2020 Gold, Silver, and Economic News
derryb
Posts: 36,821 ✭✭✭✭✭
The Tide Is Going Out and JPMorgan, Deutsche Bank and AIG Appear to Be Swimming Trading Naked
Ah, and all those $Trillions in derivatives that were not a threat!
Two banks (JPM & Citi) currently hold 80% of US bank exposure to Credit Default Swaps. Is it just coincidence that they both recently reduced this exposure to just below their total dollar deposits on hand? Bail-in anyone?
Well, the bad good news is if one falls, they all fall. Got FDIC insurance? lol.
And to make matters worse, they can't turn a profit on the hundreds of billions they spent buying back their stock in 2019:
"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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It was just like this in the '08-09 crunch.
..Except the bars were open.
The encouraging news is the growing demand for hard gold....and sources seem to be dwindling. Could be some premiums in the near future....Cheers, RickO
Sources are dwindling only because supply chains have the virus. Supply and premiums will return to normal.
There's not a shortage of gold, only a shortage of available 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
Gold and the current crisis
"Events over the last few weeks have alerted a wider audience to the destruction of values in financial markets. The unwritten agreement between investors and the major central banks whereby financial markets will always be supported is now unravelling. Increasingly, the only buyers of government bonds at current levels are the central banks by inflating their currencies."
"Signs of failure in some markets, such as derivative markets for precious metals (COMEX, LMBA), can be taken as evidence that a wider financial dislocation is now in progress."
"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
Breaking News: Liquid gold production temporarily suspended:
https://www.cnn.com/2020/04/03/business/corona-beer-production/index.html
You should buy out the stock and sell it for $20 per bottle on cinco de mayo.
The euro just reached an all time low against gold.
A gold insurance policy can now buy more euros then it ever could.
"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
Over the next 12 months the world's central banks will inject the equivalent of $25 trillion USD into economies around the globe to replace "losses" attributed to COVID-19.
Money does grow on trees! Why work for 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
The value of all gold above ground is worth how much, 7 trillion? And silver, ???
Knowledge is the enemy of fear
Central Banks Need a Higher Gold Price
This could easily reverse decades of futures market price manipulation. After all of these years of buying at artificially low gold prices that they helped establish, Central Banks now have the necessary motivation to make their move.
Why? GATA claims it is "to generate inflation, devalue the excessive debt hampering the world's economy, and strengthen their own balance sheets."
Would also explain why JPM has been stockpiling silver for years, they knew the day to reverse course would come.
"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's a good question. Apparently there is little need to work when you hold the keys to The Fed. Washington, D.C. has become invincible in their own minds. No problem can't be solved by pouring in unlimited amounts of new USD.
$25 trillion is roughly one quarter of world GDP (2019). That's just a starting point.
Money does grow on trees!
Only for certain people. Not for just anyone. Nobody I know is in "the club".
I knew it would happen.
https://forums.collectors.com/discussion/1013923/0/#Form_Comment
Summoning jmski------I knew it would happen
Knowledge is the enemy of fear
Word is there barring people from roof tops. Just hear say right now
So, now that the stock buyback program that fueled Wall Street indices has come to a "crash and burn" end, what's a FED to do?
Simple, directly buy into the markets themselves.
Get ready (will take a while) for Equity Bubble 2.0 and the next crash and burn (if we can survive this one).
"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 End Of Capital Markets As We Have Known Them
"With the initiation of the Fed’s complete takeover and control of the US financial economy, there is now absolutely no accurate pricing discovery in the capital markets and we have entered a period of total manipulation. In light of this, the only markets I have an interest in are those where the heavy hand of government is not involved or only minimally involved. This leads me to rare commodities and collectibles. The public equity and debt markets are now nothing more than greater fool markets that are led by the greatest fools of all, the Fed and the Congress. US capital markets, RIP!"
"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
Gonna get interesting here guys.
Markets and Black Swans
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"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
Good article, thx.
Your ilk?
https://www.forbes.com/sites/rainerzitelmann/2020/03/30/left-wing-intellectuals-are-thrilled-corona-and-dreams-of-the-end-of-capitalism/
Knowledge is the enemy of fear
I think someone is upset because those he disagreed with all this time were correct. Too late to save face. Too late to make excuses.
"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
I really dont know what you are talking about, but your glee over this economic crisis is quite telling.
You claim a victory when it takes the entire global econony to stop and for millions of people to fall ill?
Wow. Just wow.
You do realize that silver is still lower than it was 12 years ago? Yet you claim victory in the shadow of mass graves in NY.
Not enough "wows" to express the incredulity of your gleeful boasting.
Knowledge is the enemy of fear
What I claim is I was right and you were wrong about how fragile the economy was and still is. After years of putting up with your arrogant trolling, name calling, finger pointing BS, post after post, yes, I think I'll take a victory lap.
Sorry it took mass graves in NY for you to finally realize you do not know what you are talking about. Wow, just wow.
Silver? You said elsewhere PMs have no value sitting on the shelf. Wrong, as usual.
Do us both a favor, troll elsewhere.
"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
Actually I'm a right wing intellectual who is and has always been disappointed that the FED you defend has brought an end to free markets and to capitalism. Please don't include me in your crowd, you are surrounded by idiots.
"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
Actually I'm a right wing intellectual
And I thought your comment of "perception is fact" was the funniest thing ever written on this forum.
Knowledge is the enemy of fear
yes, I think I'll take a victory lap.
>
Just take easy out there. Its a big boys world.
I trust you will have fun for the next few months as you tout bad economic numbers in this thread due to a government mandated closure of virtually all business. The very govt youve so railed against for over a decade, has bailed you out as well.
Knowledge is the enemy of fear
Your strong economy was proven to be a fantasy. Accept the fact, or blame it on me. Fact remains that all your claims of "conspiracy theory" and "fake news" with the warnings I and others here provided was complete BS.
If you wanna disagree with this, then we can just add it to your pile.
"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
I'd like to know what happens to all the assets that the Fed is allowed to buy with money from nowhere. And who gets to own them?
I knew it would happen.
if the fed buys them, they are on the fed balance sheet
if the fed buys them, they are on the fed balance sheet
Yes, I know. Doesn't that seem just a little bit wrong? A smidgeon? Who benefits from the income streams once these Fed balance sheet items collect interest, rent, and earnings?
The Fed owners, right? Doesn't that seem blatantly corrupt to you? To anyone?
I knew it would happen.
Yup....if the govt orders everyone to stay home, then youre gonna have a pretty weak economy. Youre the best derryb. The best of the best!!
Knowledge is the enemy of fear
You haven't seen a "booming economy" until those $trillions the Fed is using to buy everything - come home to roost.
I knew it would happen.
virus didn't cause a weak economy. it pulled back the curtain and exposed a weak economy. Debt (been warning on this one as well) is why the economy can't survive staying at home. If all the debt (consumer and corporate) were instead savings most of America could afford to stay at home. I have no debt, I have savings, I could survive a long time without taxpayer assistance.
"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
CME raises PM futures contract margins in effort to discourage physical delivery and to suppress prices
"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
"It's only when the tide goes out that you learn who's been swimming naked." Warren Buffett said it.
As hard as Globalization tries to push the tide in, the laws of Nature and Physics push it back out. Way out.
And when the tide goes out that far it usually means that ...
A tsunami is coming.
Debt (been warning on this one as well) is why the economy can't survive staying at home. If all the debt (consumer and corporate) were instead savings most of America could afford to stay at home.
Before this "crisis", the debt load was unsustainable in terms of maintaining the interest payments on all of the debt - national, state, corporate, personal, etc. Now that debt creation is into hyperdrive, the question is what happens now that the unsustainable debt load has become more than simply unsustainable. A lot of the traditional rules and social contracts are being broken here.
When government and corporations merge to become one, that is the dictionary and historical definition of fascism. That arrangement has never worked out well historically. I don't see it working out any better this time. This really is a dangerous time for what's left of the republic.
One of the constraints placed upon the nation at its inception was to avoid deficit finance and debt by keeping gold and silver coin as specie, as the only legal currency. The Founders knew quite well from their experience with the Continental Dollar just what happens when the currency isn't on solid foundational footing. They would've been totally aghast at how our "leaders" have financed their government.
While people like cohodk want everyone to believe that debt is essential to a growing business and a growing economy, that is a just red herring being used to divert attention from the real problem - which is a fractional reserve banking system, built upon debt as "money", with ultimate power to create more "money" at will. This inflation mechanism has been used to finance war, to dole out favors to the financiers of political campaigns, and as a hidden tax in order to avoid making the sometimes difficult but responsible decisions in government.
The true root cause of our problems is when a private banking cartel is allowed by our corrupt politicians - to assume complete control over who wins and who loses in our whole economy, and to place the yoke of debt onto the majority of people who can then be controlled with (monetary) social engineering to do or to believe whatever is required to keep the corrupt bankers and politicians in power.
It's really pretty dang obvious to me. There's a massive shell game going on, and it's worldwide. It's impossible to predict an outcome here. I guess we know now what the black swan was.
I knew it would happen.
Don't you mean communism?
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
Don't you mean communism?
No, but the effect is pretty much the same in the end. What's happening now with the Fed purchasing virtually every kind of asset with money from nowhere - is a merger of government and corporations. That was always the classical definition of fascism. And this is 100% backed by the politicians. Very bad mojo.
The Fed is "supporting the markets" by purchasing capital stock, treasuries, corporate bonds, junk bonds, ETFs, municipal bond funds - and even hedge funds, for crying out loud. All with newly-created "money" from exactly nowhere, for the benefit of the owners of the private banks that make up the Fed. You can't make this stuff up. It's the reality. That's corruption at the highest levels.
Communism involves a forcible takeover of the means of production by the government. This is a financial and soft coup economic takeover by the banks with the consent of the politicians.
The end result is not good in either case.
I knew it would happen.
Suggested viewing while we're locked up. Dictator's Playbook PBS series. Great refresher course
Thank you for this visual. Some folks need a picture for comprehension. Finding high ground may be a problem for many.
What Happens When The Pandemic Ends?
"These countries did pretty much what we’re doing, which is to say they responded to crises of one kind or another by running the monetary printing presses. In each case their currencies collapsed due to oversupply and/or loss of faith in government."
"The difference between this and those previous hyperinflations is that the latter were isolated crises in a sound-money world. Today everyone is doing it, which means the coming crisis will be global, and therefore just as devastating as any pandemic."
Sure, this time it's different. 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
Banks brace for big loan defaults by US, global customers
"Many of the loans now at risk were fine only weeks ago."
"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
So, in broad concept, conditions in the US in 2020 resemble those in, say, German in 1920, or Nicaragua in 1986?
Nope. Both above involved internal violence and revolution that sought drastic political change. Economic decline was a result, not a cause. This is something the US has a number of tools to foresee and to prevent. I would look at the fall of the Roman empire for clues of comparison. The US's rapid decline will be the result of an economic event of enough magnitude that it demands drastic political change. Or, it could just as easily be the cumulative result of years of smaller economic events such as Rome's decision to slowly remove the amount of silver in its coins.
So far, the US has been able to control its economic problems with gradual currency debasement, hidden from those not paying attention. For example we have been taught to believe that 2% inflation is a good thing, so we accept rising prices as the norm while fighting for higher, equalizing wages, always after the fact.
Our acceptance of the personal costs of negative economic events is second only to our acceptance of the destruction of personal freedoms. We have been convinced these are a necessary cost, always needed to recover from the events at hand. Unfortunately these perpetual costs are with us forever.
Once in line at the grocery store I waited behind a women and her small child. As they approached the register I notice the kid starting to untie his shoes. His mom looked down with a smile and said "no honey, we only have to do that at the airport." I have since considered that to be my moment of awakening from the matrix.
"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 LoL is for the kid and his shoes comment.
My Ebay Store
I just learned that the Strategic Gold Reserve is full and that there is no additional space to store PMs which may explain today's fall in prices.
Both above involved internal violence and revolution that sought drastic political change. Economic decline was a result, not a cause.
Post-WWI Germany's problems involved war reparations debt that simply couldn't be repaid because the most productive Ruhr region was expropriated by the Allies and France insisted on particularly harsh conditions towards the Germans. In addition, Germany had many wounded and disabled war veterans living on the street. The bankers and politicians saw no alternative but to inflate the debt away.*
The root of our current dilemma is unreconcilable debt. The cause is mismanagement of personal, corporate, state and federal finance - not war reparations - but the impact is pretty much the same. One difference is that we've existed on the petrodollar for almost 50 years, but that paradigm is probably changing. It's a Brave New World now.
The new rules won't be the same now that the bankers are being allowed to own most everything.
I knew it would happen.
BofA Calls Gold "Ultimate Store Of Value", Raises Price Target To $3,000
"Fed Can't Print 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
Linky? I suspect that what you are referring to is that a specific goal has been reached. I don't believe any of the major vaults storing gold have reached their capacity. There is always more room to securely store 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