Gary Christenson
Wed, 12/16/2020 – 09:39
Mises Institute/Jeff Deist/12-13-2020
“History shows us how money dies. Yes, it can happen here. Only a fool thinks otherwise.”
USAGOLD note: An unpleasant reminder of perhaps the king of unintended consequences – hyperinflation. Even unintended runaway inflation of the sort experienced in the 1970s could be enough to levy untold personal financial damage to the unprepared. The best course of action, in our view, always has been and remains a judicious hedge in precious metals fully owned and in your possession. Deist, the president of the Mises Institute, issues a detailed and thoughtful warning at the link above. We suggest spending some time with it.
Please see Gold as a hyperinflation hedge (BlackSwansYellowGold)
The post When money dies, 100 years later first appeared on Today’s top gold news and opinion.
Credit Bubble Bulletin/Doug Noland/12-12-2020
“November’s record $121 billion ETF inflow – boosting the y-t-d flow tsunami to a record $659 billion. SPACs and frenetic retail call option buying (one can only imagine current hedge fund derivatives strategies). Friday’s record $18 TN of negative-yielding global bonds (now including over-indebted Portugal and Spain). Bund yields at negative 0.64%. The bottom line: Securities markets – profoundly speculative and unmoored. These darling IPOs – along with the equities market more generally – are dispensing some serious “wealth creation.” Future historians will recognize it much more in the context of Bubble period wealth redistribution and destruction. For now, this fiasco is one hell of party (patrons luxuriating at the endless punchbowl).”
USAGOLD note: As noted in a short study, we posted last week so-called ‘smart money’ is selling according to indicators tracked by SentimenTrader. Noland is not shy about expressing how he feels about what he calls Acute Monetary Disorder..”The numbers,” he says, “are so huge as to be numbing; nothing remotely normal about any of this.”
The post Unnecessary head scratching first appeared on Today’s top gold news and opinion.
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The post https://www.usagold.com/cpmforum/2020/12/gold-silver-price-predictions/ first appeared on Today’s top gold news and opinion.
Rogue Economics/Bill Bonner
“Economics is no real science. It is mostly quackery mixed with flimflam. … [W]hile the U.S. dollar of 1913 (when the Fed was created) was just as good as the dollar of 1791 (when the dollar was created), the dollar of 2020 is worth, relatively, only about 3 cents! Why? Because in a crisis, the temptation to ‘print’ more money is always irresistible. The Fed’s balance sheet – a measure of how much printing is going on – was only 6% of U.S. GDP in 2008. By the end of 2021, it will likely be near 50%. Where’s the science behind that?”
USAGOLD note: Bonner offers an entertaining two-part read …… Part two is linked above. Here is the link to part one.
Repost from 12-10-2020
The post The Federal Reserve’s fake science is destroying the economy first appeared on Today’s top gold news and opinion.
Bloomberg/John Ainger
“The ECB, which added 500 billion euros ($606 billion) to its pandemic bond buying program Thursday, is set to own around 43% of Germany’s sovereign bond market by the end of next year and around two-fifths of Italian notes, according to Bloomberg Intelligence. That’s up from around 30% and 25% respectively at the end of 2019.”
USAGOLD note: What happens if we end up with a situation where central banks own the bulk of the world’s bond markets? One of the interesting points made in this article is that Japan’s fixed income market is “so dead that sometimes not a single government bond trades in a day.” Such is perhaps the real elephant in the central banks’ meeting room …… “For market professionals,” writes Ainger, ‘there is a feeling that bond trading changed forever in 2020, and not for the better.”
Repost from 12-11-2020
The post European bond market capitulating to quantitative easing first appeared on Today’s top gold news and opinion.
