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I know we have inflation, but honestly -
My Comment: I've been buying inflation hedges for over 50 years as a hobby (not for the appreciation in value). It has turned out to be a good investment (;50's-'60's European sports cars, art (especially Western Art), antiques of all kinds). And people are paying high prices now but is a Mickey Mantle BB card really worth $12.6Million? Why is gold not responding?
Sale Of Mickey Mantle Card Breaks All Records For Sports Memorabilia
https://www.zerohedge.com/personal-finance/sale-mickey-mantle-card-breaks-all-records-sports-memorabilia
Excerpts:
A mint condition Mickey Mantle baseball card sold for $12.6 million Sunday - making it the most expensive piece of sports memorabilia in history.
The 1952 card is widely regarded as one of just a handful of near-perfect cards of the baseball legend. It was bought in 1991 for $50,000 by New Jersey waste management entrepreneur, Anthony Giordano, at a New York City show.
Ivy said savvy investors saw inflation coming down the road — as it has. As a result, sports memorabilia became an alternative to traditional Wall Street investments or real estate — particularly among members of Generation X and older millennials. -AP
Prior to the pandemic, the sports memorabilia market was estimated at just $5.4 billion - according to a 2018 comment by David Yoken, founder of Collectable.com
Just three years later, that market is estimated to be at $26 billion according to research firm Market Decipher, which thinks it will grow to $227 billion within the next decade.
Water Crisis -
China’s Growing Water Crisis
A Chinese Drought Would Be a Global Catastrophe
https://www.foreignaffairs.com/china/chinas-growing-water-crisis
My Comment: This is becoming serious and it's a global problem with no viable solution as drought conditions worsen in the US, China, and Europe. It has major economic implications.
Excerpt:
China is on the brink of a water catastrophe. A multiyear drought could push the country into an outright water crisis. Such an outcome would not only have a significant effect on China’s grain and electricity production; it could also induce global food and industrial materials shortages on a far greater scale than those wrought by the COVID-19 pandemic and the war in Ukraine. Given the country’s overriding importance to the global economy, potential water-driven disruptions beginning in China would rapidly reverberate through food, energy, and materials markets around the world and create economic and political turbulence for years to come.
Obama's Chief Economic Advisor Blasts Biden's "Reckless" Student Debt Bailout
https://www.zerohedge.com/political/obamas-chief-economic-advisor-blasts-bidens-reckless-student-debt-bailout
My Comment:
So much for Biden's deficit reduction, if there ever was one. Biden keeps finding new ways to spend more money. At some point the national debt will really matter. Also, unlimited government spending means more inflation (and higher rates from the Fed).
Excerpts:
Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless. Doing it while going well beyond one campaign promise ($10K of student loan relief) and breaking another (all proposals paid for) is even worse.
The White House fact sheet has sympathetic examples about a construction worker making $38K and a married nurse making $77,000 a year.
But then why design a policy that would provide up to $40,000 to a married couple making $249,000? Why include law and business school students?
The Fed Can't Stop Supply-Side Inflation
https://www.zerohedge.com/economics/fed-cant-stop-supply-side-inflation
My Comment: The Fed has wrecked the economy and it's too late to fix it.
Excerpt:
The Fed and other central banks have zero control of supply-driven inflation, period. Trying to crush inflation by crushing demand won't fix inflation because the source is supply, not demand.
The only solution is for the Fed to keep raising rates to combat the inflation due to climate change, the war in Ukraine, Chinese Covid lockdowns, supply chain bottlenecks, labor shortages, and excessive government spending. And don't forget to raise taxes.
If there's no water and no energy, it's going to get ugly indeed -
My Comment: And we have not yet had hurricanes in the Gulf which could impair refiners.
Venezuela Stops Oil Shipments To Europe As Alternatives To Russian Energy Dry Up
https://www.zerohedge.com/geopolitical/venezuela-stops-oil-shipments-europe-alternatives-russian-energy-dry
Excerpts:
The writing is on the wall for Europe in terms of this coming winter – It's going to get ugly.
If this occurs and no regular sources of energy can be found to fill the void left by Russian sanctions, prices will rise precipitously in the EU. Not only that, but with European countries buying up energy supplies wherever they can find them, available sources will also shrink for every other nation including the US. Get ready for oil and energy prices to spike once again as winter's chill returns.
Drought Is Driving European Energy Markets Toward Disaster
https://www.zerohedge.com/energy/drought-driving-european-energy-markets-toward-disaster
Excerpt:
The EC had set a target of 80 percent for storage fill rates by October 1. Member-states are on track to hit this target ahead of schedule, but this has come at a cost: the EU's gas bill this year is ten times higher than it normally is, at over $51 billion
Feds Cut Water Deliveries To Arizona And Nevada, May Impact Food Production
https://www.zerohedge.com/commodities/feds-cut-water-deliveries-arizona-and-nevada-may-impact-food-production
My Comment: These restrictions mean less produce such as lettuce. Livestock and cotton are also reduced. So, the Fed will have to raise rates even more to control food inflation (ridiculous).
Excerpt:
The reductions could be the beginning of a water crisis for the 40 million Americans in seven states (Colorado, New Mexico, Utah, Wyoming, Arizona, California, and Nevada) that heavily rely on the river for freshwater and power.
The move comes as the western US faces the worst megadrought in 1,200 years that has decreased levels in Lake Mead, the largest reservoir in the US, to lows not seen in eight decades.
Lake Powell, meanwhile, could face hydropower production disruptions as soon as next year, The Guardian said.
"Mood No Longer Apocalyptic": Wall Street's Most Accurate Strategist Says Start Shorting S&P Now
https://www.zerohedge.com/markets/mood-no-longer-apocalyptic-wall-streets-most-accurate-strategist-says-start-shorting-sp-now
My Comment: I don't think the water crisis will affect stocks anytime soon, but it is becoming a major problem globally and it keeps getting worse.
Excerpt:
Hartnett remains a patient bear, and says he "would fade SPX >4328 as rates up-profits down our base case." Coming from the guy who just happens to be Wall Street's most accurate analyst and exactly one month ago correctly predicted "sentiment says stocks/credit rally in coming weeks" we would listen to what he has to say.
How does it all end? -
It's Game-Over For The Fed - Expect A Monetary "Rug Pull" Soon...
https://www.zerohedge.com/economics/its-game-over-fed-expect-monetary-rug-pull-soon
My Comment: I'm expecting the national debt to reach $40Trillion by 2026. The debt cannot increase indefinitely. There will be serious consequences. At some point I expect rates to rise due to the risk of holding US debt. So, how does this unsustainable debt increase end? Does the US$ drop in response to the debt? And Biden claims to have educed the current deficit by $1.75Trillion (I just don't believe that). Biden keeps finding new ways to spend more money and increase the deficit. Got Gold?
Excerpt:
The Fed Has a Serious Problem This Time
The amount of federal debt is so extreme that even a return of interest rates to their historical average would mean paying an interest expense that would consume more than half of tax revenues. Interest expense would eclipse Social Security and defense spending and become the largest item in the federal budget.
Further, with price increases soaring to 40-year highs, a return to the historical average interest rate will not be enough to reign in inflation—not even close. A drastic rise in interest rates is needed—perhaps to 10% or higher. If that happened, it would mean that the US government is paying more for the interest expense than it takes in from taxes.
In short, the Federal Reserve is trapped.
'Big Short' investor Michael Burry issues a grim warning about runaway consumer debt - and says the stock-market rally won't last
https://www.msn.com/en-us/money/savingandinvesting/big-short-investor-michael-burry-issues-a-grim-warning-about-runaway-consumer-debt-and-says-the-stock-market-rally-won-t-last/ar-AA10AIRR?ocid=msedgntp&cvid=54d29d2068f84a1db8d698afb968409a
My Comment: It's all about the debt
Excerpt:
Burry noted in May that American consumers - faced with surging food, fuel, and housing costs - were putting away less of their incomes, racking up credit-card debt, and poised to virtually exhaust their savings by the end of this year.
He predicted consumer spending would drop as a result, and retailers would cut prices to get rid of their bloated inventories, curbing inflation and heaping pressure on corporate earnings and economic growth by Christmas.
JPMorgan Precious-Metal Traders Found Guilty Of Spoofing, Had 'Power To Manipulate The Global Price Of Gold'
https://www.zerohedge.com/commodities/jpmorgan-precious-metal-traders-found-guilty-spoofing-had-power-manipulate-global-price
My Comment: Will anything really change? They usually get modest fines and continue with business as usual
Excerpt:
With Wednesday’s verdict, the Justice Department has secured convictions of 10 former traders at Wall Street financial institutions, including JPMorgan, Merrill Lynch & Co., Deutsche Bank AG, The Bank of Nova Scotia, and Morgan Stanley, Assistant Attorney General Kenneth A. Polite Jr. said in a statement.
Hackers steal $611,500 worth of user’s funds by hijacking the Curve Finance homepage
https://www.kitco.com/news/2022-08-10/Hackers-steal-611-500-worth-of-user-s-funds-by-hijacking-the-Curve-Finance-homepage.html
Excerpt:
On Tuesday the popular decentralized stablecoin exchange fell victim to a domain name system (DNS) hijack in which hackers briefly took control of the project's homepage.
'Dr. Doom' Nouriel Roubini warns the era of stagflation is here and central banks are setting a trap in trying to normalize policy
https://www.msn.com/en-us/money/markets/dr-doom-nouriel-roubini-warns-the-era-of-stagflation-is-here-and-central-banks-are-setting-a-trap-in-trying-to-normalize-policy/ar-AA10tXlJ?ocid=msedgntp&cvid=4c915ad46d16408f9859d9e77570d0be
My Comment: Got Gold?
Excerpts:
"The world economy is undergoing a radical regime shift," he said in an op-ed for Project Syndicate on Tuesday, declaring the end of the Great Moderation, during which economies enjoyed low inflation, high growth, and mild recessions.
Those qualities have been the standard for the past few decades, but are reversing into what Roubini dubs as the Great Stagflation: an era of high inflation, low growth, high debt, and the potential for severe recessions.
Global economies carry larger debt ratios than before, setting up central banks for potential failure, Roubini said.
"Central banks are thus locked in a 'debt trap': any attempt to normalize monetary policy will cause debt-servicing burdens to spike, leading to massive insolvencies, cascading financial crises, and fallout in the real economy," he said.
In recent op-eds, he's added that stocks could plunge as much as 50% and predictions of a mild recession were simply "delusional."
For the new economic era, his message for investors is similarly bleak:
"During the Great Stagflation, both components of any traditional asset portfolio — long-term bonds and US and global equities — will suffer, potentially incurring massive losses," Roubini said Tuesday.
The IRA is supposed to reduce the deficit by $200Billion over 10 years. I'll believe it when I see it. Even so, $20Billion annual deficit reduction would be a rounding error in a $2Trillion deficit.
What's driving gold higher today? -
Could it be the $750Billion IRA spending package which adds more to the deficit?
Lake Mead is close to a dead pool in which no water will flow through the dam. The water level keeps dropping
Shrinking Lake Mead reveals bodies and boats
https://earthsky.org/earth/lake-mead-shrinking-reveals-bodies-boats/
Excerpt:
Lake Mead’s water level has dropped more than 170 feet (52 meters) since 1983, the year the Colorado River flooded Hoover Dam’s spillways. If the reservoir dips below 895 feet (272.8 meters) – about 150 feet (45 meters) lower than where it is now – Lake Mead would reach what’s called dead-pool level. Dead pool is when water in a reservoir drops so low that it can’t flow downstream from the dam. If Lake Mead were to reach dead pool – a possibility that scientists say is several years away – there would be dire consequences for the millions of people who rely on the reservoir for drinking water and irrigation.
Hang onto your wallet -
Another setback for Solana as users lose $8 million in assets following the latest exploit
https://www.kitco.com/news/2022-08-03/Another-setback-for-Solana-as-users-lose-8-million-in-assets-following-the-latest-exploit.html
Excerpt:
The beleaguered cryptocurrency market is facing another test of resilience after a new exploit on the Solana blockchain has seen more than $8 million in funds drained from users' wallets in the last two days.
Beginning late Tuesday, the exploit mainly targeted the Phantom and Slope wallets, two of the popular hot wallet options in the Solana ecosystem.
According to the Twitter account Solana Status, which has been providing updates on the situation, "approximately 7,767 wallets" have been drained by the attack and should now be considered "compromised, and abandoned."
White House Says Russia Made 'Bad Faith, Non-Serious' Prisoner Swap Proposal
https://www.zerohedge.com/geopolitical/white-house-says-russia-made-bad-faith-non-serious-prisoner-swap-proposal
My Comment: Griner should have known that having cannabis was illegal. I think she should bear the consequences. Otherwise, the US will be in a position of bargaining for every US citizen in Russian prisons which only encourages Russia to make more arrests. Being too greedy (getting 4xWNBA salary to play in Russia) can get you in trouble.
Excerpts:
Russia wants a convicted murderer to be included in US prisoner swap that would see 'Merchant of Death' Viktor Bout traded for Brittney Griner and Paul Whelan.
Russian officials requested for a convicted murder and Kremlin spy Vadim Krasikov (pictured) to be released
"This Is Only The Start" Bill Holter Warns 'Whole World Is A Banana Republic'
https://www.zerohedge.com/geopolitical/only-start-bill-holter-warns-whole-world-banana-republic
My Comment: Of course, this guy has a vested interest, but IT REALLY IS ALL ABOUT THE DEBT.
Excerpts:
If you add up all the global GDP’s, we are roughly $100 trillion. The problem is there is well over $350 trillion in debt worldwide...When I graduated college... anything above 100% debt to GDP was considered a banana republic. Look where we are today. Globally, it’s 350% debt to GDP.
“We have had free and carefree times for the last 40 years. Now, you are going to see the reverse. Debt is a two-edge sword, and after 40 years, we are going to see the dangerous side of the sword... There is going to be starvation. This is going to be unlike anything...anyone has even written about from a fictional basis. . . .
Emerging Markets -
"If The Fed Marches On, They're Creating Another Lehman Situation", Larry McDonald Warns Powell Is "Pumping A False Narrative"
https://www.zerohedge.com/markets/if-fed-marches-theyre-creating-another-lehman-situation-larry-mcdonald-warns
Excerpts
After the next Fed hike, the 10-year/3-month Treasury yield curve is going to be inverted. The Fed will start to cut rates next year and the real yield on bonds is going to get extremely negative, and that’s when the miners will do very well.
I like names like Hecla Mining, one of the largest silver producers. At $3.80 the stock is a screaming buy. Your downside is $3.50, and the upside is massive. Fundamentally, there’s immense demand for silver for electric vehicles and solar panels over the next decade.
The Fed has been exporting inflation all around the world into countries that can least afford it.
What do you mean by that?
The strong dollar a global wrecking ball. There are $70 trillion of GDP outside of the United States, but only $23 trillion in the US. The Fed pretends to care about inequality and all the related issues. I’m sure they do in some respect, but they are exporting inflation to places like Chile, Columbia, Panama, Sri Lanka and the other countries where we see protests in the streets. Societies are being destroyed, families crushed because they’re trying to buy essential commodities like oil, gas, food, coffee, corn which are traded in US dollars. When the Fed is promising all these rate hikes, they make the dollar stronger and commodities more expensive. It’s a colossal tax on emerging market countries. If you’re in an emerging market country, you’re getting annihilated. Your standard of living is being destroyed because the Fed is trying to fight inflation in the United States. It’s heartbreaking.
How dangerous could this situation become?
With a raging greenback, you add lighter fluid on to the credit risk fire in emerging markets. Emerging- and frontier market countries currently owe the IMF over $100bn. The strong dollar is vaporizing this capital as we speak. Based on our conversations with clients, we believe that at least five finance ministers globally have called the Fed in the last two weeks. There is so much credit risk in emerging markets, it’s like 1998 levels. In many countries, the credit spreads are through Covid levels, with places like El Salvador, Ghana, Egypt, Tunisia and Pakistan appearing particularly vulnerable. If the Fed is trying to complete their agenda, they’re risking the greatest emerging market credit crisis in thirty years.
The situation is also tense in Europe. In the market for credit default swaps, prices for hedging against the default of European banks have skyrocketed in recent weeks, particularly in the case of Credit Suisse.
The problem is the much bigger loan book of European banks as a percentage of their market cap. Now, the strong dollar is creating tremendous amounts of stress in the European financial sector, and they’re dealing with the Russian crisis as well. This creates a massive tightening of financial conditions. Hence, the credit default swaps on European banks are near or through Covid levels, and a bank like Credit Suisse is just another victim here.
We are entering hurricane season and given the increasing magnitude of climate change on the weather (extreme heat, forest fires, droughts), this year's hurricanes should also be much more damaging. If it impacts oil refining along the Gulf coast, gasoline prices will rebound strongly, keeping inflation high.
Another big break in the dam -
My Comment: First, it's the imploding Chinese RE market and now it's European gas supplies from Russia cut in half. The dominoes are wobbling.
Putin Turns The Screws: Gazprom Unexpectedly Halts Another Nord Stream Turbine Cutting Flows In Half; European Gas Prices Soar
https://www.zerohedge.com/markets/putin-turns-screws-gazprom-unexpectedly-halts-another-more-nord-stream-turbine-european-gas
Excerpts:
gas flows from Portovaya will drop to as much as 33 million cubic meters per day from 7am Moscow time on July 27, which means flows along NS1 will decline by half, from 40% of capacity to just 20%.
European (TTF) nat gas prices spiked 10% and are likely to keep rising..
the ECB remains helpless: it can't cut rates without sending inflation even higher, but it can't keep hiking with Europe now in a recession. The euro, which jumped late last week on some naive optimism that a worst case could be avoided, slumped.
More on Chinese RE -
Excerpts from article in previous post:
“The real estate fund, if confirmed, is a stronger initiative compared to previously guiding state banks to lend to property developers, but it won’t be enough to solve the problem unless it can be capitalized by a blank check from the Chinese government,” she said
Goldman last year calculated that the Chinese property market is the world's biggest asset; needless to say, a crash here would lead to an unprecedented global deflationary shockwave.
Of course, as Jim Chanos was quick to point, the current iteration of the rescue fund is a drop in the bucket..
This $12B “rescue” fund should be seen in proper context. Residential RE is an annual $3T spend in China
and as Bloomberg notes, the 12 developers expected to benefit from the fund rescue have a combined short-term debt of 742 billion yuan, UBS analysts calculated. The number would swell to 4.05 trillion yuan when taking into account the amount owed to homebuyers and suppliers, they added..
Beijing Cracks: Mortgage Boycott Prompts China To Launch Multi-Billion Property Rescue Fund
https://www.zerohedge.com/markets/beijing-cracks-mortgage-boycott-prompts-china-launch-multi-billion-property-rescue-fund
My Comment: Will it Work? I doubt Chinese consumers are going to rush back into the RE market. And how much more will be required to prevent a collapse?
Excerpt:
“clearly the government is signaling it wants to restore homebuyers’ confidence and encourage them to start purchasing houses again,”
Excerpts from Doug Noland's weekly report -
My Comment: The dam is about to break
Weekly Commentary: Nowhere to Hide
http://creditbubblebulletin.blogspot.com/2022/07/weekly-commentary-nowhere-to-hide.html
Then something very important transpired. Despite all of Beijing’s measures, developer bond yields began rising again. The crisis deepened. China’s apartment bubble is one of history’s greatest bubbles. Its collapse has significant ramifications – for China’s economy and financial system, along with the global economy and the global financial system. There are clear geopolitical repercussions. Crisis dynamics often move at a glacial pace – only to suddenly accelerate at seemingly lighting speed. And crisis dynamics can appear manageable for some time - only to reach a point where fear takes hold that they might be uncontainable. China’s crisis is on such a trajectory.
But here’s what has me really worried. It’s not just Beijing that faces a crisis of confidence. Right now, emerging markets face sinking currencies, de-risking/deleveraging, “hot money” outflows, and a dramatic tightening of financial conditions. And it’s anything but clear what reverses these dynamics. I’ve witnessed a number of EM crises during my career, but never has there been a setup like today’s dominoes all lined up across the globe.
I also think we are close to a bottom in gold. What problems in the bond market are you referring to?
I read an analyst's commentary on gold yesterday and he says gold will either go up or down next week AND he is seldom wrong.(LOL). I would like to see a capitulation low in gold around $1650-$1660. I'm just waiting for something big to break and there are so many weak points: China's RE bubble with apartment buyers refusing to pay their mortgage due developers not completing work on their units (Chinese bank assets total $53Trillion!!!), EU fragmentation with Italy's huge sovereign debt and the ever increasing cost and limited supply of natural gas from Russia, Japan's Yield Curve Control with the BOJ buying all new issuance of JGBs sending the Yen plummeting and causing inflation. It's just a matter of when the dominoes begin to fall. Soon, I think. This crisis promises to be the worst we have ever experienced, and it is just getting started.
Global Crisis Vulnerabilities -
Doug Noland gives a good explanation of the unfolding global financial crisis in this week's CreditBubbleBulletin: http://creditbubblebulletin.blogspot.com/2022/07/weekly-commentary-global-crisis.html
My Comment: I don't think we have long to wait before a global financial crisis overwhelms the central banks. There are so many weak points and I expect the dominoes to fall soon.
Excerpts:
There are key differences: Global Crisis Dynamics are systemic these days, as opposed to the regional blowups from the nineties. The scope of the bursting China Bubble is without precedent. Moreover, post-Bubble U.S. markets are today acutely fragile. Indeed, I can see a scenario where Crisis Dynamics gain further momentum in China, Europe and EM. U.S. stocks, taking out recent lows, commence another tumultuous leg lower, with some panic sparking dislocations in equities and already liquidity-challenged corporate debt markets. And if this scenario is delayed, the Fed hammers global markets on the 27th with another 75 bps hike.
:
China has for years operated as banker to the EM “Periphery.” Now Beijing faces the predicament of throwing good “money” after bad or cutting bait and watching the dominoes begin to fall. And, by the way, how much of China’s $3.0 TN international reserve position is locked up in junk EM loans? We cannot today overstate the ramifications of Chinese financial instability.
I would like to know the names of those 3 miners he refers to.
Ten years on, Draghi faces debt crisis words won't solve
https://www.msn.com/en-us/money/markets/ten-years-on-draghi-faces-debt-crisis-words-won-t-solve/ar-AAZzwMV?ocid=msedgntp&cvid=a8fb77044fb94a698ddc2d5f418a952a
My Comment: When do the dominoes start falling (Italy, Turkey, Japan, China)?
Excerpt:
The broader issue is that Italy is big enough to bring down the rest of the euro zone periphery as its 2.5 trillion euro ($2.52 trillion) government debt pile is larger than those of the other four countries combined and too big for a bailout.
Ain't Amerika great!!? -
My Comment: Where else can you have the government buy you a Bentley or Aston Martin? Of course, if you can't afford rent or mortgage, you can always sleep in your car.
Canary In The Car Mine: Repos From Auto Loans That Originated In 2020 And 2021 Are Skyrocketing
https://www.zerohedge.com/markets/car-repos-loans-originated-2020-and-2021-are-skyrocketing
Excerpt:
Consumers’ incomes were temporarily high as a result of debt forbearance, pandemic stimulus checks, enhanced unemployment benefits and PPP loans, the report says. The auto dealer says he bought a Bentley, McLaren and two Aston Martins from two buyers, now in default, who used PPP money for down payments.
“Everybody thought the free gravy train would never end,” he said. He told Barron's he has "never seen so many people making $2,500 a month owing $1,000 a month in car payments."
Crude -
My Comment: Hurricane season begins mid-late August. It could disrupt both refiners a gulf drilling.
Worst Of Global Energy Crisis Could Be Approaching, IEA Head Warns
https://www.zerohedge.com/commodities/global-energy-crisis-could-get-much-worse
Excerpt:
We discussed previously one of the worst-case scenarios laid out by JPM's commodities team (whose complete note is available to pro subscribers) that Russia could make oversized cuts to crude exports that could send global Brent price to jump to $190/bbl - $380/bbl.
Despite the warnings and outlooks of tight global energy markets, Brent prices slipped under $100/bbl Tuesday morning on fears of COVID-19 resurgence in China, added concerns about a worldwide recession.
Something is going to break. You don't have 35 years of debt buildup and speculation due to central bank loose monetary policies without severe consequences when the bubbles burst. Europe is a basket case and energy supply is endangered. China's RE bubble has burst and they have a debt/GDP of 250%. Japan is suffering high inflation as the government buys all new JGBs to hold rates down, but that is weakening the Yen causing more inflation. The Fed is going to send the economy into recession. Tomorrow's CPI may mean another 75bp rate increase at the July FOMC. It could also send gold lower which would create a good buying opportunity in the quality miners.
Higher Inflation = Lower Gold Prices ?
We'll see what inflation looks like on Wednesday with the release of the June CPI.
Peter Hambro: BIS, Central Banks Are Rigging Gold Market Using Bullion Banks' Paper Gold : https://www.zerohedge.com/markets/peter-hambro-bis-central-banks-are-rigging-gold-market-using-bullion-banks-paper-gold
My Comment: Something has to put an end to the paper gold market and JPMs control of the POG.
Excerpt:
Which also explains why Russia and China are now accelerating their interaction in jointly developing the Russian and Chinese gold markets as explained in the recent BullionStar article “China and Russia in Close Cooperation aiming for Win-Win in Gold Markets” .https://www.bullionstar.com/blogs/ronan-manly/china-and-russia-in-close-cooperation-aiming-for-win-win-in-gold-markets/
Too much PM manipulation. Will Bassel 3 ever get implemented? And if it does, will the big banks be allowed to opt out?
Great. So, just waiting for everything to come apart at the seams.
Risky business -
I would not go long this market. Too many vulnerabilities, unless the Fed relents on QT, but that won't happen anytime soon.
Financial crises brewing ? -
My Comment: After decades of Central Bank manipulation of the global economy, I think a major financial crisis or multiple major financial crises is inevitable. The most vulnerable weak links are the EU and Japan, but they could cause other dominoes to fall. Here's an excerpt from Doug Noland's CreditBubbleBulletin this week:
Unfortunately, we’re early in Global Crisis Dynamics. There’s faltering U.S. “tech,” crypto and Credit Bubbles (to name a few), periphery European bonds, Kuroda’s Bubble, and EM Bubble fragilities. With Chinese equities rallying on prospects for Beijing stimulus measures, China’s developer crisis has fallen off the radar screen. I’d put it back on; things get worse by the week
And this report:
The European Union Is Again Close To A Meltdown
https://www.zerohedge.com/geopolitical/european-union-again-close-meltdown
Excerpt:
In short, when you look at the situation, not only are many of the people living in the Euro-zone politically opposed to Brussels exerting more power, on top of that, the banks are up to their eyeballs with bad debts and holding worthless paper. Simply put, the whole system is rotten to the core. Circling back to soaring inflation, the ECB has little choice but to raise rates in lockstep with other central banks. The Fed rate hikes are toxic to both the euro and the yen. The people of both Europe and Japan face losing a great deal of their wealth if the euro and yen continue to fall.
Cadillac's $300,000 Luxury EV To Be Revealed This Summer
https://www.zerohedge.com/markets/cadillacs-300000-luxury-electric-vehicle-be-revealed-summer
My Comment: Total insanity. Maybe Larry Ellison needs one for his $173Million Florida house. What's the resale value once it gets a scratch or a hurricane wipes out both the house and the Cadillac?
Excerpt:
Who the hell is going to buy a $300,000 Cadillac?