Monday, December 16, 2019

National Debt Too High, Silver Price Too Low

Silver currently sells around $16, which would be sensible if the U.S. national debt was much less than its current $20 trillion.
by Gary Christenson, Deviant Investor:

Given the massive national debt and 100 years of experience, silver prices could easily be double or triple their current prices, and far higher in a panic.

WHY?

Examine over a century of official national debt data graphed on a log scale. Official debt in 1913 was $3 billion. Since then it has risen 8{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} to 9{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} every year to reach $20 trillion or $20,000 billion. Debt will continue rising as long as politicians spend and bankers lend.

Proof: Name the Senators, Representatives, Presidents, military contractors, pharmaceutical companies, and Medicare recipients who wish to see the government reduce expenses.

“Financial Crisis” Coming By End Of 2018 – Prepare Urgently

by Mark O’Byrne, Gold Core:
“Financial Crisis Of Historic Proportions” Is “Bearing Down On Us”

John Mauldin of Mauldin Economics latest research note, Prepare for Turbulence, is excellent and a must read warning about the coming financial crisis. Mind refreshed from what sounds like a wonderful honeymoon and having had the time to read some books outside his “comfort zone” he has come to the conclusion that we are on the verge of  a “major financial crisis, if not later this year, then by the end of 2018 at the latest.”

THE GOLD PRICE IS FAKE NEWS

by Egon Von Greyerz, Gold Switzerland:
Lethargic summer markets tend to instil a sense of false security. Stocks and property are near all-time highs, interest rates are at 72 year lows and most investors feel richer than ever. Central banks signal strong economies with indications of higher interest rates and tapering of their balance sheets.

CENTRAL BANK CHIEF BEHEADED
As I discussed last week’s article about the Fed, we must never trust central banks since they are always hopelessly wrong. Sweden is another example of a central bank which has an appalling record in forecasting the economy. And it is not just any bank since I am talking about the oldest central bank in the world – Sweden’s Riksbank which was established in 1668. But age clearly means nothing when it comes to understanding markets and the economy. Below we see the Riksbank’s forecasting record for the Swedish Repo rate. It is just an appalling record which shows that during the last 7 years they have been hopelessly wrong. Several times a year since 2011 they have forecast rate increases of 1-2{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} and every year since then, rates have gone lower. In all, they have made 25 incorrect forecasts since 2011. Hopefully their record since 1668 has been more accurate.

The Logic of a Modern Gold Standard

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by Alasdair Macleod, GoldMoney:
In last week’s Insight, I analysed the current geopolitical situation and concluded that it was now in the interest of the Shanghai Cooperation Organisation to break from the US dollar completely, by establishing a new monetary and banking systemi. By linking the yuan and rouble to gold, the SCO’s principal currencies would be insulated from manipulation by means of dollar currency rates, and their use as a weapon to undermine the Sino-Russian partnership. This article addresses some of the practical difficulties of establishing such a sound monetary system.

A return to sound money will require a radical reform of financial markets, as well as the laws and regulations under which banks and investment houses work. The weaknesses of the current fiat-money system must be identified and understood by reforming governments. It also amounts to no less than discarding the entire evolution of mainstream economic thinking that has evolved in the welfare-states since the 1930s.

Hanging with Harley (07/13/2017)

from ROGUE MONEY:

We are political scientists, editorial engineers, and radio show developers drawn together by a shared vision of bringing Alternative news through digital mediums that evangelize our civil liberties.

Speculators Sour On Gold And Silver, Which Means The Bottom Is Near

by John Rubino, Dollar Collapse:
The stars — in the form of smart and dumb money futures contract positions — have once again lined up favorably for precious metals. Here are those positions for gold and silver as of Tuesday the 4th. Notice that speculators (the dumb money) got a lot less optimistic — that is, less long and more short — while the commercials (the smart money) got much less pessimistic. The closer each group gets to neutral, where their longs and shorts are about equal, the greater the likelihood that metals prices will rise in the subsequent six or so months.

Putting the Latest Silver Crash Under a Lens – Keith Weiner

by Keith Weiner, Sprott Money:
On Thursday, July 6, in the late afternoon (as reckoned in Arizona), the price of silver crashed. The move was very brief, but very intense. The price hit a low under $14.40 before recovering to around $15.80 which is about 20 cents lower than where it started.

Buyers of silver are rejoicing. They can now get more money (silver, like gold, is money) in exchange for their dollars than before. However, as we see from the reactions in the community, there were few buyers.

Cries of woe are heard everywhere. Those who are crying are sellers, including those who say they don’t plan to sell but who really want a high price in case they change their mind by Monday morning.

If you want to see what it looks like when everyone is thinking of buying, look at the bitcoin market when there is a price drop. The enthusiasm is palpable. Everyone is gloating about buying the dips, with faith unbroken that the cryptocurrency is on its way to shoot past $10,000 if not $1,000,000.

GOLD DOWN $1.50/SILVER IS DOWN 18 CENTS/AGAIN AT THE SILVER COMEX THE AMOUNT STANDING INCREASES BY 245,000 OZ

TOTAL SILVER STANDING: 14.560 MILLION OZ/REPUBLICANS INTRODUCE A NEW HEALTHCARE BILL BUT IT WILL GO NOWHERE
from Harvey Organ:

USA RUNS A SURPRISING DEFICIT OF $429 BILLION DUE TO EXPENDITURES WITH RESPECT TO STUDENT LOANS AND HOUSING LOANS

In silver, the total open interest ROSE BY 887 contract(s) UP to 208,479 WITH THE RISE IN PRICE THAT SILVER TOOK WITH YESTERDAY’S TRADING (UP 15 CENT(S). WITH THE DATA TODAY, THE ONLY EXPLANATION IS THE COMMERCIALS CONTINUED AS THE SUPPLIER OF THE SHORT PAPER AND THE SPECULATORS WENT TO THE LONG SIDE GOBBLING UP THE PAPER.

In ounces, the OI is still represented by just OVER 1 BILLION oz i.e. 1.042 BILLION TO BE EXACT or 149{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 50 NOTICE(S) FOR 250,000 OZ OF SILVER

In gold, the total comex gold ROSE BY A MONSTROUS 15,769 CONTRACTS WITH THE RISE IN THE PRICE OF GOLD ($4.20 with YESTERDAY’S TRADING). The total gold OI stands at 491,438 contracts. AGAIN, THE COMMERCIALS SUPPLIED THE SHORT PAPER TO WHICH THE SPECULATORS WENT ON A RAMPAGE ON THE LONG SIDE.

we had 52 notice(s) filed upon for 5200 oz of gold.

Read More @ Harveyorganblog.com

Silver Fundamentals Vs. The Base Metal Bubble Part ll-Silver Undervalued Against Everything Now!

by Andy Hoffman, Miles Franklin:
Yesterday, we learned that Donald Trump Jr. was allegedly involved in secret meetings with a Russian lawyer last year, in an alleged attempt to obtain anti-Hillary information. This, as Trump’s snot-nosed, silver spoon son-in-law, Jared Kushner – a mere 36 years old – was collaborating with Qatarian sheiks whilst Saudi Arabia “coincidentally” declared economic war on it – under the ultimate “pot calling the kettle black” insinuation that Qatar funds terrorism. To which, I can only say, how ridiculous is it that the President’s family is involved in such blatant conflict of interest activities; and doubly so, how screwed up has America’s increasingly Banana Republic political system become? Which I only state, to demonstrate how painstakingly obvious the need for portfolio insurance has become – at a time, no less, when historic market manipulation has not only produced “dotcom valuations in a Great Depression Era,” but the most undervalued Precious Metal prices – on an inflation-adjusted basis – ever.

Stocks and Precious Metals Chart – Me and My Baby

from Jesse’s Café Américain:
“Learn what is to be taken seriously and laugh at the rest.”

Hermann Hesse

“Narcissism falls along the axis of what psychologists call personality disorders, one of a group that includes antisocial, dependent, histrionic, avoidant and borderline personalities.

But by most measures, narcissism is one of the worst, if only because the narcissists themselves are so clueless.”

Putting the Latest Silver Crash Under a Lens

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by Keith Weiner, Acting-Man.com:
An Unenthusiastic Market

On Thursday, July 6, in the late afternoon (as reckoned in Arizona), the price of silver crashed. The move was very brief, but very intense. The price hit a low under $14.40 before recovering to around $15.80 which is about 20 cents lower than where it started. Buyers of silver are rejoicing. They can now get more money (silver, like gold, is money) in exchange for their dollars than before. However, as we see from the reactions in the community, there were few buyers.

Cries of woe are heard everywhere. Those who are crying are sellers, including those who say they don’t plan to sell but who really want a high price in case they change their mind by Monday morning.

If you want to see what it looks like when everyone is thinking of buying, look at the bitcoin market when there is a price drop. The enthusiasm is palpable. Everyone is gloating about buying the dips, with faith unbroken that the crypto-currency is on its way to shoot past $10,000 if not $1,000,000.

Read More @ Acting-Man.com