Month: October 2020

SeekingAlpha/Anna Sokolidou/ 10-19-2020

“As I have explained above, fiat currencies are devalued. It does not necessarily mean we will face hyperinflation. After all, we did not face that problem during the Great Recession after the Fed eased its monetary policy. However, the very expectation of high inflation and a deep economic crisis might make investors quite skeptical of the fiat currencies. What’s more, many investors will also probably be reluctant to buy stocks and corporate bonds. After all, economic hardships put significant pressure on many companies’ earnings. So, where should people invest? The most obvious answer is precious metals.”

USAGOLD note:  We concur.  In fact, we took pretty much the same tack  in this analysis first published in March of this year: Gold’s Century – While stocks dominated headlines, gold quietly performed

The post Gold: The winning investment of the 21st century first appeared on Today’s top gold news and opinion.

Real Investment Advice/Lance Roberts/10-19-2020

“For the Fed to continue providing monetary support to the markets, they must monetize nearly every dollar of U.S. debt issuance for the foreseeable future. “Randy Quarles said the Fed might have to remain engaged in asset buying for some time as financial markets are dealing with too many Treasurys to handle on their own. Total public debt now stands at just under $27 trillion, up from $23 trillion in this year’s first quarter. Debt is also $9.4 trillion higher than in the first quarter of 2008 in the midst of the financial crisis and the Government engaged in a long-running surge in borrowing.” [Wall Street Journal] Given the amount of debt required to sustain current economic growth, the Fed has no choice but to continue monetization of the Federal debt indefinitely.”

USAGOLD note: As Richard Russell once put so succinctly:  “Inflate or die!” …… Another good piece of analysis from Lance Roberts. He follows the quote above with two possible end scenarios, neither one of which is very appealing.

The post Neil Kashkari is the definition of ‘moral hazard’ first appeared on Today’s top gold news and opinion.

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The post https://www.usagold.com/cpmforum/2020/10/290685/ first appeared on Today’s top gold news and opinion.

MarketWatch/Mark DeCambre

“‘Thus, this down-cycle cannot be fully cured merely through the application of economic stimulus,’ the co-founder and co-chairman of Oaktree Capital Management, the largest investor in distressed securities worldwide, wrote in a lengthy screed, reflecting on the current state of the economy and the market, published on Tuesday. ‘Rather, the root cause has to be repaired, and that means the disease has to be brought under control,’ he wrote.”

USAGOLD note:  Unfortunately, from what we can gather, the medical community, including top scientists, do not believe we will have the disease under control anytime soon.

Repost from 10-14-2020

The post Howard Marks says ‘stimulus alone won’t cure down cycle’, paints grim view of economy first appeared on Today’s top gold news and opinion.