Snippet from Today's Pfennig":
Gold got sold again, but this time it was by only $3.50 on the day, with 275,0000 contracts traded, again, with a huge amount entered by the short Gold paper traders... David Kranzler is a guy that I've tracked through the years, and he has become a real go-to guy on Gold... He wrote the other day, that "physical Gold didn't get sold", it was simply "paper Gold" I liked that description, because I've said all along that the demand for physical Gold has remained strong, especially from Central Banks, not named the Fed, and the selling was dominated by the paper trades...
I read the latest edition of Jim Rickards' Strategic Intelligence last night, and in it ( I can give you a hint, as the letter costs money to read) he talks about all the "free money" that the new policy debate in the U.S. is all about... I kept shaking my head in disbelief that this is actually getting air play... Oh well, I'm old and getting older, and don't really care that everyone in the U.S. could get paid whether they work or not, because right now nearly half of the population gets paid for not working, whether it's warranted or not... I say that, but in reality, I worry about my kids and grandkids, having to deal with the hyperinflation that something like these payment schemes could cause... I know, I know "that kind of thing can't happen here!" Well, that's what everyone thinks, until... well, it does happen here!
Last week it was announced that Russia had dumped 1/2 of their Treasury Bonds holdings... I dive deep into this in my latest Dow Theory Letters piece this week, where I point out that we could end up seeing more of this from countries that believe they are being wronged by the U.S. Trade Tariffs... And David Rosenberg had something to say about this, so let's defer to David Rosenberg...
Last week, I highlighted a quote by one of my fave economists, David Rosenberg, who is Author of the daily economic report, Breakfast with Dave, and Chief Economist & Strategist at Gluskin Sheff + Associates Inc. And I pulled this quote of his from Twitter... "The end-game retaliation comes via a global boycott of the Treasury auctions. Foreign entities fund half the US fiscal deficit, which is set to double. Imagine the locals funding their own budget gap! This forces the savings rate up at the expense of spending. Recession follows." - David Rosenberg
