Sunday, July 25, 2021

Tag: DEFICITS

Inflation, Deficits, Soaring Metals: Mining Stock Ready Launch

by Dave Kranzler, Investment Research Dynamics:

The precious metals market may be starting to figure out that price inflation caused by Central Bank money printing in the last year – with the Fed leading the charge – is going to become an uncontrollable problem. It will become even worse once the stock market and the housing market no longer “absorb” most of the money that has been printed since March 2020.

Price inflation is raging in commodities across the board:

Inflation, Deficits, Soaring Metals: Mining Stock Ready Launch

by Dave Kranzler, Investment Research Dynamics:

The precious metals market may be starting to figure out that price inflation caused by Central Bank money printing in the last year – with the Fed leading the charge – is going to become an uncontrollable problem. It will become even worse once the stock market and the housing market no longer “absorb” most of the money that has been printed since March 2020.

The chart above is from Bloomberg by way of @sentimentrader. It shows the Bloomberg Commodities Index going back to 1970 (note: gold and silver are technically not “com-modities” – they are monetary metals; they were lumped in with commodities as part of the Government’s effort move to remove gold and silver from the monetary system after 1971). It shows the percentage of commodities with a 252-day rate of change of 50% or more. This metric has reached the highest percentage since 1974 (gold futures began trading on the Comex in 1974).

DEFICITS, RATES & GOLD TO REACH VERTIGINOUS HEIGHTS

by Egon Von Greyerz, Gold Switzerland:

The end of an empire is a dramatic but also drawn out event with very few willing to face the facts. As the end is getting closer, denial is at its peak. We can probably figure out how it will end but not quite when. Looking at the facts, the beginning of the end is here. The signs are clear. Here we have a country that for the last 27 years has doubled debt every eight years and the trend continues uninhibited. This is a country that for decades has been living above its means by borrowing unlimited amounts. Well, it is not a Banana Republic, nor Argentina or Venezuela but the biggest economy in the world – the soon not so great USA.