Can Your Portfolio DOGE This?

News & Current Events Public News & Current Events
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Originally published at: https://peakprosperity.com/can-your-portfolio-doge-this/

Executive Summary

In this episode, I sat down with Paul Kiker to discuss the rapid changes in the financial landscape and the potential impacts of significant federal spending cuts. We explored the implications of a $2 trillion reduction in federal spending, the deflationary pressures it might introduce, and how these changes could affect the average household. We also touched on the intriguing movements in the gold market and what they might signal about the broader economic environment.

Federal Spending Cuts and Deflation

I believe that the proposed $2 trillion cut in federal spending, which would bring us back to pre-COVID levels, is both necessary and overdue. This reduction could lead to deflationary pressures, as Paul pointed out, potentially wringing out inflationary pressures from the economy over the long term. However, this could also result in a significant recession, as $2 trillion represents about 7% of GDP. The short-term pain might be worth it if it leads to a more efficient government and spurs long-term economic growth.

Gold Market Movements

The recent surge in gold prices and the massive transfer of gold from Europe to the U.S. is noteworthy. This movement suggests that big players might be preparing for an economic emergency or loss of trust in the financial system. Gold, being a tier-one asset with no counterparty risk, becomes an attractive option in uncertain times. The lack of euphoria around gold’s rise indicates a potential bull market, as it climbs the proverbial wall of worry.

Key Data

  • A $2 trillion cut in federal spending could represent 7% of GDP.
  • 500 tons of gold were recently moved from Europe to the U.S.
  • Gold prices have surged from $2,600 to nearly $2,900 in a short period.

Predictions

  • Deflationary pressures could arise over the next 12 months if spending cuts are implemented.
  • Gold prices may continue to rise as big players seek safe assets.

Implications

  • Reducing government spending could lead to a decrease in GDP and a potential recession.
  • Gold’s rise suggests a lack of trust in traditional financial systems.

Recommendations

  • Consider extending your emergency fund to 24 months to prepare for potential economic downturns.
  • Evaluate your investment portfolio and determine exit strategies before emotions take over.
  • Consider holding a portion of your portfolio in physical gold as a long-term hedge.
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Enjoyable as the Drumpf storm is consider he is still promoting mrna poison.

Will he sic doge on the pentagram to find the 2 trillion Rummy confessed to losing?

or the over 20 trillion C A Fitts claims is gone?

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Now, why do I find it difficult to believe profligate .gov will ever reduce spending, short of being induced to do so by a literal “Crackup Boom?”

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I buy into most of the more popular conspiracy theories. But not the $2.3 trillion “lost” from the military in fiscal year 1999.

It would be utterly impossible for the military to lose that much in 1999 because that was more than the entire budget of the US that year. Rumsfeld really was talking about accounting entries that couldn’t be tracked. He was saying the accounting system was a shambles. It still is, by the way.

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I’ve thought about the fact that $1 trillion in reduced spending will lead to a recession on paper.

The drop in spending will lead to real disruptions - mostly to people who deserve it. But there will be a lot of broke people in Washington D.C. and NYC doing firesales on houses, possibly.

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The recent surge in gold prices and the massive transfer of gold from Europe to the U.S. is noteworthy. This movement suggests that big players might be preparing for an economic emergency or loss of trust in the financial system

I agree - something is going on in Europe. If money is fleeing Europe, and into gold, it is less about “gold woo-hoo!” and more about “something coming” in Europe that is terrifying to Big Money.

Given the US Blob stupidly seized Russian assets, the USD isn’t the safe haven it used to be. So gold is now the first choice for capital flight.

Across the pond, “they” keep trying to ban AfD. This will make AfD even more popular, just like lawfare/assassination did with Orange Hitler here in the US. This is happening across the EU. This only has one outcome: when things get bad, capital controls will be applied - to Save EU Grandma (really: save the WEF/Brussels-Politburo). This will signal the end of the Euro. “They” have decided to destroy Germany via migration - the little people of Germany are slowly figuring this out, and the outcome is entirely predictable. Timeline? That’s the only question. I suspect Trump has sped up the timelines of all of this - and the more success Trump has, the more “contagion” will spread to Europe.

Now tie this in with the deflationary impacts of cutting Blob monetary puppet strings (USAID, one example) along with mass deportation - either self-deportation, or “facilitated” deportation - and what do you get?

DOGE-deflation will (probably) cause a plunge in all asset prices - except maybe for Treasurys, as you say. But gold will probably get hit too, just like it did back in 2008.

Related: over at King World News, they are very excited:

2025 WILL BE HUGE: Gold, Silver & Miners Set To Explode Higher (KWN)

James Turk Says Gold’s Price Target Is Now A Jaw-Dropping $10,902 (KWN)

Make of that what you will.

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I go back and forth on this. My son is trying to time a home buy in the DC area. Part of me agrees, there will be fire sales but on the flip side are we going to see a bunch of people needing to move back to DC so they can show up at work?

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Still something not right about the support for mRNA which was always and continues to concern me about djt. I’m never going to begin to get comfortable with any “vaccine” unless and until the law is changed that is protecting pharma from liability. I don’t care how far it causes “science” to regress into the Stone Age. What has been done to children with innumerable PROTECTIONS afforded by these bastards is criminal. Confirm RFKjr NOW.

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I worry that all these spending cuts will lower tax receipts and make the deficit worse. Luke Gromen suggests we revalue gold first and then cut spending to avoid unnecessary pain.

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As a sidenote in terms of where to put assets we just recently sold our house and have a good chunk of cash that needs to be stashed somewhere for nine months until the construction on our farmhouse is complete… I’m thinking CDs are the safest option- is there anything I’m not knowing about them that would make them a place that you would be nervous to put a bunch of cash?? Are there any better ideas for a place to dump cash for nine months to try to make it work for you that I’m missing? Even money market funds made me a little nervous…

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Treasury direct 28 day tbills.

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What was the awesome acronym for big round number resistance? Anyone remember?

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Definitely park in 1 month, 3 month Treasury bills. Use your brokerage account like Fidelity or Charles Schwab. No fees for sale or purchase, no state taxes on interest payments, about 4.1% annual yield and safe up to $250K per account SIPC.

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Treasury Direct is better than brokerage accts. TD allows continuous flipping, ie., the maturation date is used for same day auction date for the following investment. My Schwab acct requires one week intervals between maturation and issue date. The money sits idle for that time.
https://treasurydirect.gov/log-in/

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This is 100% correct. While not being able to track accounting journal entires is unacceptable, and certainly being used cover fraud, theft and waste, it’s not the same thing as spending $2.3 trillion you didn’t have.

Catherine Austin Fitts has been on me about my supposed failure to understand the actual mechanisms, but I get them perfectly well.

I would encourage anyone interested in this area of “the missing $21 trillion” to actually dive in a bit deeper and learn the difference between spending and journal entries.

As always, I keep an open mind. I’m curious what DOGE will find in the Treasury payment system. If money was being spent that hadn’t been actually borrowed into existence (the implied activity behind the way the “missing $21 trillion” is presented) then those unauthorized and illegitimate payments would have to be there in the Treasury system.

After all, there’s no such thing as a DoD check that can be cut that someone can cash. If there’s truly a “missing $21 trillion” then there’s $21 trillion of Treasury checks (or their e-equivalent) that were sent without a corresponding bank account.

Meaning the money wasn’t borrowed or taxed into Treasury coffers prior to disbursement, but was simply typed on a check and spent. But if that happened, and those checks were deposited into bank accounts, from where did those funds eventually flow? If the answer is “nowhere” and there’s a gap in the system that allows “money” to be spent but not borrowed then the world as we know it will end.

Why? Because If that’s a possibility (to the tune of ~100% of M2), that would be the bombshell of the century as it would mean the entirety of the banking system is a complete fiction. That system is a double-entry bookkeeping system - the same one invented during Medici times in ancient Italy and in use ever since.

If that is proven to be a fiction, then the entire system immediately breaks down, because nothing is real.

So I’m kinda hoping that doesn’t happen. After all, it’s not the destination but the pace of change that is the killer.

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This is how I see it, 100%.

“They” are terrified of being exposed as destructive charlatans and they are very scared. As they should be. Their real-world skills are not even “non-existent” but in solidly negative territory.

Hire these people and not only will your business not make more money, it will be dragged into endless losses.

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I recall Skidmore was looking overall at US treasury refundings to see if there was a clue about that missing money. The refundings were vastly more than “should happen” given the total balance outstanding. After some downloading, it turns out that at least half of the total Treasury refundings for the year were due to the TSF-G fund, which “refunded” every single day, and it had a decent balance - 350 billion or so?

Boy, if he had access to the actual Treasury checkbook - what might be found?

Especially going back to that period of time when Rumsfeld had his failed audit, and then “mysteriously” the room in the pentagon was destroyed shortly thereafter by a 9/11 “plane”.

For me, coverup proves the crime. I can’t tell you how they did it - but - the 9/11 coverup is a confession.

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I bet that all that movement of physical gold OUT OF Europe is due to the upcoming war. That’s what I would do. Why is this not talked about?

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DOGE taking $1-2 trillion out of government spending will have an impact on the economy However, every dollar taken out of buying dresses and make-up from the LBGTQ, DEI, Green coffers will have far less economic impact than money taken from capital project like roads, bridges, pipelines, the electric grid, etc. As a consumer, for example, belt tightening might be buying a $8 can of coffee and making my own instead of spending $8 for a Starbucks latte.

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How exactly does one transport 500+ tons of gold in a short period of time? I mean, that’s a lot of weight. Planes crash, ships sink. Risky…

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