Wednesday, June 3, 2020

ZIRP And QE Won’t Save The Economy – Buy Gold

by Dave Kranzler, Investment Research Dynamics:

It’s not that we’ll mistake them for the truth. The real danger is that if we hear enough lies, then we no longer recognize the truth at all…  – “Chernobyl” episode 1 opening monologue

I’ve been discussing the significance of the inverted yield curve in the last few of my Short Seller’s Journal. Notwithstanding pleas from the financial media and Wall Street soothsayers to ignore the inversion this time, this chart below illustrates  my view that cutting interest rates may not do much  (apologies to the source – I do not remember where I found the unedited chart):

GOLD ROSE BY $13.25 TO $1233.95/SILVER UP 9 CENTS TO $1445

by Harvey Organ, Harvey Organ Blog:

DOW RISES BY 288 POINTS (NASDAQ BY 111 POINTS) ON A CHINA/USA TRUCE ON TARIFFS: WE ARE TO COME TO A FINAL DEAL IN 90DAYS//THE BOND MARKET DID NOT BUY THE GAIN AS THE 10 YR BOND YIELDS SLUMPED/ALSO THE 3 AND 5 YR INVERTED FOR THE FIRST TIME/FRANCE CONTINUES TO BURN AND THAT WILL HURT THEIR GDP./ITALY BACKTRACKS AND WILL COME UP WITH A 1.9-2.0% DEFICIT TO GDP FOR THEIR BUDGET

Peak scarcity: Top supply shocks humanity isn’t prepared for

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from RT:

According to some estimates, humanity currently uses resources 50 percent faster than they can be regenerated, but several major resource shocks have gone underreported – and may change the way we live irrevocably.

Pressure on oil and metals resources have long been known, but impending lesser-known supply issues for other key materials that have gone largely unnoticed outside of the extraction industry could lead to price spikes, massive backward shifts in technology, and even global conflict in the coming decades.

Here RT.com takes a look at the near future of ‘hidden’ resource supply shocks.

High Inflation, High Taxes, High Cost of Living, High Migration – Nathan McDonald (25/04/2019)

by Nathan McDonald, Sprott Money:

A trend has been developing for years, one that sees people fleeing the large, vast cities of the world for “greener” pastures, both literally and figuratively.

This trend has been building on itself and will continue to do so until we reach a point of stabilization, a point in which the system once again balances itself.

The trend I speak of is the vast migration of people both young and old leaving their high-rise towers and moving to smaller, rural towns and cities.

The reasons for this are many. However, first and foremost, as with anything else in life, it comes down to money.

Escape Illinois: Get The Hell Out Now, We Are

by Mish Shedlock, The Maven:

Illinois is second to Alaska in net outbound migration. Many move out, but few move in.

Behind the Chatter

Please consider the Chicago Tribune article on the ‘Illinois Exodus.’

An “Escaping Illinois” Facebook group has more than 39,000 followers. One man even wrote a song called “Goodbye Illinois,” lamenting the state’s taxes and political corruption and expressing his desire to leave.

Germany: Dead Economy Walking

by Tom Luongo, Tom Luongo:

Germany is the key to the EU economy. This is not news.

What is news is that Germany’s economy is in the toilet. Not slowing down…. not hitting some bumps.

The Germans are industrial and exporting powerhouses. And the trends for those two things have been in decline for over a year.

Balance of trade for the past two quarters have been the lowest they’ve been since 2016. And the euro has backed off 13% since January of 2018. That’s because so much of Germany’s exports are to other EU countries and they are loaded to the gills with debt.

Denmark’s 3rd Largest Bank Is Now Paying People To Take Out A Mortgage

from ZeroHedge:

Back in 2016, when the first negative interest rate bonds first emerged, we offered readersa glimpse of the NIRP future:

After an intense pow-wow between the administration, Congressional leaders and the Federal Reserve, the Negative Mortgage Rate Program (NMRP) is born. The program is simple.  Homeowners will be paid to borrow.  The Federal Reserve declares that the NMRP is a brilliant extension of NIRP (negative interest rate policy), because it will benefit everyone, not just the 1%ers.

Here’s how it works: No downpayment needed.  100% financing.