: 0.4 million - Cambodia: 16.7 million - Laos: 7.2 million - Myanmar: 54.0 million - Total ASEAN population: 669.6 million Therefore, the combined population of BRICS and ASEAN nations is 3.178 billion + 669.6 million = 3.847 billion. So, just under half the world’s population resides in these two blocs. They’re worth watching, aren’t they? Even Senator Marco Rubio seems to have finally caught on: [SJN]( Credit and watch the clip here: [@Glenn_Diesen]( [Warning: Will “Bidenflation” Destroy Your Retirement?]( If you’re like most Americans, you’ve worked hard for decades to build your financial legacy. And now, as a result of Biden’s disastrous money printing policies, that’s all at risk. According to one top retirement expert, “Bidenflation” threatens to destroy your retirement and make your hard-earned savings worthless. That’s why you must take action right away to protect yourself… [Click here now to get the simple, step-by-step actions to survive “Bidenflation.”]( [Click Here To Learn More]( The Explanation Simple - but not oversimplified - explanations are always the best. Peter St. Onge, Mises Fellow and Austrian economist, performs the impossible. He makes understanding reserve currency, the dollar system, and inflation easy. [SJN]( Credit and watch the video here: [@profstonge]( I’ll paraphrase the professor’s video. Professor St. Onge correctly states that though the USD is the world’s reserve currency, that status doesn’t benefit dollar holders. It benefits those who print the dollars. Those beneficiaries are the US Treasury (via the Fed) and the commercial banks (who get to make more loans because of higher dollar demand). He asks us to think of it like this: The Fed prints a “river” of ever-increasing dollars which flows into the “money-supplied reservoir” where domestic USD holders float. Another river flowing out of that reservoir matches foreigners' (formerly ever-increasing) demand for USD. The dollars move through the domestic economy (the reservoir) out into the world economy without benefitting domestic USD holders. Now imagine if those same foreigners now don’t want those dollars anymore. That could be because the Fed created too much inflation or countries pay for things with their currencies. Those dollars would come flooding back up the river to the “money-supplied reservoir” of US holders. The USD holders be inundated with dollars, driving up inflation and the prices of goods and services in the domestic economy. USD holders - especially US citizens that must deal in USD - would get their purchasing power wrecked. Peter calls this the “Tsunami Running Up a Canyon,” from which this piece gets its title. This doesn’t mean this will happen tomorrow. But it’s increasingly likely that it will happen. Please watch the video if you have a chance. It’s well worth 4 minutes of your time. The Charts Before I get to the charts, good friend and ace Austrian economist Thorsten Polleit posted this video about the banking collapse and why it’s wise to hold gold and silver. [pub]( Credit and click here to watch: [Thorsten Polleit]( Here’s a great chart of Gold: [pub] Credit: [@gilmoreport via The Daily Chart Report]( Up and to the right. We suffered through a dip. It won’t be smooth sailing. But we’ll get up there. I’m still looking for $3,000. Here’s Silver: [pub] Credit: [@TaviCosta]( Yes, we can hit $48 when all is said and done. If we breach $50, the sky’s the limit. As for Bitcoin: [pub] We certainly can hit $48,000 from here. It’s not sure, but things are looking up. Wrap Up Things are in motion we can’t possibly stop. But we can protect ourselves and minimize the harmful effects on our wealth. In fact, we can prosper during these turbulent times by buying metals that have withstood the test of time. And maybe even the electronic version of it will shield us from the inevitable, imminent pain our brainless leaders have foisted upon us. Have a great day ahead. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening In Case You Missed It… March 2023: Monthly Asset Class Report [Sean Ring] SEAN RING Happy Monday from sunny Northern Italy. This weekend, we drove along the lovely back roads in the Langhe Valley to celebrate our 1st anniversary in Italy. Incidentally, we drank Barbaresco instead of Barolo, but it was fantastic. That’s because we found ourselves in the village of Barbaresco, atop a lovely hill. [SJN] Credit: Pam Ring Pam took this pic. You can see the Alps in the background if you look hard and the rolling hills of the Langhe in front. In the foreground are the farmland and vineyards. It’s a beautiful place. Ok, onto business! Though stocks rallied, the SPX still seems to be rangebound. However, it’s safe to say the Nasdaq will continue to head higher. And while commodities were a bit meh this month, the precious metals were shining. We’ve been saying that gold and silver looked like great buys after the SIVB and Signature disasters. That has been proven true. Gold looks like it’ll breach $2,000 imminently. Silver will do the same to the $25 level. The moves we’ve long awaited are now here and in motion. Even Bitcoin joined the party, along with Ethereum and Ripple. The cryptos were up hard this month as investors sought ways to protect their purchasing power. This month’s report is a bit cheerier, I think. I hope you get a lot out of it. S&P 500 [SJN] We’re in a “sideways trend.” That’s a nice way of saying, “We haven’t gone anywhere.” I’m still looking for a breakout either way. And the odds still favor the upside, believe it or not, for a lovely spring rally. But nothing is set in stone yet, so wait for the signal. Above 4,200 should be good enough to call a sustainable rally. If we head below 3,800, 3,550 would be our next target down. Nasdaq Composite [SJN] The Nazzie is a bit different. Thanks to the inflation numbers easing off - in the market’s opinion, anyway - tech stocks have rallied hard. I don’t expect this to stop anytime soon. I’m first looking for the 13,000 level. If that’s breached, 14,250. Russell 2000 (Small caps) [SJN] Fighting hard though it is, the Russell couldn’t get above $200. We were right in that we got down to below $180. But the IWM peddled hard from there and has rallied a bit since its recent low of $167.50. It can go either way: follow the big indices back up to $195(ish), or head back down to $162.50. Price action matters here. The US 10-Year Yield [SJN] We’re off 50 basis points (0.50%) since our last asset class report. This is because the market thinks the Fed is done hiking and will cut soon. I don’t think the Fed is done hiking, nor do I think it’ll cut soon after. There will be a decent interval between the end of the hikes and the beginning of the cuts. So I think we’re going up from here, though the entire market disagrees with me. Dollar Index [pub] We’ve come off again as rate expectations have fallen, weakening the spot dollar price. I wouldn’t be surprised to see us staying in the 101-105 range for the next few months. That’s because the market has to get to grips fully with what Chairman Pow is trying to do with his monetary policy. USG Bonds [pub] Last month’s double top turned into this month’s triple top. If we get above 109.50, we’re looking at 117.50. If we cut below 100, we’ll see that 92.50 downside target hit. Investment Grade Bonds [pub] Ok, we hit our downside target of 105… … and are now retesting our upside target of 110. A break above here, and we go to 112 and then 118. If rangebound, back down to 105. Breaking 105, we head to 97.50. [Download My New Survival Guide Today!]( I’ve created a BRAND-NEW “2023 Crisis Survival Guide” that I’m making available to all of my Strategic Intelligence readers today. This short 54-page document has everything you need to know to protect yourself and your family in times of crisis. Things like what foods to stock up on now, staying safe during periods of rioting and looting and more. Inside I break down all of the coming threats you face and how to prepare. [>> To see how to download your copy, click here now](. [Click Here To Learn More]( High Yield Bonds [SJN] Literally the same as last month: We got that breakdown to 74. We’re stuck in the 71 - 77 range. A definite break, either way, will tell us more. Real Estate [SJN] From last month: Real estate couldn’t capitalize on its rally, sadly. After topping out at 92, it headed back to 85. From here, we can head to 82, then to 75. We didn’t get to 75, but to nearly 76. Last week, we had a massive rally. Short-term, I’m looking to get back up to 87. Base Metals: Copper [SJN] 4.09 last month. 4.09 this month. Literally no move. Right now, we’re in No Man’s Land. Precious Metals: Gold [SJN] I called $2,000 “sometime soon” in last month’s report. We’re right there at $1,986. It’s still not too late to pile in. I still think we can hit $3,000 on the upside this cycle. Precious Metals: Silver [SJN] YAY! A sustained rally! Above $25, we head to $26.50, then on to $28.50. Things are finally looking up for the former Yawny McYawnface. Cryptos: Bitcoin [SJN] After a short range, BTC coiled and popped again. Next stop: $35,000. Amazing how things turned around here. Cryptos: Ether [SJN] A good chart, but not as good as Bitcoin’s. I want to see a sustained move above $2,000 before I get excited about ETH. Trad Asset Class Summary [SJN] Another course reversal from last month saw the USD get hit to the tune of -2.15%. For some reason, commodities followed the USD down at -1.86%. Both stocks (up 4.00%) and bonds (up 5.91%) enjoyed a fruitful month. Crypto Class Summary [SJN] Ok, the inflation story hasn’t gone away, and now investors are looking for its old safe havens. Ripple led the way, up 40%. BTC and ETH were right behind it, recording double-digit gains as well. Monero, the most secretive of the cryptocurrencies, was up 3.46%. Dogecoin and Litecoin lagged, finishing the month negatively. Wrap Up The market is looking for a rate cut and a safe place to put your purchasing power. Gold, silver, and bitcoin have done well in response. Tech stocks are rallying hard, counterintuitively. I’d ride that trend. Finally, let’s take a moment to enjoy this meme, courtesy of the Twitterverse: [SJN] Have a great day! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. 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