Tuesday, October 22, 2019

Gold’s Price Performance: Beyond the US Dollar

by Ronan Manly, BullionStar:

With the first half of 2018 now drawn to a close, much of the financial medias’ headlines and commentary relating to the gold market has been focusing on the fact that the US dollar gold price has moved lower year-to-date. Specifically, from a US dollar price of $1302.50 at close on 31 December 2017, the price of gold in US dollar terms has slipped by approximately 3.8% over the last six months to around $1252.50, a drop of US $50.

Since the world’s major gold price discovery hubs of London and New York trade gold in US dollars (or more correctly predominantly trade synthetic gold and derivatives), and since much of the mainstream financial media tends to be very US-centric, the media’s fixation with the US dollar price of gold is probably not surprising. However, it’s not the full story, because in some major national currencies as well as in cryptocurrencies, the price of gold has actually moved higher year-to-date.

Lifestyle Investing for Recession or Economic Collapse

by David Haggith, The Great Recession Blog:

How do you invest for recession or a time of financial collapse when it looks like anything and everything could come down? If you are investing for recession — such as to safeguard your retirement funds for truly tragic times — there is simply no way to know what major part of the current economy will fall first because it is fragile to the point of breaking in all of its parts … all over the world.

Two paths for recession or economic collapse and two plans for investing for recession or economic collapse

Switzerland chooses gold over paper wealth backed by US dollar

from Hang The Bankers:

Another country is betting on physical gold.

Switzerland’s pension fund has boosted its investments in bullion, switching from the paper-backed securities in US dollars.

“The Swiss government Pension System decided to change from paper gold in the amount of 700 million CHF into physical gold and store it in Switzerland. The 700 million only stands for 2 percent of the total assets, but it is quite a surprise that they do this,” said Claudio Grass, an independent precious metals advisor and Mises Ambassador.

How $21 Trillion in U.S. Tax Money Disappeared. “Full Scope Audit” of the Pentagon

by David DeGraw, Global Research:

This is part of our series on the unaccounted for $21 Trillion in taxpayer money. As unbelievable and absurd as that sounds, the actual total of unaccounted for money at the Pentagon is most likely significantly more than $21 trillion. The First ever “full-scope audit” of the Pentagon is presently underway. Read the first report from this series here.


According to the Department of Defense Inspector General and the Defense Finance and Accounting Service, $21 Trillion in Taxpayer Funding Is Unaccounted For.

To help people comprehend the scale of this, $1 Trillion is $1000 Billion. This means that $21,000 Billion in taxpayer money has gone missing.

Keynesian Economics Is an Artifact of Cheap Energy

by Charles Hugh Smith, Of Two Minds:

Printing / borrowing money to generate the unsustainable illusion of “growth” sets up the collapse of the entire Keynesian edifice.

Of the many delusions of modern economics, perhaps the greatest is that the dominant Keynesian model reflects permanent dynamics of advanced economies. Economics, along with other social sciences, makes an implicit claim that its econometric claims are the equal of the “hard sciences” of physics and chemistry.

In other words, the econometrics of Keynesian economics is presented as possessing the same timeless validity of the natural sciences.

THE ENERGY CLIFF APPROACHES: World Oil & Gas Discoveries Continue To Decline

by Steve St. Angelo, SRSRocco Report:

As the world continues to burn energy like there is no tomorrow, global oil and gas discoveries fell to another low in 2017.  And to make matters worse, world oil investment has dropped 45% from its peak in 2014.  If the world oil industry doesn’t increase its capital expenditures significantly, we are going to hit the Energy Cliff much sooner than later.

According to Rystad Energy, total global conventional oil and gas discoveries fell to a low of 6.7 billion barrels of oil equivalent (Boe).  To arrive at a Boe, Rystad Energy converts natural gas to a barrel of oil equivalent.  In 2012, the world discovered 30 billion Boe of oil and gas versus the 6.7 billion Boe last year:

From Trade War to Hot War in One Easy Step

by James Corbett, The International Forecaster:

Indeed, all the conditions for the same Smoot-Hawley pattern of protectionist tariffs, global trade war, economic collapse and, eventually, all-out war, are now in place.

America is in a funk. Slipping into an economic and cultural morass and at risk of losing its footing on the global chessboard, American workers find themselves working more and making less money. How can this be?

Emerging Market Crisis Spreads To The Core, Central Banks Face Catch-22

by John Rubino, Dollar Collapse:

One of the things giving “data-driven” central banks wiggle room on their pledge to tighten monetary policy is the fact there are several definitions of inflation. In the US the thing most people think of as inflation is the consumer price index, or CPI, which is now running comfortably above the Fed’s target. But the Fed prefers the personal consumption expenditures (PCE) price index, which tends to paint a less inflationary picture. And within the PCE universe, core PCE, which strips out energy and food, is the data series that actually motivates Fed action.

And that, at long last, is now above the 2% target, having risen 2.3% in the past year.
On the following chart, the core PCE is the blue line. Note the steepening slope towards mid-year. This is clearly a trend with some momentum which, if it continues, will take this index from slightly above target to substantially above.

Keiser Report: Airbus (Br)exiting the UK (E1247)

from RT:

In the second half, Max continues his interview with Simon Dixon of BnkToTheFuture.com about ICOs, equity tokens and the future of crypto regulations.

How I Predicted Starbucks’ Downfall

by Doug Casey, Casey Research:

Starbucks (SBUX) stock is tumbling.

It’s down 15% over the past 10 days. And I believe it will continue to fall from here.

The iconic coffee chain was one of the best growth stories in modern stock history. It went public in 1992 with 140 stores. Today, it has over 28,000.

But as I’ll show you in today’s essay, it looks like the growth days for Starbucks are finished.

I can’t say I didn’t see the Starbucks collapse coming…