More gov't. debt and borrowing for tax cuts, rebates, or basically vote buying, can only speed up the dollar debasement portion of the gold price. Central banks started the run, but individual investors and 401k's and IRS's using ETF's will keep it advancing over time as alternative investments become more popular.
When I said "I'll believe it when I see it", I was referring to the taxpayers getting back some of the tariff money.
I think with 100% certainty we will see "tariff rebates", probably 2k each, sometime around Thanksgiving.
I’d be inclined to take the “over” Thanksgiving date
A couple of weeks before the mid-term elections?
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
Anytime the gov or its central bank injects cash, regardless of its source, into the money system it is a form of QE. Think of tariff handouts as helicopter money funded by foreign countries.
If you understand what is coming, then you can duck. If not, then you get sucker-punched. - Martin Armstrong
QE, not so sure. Its not the Fed injecting money into banks to inject into the system. More like wealth distribution, taking money from a number of businesses that import goods and distributing to the millions. Anyway a bad idea and will promote inflation as a good # of folks will spend on bad choices and all at once.
@derryb said:
Anytime the gov or its central bank injects cash, regardless of its source, into the money system it is a form of QE. >Think of tariff handouts as helicopter money funded by foreign countries.
Since most tariffs are paid by consumers or shareholders, I consider it a rebate.
Like raising gasoline taxes to encourage fuel efficiency....then rebating each household.
Any cash given to the public comes from somewhere. How about money handouts during 08 GFC and Covid to stimulate spending? You could also call them tax "rebates," they came from tax receipts.
"Red flags have been raised that the banks are in desperate need of liquidity, but there is a deeper issue at play—the entire system is under stress."
"The public must have confidence in the banks, and the banks must have confidence that the Federal Reserve will always catch them before they fall. We’ve seen several smaller banks go under in 2025, yet they were small enough not to raise concerns. The Fed fears panic more than it fears inflation. Powell knows that the central bank lost the ability to control inflation, but for now, it can control panic."
If you understand what is coming, then you can duck. If not, then you get sucker-punched. - Martin Armstrong
@derryb said:
Anytime the gov or its central bank injects cash, regardless of its source, into the money system it is a form of QE. >Think of tariff handouts as helicopter money funded by foreign countries.
Since most tariffs are paid by consumers or shareholders, I consider it a rebate.
Like raising gasoline taxes to encourage fuel efficiency....then rebating each household.
I agree with the others, there are nuances of course, but this is fairly brilliant. It achieves the goal of encouraging domestic consumption (vs foreign) while somewhat mitigating the effect of higher prices on the consumer.
@GoldFinger1969 said: Silver at new high...gold bouncing back from recent sub-$4,000 lows.
Looks bullish but also a bit late-stage to me with the quick recovery in silver. But seeing bids underneath, esp. for gold, is nice.
I agree with the others, there are nuances of course, but this is fairly brilliant. It achieves the goal of encouraging domestic consumption (vs foreign) while somewhat mitigating the effect of higher prices on the consumer.
Except when it affects items not or minimally produced in this country, like coffee, spices, certain foods, and other items. Not a well thought out strategy with its blanket approach. And if a US small business goes bankrupt because if it, I don't want the $2,000.
Comments
I think with 100% certainty we will see "tariff rebates", probably 2k each, sometime around Thanksgiving.
More gov't. debt and borrowing for tax cuts, rebates, or basically vote buying, can only speed up the dollar debasement portion of the gold price. Central banks started the run, but individual investors and 401k's and IRS's using ETF's will keep it advancing over time as alternative investments become more popular.
My US Mint Commemorative Medal Set
Tariff rebates are just another form of QE.
If you understand what is coming, then you can duck. If not, then you get sucker-punched. - Martin Armstrong
I’d be inclined to take the “over” Thanksgiving date
A couple of weeks before the mid-term elections?
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
I think the Supreme Court will throw a monkey wrench into the Administration's plans
That's too late, it has to happen this year, or it won't happen at all. I believe 100% it will happen.
.> @Wingsrule said:
I would take the "never".
Knowledge is the enemy of fear
That “check” would add fuel to recent pm explosions.
COPPER is gutter !
They are a fiscal policy adjustment, not monetary. Nothing to do with QE.
Silver at new high...gold bouncing back from recent sub-$4,000 lows.
Looks bullish but also a bit late-stage to me with the quick recovery in silver. But seeing bids underneath, esp. for gold, is nice.
Anytime the gov or its central bank injects cash, regardless of its source, into the money system it is a form of QE. Think of tariff handouts as helicopter money funded by foreign countries.
If you understand what is coming, then you can duck. If not, then you get sucker-punched. - Martin Armstrong
QE, not so sure. Its not the Fed injecting money into banks to inject into the system. More like wealth distribution, taking money from a number of businesses that import goods and distributing to the millions. Anyway a bad idea and will promote inflation as a good # of folks will spend on bad choices and all at once.
as I said, it is a form of QE_
If you understand what is coming, then you can duck. If not, then you get sucker-punched. - Martin Armstrong
Since most tariffs are paid by consumers or shareholders, I consider it a rebate.
Like raising gasoline taxes to encourage fuel efficiency....then rebating each household.
Any cash given to the public comes from somewhere. How about money handouts during 08 GFC and Covid to stimulate spending? You could also call them tax "rebates," they came from tax receipts.
Even more QE coming.
Additionally, more QE in the works
"Red flags have been raised that the banks are in desperate need of liquidity, but there is a deeper issue at play—the entire system is under stress."
"The public must have confidence in the banks, and the banks must have confidence that the Federal Reserve will always catch them before they fall. We’ve seen several smaller banks go under in 2025, yet they were small enough not to raise concerns. The Fed fears panic more than it fears inflation. Powell knows that the central bank lost the ability to control inflation, but for now, it can control panic."
If you understand what is coming, then you can duck. If not, then you get sucker-punched. - Martin Armstrong
I agree with the others, there are nuances of course, but this is fairly brilliant. It achieves the goal of encouraging domestic consumption (vs foreign) while somewhat mitigating the effect of higher prices on the consumer.
No new highs yet but we're close.
http://ProofCollection.Net
Except when it affects items not or minimally produced in this country, like coffee, spices, certain foods, and other items. Not a well thought out strategy with its blanket approach. And if a US small business goes bankrupt because if it, I don't want the $2,000.