Tim Walz set an impossible task for himself.

He needed to defeat JD Vance in the Vice Presidential debate as Iran was bombarding the crap out of Israel, and the International Longshoremen's Association (ILA) went on strike, “crippling” the US economy from Maine to Texas.

How much money did Democrat administrations give to Iran? How badly would the US economy be affected during this strike? You’d almost think the unionized longshoremen want a Republican in the White House. And how well did the folksy Walz stack up against the Hillbilly Yale Law Grad?

Well, we found out, much to Walz’s dismay. At least we know what The Donald thought of the proceedings:

“I’ve Become Friends With School Shooters.”

And that, my friend, is the dumbest thing you could say during a debate. And yes, Tim Walz said that. Walz ignored the questioner when asked to clarify that remark afterward.

I don’t know what he was getting at by saying that, but whatever it was, it didn’t go over well. The X-Verse lit up like a Christmas tree. One father of the Parkland school shooting said this was “disqualifying.”

Besides that gigantic elephant in the room, JD Vance was the more polished debater. You’d expect that from a Yale Law Graduate. Lawyers are supposed to be good at this sort of stuff, which is why it’s such a wonder why Kamala Harris, a former state attorney general, isn’t.

Vance correcting the fact-checking CBS moderators was the opening treat for the viewer. They had to cut off his mike to stop him from embarrassing the network further. CBS’s behavior was despicable; quite frankly, it was more of an opponent than Walz.

Walz may be a guy you want to have a beer with—if you’re a Maoist, of course—but he’s loose, too loose with his facts. Before the debate, he got caught lying about his military service. This time, the moderators asked him why he lied about his time in China and Hong Kong, which were not during the Tiananmen Square demonstrations in 1989. His self-deprecating “I’m a knucklehead at times” answer won’t go far if he’s the second in command.

On the other hand, Vance controlled the room; the room didn’t control him. He hesitated only once on the “gotcha” question, “Did Trump lose the 2020 election?” It was a job well done for him.

Veep debates rarely change hearts and minds. But the night’s other activities surely had at least some Americans thinking, “Do I want the Dems in charge for another four years?”

Iron Dome: More Science, Less Fiction

Today’s 50-cent word is “fungible.”

Fungible means replaceable by another identical item or mutually interchangeable. That means if you hand over $157.7 billion to Iran (Obama unfroze $150 billion in Iranian assets and paid $1.7 billion to settle an old debt in 2016, and Biden unfroze $6 billion in oil revenues in 2023), the dollars can be used for “other things.”

You know, like missiles.

When the funds were released, U.S. officials emphasized they were restricted for humanitarian purposes like food and medicine and are being closely monitored. Of course, people who know anything about international payments knew this was nonsense. Now, everyone knows what those restrictions were worth, and Israel has found out firsthand, much to its detriment.

As for the Iron Dome, it’s about as valuable as an umbrella during a volcanic eruption.

Live shot of the Iron Dome protecting Israel during the Iranian bombardment.

If this keeps up, I might also start thinking the Samson Option is made up.

Finally, let’s get to the administration’s handling – or lack thereof – of the longshoremen’s union.

How to Hate Unions In One Easy Lesson

As for the last piece of today’s puzzle, we have Harold Daggett, head of the International Longshoremen’s Association, threatened to “cripple” the US economy. It's an excellent negotiating strategy, methinks.

Here’s what he had to say in a YouTube video:

Let me explain something to you. These people today don't know what a strike is.

When my men hit the streets from Maine to Texas, every single port will lock down. You know what's going to happen? I'll tell you.

First week, it’ll be all over the news every night… boom boom. Second week, guys who sell cars can't sell cars because the cars ain't coming in off the ships. They get laid off. Third week, malls start closing down. They can't get the goods from China. They can't sell clothes. They can't do this. Everything in the United States comes on a ship. They go out of business. Construction workers get laid off because the materials aren't coming in. The steel is not coming in. The lumber's not coming in; they lose their job.

Everybody's hating the longshoremen now because now they realize how important our jobs are.

Now, I have the president screaming at me, “I'm putting a Taft-Hartley on you!” Go ahead. Taft-Hartley means I have to go back to work for 90 days after a cooling off period. Do you think when I go back for 90 days, those men are going to go to work on that pier? It's going to cost the companies money to pay their salaries while they go from 30 moves an hour maybe to eight.

They're going to be like this. [Strangling oneself.] Who's going to win here? In the long run, you're better off sitting down, and let's get a contract and let's move on with this world. Because in today's world, I'll cripple you. I will cripple you, and you have no idea what that means. Nobody does.

This guy means business. Considering all these things, let’s see what we can do with it.

The Market and You

Let’s say Trump gets in, the war in Israel escalates, and the ports stay closed, crippling the supply chain. My goodness, this is as inflationary as ever. And I didn’t even mention China’s loose monetary policy. A Kamala victory would mean even looser US economic policy.

I love gold, silver, and their miners. I wrote about my positions in the Daily Reckoning.

Although bonds are doing well right now, I take Stanley Druckenmiller’s view very seriously. The higher the inflation, the more bonds will be hurt.

Yes, gold and silver got hit lately. Look at it as a buying opportunity.

Wrap Up

Expect massive inflation to return. As ever, Jim Rickards is correct. We’re not out of the woods yet. We never were. 

Think about it: Trump or Kamala, combined with Middle Eastern wars, no open East Coast or Gulf Coast ports, and loose monetary policy in the biggest economic superpowers.

It all adds up to one thing: higher prices.

You’ll have to consume it. But also be an intelligent investor and use it to your advantage. Buy gold, silver, and their miners.

Have a great day!