Precious metals news

Peter Schmidt recently wrote two article highlighting the fatal conceit of PhD central planners who populate the world's central banks. You can read those articles here and here. But central banking is not the only place you find people suffering from fatal conceit and the delusional notion that they are smart enough to micromanage the economy. You find a lot of these people in government offices as well.
For instance, consider New York Gov. Andrew Cuomo. Before he moved into the governor's mansion in Albany, Cuomo helped orchestrate the 2008 housing crash. Schmidt highlights Cuomo's role in that horror story in the following article.

"Core Producer Prices surged 0.6% MoM (well above the 0.2% expected), the biggest spike since September 2012 which sparked rebounds in the headline YoY change back towards 3.00%."

You can't pretend everything is awesome forever.

Amazing developments on the gold front in Australia! The RBA has responded to pressure regarding its gold holdings. Here are the details...

"Central bank governor Guido Sandleris says the two sides ‘have reached a consensus’ on the deal, days after the IMF approved US$56 billion loans package to help the nation stabilize its battered economy."

Well, the midterm elections are finally over. The Republicans managed to hold on to the U.S. Senate, but the Democrats took control of the House. The "Blue Wave" was more like a "Blue Ripple." To me, it smells a lot like gridlock, which is generally good news if you're a person who favors smaller government. Gridlock means very little will actually get done in Washington D.C. The government not doing anything - well, that doesn't sound so bad.
But in his most recent podcast, Peter Schiff brought up a potential problem with a divided government. We will likely end up with even higher budget deficits.

Gold production in South Africa dropped by 19% year-on-year in September, according to a report at Fin24.
This continues a trend of monthly gold mine production drops. South African gold output fell by 15% in August and 15.5% in July.
The country once led the world in gold production. The precipitous drop in output over the last few years could signal an overall drop in global mine output.

"The banks being sued are: Bank of America, Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan Chase, Morgan Stanley, Japan’s MUFG Bank, Royal Bank of Canada, Royal Bank of Scotland, Societe Generale, Standard Chartered and UBS."

It can be easy to forget that there is a bond market that determines bond prices, outside of the actions of the Fed. So while Powell & Co. may not do or even say anything after they meet today, it's entirely possible the free market (remember that?) will move of its own accord.

And the trend is about as ugly as it gets. Long one of the most reliable sources of gold output on Earth, South Africa's massive gold mines are increasingly tapped out, and there have been no new discoveries to replace them.

"Local economists are concerned that inflation could accelerate in the final two months of the year due to bonuses paid to state workers to boost purchasing power during the holiday season. The IMF expects hyperinflation to reach 10 million percent in 2019."

What a difference a year makes. Stunning nationwide inventory increases in US housing paints the starkest picture yet for the real estate bubble: Coast to coast, people are trying to cash out at the top just as demand, as measured by new mortgage applications, is hitting an 18-year low.

A sizable amount of US foreign policy has been backstopped by the assumption that the world requires the USD to conduct business. But as China, Russia, and now South Korea are proving, this is not necessarily the case.

Harvey Organ says the EFP transfers in just the first five trading days of November represents over 3% of annual gold production. Here's an update...

"Michael Cloherty, the head of U.S. interest rate strategy at RBC Capital Markets, is worried. 'If the Fed keeps shrinking its balance sheet until it sees signs of stress, the question will be, ‘How ugly is that stress?’ I think it will be quite ugly.”

"Andrew Yang says a universal basic income payment is necessary because automation is replacing American jobs. 'The most direct and concrete way for the government to improve your life is to send you a check for $1,000 every month and let you spend it in whatever manner will benefit you the most."

"While it might not happen tomorrow, or next year, over time, as US interest rates rise and the federal government strains under its tremendous debt burden, the creditors who were once eager to buy up Treasury bonds will gradually disappear."

"The world’s second-biggest economy has 15 bonds whose option-adjusted spreads over U.S. Treasuries were above 1,000 basis points as of Nov. 6, according to a Bloomberg Barclays index. That’s more than all the other nations on the gauge, combined."

Mike sees a reckoning approaching. One that will be preceded by massive losses rippling across nearly all asset classes, destroying the phantom wealth created during the latest central bank-induced Everything Bubble, and grinding the global economy to a halt.

India's economy is growing faster than any other nation. Last year the number of billionaires jumped from 19 to 119. Here's what it could mean for gold...