Category: Gold

Gold

The Fed can’t let bond yields fall to zero

Post author By Gold News Club
Post date March 17, 2020

Bloomberg/Danielle Martino Boothe/3-10-2020

cartoon image of someone digging a hole “But if yields on benchmark 10-year Treasury notes go to zero – a no longer ludicrous suggestion after Russia walked out of the OPEC+ meeting without a deal — then all of those key roles get upended. Especially hard hit will be banks, insurers and pension systems worldwide.”

USAGOLD note: Martino Booth, who has consistently advocated gold ownership as a disaster hedge, outlines the forces at work in the financial system which could spell disaster for pension funds and create the prospect for federal government bailouts.

Gold

USAGOLD Special Report

Post author By Gold News Club
Post date March 17, 2020

≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠≠

Bridging the ‘Fourth Turning’ with Gold
It began in 2008. It is scheduled to end in 2028.
What happens between now and then?

graphic image of suspension bridge
“The fourth turning, is the final season of history, if you will, the final generation. And that is the period of crisis. That is the period when we tear down institutions that we’ve built, everything that’s dysfunctional. And we sort of rebuild things from scratch again. And it usually follows a period where – it’s bound up in a period – where there’s complete disgust, complete distrust with what we have.” – Neil Howe, co-author The Fourth Turning (from a MacroVoices interview, August 2017)

We first published this article in October 2018. It is as relevant today as it was then though the message has taken on a greater degree of urgency after the events of the past few weeks. A link to the full MacroVoices interview is included with the article.

–– Full Article ––

Ready to include a safe haven in your portfolio plan?
DISCOVER THE USAGOLD DIFFERENCE
ORDER DESK: 1-800-869-5115 x100/orderdesk@usagold.com

ORDER GOLD & SILVER ONLINE 24-7

_______________________________________________––

Gold

Two epidemics combine to make for a ‘dangerous time for the stock market,’ Nobel Prize–winning economist warns

Post author By Gold News Club
Post date March 17, 2020

MarketWatch/Shawn Langlois

“What we have now is really two epidemics. We have an epidemic of the coronavirus, but we also have an epidemic of fear based around a narrative that is not necessarily keeping up with scientific reality. And, this narrative has been quite striking. It’s a dangerous time for the stock market.” – Robert Shiller

USAGOLD note: Schiller’s assessment appears a statement of the obvious, but to a large extent even the warnings of a Nobel laureate are a cry in the wilderness for the majority of investors. Most, in fact, are staying put while the fund managers scramble for the safety of bonds and gold.

Repost from 3-11-2020

Gold

Fed rates at 0% now seen within months amid global bond frenzy

Post author By Gold News Club
Post date March 17, 2020

Bloomberg/Stephen Spratt, Ruth Carson, and Dana El Baltaji

“The entire U.S. yield curve fell below 1% for the first time in history as rising expectations that the Federal Reserve will cut policy rates to zero in the coming months drove investors to reach for longer-dated securities.”

USAGOLD note: In nominal terms, it looks pretty bad for savers. In real terms, when the inflation rate is taken into consideration, it looks even worse. This article concludes that we are going below zero on rates.

Overlay chart showing nominal rates 2 year, 5 year, 10 year, 30 year Treasuries Chart courtesy of the St. Louis Federal Reserve [FRED]
Source: Board of Governors of the Federal Reserve System (US)

Repost from 3-12-2020

New note (3-16-2020) – When we posted this originally, the prediction of 0% rates within months seemed reasonable. Little did we know it would come within days!

Gold