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Election Day

Ah, I don’t give a shit. The entertainment factor of the presidential election today is much more important to me than the actual results. I hope Trump wins because I do feel like he will be more likely to push back against the lockdown fetishists. I also would love to see the meltdown by ardent Trump Derangement Syndrome sufferers. Definitely not a fan of his but I do think he is the lesser of two evils.

I’d love to see some blue states contemplate secession if Trump wins. The current state of the United States is untenable. The idea that one man is in charge of making decisions for 330 million citizens and 50 different states is ridiculous. The right answer for policy is better solved locally. Especially for something like a contagious disease. The right answer for a densely populated state is different than the answer for a state like South Dakota or Montana. There is no reason why there should be one answer for both states and one person to make those decisions. It’s an obviously flawed system. Secession, in many people’s minds, is closely linked to the Civil War and slavery so it triggers many people when it is brought up.

Whatever happens you should be buying precious metals and bitcoin. Stimulus is coming no matter what happens. Trump wanted stimulus to happen ASAP but the democrats didn’t want to juice the markets right before the election. Biden wants the lock the country down a la the UK and this will force more stimulus to everyday citizens and especially the unemployed. There is no more tradeoffs being contemplated by our political representatives. Stimulus is given as a win win option because inflation is generally considered a good thing.

A common misconception people have about gold and other precious metals is that it does well when the market suffers. I think history shows this to be untrue. The consequence of the Federal Government’s response to the market suffering is to debase the currency (stimulus) and this is when gold does well. When the price of assets priced in dollars go down this is good for the dollar. It improves the purchasing power.

Historically, if you look at market crashes, gold crashes right alongside the S&P and the Dow Jones. This is generally thought to be investment managers meeting short term costs by selling the precious metals that they own before selling their stocks and bonds. Ideally someone would hold cash into a market crash so they can pick up gold after the initial selloff, ride the gold pump after the pumping of the markets, and then get back into stocks and bonds. This cycle can only happen so many times, however, until you start to run into problems with hyper-inflation. The United States has a lot of leeway with the dollar thanks to the reserve currency status that it has.

Bitcoin is positioned to do really well over the next year. The halvening of the block reward occurred in May of this year and historically it takes around 18 months for that to truly price in. I think we could potentially see a six figure bitcoin price by the end of 2021. I sold some of my gold and silver mining stocks so I could fool around with a couple of bitcoin mining stocks. This speculation is based on the idea that these stocks are very cheap and are leveraged to the price of bitcoin, similar to companies like Newmont Mining and Barrick Gold for precious metals. I also moved my entire 401k over to an IRA platform that allows me to invest in PM’s (precious metals) and cryptocurrencies. I only had around $8,000 in my 401k since it was rolled over from my last company. I purchased $2,000 worth of gold, $1,000 worth of silver, $5,000 worth of bitcoin. I’m fucking insane.