By: Richard (Rick) Mills, Ahead of the herd - 21 February, 2020
I’d like to end this article here, after presenting you not with the disease we suffer, but with its symptoms/ consequences, and take the following up, in another article.
“all the effort and planning imaginable cannot make paper money work. There is no way paper can be "improved" as money. Whenever governments are granted power to purchase their own debt, they never fail to do so, eventually destroying the value of the currency.” Ron Paul, The Case for Gold
As investors, the best way to protect ourselves against a global (or regional, depending on where you live) calamity that even a large cache of US dollars could fail to provide, is to own gold. Full Story
By: Stewart Thomson, Graceland Updates - 20 February, 2020
The decline of the American empire continues relentlessly. The citizens look towards their government for guidance and all they see is maniacal debt worship. Monkey see…monkey do:
New statistics show that credit card debt of millennials now rivals total student loan debt.
They look like deck hands on a titanic ship of debt. There are gaping holes in the hull, but the focus is on “making growth great” by loading the overloaded ship with even more crates of debt. Full Story
By: Gary Christenson, The Deviant Investor - 19 February, 2020
Don’t be too sure that ‘the Fed has our back’ so stocks will always resume their steady climb after every spot of bother.”
Paper assets can crash and burn. They might remain levitated beyond the November election, but perhaps not.
Debt is rising rapidly compared to the economy that must support the debt service. Debt may not collapse tomorrow, but it will not increase forever.
The Fed has created bubbles in stocks, bonds and real estate—the Everything Bubble. Bubbles always implode.
Even with zero-interest rates, profits, at some point, won’t support the required payments. Debt can’t increase forever. Pick your poison – default or hyperinflation.
Protect your savings with gold and silver bullion – not paper substitutes. Full Story
Nothing seems to be getting in the way of the melt-up. Not even coronavirus now COVID-19 has knocked it off its upward climb except for a few brief days. Maybe this time it is different. Well at least that is what they always say. Except it isn’t.
The same themes present themselves over and over again. The central banks are going to save the world. And we can grow debt, debt, debt and there are seemingly are no consequences. That is until there is. Now we discover in our “Chart of the Week” that Greek bonds yield less than U.S. bonds. What you say?
Our recession watch spread remains positive. No signal of recession but we can’t help but note that parts of the EU are falling into recession. So is Hong Kong and who knows what happens with China and the COVID-19. Full Story
The stock market is becoming increasingly disconnected from underlying main street reality. Corporate profits have been declining since the third quarter of 2018. However, pre-tax corporate profits have been declining since the Q3 2014 (this data is available on the St. Louis Fed FRED website). Real corporate profits (adjusted for CPI and including inventory write-downs and capex) are the lowest since the financial crisis. Remarkably, rather than the usual “hockey stick” forecasts, Wall St analysts have revised lower their consensus earnings estimates for the Dow Jones Industrials. In fact, per the chart above, I think you can say that Wall Street’s forward EPS estimates have gone off a cliff. Full Story
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