Saturday, July 4, 2020

Why Markets Should Continue to Rise This Year

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by Nomi Prins, Daily Reckoning:

A government shutdown was averted last Friday when President Trump signed a $1.3 trillion, 2,232-page omnibus bill. The deadline was midnight Friday and the bill came out late Wednesday.

No one really had the time to go through it, and that’s on purpose.

The fact that no one really knew what was in it — besides the drafting committees and the lobbyists who crammed it full of pork — speaks volumes about how the people’s business is conducted in our democracy.

Theoretically, we still live in a republic, but the question is: Who exactly represents whom in Washington?

Market Report: Quarter-end factors

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by Alasdair Macleod, GoldMoney:

After last week’s sharp rally, gold and silver failed to follow through this week ahead of the quarter-end. Gold lost $24 from last Friday’s close to trade at $1324 in morning trade in Europe today (Thursday) and silver lost 33 cents to end up at $16.25. Despite a shortened week for European and Canadian markets, volumes in futures markets for both gold and silver were reasonably healthy.

TRADE WARS, PETROYUAN, DEBTS – $32,000 GOLD & $500 SILVER

by Egon Von Greyerz, Gold Switzerland:

Is this it? Is the bull market finished and the good times over? Well, they could very well be. We are looking at a world which is rotten to the core, a world which is built on debt which will never be repaid. And a debt which is artificially supporting $100s of trillions of assets and quadrillions if we include derivatives. The supposedly most powerful economy in the world (the US of course) is now so indebted that it needs to fight the whole world in all kinds of different wars for its survival, with the latest being a trade war.

Banks & Builders Want New Property Bubble In Spain, Government Obliges

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by Don Quijones, Wolf Street:

“This plan, far from solving or alleviating the problem, is likely to make it a whole lot worse.”

Spain’s second biggest bank, BBVA, just announced that it’s resurrecting the 100% mortgage, a high-risk loan instrument that notoriously helped fuel Spain’s madcap property boom. For the first time in almost a decade, property buyers will be able to receive credit equivalent to the total value of the property they wish to purchase. As before, no down payment will be needed. But this time, interest rates will be even lower.

GOLD FALLS $3.20 TO $1323.20 BUT SILVER ADVANCES BY 6 CENTS UP TO $16.33

by Harvey Organ, Harvey Organ Blog:

SILVER COMEX OPEN INTEREST RISES TO ABOVE 227,000 CONTRACTS OR ONLY 7000 CONTRACTS FROM ITS ALL TIME HIGH/CME REPORTS A HUGE EFP ISSUANCE FOR SILVER OF JUST UNDER 3,000 CONTRACTS; GOLD EFP ISSUANCE ONLY A TOUCH NORTH OF 2400 CONTRACTS/WILBUR ROSS CONFIRMS THAT THE USA WILL INITIATE TARIFFS AGAINST CHINA AND NO DOUBT THAT CHINA WILL RECIPROCATE/LIBOR RISES FOR THE 37TH CONSECUTIVE DAY AT 2.31/LIBOR OIS WIDENS INDICATING RISK TO THE FINANCIAL SYSTEM/USA REPORTS ZERO SPENDING GROWTH AND THAT WILL BE A DAMPER TO 1 ST QUARTER GDP/WAGE GROWTH ALSO VERY WEAK/INSPECTOR GENERAL OF THE USA TO INITIATE PROBE ON THE FISA ABUSES/MORE SWAMP STORIES FOR YOU TONIGHT

New ‘Currency’ In Decimated Socialist Venezuela Is The Machete – Children Joining Gangs In Desperate Attempt To Survive As Shortage-Plagued Dystopia Is A Foreboding Message To America

by Stefan Stanford, All News Pipeline:

In this heartbreaking new story over at SHTFPlan by Mac Slavo he reports that hungry children in the failed socialist nation of Venezuela have taken to joining gangs to fight other children with sticks, knives and machete’s with the prize of ‘survival’ on the line with the object of their fights something most Americans throw out in the garbage every day: scraps of food barely good enough to eat.

As Slavo reports, the children in one particular 15-member gang, whose youngest member is only 10 years old, work together to survive vicious fights for what they consider ‘quality garbage’ that is tossed away in the few ‘more affluent’ areas still remaining in Venezuela, also scoping out restaurants for whatever they might throw away in the shortage-plagued dystopia that should be seen as a warning to America of our possible future should we continue along the path we’re on.

What Is the Silver-Gold Ratio Telling Us About the State of the Global Economy?

by Peter Schiff, Schiff Gold:

Over the last several weeks, we’ve spotlighted a lot of data indicating the economy isn’t nearly as strong as the mainstream pundits keep telling us. We’ve focused on the collapsing retail sector. We’ve looked at household debt and US consumer stress. We’ve talked a lot about the US federal debt and its potential impact on the economy.

There’s another factor that indicates there may be some cracks in the global economy – the silver-gold ratio.

We’ve talked a lot about the silver-gold ratio as it relates directly to the silver market. In simplest terms, it indicates that silver is at a bargain price. The ratio currently stands at over 81 to 1. That means it takes 81 ounces of silver to buy an ounce of gold. Compare that with the historic average ratio which hovers around 16:1. The modern average over the last century is around 40:1. As Peter Schiff said in a video over the summer, “This is silver on sale.”

The Real Reason Why Stock Markets Will Continue To Crumble This Year

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by Brandon Smith, Alt Market:

Public sentiment on the economy is generally influenced by to two false indicators — the national unemployment rate and stock markets. This is not to say the average person tracks either of these numbers very vigorously; they don’t. What they do is hear these numbers on the morning news, the radio news on their way to work (if they are employed) or they hear them on the evening news just before bed. If the jobless rate is low and the Dow is high, then all is right with the world, at least financially.

When it comes to the economy, most people are lost.

The average American, in particular, is not as oblivious to the world of political and social discourse as they are on economics. Whether on the left or the right of the political spectrum, most citizens know that lines are being drawn and ideological battles are accelerating into realms of the extreme. Conservatives and the liberty activists that stand at the front line of the culture war understand quite well the threat of globalism and the “philosopher king” elitism of international financiers. They know that these criminals must eventually be dealt with if freedom and stability are to return to the world.

The yuan-oil future and gold

by Alasdair Macleod, GoldMoney:

“There can be little doubt that the introduction of the yuan-denominated oil future has been a major strategic step for China.”

Regular readers of Goldmoney’s research will be aware that we were among the first to alert western financial markets that China would introduce a new oil futures contract priced in yuan, months before it was officially admitted that the plans for the contract were being finalised and a date for trading was being planned.i