- All this talk of massive new infrastructure spending financed with a tsunami of freshly-minted currency should be lighting a fire under gold. That it hasn’t is a testament to how out-of-whack the precious metals market had gotten during the first six months of this year.
- As gold rose, the futures contract traders whose games tend to dictate near-term price action had set the metal up for a fall. Specifically, the speculators (who are always wrong at the extremes) were ridiculously long. With the suckers all-in, a big correction was needed to restore balance.
- But it didn’t come. Several months passed with gold treading water, leading some to wonder if the paper market tail had finally stopped wagging the physical market dog.
Read more at:Speculators Are Finally Bailing Out Of Gold – And That’s A Good Thing
- It may be that even with the post-election riots that have swept the country, we ain’t seen nothing yet.
- This country is fissuring. Its people are sharply divided, but more than that, covert finance is pushing things towards unrest and martial law.
- If Soros money and its ilk proves effective, inauguration day on January 20th will become one of the largest demonstrations on record, with a group calling itself #DISRUPTJ20 planning to block “peaceful transition” and disrupt Trump’s swearing in.
- The groups promoting it are calling on people nationwide to join in, and for business in D.C. to take sides and take “direct action” and attempt to stop the parade, block streets and other delay the events as scheduled:
- #DisruptJ20: Call for a bold mobilization against the inauguration of Donald Trump on January 20, 2017
Read more at:Paid Protesters “Planning To Cause Chaos In DC” And Block Peaceful Inauguration For Trump
- US Presidential Elections and Recessions
- As you know, I follow the business cycle, which describes the ebb and flow of the economy from boom to bust that drives asset prices and thus our investment choices.
- Linear models in a cyclical world
- Most economic models don’t use the business cycle even though it clearly exists, which strongly suggests that economic linear models are wrong, yet economists sadly persist in this flawed linear analysis. This lack of acknowledgement of the business cycle is why so many economists are almost always wrong in their forecasts. Steady state analysis is proven time and time again to be junk.
- Austrian economists (and a few others) do however accept the business cycle as given but they endlessly debate what causes this ebb and flow in the economy. In general, most opt for the credit cycle as the explanation without thought as to what creates the credit cycle and thus they fall into the economic model trap again.
Read more at:Raoul Pal Warns “Trump Will See A Recession In 2017”
- In the aftermath of the ECB halting production of the €500 banknote, and more recently, India phasing out its highest denomination bills instantly eliminating some 86% of the cash in circulation as increasingly more countries make a move toward a cash-free society, another central bank – the world’s oldest – has started planning its own transition away from paper cash.
- Sweden’s Riksbank, which was the first central bank in the world to issue paper currency in the 1660s, is preparing to become a monetary pioneer yet again, and has launched a project to examine what a central bank-backed digital currency would look like and what challenges it would pose.
Read more at:Sweden Begins Planning Transition From Cash To Digital Currency
- Ignoring years of stagnation, economic deterioration, and an unprecedented unemployment rate, which remains stubbornly in the double-digits for countries like Greece, Spain and Italy, Europe appears to have finally woken up, shocked by the reality of Brexit and the Trump election, and has started with the fire and brimstone warnings. Case in point: French prime minister Manuel Valls, who speaking in Berlin, said that the European Union is in danger of breaking apart unless France and Germany, in particular, work harder to stimulate growth and employment and heed citizens’ concerns.
- Europe is in danger of falling apart,” Valls said at an event organized by the Sueddeutsche Zeitung newspaper. “So Germany and France have a huge responsibility.”
- Translation: confirming what we have said for years, the ECB did nothing for the economy while propping up markets, refuting the long-running official narrative, and now it is time to actually focus on the people, ideally by launching a massive fiscal spending stimulus
Read more at:French PM: “Europe Is In Danger Of Falling Apart”
- If Donald Trump truly wants to fix the economy, he must shut down the Federal Reserve. If he just tries to patch up our current system, he will fail, because it has been fundamentally flawed from the very beginning. A little over a century ago, very powerful forces on Wall Street convinced Congress to completely restructure our financial system. An immensely powerful central bank known as the Federal Reserve was created, and the goal was to transform the U.S. dollar into a debt-based currency that would continuously be inflated and to create an endless debt spiral from which the federal government could never possibly escape. Sadly, they were successful on both counts. Since the creation of the Federal Reserve, the value of the U.S. dollar has declined by approximately 98 percent and our national debt has gotten more than 5000 times larger.
Read more at:Why Donald Trump Must Shut Down The Federal Reserve And Start Issuing Debt-Free Money
- One month ago, when we last looked at the Fed’s update of Treasuries held in custody, we noted something troubling: the number had dropped sharply, declining by over $22 billion in one week, one of the the biggest weekly declines since January 2015, pushing the total amount of custodial paper to $2.805 trillion, the lowest since 2012. One month later, we refresh this chart and find that in last week’s update, foreign central banks continued their relentless liquidation of US paper held in the Fed’s custody account, which tumbled by another $14 billion over the course of a week, pushing the total amount of custodial paper to $2.788 trillion, a new post-2012 low.
- Today, to corroborate the disturbing weekly slide in the Fed’s custody data, we also got the latest monthly Treasury International Capital data for the month of September, which showed that the troubling trend presented one month ago, has accelerated to an unprecedented degree.
Read more at:Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $375 Billion In US Paper