Tuesday, September 29, 2020

Russia’s Shift to Gold Reserves Could Protect Sanctioned Economy – Scholar

from Sputnik News:

Russia is renouncing the dictate of the dollar by purchasing gold and selling US Treasury bonds, according to an article published in Die Welt. The article cites the author and political advisor James Rickards as saying that President Putin had a strategic plan and gold was the perfect investment to protect against dollar sanctions.

Sputnik discussed the increase in gold purchases by Russia amid US sanctions with Dr Dan Steinbock, global economic and policy analyst.

Chris Martenson – Return of Real Markets?

by Kerry Lutz, Financial Survival Network:

Chris Martenson notes that the US continues to go deeper and deeper into debt while the developing world is seeing one currency implode after another. Who will be the next casualty? No one in the US seems to be too concerned. While the last global financial crisis began with the US sub-prime mortgage market, perhaps the next has already begun with weaker currencies blowing up left and right. Gold and silver have both taken it on the chin, but at some they will represent reality.

Click HERE to Listen

Are Silver and Gold ‘at the Flood’?

by David Smith, Money Metals:

There is a tide in the affairs of men…

Thus begins one of the most famous quotes ever uttered, taken from Shakespeare’s play, Julius Caesar. Brutus, talking to Cassius, says, “There is a tide in the affairs of men. Which taken at the flood, leads on to fortune…”

A flood tide takes place at the very crest in the water’s height. Once the “tide turns,” there is no stopping its ebb until, much later, it reaches an extended, even a minus low.

If you’re ashore in parts of Alaska, where a tide can run 20 feet, not embarking “at the flood” and waiting until it’s made an obvious turn can have important implications, leaving you and your craft high and dry.

Market hits new highs on back of Fed announcement, forgetting the Fed is clueless

by Simon Black, Sovereign Man:

Hallelujah, the US stock market is once again at an all-time high thanks to a little help from our friends at the Federal Reserve.

Every summer, central bank officials from around the world gather in Jackson Hole, Wyoming (which, if you haven’t been, is REALLY spectacular. Jackson Hole, that is, not the Fed conference.)

The event was held last week. And the main event was a speech from the new(ish) Fed Chairman Jerome Powell.

Iran Sanctions, Emerging Markets And The End Of Dollar Dominance

by Brandon Smith, Alt Market:

The trade war is a rather strange and bewildering affair if you do not understand the underlying goal behind it. If you think that the goal is to balance the trade deficit and provide a more amicable deal for U.S. producers on the global market, then you are probably finding yourself either confused, or operating on blind faith that the details will work themselves out.

Case in point, the latest reports that the U.S. trade deficit is now on track to hit 10-year highs, after a 7% increase in June. This is the exact opposite of what was supposed to happen when tariffs were initiated. In fact, I recall much talk in alternative media circles claiming that the mere threat of tariffs would frighten foreign exporters into balancing trade on their own. Obviously this has not been the case.

The Economy Is Collapsing Under The Unbearable Weight Of Debt

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by Dave Kranzler, Investment Research Dynamics:

“Those who see no Lehman-like episode on the horizon did not see the last one.” – highly regarded writer, George Will, in a National Review article titled, “America Is Overdue For Another Economic Disaster”

Lost in the largely meaningless political Kabuki theatre being staged on Capitol Hill is the fact that the economy is deteriorating. Real average weekly earnings in July declined for production and non-supervisory workers. It was down 0.01% from June to July and down 0.22% from July 2017. For all employees, real average hourly earnings declined 0.20% from June to July but was flat year over year.

Supply of Homes Surges 20% to 90% in Many Markets Just as Pending Home Sales Drop

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by Wolf Richter, Wolf Street:

This is not good.

What’s causing the drop-off in pending home sales in the US, and in particular in the West?

  • Surging home prices that have outrun wage increases for years?
  • Mortgage rates that hover around 4.8% for the average 30-year fixed-rate mortgage, the highest since 2011?
  • The massive affordability issues that come with the combination of soaring home prices and rising mortgage rates?
  • A softening exuberance among homebuyers?

The Reverse Bucket List

by Chris Marcus, Miles Franklin:

Jack Nicholson and Morgan Freeman starred in the 2007 movie, “The Bucket List.” A “bucket list” defines things we want to do before we die, before we “kick the bucket.”

A reverse bucket list—as used here—is a list of things already occurred, but we wish had not happened.

The Reverse Bucket List:

  1. The Federal Reserve Act authorized the central bank of the United States. That act allowed a privately owned bank—The Federal Reserve—which is neither federal nor a reserve—to control the nation’s money supply. Politicians and bankers are pleased The Fed exists because it enhances their power and wealth. However, the Fed devalues the dollar and creates price inflation for consumers and stocks. This weakens the economy and transfers wealth to the political and financial elite.