Q&A 4-7-2020

QUESTION #1: Marty, you always said that gold and the dollar would rise during the monetary crisis cycle. I must admit, the fundamentals always seem to unfold to support your forecast. The article on the dollar shortage is really enlightening. The gold bugs hate you because you do not support their hatred for the dollar. You have taught me to see the world from a real hedge fund manager’s eyes. So do you see this dollar crisis taking down the IMF?

Thank you

DF

QUESTION #2: Martin, Why do you seem so surprised about the chaos Soros and Gates are creating? Didn’t your (ECM) model predict it? Some events or Some person(s) needed to be the catalyst. Change is inevitable.

Resistance is futile.

JC

QUESTION #3: What do you think of Icke saying there is no virus?

HS

COMMENT #4: Even if Dow briefly touchs 28K I am done for the year:) 35% up in dollar terms , who cares what happens next:)) On a different note if the dollar shortage is as large as you have been writing I think Fed has done a decent job and kept DXY at 100 (so far) .

SM

ANSWER: There is a serious risk that like the ECB, the IMF is stepping into something they have no clue what is going on. The total outstanding private corporate debt from emerging markets is more than $2 trillion in size and denominated in US dollars. However, the total market is $15 trillion. This is astonishing and the goldbugs harp on the dollar debt and hyperinflation and the dollar must turn to dust. They remain clueless that ONLY a rise in the dollar will blow-up the world economy unleashing massive sovereign debt defaults.

Yes, the ECM has been projecting this would be a commodity wave of inflation, but I have stressed many times, this is not the traditional boom inflation. It is inflation on the back of a SHORTAGE, not speculative demand.

I appreciate the line from the Borg, “Resistance is Futile.” I think if we do not resist, I hate to see the world we leave behind. As I have also said many times, I thank God I am not 18 years old. The youth will never know the freedoms of the prior generations.

As far as claims there is no virus, sorry I do not buy that. My cousin is a nurse who has been attending to these people. She has been infected and was nowhere near 5G. The virus exists. We have many doctors who are readers and they share information. They are not the propaganda machine.