GOLD AND SILVER, ECONOMIC NEWS 2019
derryb
Posts: 36,821 ✭✭✭✭✭
this will be the year we all (well most of us) learn that the collateral for mountains of national and corporate debt was a false belief by the borrowers, and even more so by the lenders, that future growth would continue to be there to service it.
Didn't both parties make that same mistake with housing prices a few years back? Hope the results this time aren't as severe. LOL
Got silver?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
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You forgot the next part, where the corrupt agencies then try to pin** private liabilities** onto the backs of taxpayers for the benefit of an influential insider, exactly what is happening with the insolvent Sears pension fund.
We haven't even got to the insolvency issues of places like California, Illinois and New York. Maybe Michael Bloomberg should volunteer to bail them out.
I knew it would happen.
Fortunately, for the taxpayer, pension fund bailouts are conducted by the Pension Benefit Guaranty Corp. using premiums paid by the pension fund members. Question that remains is "how long before PGGC funds are depleted and the taxpayer starts footing the bill?" This will be dependent on how many more PBGC fund members end up in bankruptcy or, in the case of Sears, get caught up in a transfer of ownership that does not include a transfer of the pension fund.
I suspect history might show the Sears exec/shareholder who is buying out Sears facilitated its downfall with the intent of scooping it up minus the liability of the pension fund.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Ah the economic house of cards.... still adding more floors. I think I will go look at my stacks...
Cheers, RickO
From your mouth to Gods ears, derryb. Whoohoo!!!!
Knowledge is the enemy of fear
Like I said in the OP, "most of us." LOL
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
The Interest Rate Hawks Surrender
"If the stock market declines while the Fed is still stimulating, as I expect it will, investors around the world may finally realize that the United States may have become a monetary Roach Motel, where monetary stimulus checks in but it can never check out. The economic house of cards that has supported us for a decade will finally be laid bare, and investors may recognize that interest rates will never return to normal and that the size of the Fed’s balance sheet will rise in perpetuity."
The future of any market, including currency, hinges on confidence.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Forbidden
You don't have permission to access /economiccommentary/the-hawks-surrender/:// on this server.
I knew it would happen.
Linky Fixed
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
You should have linked it directly from Schiff.
Knowledge is the enemy of fear
tried to but that one didn't work so I changed it.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Government Shutdown Is Proving Americans Are Not Prepared For A Recession
This is not good news.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Federal Government employees in soup kitchens and food pantries is amazing. These are not all contractors or part-timers either. Some of these people have 6 figure incomes and run our country.
They can get loans
https://www.nytimes.com/2019/01/24/business/wilbur-ross-shutdown.html
We're eating the seed corn in so many ways.
Historically, the American public has been much more patriotically docile and willing to defer to the common good, as opposed to, say, the French. This in part has it roots in trust that the government was ultimately trustworthy and answerable to them. The longer they suffer while the prez and the Congress play political chicken with one another, the more likely it is that this deference will erode, and TRS and FBI people will start to routinely walk off the job.
Here's a warning parable for coin collectors...
public confidence is highly under rated. Especially its impact on markets.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
All a product of OUR votes. It aint gonna change until WE change.
Knowledge is the enemy of fear
Also a product of living beyond (or too close to) one's means.
Maybe the shutdown is just an exercise using a small sample to measure the impact of a coming bad recession.
One thing for sure, the shutdown is showing just how fragile personal finances are for people that have decent income. Maybe personal debt has something to do with it.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Let me get this straight. Government workers who are making twice what a comparable private sector job pays, are living above their means in nice housing, in nice neighborhoods and haven't saved enough to weather a disruption in their incomes? Why not?
I found this rather interesting as well -
the nation’s four biggest banks — Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — don’t offer personal loans at all, meaning workers who keep their accounts there would need to look elsewhere.
Here we have banks who were bailed out of their own bad decisions by the taxpayers, who won't even arrange loans for their own depositors.
I hardly know what to think, except that there is too much Big Government in the first place and that the Federal Reserve Banking "System" needs to be gone, like yesterday.
In both cases, the free market needs to be freed and the bailouts need to stop. There was a reason that the Founders set up a balance of power in government. They knew human nature and they had studied the history of governance.
Franklin did have something to say about the time when the people could vote themselves more free stuff. I don't remember his exact thoughts about the outcome, but it wasn't good. We are there.
I knew it would happen.
They'll give you a loan but it has to be with their high interest credit cards.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
That is completely false. Just google the banks name and personal loan.
Where did you get that incorrect info?
Knowledge is the enemy of fear
Maybe Wilber Ross should give them loans.
Knowledge is the enemy of fear
Take the loans then immediately file bankruptcy. Then they can be just like.....well nevermind lol
The whole worlds off its rocker, buy Gold™.
New York times article
neither of you come back until you've been to a bank's web site and found or not found personal loans info. if you can't find personal loan info call their 800 and ask.
A good/important read. I don't completely agree but the premise is IMHO sound. Thanks for posting
Where did you get that incorrect info?
New York times article
lol, you didn't expect him to actually read the article, did you?
Then again, you never know what's fake news, especially if NYT is the source.
I knew it would happen.
Peter Schiff right on target. . . again
". . . it doesn't really matter. The bubble is pricked. The air is coming out no matter what the Fed does now. And he's been saying all along that the Fed won't be able to stop with ending its tightening program. That's just a stop on the way back to zero percent interest rates and another round of QE."
Got silver?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
"Gold Is Going To $1,500, Says Jim Cramer"
Time to sell?
https://www.kitco.com/news/2019-01-30/Gold-Is-Going-To-1-500-Says-Jim-Cramer.html
sell!
So, what do the central banks know that mom-and-pop FAANG-buyers don't?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
.> @derryb said:
Then why isn't the price of gold reflected in this "buying spree?"
It is. Central bank buying keeps prices from falling further
Liberty: Parent of Science & Industry
Because they don't buy it from APMEX or the CRIMEX.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Well, if that's the case, why bother posting this non matter on a PM forum.
Its so funny cuz its true. Haha
Knowledge is the enemy of fear
To show that even the big boys see the protection and liquidity of such an ancient relic.
While they will not share where they buy their gold, many of them disclose why they buy and hold gold.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
The Sky Brothers dig it!
Liberty: Parent of Science & Industry
sell!> @derryb said:
If I were a huge amount buyer, I'd arrange a private spot price transaction or transactions with a big holder or seller. A big seller might be a mining operation with transaction on an "when produced" basis.
who wants a spike in prices caused by an open market purchase or purchases?
Then why isn't the price of gold reflected in this "buying spree?"
It is, and it isn't. It's part of the demand side, whether or not it's a public transaction or done in secret.
if that's the case, why bother posting this non matter on a PM forum.
It's instructive to note that the central bankers disparage gold in referring to it as a "commodity", while (as derryb's link clearly shows) that their own holdings list it as a reserve asset and a core "safe haven" asset held for crisis management situations.
Why do they disparage gold holdings for private individuals while listing it as a core safe haven asset for themselves - when it's an obvious choice as a prime store of value and a hedge against fiscal & monetary mismanagement? It that doesn't raise your BS antennae, then what would?
I knew it would happen.
Why do they disparage gold holdings for private individuals
From where do you derive this nonsense? Doesnt just about every country produce gold coins for its citizens to collect?
Knowledge is the enemy of fear
I think he was referring to those that sell non-hard assets such as dollars, stocks and bonds.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Yes, "They" attempt to sell us gold and silver too. Every other commercial in the morning (besides My Pillow and New Day VA 100% home loan) is for gold and silver. They sure want people to buy into it.
Liberty: Parent of Science & Industry
He specifically stated "central bankers", which i should have fully quoted.
Knowledge is the enemy of fear
Interesting also that there are more commercials trying to sell you gold on one national news channel than on another. Why does that channel have more folk trying to sell you their gold than the other?
Knowledge is the enemy of fear
A) Cheaper Air time
Majority stock holders are bullion dealers
C) None of the above
You pick your choice
It's not the Fed selling gold coins to the public, is it? No, it's the Treasury. So that you do not forget, let me remind you that the Fed is a monopolistic private banking cartel and is not part of the government. The Fed is simply a well-connected middleman that lives off the government's mismanagement of money.
In congressional testimony when Ron Paul asked Bernanke if gold was money, and the response was "no, it's a commodity, a precious metal, an asset" and that the reason that central banks hold gold instead of diamonds is because of "tradition". That's mealy-mouthed doublespeak if I ever heard it.
If gold isn't money, then the neither the government nor the central banks have any business owning it, nor do they have any business owning stocks, real estate or any other non-monetary asset. You can thank Graham, Leach & Bliley for the comingling of commercial lending and real estate finance - the mother of all derivative fiascos.
Which brings us to the disparagement issue. It's widely recognized that the price of gold serves as a contrarian indicator for the dollar. If gold moves up too fast, the dollar and most importantly - bonds are affected negatively. A spiking gold price draws attention to the trainwreck of government finance and therefore it has to be suppressed or the government bond market will fail and the Fed will lose it's symbiotic host.
Why does the Fed have a commodity trading desk? GATA has proven beyond a doubt that the price of gold is manipulated through naked shorting that would land you or I in jail. No metal is removed from any inventories and shipped somewhere else when this takes place because the settlement is on paper and there is no transparency or accountability since any trading shortfalls can be keystroked and deep-sixed in a fake budget ledger, ala' Enron.
The price manipulation is designed specifically to drive investors away from the market. Usually the monkey hammering of the gold market happens on thin volume at odd hours and it doesn't reflect how normal buying & selling takes place. Debate it all you want, it happens.
I knew it would happen.
Not worried personally about what to Label the gold, whether "money" or safe haven or asset or whatever, the semantics aside, my question is, how will it perform in my portfolio vs the other components? My position reflects my outlook, which is lukewarm at best. I'd love it if the permabulls were right just once more in a generation before I die so i can sell it for market beating profits and wave goodbye to it forever.
And that goes double for platinum and triple for bulky silver.
Liberty: Parent of Science & Industry
Based on what you say, if you are really using a portfolio rebalancing strategy, you should be buying precious metals with some of the profits from your high-flying stocks, right? Or, do I have it all wrong?
I knew it would happen.
Yes, still buying a little bullion, and bought a Fugio cent a couple months ago, and have a want list but those coins and kinds of bars are hard to find. I do not buy any items younger than myself anymore.
Putting stock profits and free time mostly into real estate and a small business venture, but will get active selling PMs if you guys are right and it makes a new high before i croak.
Liberty: Parent of Science & Industry
If gold moves up too fast.....
bonds are affected negatively
Can you please explain how you think this happens?
If gold isn't money, then the neither the government nor the central banks have any business owning it, nor do they have any business owning stocks, real estate or any other non-monetary asset
So the govt shouldn't own any national parks, fish hatcheries, shipping ports, aircraft carriers, rocket building and launching sites, natural or man-made antiquities, etc? Why should a govt only own "money"?
The price manipulation is designed specifically to drive investors away from the market
Good thing those that see manipulation so clearly dive headlong into it!!! Lol
Knowledge is the enemy of fear
Putting stock profits and free time mostly into real estate and a small business venture, but will get active selling PMs if you guys are right and it makes a new high before i croak.
Will you be dumping the real estate in a hurry if it skyrockets and upsets the portfolio balance? Same question for the small business venture, if it becomes wildly successful?
I'm chiding you on a bit, to see if your attitude about the metals is somehow treated differently. Metals probably should be treated differently in all fairness, because metals are in fact a different asset class.
I knew it would happen.