Gold has all the potential to go unprecedentedly high. But silver will be gold on
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As 'hard' data has collapsed in recent months, so 'soft' survey data has finally given up hope of more stimmies and is rapidly falling back in line, not helped at all by the renewed fearmongering over 'Delta' and now 'Mu' COVID variants. August showed that trend continued to accelerate as Service sector surveys slumped.
Labor day is a weird holiday. We celebrate working people by — not working.If labor is so great, shouldn't we celebrate by doing more of it?
Has a sustained period of high inflation just become much more likely? Until recently, I would have said the odds were clearly against it. Now, I am not so sure, especially looking ahead a few years.
The Institute of International Finance found that governments, companies and households raised $24 trillion last year to offset the pandemic’s economic toll, bringing total global debt to an all-time high, at the end of 2020, of $281 trillion.
This is another example of unintended consequences of major policy changes, turning over the role of new money creation to a central bank, versus basing it on a hard reserve asset like gold. It spawns a rough beast the central bank can’t control anymore than the government can control how you spend the money it pays you.
Sep 3, 2021 - 07:35:08 PDT
In response to Social Security Will Not Be Able to Pay Promised Benefits by 2034 a reader asked "What is the most likely outcome of the most likely 'solution'? At what point will pretending break down, and what will the consequences be?"
Sep 3, 2021 - 07:33:55 PDT
A critical showdown in both the House and the Senate are coming right up.
The gold bar and coin demand remained robust throughout the pandemic period, as investors wary of inflation and low interest rates flocked to gold assets seeking security.
Investors have swept into assets perceived to perform on slowing growth and rising inflation, a weekly round-up by BofA showed on Friday, with tech stocks seeing their biggest inflows in six months and large outflows from U.S. government debt.
Federal Reserve Chairman Jerome Powell spent most of his Jackson Hole speech continuing to try to convince everybody that inflation is transitory. As Friday Gold Wrap podcast host Mike Maharrey points out in this episode, whether it is or isn't transitory, inflation is a real thing that has a real impact on real people. In this show, he also breaks the news on the August jobs numbers and discusses taper talk.
July 2021 saw a total trade deficit of -70B which is down 4.3% compared to June’s -73.2B but 15.3% larger than the -60.7B posted in July 2020. The plot below shows Imports, Exports, and Net figures (lines) over the last 18 months.The Services Surplus collapsed by 11.8% to 17.7B, the smallest Services Surplus since Jan 2012.
Gold jumped after a key labor-market report showed the U.S. economy added fewer jobs than forecast, diminishing the possibility the Federal Reserve will taper stimulus soon.
Nonfarm payrolls data showed the U.S. added 235,000 jobs in August, well below economists’ forecasts and far less than the gains seen last month. The dollar sank after the report, boosting gold.
Gold jumped after a key labor-market report showed the U.S. economy added fewer jobs than forecast, diminishing the possibility the Federal Reserve will taper stimulus soon.
Nonfarm payrolls data showed the U.S. added 235,000 jobs in August, well below economists’ forecasts and far less than the gains seen last month. The dollar sank after the report, boosting gold.
While we expect that the pundits will quickly blame the resurgence of covid in August, manifesting itself in zero jobs added in leisure and hospitality, the reality is that the US economy is rapidly slowing even as inflation continues to soar, positioning the US squarely for a stagflationary crash and putting the Fed's tapering plans squarely in doubt.
Inflation Could Repeat the 1960s, When the Fed Lost Control, Niall Ferguson SaysSep 3, 2021 - 05:33:11 PDT
Inflation could be repeating the trajectory of the late 1960s, which laid the foundation for sustained high inflation the following decade, according to top economic historian Niall Ferguson.
Imagine you are a central bank which has done QE for 30 years, kept rates negative for almost a decade, purchased more than 100% of the country's GDP in bonds, and is actively propping up the stock market by buying billions in ETFs and REITs, and still your economy remains stagnant?
"The End Of Abenomics" - Japan's Struggling Prime Minister Suga Unexpectedly Steps DownSep 3, 2021 - 05:27:34 PDT
Japan's original doom loop - rotating prime ministers who stay on the job for about a year only to resign and leave the country in even worse shape - is back.
‘Property Market on Steroids’: Asia-Pacific’s Real Estate Boom Sees Buyers Bidding up PricesSep 3, 2021 - 05:23:53 PDT
Analysts and real estate agents say competition among home buyers is heating up, causing property prices to shoot through the roof.
"The nation faces an unprecedented array of challenges and will inevitably encounter additional crises in the future," Manchin wrote. "Yet some in Congress have a strange belief there is an infinite supply of money to deal with any current or future crisis, and that spending trillions upon trillions will have no negative consequence for the future. I disagree."