You can spin reality using words, but math is math, and it always wins.
In this episode of the Midweek Memo, host Mike Maharrey discusses tariffs, rebate checks, and the national debt in light of the math, along with supply and demand math in the silver market.
Along the way, he reveals that the math doesn’t support the political and mainstream rhetoric.
Mike opens the show with a declaration.
“Math isn’t my thing. I’m a word guy…
“But while I’m not great at math, I recognize its importance, and I respect its absolute nature. The answer to a math problem is right or wrong. I mean, I’m sure some mathematician could provide an example of a math problem with more than one answer, but generally, 2+2 is 4, right? It’s not really up for debate.
“Math constrains reality in a way words can’t. I can massage language in all kinds of ways to convince you of this or that. A smooth talker can convince a lot of people of about anything. Meanwhile, math is sitting over in the corner saying, ‘Yeah, 2+2 is still four, no matter how you spin it.’
“In other words, math always wins.”
Mike notes that there is still a lot of talk about tariff rebate checks. On top of that, some people claim the federal government will be able to pay down the national debt with the tariff windfall. Mike says there is one big problem with this ambitious plan.
Math.
“The problem is, Uncle Sam can’t afford to give away tariff money. And there isn’t enough tariff money to close the budget deficit, much less pay down the debt. The pesky math doesn’t work.”
Mike breaks down the numbers using the October Treasury Statement, which revealed the federal government ran the biggest October deficit on record despite record tariff revenue.
“So, here’s the reality check: It should be clear that claims that the federal government is going to use tariff revenue to pay a ‘dividend’ to poor and middle-class taxpayers and pay down the national debt are nothing but political rhetoric. Math is the great enemy of this ambitious plan.”
Mike says the only solution to the deficit and debt problem is deep spending cuts.
“The ONLY solution is to cut spending. Because Uncle Sam doesn’t have a revenue problem. It has a spending problem.”
Mike runs the numbers to illustrate the extent of the problem and provides an overview of the political incentives driving decision-making in Washington, D.C. He paints a grim picture.
“The ugly truth is the government isn’t committed to cutting spending in any meaningful way, and it always finds new reasons to spend even more, whether for ‘crises’ at home or wars overseas.”
Mike notes that we can’t print money the way the government does, and a lot of people are struggling to make ends meet. He suggests giving the gift of real money – gold and silver – this Christmas, noting Money Metals has a https://www.moneymetals.com/christmas-gold-silver" rel=”noreferrer”>full page of Christmas gift ideas.
Mike then pivots to the silver market, noting that the metal was trading above $59 an ounce as he was prepping for the show. The price of silver has nearly doubled this year.
Why?
“A fundamental dynamic is driving the rally in silver prices: there simply isn’t enough metal. Think of it as a math equation. If the world needs 10 ounces of silver but only 9 are produced, you have a 1-ounce deficit.”
Mike explains how a silver squeeze developed in October, driving silver over $50 to new record highs. A flow of metal from New York to London abated the squeeze, but now metal shortages are showing up in other trading hubs, most notably at the Shanghai Futures Exchange.
“This isn’t a problem that can be solved by moving metal from one warehouse to another. The issue is that demand has outstripped supply for several years.”
Mike runs through the supply and demand numbers, exposing the raw math that is driving silver higher.
“To make up the supply deficit, silver users will have to draw from existing above-ground stocks. That will likely require higher prices.”
Mike also points out that the U.S. government recently added silver to its list of strategic minerals, and this could create additional demand pressure.
“These fundamental supply and demand dynamics should continue to support the silver price at least in the near to mid-term.”
Mike wraps up the show with a call to action, reminding listeners that you can’t vote math away. You must prepare yourself for a world that constantly devalues your money and erodes your wealth. You need to hold real money – gold and silver. With that in mind, today is the day to talk to a Money Metals precious metals specialist at 800-800-1865.
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