Friday, October 27, 2017

America’s stagflation

FLASH: Wall Street Journal acknowledges gold leasing and swaps question ...

Top Gold Forecasters Gone Bad

I must be sociopathic.  I enjoy "top forecasters" on gold being proven wrong.  Here are some examples.

At the absolute secular low in gold in December 2015, Fortune magazine publishes a bearish piece.

As soon as that article above goes to print, gold goes on a tear, prompting Forbes to flip six weeks later.  The tried and true axiom of being a contrarian against conventional wisdom absolutely applies with financial markets.

The Death of Money 2.0

We've often heard the quote attributed to Mark Twain, "History doesn't repeat itself, but it rhymes."  It applies to financial markets.

"Dying of Money: Lessons of the Great German and American Inflations", by Jens O. Parsson, chronicles Germany's Weimar Republic hyperinflation during the early 1920's.  I'm always looking at different angles, and one interesting tidbit is the timing of the original publishing in 1974.

During gold's historic run from $35/oz. in 1971 to its peak of $850/oz. in 1980, gold had a major correction from $200/oz. in--you guessed it--1974, down to $100 oz. in 1976.  After this painful correction, gold resumed its bull market run until 1980, culminating in its secular blow off top.

Flash forward to today, and superimposing gold's epic bull market from its lows (in 2001 or 2008, take your pick), we can see that gold had a major peak of $1923/oz. in 2011.  Another bottom appears in December, 2015.  A few precious metals pundits have noted the parallel cycles of the 1970's and today's millennial run.

One of these authors is James Rickards, who has written several best-sellers on financial markets, including and specifically about gold.  His first bestseller, "Currency Wars", was published in 2011, coinciding with gold's peak. Another book title is "The Death of Money", published in 2014.  Makes you want to go "hmmmm...."

Did gold start another massive run up in late 2015?  So far, it sure looks like it.

The coincident timelines are certainly intriguing, but digging deeper, are they merely coincidental, or conspiratorial?  Are the financial elites signalling a pending, if not imminent financial crises on the horizon?  Is Jim Rickards, a former insider at the Fed and US Treasury, a true champion of the people, advocating gold as a protector of purchasing power?  Or is he just a useful tool of the elite, espousing truth, but sucking in early adopters in 2011, so the weak hands could be wiped out before gold resumes its next historic bull run?

Was gold's peak in 2011 analogous to its peak in 1974?  Likewise, was gold's bottom in 1976 a similar precursor to gold's bottom in 2015?  More importantly, what happens next?  If history does rhyme, we can expect another epic run up in gold (and silver).

An astute, contrarian student of history can deduce outcomes, but timing it exactly is next to impossible.

My long-term outlook for gold remains $6300/oz. or higher, as long as fiscal conditions continue to deteriorate and monetary policies remain accommodative.

Ted Butler: JP Morgan Stockpiled 650 MOZ Of Silver At Rock Bottom Prices They Forced Lower

ScotiaMocatta Sale Is The MOST SIGNIFICANT Event To Happen In Silver Since 2008

JP Morgan Cornering Silver Bullion Market?

Thursday, October 26, 2017

Rand Paul Tweet on Warmonger Lindsey Graham

Paper Currencies vs. Gold During War Times

I just had a fascinating conversation with a 90 year old woman. Her memory isn't great on every day stuff, but her childhood memories are still sharp to the minute detail. Since Vietnam was colonized by the French at various times, they controlled the money supply (piasters). But when the Chinese and Japanese would invade, the paper money would expire worthless. Many upperclass members of society would perish, as rice was either confiscated or destroyed by the invaders.

Her mother would resort to hoarding rice, beans and grapefruit, as they were staples that wouldn't rot quickly. Some peasants survived because they had access to food (farmers), while those in the cities starved

Fortunately, her mother also hoarded gold, as her family had means. She would cut up the flattened gold with a knife, and use it to buy rice, vegetables, and fruit on the black market. One has to survive the Great Depression and world wars to recall this. Unfortunately, this is happening in real-time today in Venezuela, Argentina, and other hollowed out countries devastated by war and/or government financial mismanagement.

Lies And Distractions Surrounding The Diminishing Petrodollar

Tuesday, October 24, 2017

Gold, Bitcoin, And Metcalfe’s Law

In one such poll, attendees overwhelmingly said the gold price would skyrocket in the event of a conflict involving nuclear weapons. Bitcoin, meanwhile, would plummet, according to participants—which makes some sense. As I pointed out before, trading bitcoin and other cryptos is dependent on electricity and WiFi, both of which could easily be knocked out by a nuclear strike. Gold, however, would still be available to convert into cash.”

“Metcalfe’s law states that the bigger the network of users, the greater that network’s value becomes.

Robert Metcalfe, distinguished electrical engineer, was speaking specifically about Ethernet, but it also applies to cryptos. Bitcoin might look like a bubble on a simple price chart, but when we place it on a logarithmic scale, we see that a peak has not been reached yet.

Bitcoin adoption could multiply the more people become aware of how much of their wealth is controlled by governments and the big banks."

Monday, October 23, 2017

John Embry – A World On The Road To Hyperinflation

Are Cryptocurrencies Inflationary?

I firmly believe Bitcoin's creator, "Satoshi", aren't rogue hackers, but the US Treasury itself. it's well documented that sovereign treasuries and central banks are planning to or already implementing cashless transactions.

Friday, October 20, 2017

6 Years Ago Today, the US Helped Murder Gaddafi to Stop the Creation of Gold-Backed Currency

Quotes of the Morning: Before & after the 1929 crash

Calm Before The Storm

Peter Schiff was early, but accurate when he predicted a stock market crash in 2006.  He was ridiculed by the financial pundits and the media at the time.

Today, he's making another prediction of a financial bubble bursting.  In my opinion, he will be proven right again.

Why, now, should Americans support our troops?

Readers will find the author of this opinion article either patriotic or unpatriotic.

ScotiaMocatta Put For Sale After Multibillion Money-Laundering Scandal

This bizarre situation regarding the oldest gold trader in the world may temporarily drive up the price of gold.

Sunday, October 15, 2017

Market Peaks and Valleys

From its high on March 10, 2000 to its low on October 9, 2002, the tech-heavy NASDAQ index plummeted 78%.

From its peak on October 31, 2007 to its valley on March 9, 2009, the NASDAQ fell 56%.

Silver peaked at $48.42 on April 28, 2011 and bottomed at $13.64 on December 14, 2015, down 72% from its peak.

Today, silver is trading around $17.42. Now is the time to buy silver as we are in the 2nd inning of a secular bull market.

How Socialism Ruined Venezuela

There is no need to say "screw socialists and liberals."  They're doing a good enough job of screwing themselves.

The Coming Renaissance of Macro Investing

This macro hedge fund manager provides prescient insight on the demise of the petrodollar, but doesn't go far enough in providing financial solutions in a geopolitical environment of reduced US influence in financial markets.  Shorting the USDollar is one investment theme.  Going long precious metals among other commodities are another.

Friday, October 13, 2017

Thursday, October 5, 2017

An Extremely Important Note On The Silver Market. Plus A Look At The US Dollar, Oil, And Stocks

The secular low for silver in the current (bull) cycle was $13.83/oz. on December 31, 2015.  The all-time high of approximately $50/oz. occurred in 1980 and 2011.  Keep these inflection points in mind.  When silver does breach $50, the sky is the limit.

Gold and Tranquility

Tuesday, October 3, 2017

Russian Gold Reserves Hit Putin-Era High, Buying Frenzy Accelerates

This article is otherwise spot on, but one of the inaccuracies is the author assumes official Chinese gold reserves are actual.  Unofficially, China's gold reserves are vastly under-reported.

Monday, October 2, 2017

Hard Assets In an Age of Negative Interest Rates

Fed Study: The Bottom 90% & The Failure Of Prosperity

So after Wall Street sycophants (mouthpieces, really) and mainstream economists labeled naysayers like myself as uneducated dolts after declaring Main Street was losing as Wall Street was winning, the Fed now admits what we've been saying all along. The bottom 90% has lost big-time, even as fat cats have been prospering due to record-high equities and bond markets. Gee, all you shills can pull your head out of your a$$e$ now.

The CIA’s “Phoenix Program” in Vietnam and the “War on Terror