Trivium Analytics Canada - Weekly Review - April 29, 2016 - by Jeff Fitchett

“I hope we shall take warning from the example of England and crush in its birth the aristocracy of our monied corporations which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country.”  “And I sincerely believe…that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”
 Thomas Jefferson

General Thoughts

There are times in everyones lives that seem out of control and helpless.  Often a health issue, job loss, marital breakdown or some other major life event occurs that sends a person into a whirlwind of mental chaos.  Situations like this storm our senses and prevent us from having the mental capacity to process what is transpiring.  

Scenarios of what the potential outcome, in the wake of the major event, can thrust a person into the grieving process as they try and make sense of what to do and what is going to happen to them.  Often, time is of the utmost importance and a plan of action should be determined and initiated quickly.  It is extremely difficult for most people to operate coherently, in such a situation, given the overload of stress.  It is difficult to take a step back, breathe and put things in perspective.  

Working through the grieving stages, while trying to focus on immediate tasks is emotionally trying.  It is important to understand that life will continue and that you need to organize your thoughts and priorities.  Making a list of your thoughts and things to do will help a person stay on track and move forward in a positive manner. 

More importantly though, now is the time to start reflecting on your life and learning about the growing number of serious risks that we all face.  We do not have the luxury of time to be reactive and figure things out after the fact.  

We need to take steps now to prepare for the future.  Most Westerners do not have adequate savings to cover the costs of daily life if they experience an interruption of employment or pensions.  What will happen to you if our banking system or food system is disrupted?  The fact is that these problems are already occurring in developed nations.  The writing is on the wall and the next major financial crisis has already begun.  

America’s Pension Problem - by Jeff D. Opdyke

Jeff Fitchett: This is a crucial issue for everyone to be cognizant of.  Every defined benefit pension is facing the same predicament: .  Please take a moment to read this article.  

So, there are these two ants…

One works in the private sector as a secretary for the company that builds anthills. The other works for the state, the Council of Ants, that oversees the anthills. These two ants are friends. They earn similar salaries and live next door to one another. Their kids play together and go to the same school. Their families gather for barbecues (grasshoppers, of course) on the weekend.

The only significant difference is one neither see, but which promises to tear their friendship apart one day — and to destroy the anthill in the process.

You see, the private-sector ant contributes 10% of her pay to the company retirement plan for which her company has no contractual obligation to assure a decent standard-of-living in her golden years. She must invest her savings herself, though she has no skill in this area and, thus, has no guarantee her money will even exist when she retires. She’s also required to donate (under force of law) a quarter of her salary to the Council of Ants to help it pay all the costs of running (though not very well) the anthill.

Meanwhile, the bureaucratic ant contributes a minimal amount of salary to her retirement plan. But she’s part of an organized group of bureaucratic-worker ants who banded together and negotiated (often through blackmail tactics) fabulous, contractually-obligated retirement packages that the Council must pay — with money it collects largely from private-sector ants.

Better yet for this bureaucratic ant: She has professionals managing her savings; she knows she can retire from work well before her neighbor (with full benefits), and she can load her last three years of work with an abundance of overtime, goosing higher the average annual salary on which her retirement payments are based (the private-sector ant has no ability to do anything similar).

No doubt, you see the problem: The two ants will live two entirely different retirements — the one who saved will struggle; the one who didn’t save will live comfortably — and it’s the private-sector ant who essentially funds both. 

Dollar will Blow Up and Collapse - John Williams with Greg Hunter

Jeff Fitchett: John Williams is a good person.  His analysis of statistics is informative and contrary to what we are being fed by the establishment.  I use John's analysis for making personal decisions. 

Gold vs Gold Miners - by Nick Barisheff 

Jeff Fitchett: This is a good article for anyone interested in precious metals.  Gold bullion should be the foundation to everyones life savings.  Shares in mining and exploration companies offer opportunities for investors who have an in-depth understanding of this industry sector.  I encourage you to read this article: 

For thousands of years, gold has been used as money, a store of wealth, fought over and sought after. Over the last 45 years, Western populations have had a mixed impression of gold. A minority of the population understands that gold is a monetary asset that should be held as wealth insurance. A larger percentage of the population is confused about gold because of mainstream sources of information. Many people consider gold a risky investment when in fact gold bullion is not an investment at all, but rather money itself. Just like any fiat currency held in a vault, gold does not pay interest or dividends. Investors often look upon gold mining companies in the same light as physical gold bullion. Gold mining shares are investments, and can be good tactical investments from time to time. However, the characteristics of gold bullion and gold miners are very different. In some ways, those differences are similar to the difference between an insurance policy and shares of an insurance company.

It is important to understand the role of gold as money in relation to fiat currency.  Governments and banks work hard to ensure that people retain confidence in their debt-backed paper currencies, and in the economy in general. Wall Street’s message about the economy and the US dollar’s strength has to remain optimistic, because when people are uncertain and skeptical, they do not invest in financial assets, and companies curtail new financings, creating a negative feedback loop. Financing is Wall Street’s lifeblood, so it will always see “green shoots” and “recoveries around the corner,” just as it did in 1929, 2000 and 2008 while the market crashed around it. Consumer spending and bank lending is what keeps the fiat shell game going, and people do not borrow or spend when they feel uncertain about their financial future. Gold, because it inconveniently serves as the truest, irrefutable long-term indicator of the economy’s health, has to be discredited.   

Final Thoughts

I have learned repeatedly over the years that corporations, specifically upper management, are for the most part managed by sociopaths.  Short term corporate profits are more important than people and the communities they live in.  Employees and the general public are thrown under the bus if there is a possibility of making more money.  Longterm strategic planning does not exist in Western culture.  We face the real possibility of societal collapse.  A country that no longer produces, but consumes has no future because debt and deficits will lead to financial ruin.  

Jeff Fitchett B.A., FMA, CIM
Analyst - Trivium Analytics Canada

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