Understanding Domestic Vs Global – The Perfect Storm

COMMENT: Marty, you are not the only one who can’t beat Socrates. Every time I swore the high was in place, Socrates said no, he won, I lost. A close friend of mine who works at one of the major investment banks told me that Wall Street has tried to fight you, and you usually win. Socrates is the only model that can adapt to a parabolic move that nobody has ever seen. Thank you for opening Socrates to the world. That has been your greatest revenge.

Darrell

REPLY: Even a former employee said that when he inquired about me with Goldman Sachs. Look, first of all, I spent tens of millions in gathering data. I had a team at the Royal Newspaper Library in London recording all the foreign exchange data that nobody has.

Here is the British pound against the US dollar from 1789. The computer has a database that is  UNPARALLELED. I have recreated the entire world monetary system going back thousands of years.

To understand the Panic of 1899 who most people never heard of, US interest rates nearly hit 200% on the NYSE. To comprehend that, it required a global database because the Panic was the result of actions by the Bank of England.

The reason 99.9% of the standard economic theories are failing is because they are ALL domestic oriented. That is because academics promote government intervention to eliminate the business cycle. Wesley Mitchell and Karl Marx both agreed that capitalism was indeed inherently unstable. They both did not like the business cycle. Keynes provided the theoretical justification for aggressive, discretionary fiscal policy (deficit spending) to directly manage aggregate demand during a economic recession/slump. It was a powerful macroeconomic lever, not just gradual reform. It justified socialism.

The explosive move in precious metals we are witnessing is not merely another bull market rally. Gold reaching $4991.4 and silver clearing $103.53 represents a fundamental breakdown in confidence in the world monetary system that has been building since the 2008 financial crisis. This is the market screaming that the debt spiral has reached terminal velocity intermixed with war that is likely to push the euro off the edge and we see the signs of stress in Japan as well.

We are entering this first quarter of 2026 as a Perfect Financial Storm. Those in power will only act in their own self-interest. They are not interested in their own countries no less even considering reform.

I assume that readers have been writing to Trump and other heads of state because this just came in the mail and I did NOT write to Trump recently. Trump should invoke Article 5 and compel NATO to come protect the US border and see if they show up. NATO is a one-sided arrangement. Nevertheless, the computer DOES NOT like what it sees into early February. I will be doing an extensive update on the precious metals for the private blog tomorrow.