Gold has all the potential to go unprecedentedly high. But silver will be gold on
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President Biden's job approval rating fell in a new IBD/TIPP Poll. His honeymoon may be over amid fading support for his economic policies.
The data suggest prices will continue to increase, but the bank is guilty of faulty analysis. conomists routinely make mistakes in forecasting, and such mistakes are often forgiven. But recent errors by the Federal Reserve are deeper analytical blunders. As with any activity that claims to have professional status, economics must respect elementary arithmetic.
The CPI is rising, lockdowns are easing, and cooped-up citizens are ready to party. That’s the context as we begin the second half of the year. Let’s look at how gold and silver performed in the second quarter and year-to-date, along with the factors that could impact them in what may be an exciting second half.
Austrian school economists have long demonstrated that monopolies only tend to form as a result of government intervention, and “natural monopolies” have virtually never actually existed.
Google reported in April that the search question “When is the housing market going to crash?” had spiked 2,450 percent in the past month, according to Diana Olick of CNBC. “Why is the market so hot?” searches had doubled in just a week. Since 2008, everyone has been on bubble watch.
“Your actions speak so loudly, I can’t hear a word you’re saying.”– Former NFL head coach, Chuck Knox “High public debt often produces the drama of default and restructuring. But debt is also reduced through financial repression, a tax on bondholders and savers via negative or below-market real interest rates…Financial repression is...
Jul 6, 2021 - 08:17:34 PDT
'In America it looks increasingly weird that the Federal Reserve is the biggest buyer of Treasuries while the economy is powering ahead. The Fed’s purchases of mortgage-backed securities, amid a red-hot housing market, now look bizarre.'
To critics of the $11 trillion passive boom, active management is the original form of ethical investing -- and time is running out to save it from the indexing onslaught.“On a societal basis, it’s potentially disastrous,” says Michael Green, chief strategist at Simplify Asset Management, referring to the passive frenzy. “There’s an impending crisis that requires,,,
As stagflationary signals grow louder (after this morning's ugly Services survey data), Treasury yields are plunging with 10Y back below 1.50% (testing the post-Fed/Bullad/Quad-Witch chaos puke lows)...
France’s Finance Chief Says It Would Be Very Disappointing if Some EU Nations Oppose Global Tax DealJul 6, 2021 - 07:44:04 PDT
France's Finance Minister Bruno Le Maire said Tuesday that it would be disheartening if EU nations weren't unanimous in their support of a global corporate tax deal.
Joe Biden’s Treasury Secretary Listed Eurozone Flaws ‘One by One’ – Mario Draghi OutragedJul 6, 2021 - 07:41:27 PDT
US President Biden is exerting pressure on Brussels to kill plans for an EU digital tax due this month. Janet Yellen, the US Treasury Secretary, has dismissed the EU’s claim its scheme can work in harmony with the G7 tax deal for a global minimum rate of at least 15 percent. A note by a US diplomat urged Brussels to delay the bloc’s attempt to create a digital levy.
Services Surveys Signal Stagflation As Recovery Bounce Peaked In Q2 But Prices SoaredJul 6, 2021 - 07:35:12 PDT
What are you going to do Mr.Powell?
Central banks globally added another net 56.7 tons of gold to their reserves in May as more banks dip into the gold market, according to the latest data compiled by the World Gold Council.Gold-buying by central banks slowed last year from the record pace we saw in 2018 and 2019. That trend has continued into 2021, but buying is ahead of last year’s pace as many countries continue to load up on the yellow metal.
Gold prices were up 1% on Tuesday, having risen above the key $1,800 level, once again supported by a weaker dollar, as investors looked to minutes from the Federal Reserve’s June meeting for more insights into policy decision.
To this the only question we can add is that happens when - after another repo market tantrum as the Fed drains too much reserves as it likely will in just a few weeks - this liquidity drain goes violently into reverse and the Fed injects $2 trillion in inert reserves into the market: how high will risk assets rise then?
China Defaults Threaten an Eerily Calm $12 Trillion Bond Market: BloombergJul 6, 2021 - 05:28:56 PDT
In China, the current default rate is around 1%; in more developed markets, it’s closer to 2% to 3%. Removing government support in order to close that gap is a delicate process. Allow too many firms, or the wrong ones, to fail, and investors’ faith in the overall market will wobble, triggering precisely the crisis that Beijing wants to avoid.
The central focus of the week will be on a handful of economic data reports, including the minutes from the Federal Open Market Committee's (FOMC) June meeting. These are set to help give traders a better sense of when Fed officials might begin tapering their crisis-era asset purchase program and raising benchmark interest rates from their current near-zero levels.
Turkish inflation accelerated faster than all estimates last month, reducing the likelihood of a summer interest-rate cut sought by the country’s president.Consumer prices rose an annual 17.5% through June, up from 16.6% the previous month on the back of broad-based gains led by food, according to data released on Monday. The median of 18 forecasts in a...
Individual investors plowed a record net $27.9 billion into the U.S. stock market in June, lured by continued volatility beneath the market’s surface.
Corporate executives have saved millions of dollars by selling large chunks of shares just before the stock began to underperform, according to new research that suggests company officials cash out when misfortune is just around the corner.