The term fixer has come on hard times due to its Hollywood-promoted connotation as a person who cleans up criminal messes of one sort or another. For this post, though, the word’s most common meaning is preferred: a person who repairs broken things.
In that sense, this author knows the term well, as he strives continually to be such a fixer himself.
And speaking of hard times, these days are particularly so for this kind of fixer. Everything is falling apart: institutions, economies, infrastructure, traditions, relationships, products of all kinds, and far more. They’re all broken.
Now of course that’s hyperbole, but you get the point. In any given day, this author’s house and car break in about ten new ways. His religious and civil institutions break in about ten more. (Maybe a little more hype, but just a little.)
For a fixer, it’s all tremendously disheartening. There are too many personal items to fix (thanks for the cheap products, China), things that are fixed don’t stay fixed (thanks for the cheap repair parts, China), institutions are broken (thanks Fabian socialists/Gramscians and power hungry politicians), and—well, that last one’s a big one. Many of the broken things in our society are due to the politicization/socializing of America. It’s almost as though people who advocate such viewpoints break things on purpose.
Anyone who has studied communist regimes and methods knows how reliant communists are on secrecy, disinformation, intrigue, and long-term—sometimes very long-term—strategies. But if you were to encapsulate their MO, it’s this: they break things on a massive scale, then step in when their broken opponents can no longer resist them. Their skill at this borders on the incredible, largely because of their success at secrecy and disinformation. And this is not just how they gain power, it’s how they maintain it.
Now of course it’s unfashionable to call someone a communist these days unless they call themselves that. You’re pretty safe with Xi Jinping, less so with Alexandria Ocasio-Cortez or Bernie Sanders—or Joe Biden or Kamala Harris. And Marxism-Leninism is not so much a thing anymore because so many names have been changed to protect the guilty. Biden doesn’t have to call for Bolshevism or threaten to send his opponents to the gulag, but the discord he sows among Americans is classic revolutionary technique. So is his insistence on spending infinite dollars on entitlement programs and the military- and medical-industrial complexes.
Of course, those last two expenditures give the game away. It’s not really communism’s heir we’re dealing with, it’s fascism’s. Communism proved it was not viable, but fascism? People can at least make money under fascism, right? Well, some people can make money under fascism. Unlike in communism, there’s no pretense that all animals are equal—only that some animals are far superior to the deplorables, God- and gun-clingers, and garbage.
On November 5th last year, America saw what its citizens think of communism and fascism. The question now is, have they avoided them? Only time will tell, but Doug Noland has some incisive comments about the soon-to-be inaugurated Disrupter-in-Chief this week. Is the concept of fixing by breaking valid? Obviously Trump hopes to break the breakers and restore functionality to most, if not all, of the country. Is widespread disruption the right tack to take when the world is ensconced in the biggest financial bubble ever seen?
No prognostication here, but whatever your thoughts about Trump, he has promised to shake things up in Washington and throughout the world. Don’t miss Doug’s highly thought-provoking comments; they are must-read.
Key Takeaways:
- In finance, in war, in life, reserves often save the day
- Of disrupters and bubbles
- Gold miners in peak condition; ready for the coming race
- Gold showing enduring strength
The McAlvany Weekly Commentary: Trump Is Bold But Liquidity Is A Coward
David and Kevin touch on the perspective triangle this week, reminding listeners/readers that gold and silver constitute the base/insurance leg of the triangle. With so much uncertainty in both world and American economic realms, insurance is a very good idea. Even if you believe the new administration’s plans will quickly change things for the better, understand both that President Trump has been dealt a remarkably poor hand of economic cards and that insurance is typically purchased in good times because bad times do not always announce themselves. David asserts that, “You can get through any kind of crisis—whether it’s an emotional crisis, a spiritual crisis, a family crisis, a financial crisis—if [you have adequate reserves], and I think that’s worth taking stock of.” Changing the subject to liquidity in financial markets, and giving credit to Gordon Pepper, he says that, “liquidity is what drives asset prices. When in abundance, prices rise; when liquidity is scarce, prices fall. And interest rates were part of that equation.” He adds a quote from Raymond DeVoe that, “Liquidity is a coward. It runs away at the first sign of trouble.” The hosts also discuss the failure of perception management by the Fed, the immense challenges facing the new administration, the extreme narrowness of the bull market in equities, and more.
Credit Bubble Bulletin: Issues 2025
Doug begins his analysis this week with very sobering insight. “Potentially one of the most powerful individuals in human history takes office in 10 days. He is a most determined ‘disruptor’ in a world deeply fractured, yet unified in one historic financial Bubble.” This observation makes a later conclusion unavoidable: “For better or worse, the Trump administration will force momentous change both at home and abroad.” And with so many spheres of national endeavor—including economic, military, political, trade, and other—at critical junctures, introducing a determined disrupter to the mix seems certainly explosive, and only hopefully good. There are many reasons to be wary. Doug’s follow-on commentary essentially makes the point that ideas have consequences, and the idea that we can live far beyond our means for many decades without negative consequences is not realistic. This “Issues” installment of CBB follows in the tradition of others in the past. Doug has often reiterated the maxim that “Bubbles inflate or burst.” It’s a key insight that you won’t likely see elsewhere. He also cites several key issues for 2025, such as the bond market, China, basis and carry trades, the AI/tech mania, climate change-related spending, inflationary pressures, derivatives markets, liquidity issues, and more.
Hard Asset Insights: A Very Interesting Set-Up
Morgan begins his weekly letter with updates on equities markets, noting that even the good news is slim and qualified. From there he transitions to the setup in gold miners that makes them an intriguing alternative. He also mentions the difficulty the new administration will have in reducing spending, noting that, “despite post-election enthusiasm that the DOGE will significantly cut government spending once the new administration takes the reins, the reality is far more complicated. The only government spending line items big enough to meaningfully shrink the deficit are entitlements, defense spending, and interest expense.” He then examines each of these three areas to see how likely it is that they will be significantly reduced. Hint: It’s not rocket science. You can probably guess. He then gives an update on the Fed’s dilemma, concluding: “If the Fed has lost control over the long end of the curve, that’s very bad news for both consumers and companies counting on lower rates. It’s also incredibly bad news for U.S. deficits and, by extension, the developing U.S. fiscal crisis.”
Golden Rule Radio: Gold & Silver Kickoff 2025 Strong
Miles kicks off the new year with a look at the gold charts, showing gold up for the week and also up significantly for the year just past. Rob notes that these results have occurred in the context of a strong dollar, which is historically unusual. He believes the market is pricing in inflation. Silver was also up for the week and for the year, but platinum, though up for the week, was down 10% for the year. Likewise, palladium was up slightly for the week, but down significantly for the year. The S&P’s 2024 performance was similar to silver’s, and the dollar was strong for the year, up about 7%. The hosts note that though gold experienced an anticipated dip after the election, the dip was not as strong as hoped for and did not even reach any of its Fibonacci levels. Rob notes that this likely portends a very strong spring for gold. The hosts then turn to likely policy positions for the new administration and how they will affect the gold price.
