It’s us VS the banking elite… says David Morgan.
We hear plenty of benign waffling in the mining space. As a consequence, it was particularly interesting to hear a very robust and forthright argument from Morgan. He is a straight-talker who isn’t interested in skating around important issues. He wants to get to the Crux of the matter, whether people like what he says or not. He won’t be popular with everyone, but ‘there’s no money in the middle’ as some clever media person once said.
The Morgan report is a free newsletter, in addition to a variety of membership options. The gold standard is the US$5,000 pa insiders membership, which provides analysis on global stock markets with world-class analysts and publications, aiming to help build and secure the wealth of investors. Every newsletter starts with a quote and ends with a statement. The Morgan Report claims that its members’ investment portfolios outperform the S&P 500, averaging 63% returns. The Morgan Report serves at the “antithesis of the industry at large.” He remarks that within the gold industry, all gold companies used to be able to attract investors, regardless of whether they were a good company or not.
Matthew Gordon talks to David Morgan, 27th June 2020
A lot of the newsletter writers today are like shotguns, whereas Morgan tells us he is like a sniper rifle. Newsletter writers spread their bets over numerous stock recommendations to main their reputation. Morgan says that “if you can’t pick 6 companies to make you money, you don’t know what the hell you’re doing.”
What does he think of the current market? He thinks we’ve experienced a huge global economic contraction that will make the last depression look fairly weak. In particular, there has been a huge contraction in food supply, due to the “locust infestation” throughout Africa, the swine situation in China and the flooding in Mississippi, which has taken out a third of the plantable land. We can neither confirm nor deny these claims. “Many of the meatpacking plants are also down due to COVID-19. We are facing a global food shortage crisis over the next year.” On aggregate, Morgan would not be surprised to see food prices double in the next year. “It’s more of a supply problem than a quantitative easing problem.” This isn’t even inflation like many of our interviewees have been projecting. If you believe what he says, it could be deemed extremely concerning. “The trust factor of globalism has fallen, and there is a nationalist resurgence underway, primarily because of quantitative easing: why exchange goods for money when the country you are trading with is printing that money at will.” Is it worth anything? Countries are currently undergoing a complete reanalysis of the contractual terms between states, says Morgan.
“There is absolutely no relationship between most companies’ stock price and their physical economic activity,” he continues. “The stock market is completely out of touch with the economy as a whole. Just because the stock market is doing well, it doesn’t mean global economies are. Companies are no longer creating wealth for people; they’re instead creating inflated valuations.” Morgan thinks it’s obvious that we’re transitioning to a cashless system in the near future, but he’s not a huge fan of how crypto could be rejected or controlled by the US government. “The powers that be will never give up control of the monetary structure of the world. It’s just not realistic. We are all plugged into the system whether we like it or not. Expect to see a ‘fedcoin’ or something similar in the near future,” Morgan opines.
Like many of our interviewees, Morgan talks about the squeeze that is going to happen, which will be deflationary on a personal level, but the fed is still printing dollars. He mentions the Weimar Republic, but things aren’t going to get that bad… surely not? Luckily, Morgan doesn’t see hyperinflation on the horizon; the bond market is a good balancing mechanism, especially considering the US treasuries may not be trustworthy right now. Companies that make mistakes need to be left out in the cold rather than being bailed out, which will contract the money supply into the deflationary mode adding value to the dollar. This isn’t going to happen, regardless of who gets elected in November. We would need to have a restoration of the same rules, laws and accountability in order for things to be rectified. Nobody should be above the law. The current system is so corrupt that if we were to install these changes, would it be fixable? My inner pragmatist tells me this is unlikely to happen. However, it’s not over yet.
What did you make of David Morgan? Too much for you? Or the heavy dose of realism that you needed?
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