Is it last call, for US stock market alcohol? The current price action of gold, the yen, the Indian rupee, and Chindian stock markets suggests that investors who have moved their focus from American stock markets to gold, silver and Chindian stock markets… are doing the right thing.

America sports one of the worst demographics profiles in the world. The “make the ageing debt-soaked citizens and government great” plan will do little more than create a macabre version of America’s 1950s Happy Days TV show.  

The new Richie Cunningham is 75 years old, works 2 or 3 part-time jobs, and has no real savings. The only way to “make Richie great”… is to let him retire. 

Unfortunately, the US government is eagerly spending trillions of dollars of borrowed money on insane regime change and wars in the Mid-East, while throwing food stamps to its own citizens.  

It’s no surprise that the US stock market is now being carried higher by fewer and fewer stocks. The Fed has barely started its hiking cycle, and it will soon begin “reverse QE” (shrinking its balance sheet). That’s very inflationary, and negative for the US stock and bond markets.

Also, auto sales are suddenly shrinking. Top Goldman analysts predict it may be the start of a bigger trend that could last for years. As sales drop, car companies will raise prices to make up for lost revenues.

The bottom line: Stagflation is beginning. The idea that Donald Trump is going to override the peaking US business cycle without eliminating income taxation and capital gains taxation is a ridiculous fantasy.

Double-click to enlarge this great-looking daily gold chart.

There’s no question that gold can pull back at any time now, given the extent of the rally, but even a decline to $1225 would only add to the positive look of the chart.

India sports the greatest citizen demographics in the world, and big name Chinese and Hong Kong stocks are trading near book value.