By: Gary Christenson, Deviant Investor - 23 January, 2020
Can one, or even five $trillion of additional QE and “not QE” save stock and bond markets from their over-bought, over-valued bubble status? Will massive QE bring inflation or hyper-inflation? Can Fed currency creation delay a recession and reelect President Trump? Will those created currency units prevent American voters from electing socialists who will… oh never mind…
Some basic logic must come to the table in the Gold pricing mechanism. The easiest way to keep the Gold price down is NOT TO USE IT IN TRADE, NOR IN BANKING RESERVES, and to relegate it to the sidelines as the barbaric metal. Some deep amusement comes always in hearing that Gold does not have value, does not earn a yield, and has no uses. Watching the destruction in bond principal value leads the observer to note how Gold holds its value in times of crisis, and even rises against the general paper tide. The bond market crisis is global this time, unlike in 2008. Each debt downgrade to BBB, within the context of fallen angels, brings a realized loss in bond value. All this occurs with a rising Gold price, even with pauses for consolidation. The best way to lift the Gold price is TO USE IT IN TRADE AND IN RESERVES MANAGEMENT. The actual usage further motivates the proper value to be instilled, regardless of type of usage. Full Story
Bridgewater Associates’ Greg Jenson told the Financial Times this week that gold could spike 30 percent as central banks allow inflation and political fears mount. “There is so much boiling conflict, that gold being part of a portfolio makes sense to us,” Jensen said. This would mean a gold rally to more than $2,000 an ounce. Peak gold could be more distant in the future than originally thought due to increased exploration spending. 2019 saw a flurry of gold M&A activity and a return to levels last seen during the 2011 boom. There was around $26.5 billion worth of completed deals last year. Full Story
Narayana Kocherlakota, the former President of the Federal Reserve bank of Minneapolis wants you to know the Federal Government can never borrow too much money.
Our government already borrowed $23 trillion and deficits are expected to exceed $1 trillion per year. He knows many Americans feel anxious about the federal government going bankrupt, and he has a simple solution. Full Story
Since hindsight is 2020, I thought it might be useful now that we are far past the time in 2018 when I called the fall of the US housing market to assess where its journey went during the year and a half that has gone by before I venture a housing market prediction for 2020.
There is no sense going further if I got that wrong.
To lead off, new housing sales have finally recovered from a perilous drop (if new housing sales can hold at their current level or rise above it).. Full Story
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