All the pieces are falling into place for the biggest gold bullmarket in history and by the look of the long-term gold chart, it is set to start very soon. The biggest reason of course is the accelerating demise of fiat. There are many other reasons that we will be considering going forward, but the one that looks set to trigger the immediate start of the bullmarket (and has already since the move of the past 2 weeks is viewed as the initial impulse wave of this bullmarket, even though it hasn’t broken out yet) is the Fed chickening out of its “normalization” program, which was a joke anyway because there is no way they can normalize the hopeless mess they have created. . The markets called the Fed’s bluff and they very quickly folded, establishing that they are now powerless. Full Story
With the economy clearly fizzling away, the Fed has said it MIGHT cut rates if economic conditions warrant. What does that tell you about whether or not they will cut rates soon enough to avert a recession — something I think they have never managed to do, as they confess they are the culprits who cause recessions.
Recessions also usually start as soon as unemployment starts to rise. So, beware May’s surprisingly low new-jobs number. That can start the rise in unemployment if it proves to be more than a one-month blip. A decrease in the Fed’s target interest rate coupled with an uptick in unemployment is almost the perfect set of marks for the starting point of a recession. Full Story
One big difference between India and China is that the gold and silver buying in India is largely a grassroots phenomenon, emanating from the general population due to deep-rooted customs and traditions; where the buying from China is predominantly from official sources (similar to the gold buying by Russia). To me, this makes the gold and silver buying from India more “free market” and price-sensitive in nature because the more participants in any market, the freer the market is by definition. The many tens and even hundreds of millions of gold and silver buyers from India make the markets there the freest of all.
India has always played a vital role in gold and silver. I remember how my longtime friend and silver mentor, Izzy Friedman, more than 40 years ago, as he was deciding whether to make a major investment in silver in the mid-1970’s, actually flew to India to see for himself if the stories of great silver hoards about to flood the market should prices move higher (from $4 or $5) were true. Izzy saw plenty of silver, but none so closely held in large concentrated quantities to pose a market threat. I believe that’s still the case today. Full Story
Chinese President Xi Jinping was the guest of honor of Russian President Vladimir Putin. It was Xi’s eighth trip to Russia since 2013, when he announced the New Silk Roads, or Belt and Road Initiative (BRI).
First they met in Moscow, signing multiple deals. The most important is a bombshell: a commitment to develop bilateral trade and cross-border payments using the ruble and the yuan, bypassing the U.S. dollar. Full Story
By: Gary Christenson, The Deviant Investor - 13 June, 2019
BLUE PILL REALITIES:
U.S. government debt: Congress, in their wisdom, will approve appropriations larger than revenues, borrow the deficit, and accept “donations” from interested parties. It’s all good… except the U.S. government is in debt over $22 trillion and has unfunded commitments for $100 – $200 trillion more. Their only plan for addressing massive debt is to increase borrowing and hope.
Even a few “blue pill” advocates understand this Ponzi scheme will end in tears. Full Story
In April credit card debt was once again the largest contributor to the new all-time high in consumer debt, increasing by $7 billion vs. a decline of $2 billion in March. Student loan and auto debt hit all-time highs of $1.6 trillion and $1.16 trillion, respectively. I found the credit card debt numbers interesting because a report released by Experian showed that 23% of Americans need credit card debt to pay for food and rent – i.e. make ends meet. Full Story
In conclusion, though prices will never be allowed to move uninterrupted straight up, they are definitely headed higher in the back half of 2019 as The Fed loses credibility by fighting against the deflation and economic contraction they created. Halfway through the year, the charts also seem to clearly indicate that this is the case. Therefore, the time is now to establish, or add to, physical precious metal positions.
And acquisition of physical metal is easy... you can even hold it in your IRA! You can store it at a trusted gold bullion storage company or in your own, personal safe. You can hold it in gold bullion coins or silver bullion bars. Take your pick. Just be sure that you understand the tenuous position of the central bankers and their global economy in 2019... and then act accordingly. Full Story
It sounds like Modern Monetary Theory (MMT), which is likely coming in one form or another in the years ahead as the government struggles just to pay interest on an exponentially growing debt load. Under MMT, the government would directly print the dollars it needs to close its deficits rather than issue new bonds. Similar monetary experiments didn’t work out so well in Zimbabwe and Venezuela.
Given President Trump’s repeated clashes with the Federal Reserve over what he sees as “too tight” monetary policy, he might be all too willing to support a bipartisan push for a more “actively managed,” more inflationary monetary system.
Investors who are thinking about selling precious metals, or refraining from buying until Trump leaves office, should check their premises. Full Story
"As more investors see that the gold market is relentlessly and successfully suppressed," C.W. writes, "they (to quote Sam Goldwyn) 'stay away in droves.' The suppressors have found that there are no sanctions against their activities and so have concluded that the more widespread the belief that they are controlling the gold price, the better. That is why the rigging is so obvious.
"Although Stein's Law ("If something can't go on forever, it will eventually stop") applies here, I am not sure I will live long enough to see it, and such a feeling also depresses sentiment." Full Story
The nation may see a “perfect storm” in terms of food inflation. Prices for some farm commodities figure to be a lot higher in the months ahead as markets adjust to dramatically lower crop yields. This will be coupled with price hikes associated with tariffs on all manner of goods from China and elsewhere.
To top it off, the Fed is signaling a reversal. The next move in interest rates now figures to be lower. Full Story
China still leads the world in physical gold demand and it is no small number: Year to date 688 tonnes have moved from the vaults of the Shanghai Gold Exchange into the hands of Chinese investors. At that pace, China will have imported over 2000 tonnes of physical gold by the end of the year, an amount equal to 61% of annual global mine production. “Therefore,” says Manly, “2019 is shaping up to be another very strong year for Chinese gold demand as physical gold continues to move from West to East.”
James Grant, the editor of Grant’s Interest Rate Observer, recently delivered a speech in acceptance of the 2019 Bradley Prize in Washington, D.C. He was honored along with two other recipients – The New Criterion‘s Roger Kimball and Judge Janice Rogers Brown. The Bradley Prizes honor scholars and practitioners whose accomplishments reflect The Lynde and Harry Bradley Foundation’s mission to restore, strengthen and protect the principles and institutions of American exceptionalism. The following is an excerpt from that speech.. Full Story
Well, it didn't take much and it didn't take long. After years of delays, a tentative start, many cautious pauses along the way, and a top speed that never really hit cruising velocity, the Fed has taken the first available off-ramp on the road towards policy "normalization." In a speech on Tuesday this week in Chicago, Fed Chairman Jerome Powell delighted Wall Street by signaling that the Fed may soon deliver the gift that investors had been hoping for...the first interest rate cut in almost a decade.
While many savvy economists should have seen this coming, as late as October of last year, almost no one in the financial world thought that the Fed would so easily abandon its long-held bias without a gale force recession blowing them off course. But, in reality, all it took was a light breeze to force a 180-degree turnaround. Full Story
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