Expect Massive Market Distortions To Worsen As Inflation Accelerates

Investors around the world need to expect massive market distortions to worsen as inflation accelerates.

Expect Massive Market Distortions To Worsen
March 27 (King World News) – Gregory Mannarino, writing for the Trends Journal:  Despite a world economy contracting at its fastest pace on record, stock prices are rising at a staggering pace. Here in the United States alone in just the first three months of the year, the stock market has hit a new record TWENTY TIMES!

There are several dynamics in play right now which are driving stocks higher. Let’s outline a few of these dynamics to better gauge if this phenomenon will continue, or not.

Mass layoffs. 

Beginning this year, multiple corporations have announced, and continue to announce, mass layoffs. Wall Street has subsequently rewarded these companies for laying off workers by bidding their stocks higher.

A rapidly slowing economy.

With ongoing nonstop round after round of continuing bad economic news, stock investors are betting on central banks lowering rates despite inflation continuing to rise.

The promise of more easy money.

The Swiss National Bank just last week made a surprise rate cut. This is significant as they have become the first major central bank to do so. With that, also last week, Federal Reserve Chairman J. Powell following the Federal Open Market Committee announcement on monetary policy all but assured the stock market that despite rising inflation, the Fed will be cutting rates later in the year. (It is also my firm belief that both the Federal Reserve and the European Central Bank will be working in lockstep cutting rates/artificially suppressing rates beginning later this year). 

When a central bank cuts rates it must create epic sums of currency out of thin air and buy more debt, this mechanism allows central banks to inflate, which is how they consolidate more power. The mechanism of suppressed rates, by design, opens a doorway for more cash to flow into risk assets/stocks. 

Massive government spending.

Investors are expecting world governments to continue to run record debts and deficits for as far as the eye can see and beyond.

The mechanism of skyrocketing debts and deficits, along with central banks cutting rates is itself massively inflationary meaning, it reduces the purchasing power of the currency. When a currency loses purchasing power it takes more devalued currency to buy anything, even shares of company stock.

Considering the current dynamics in play, we can fully expect that price action distortions regarding stock prices will continue. With that, we can also expect that the eventual outcome will be very, very, bad.

Also of importance…

Ultra-High Grade Gold Discovery Continues To Mirror Fosterville!
Bryan Slusarchuk:  The ultra-high grade discovery we made at Comet, just south of Agnico’s Fosterville Mine is the same age of rock as Fosterville, same mineralogy as Fosterville, same geology as Fosterville, and then extremely important to note; the same type of structural setting as Fosterville. So the discovery was made where the western dipping faults intersect the anticline. It’s really textbook Fosterville. The discovery was extremely high-grade. It was right around 8 meters at 106 grams per tonne. And the really high-grade core of the discovery ran 5 meters at 166 grams per tonne gold. And within that there were some intervals that ran 400+ grams per tonne gold.

After that extremely high-grade discovery we got a diamond drill rig onto the site, and we’ve already drilled a few more holes. What we have now seen post the initial discovery is not only do we have same age of rock as Fosterville, same mineralogy as Fosterville, same geology as Fosterville, same structural setting as Fosterville, but the diamond drilling has confirmed the gold rich quartz veined fault zone is extending to depth and laterally, and the high-grade mineralization remains open in all directions. This is also similar to what occurred at Fosterville.

Mirroring Fosterville In Virtually Every Detail!
But as we wait for the results from our second diamond drill hole, what we saw in that second hole was stacked zones of mineralization. This is again very similar to what you see at Fosterville. So post the initial discovery we knew that we were in the same structural setting, same age of rock, same geology, same mineralogy, same eye-popping ultra-high grades, but now after these first few diamond drill holes we now know the deposit is mirroring Fosterville in virtually every detail in the early stages.

In fact, that second hole was designed to terminate at approximately 150 meters, but we ended up pushing the hole in excess of 250 meters because we kept seeing these stacked zones. What this second hole shows us is the potential for big scope, big scale, big size with extremely high-grade gold as we wait with excitement for further drill assay results. And even though it is early days, everything is lining up with these Fosterville like characteristics, which means we may very well be dealing with a historic discovery — a second Fosterville. Great Pacific Gold Corp, symbol GPAC in Canada and FSXLF in the US.

To listen to Alasdair Macleod discuss China losing control over the price of silver and what this will mean for the silver market in 2024 CLICK HERE OR ON THE IMAGE BELOW.

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