The New CS Board

[jumanji0881]

It's just a matter of time -

Weiner: "Buying Gold Is A Non-Expiring Hedge" : https://www.zerohedge.com/news/2018-11-21/weiner-buying-gold-non-expiring-hedge

My comment: Apparently corporate bonds are the weak link that could lead to the next financial crisis. Both this article and Doug Noland in his most recent CreditBubbleBulletin.blogspot.com discuss zombie companies with BBB rated debt that could easily tip into junk status and trigger forced selling by funds. A lot will be exposed in the next recession/depression (2019-2020). As an aside, I think it is fitting that Trump is the sitting President when the next depression hits since he represents the decaying both socially (Koshoggi murder) and economically (massive debt buildup) of the country. “For what profits a man [or country] if he gains the whole world but loses his own soul”.

Excerpts:
So we end on a conclusion we have reiterated many times. When gold goes to $10,000 it is not gold going up. It is the dollar going down. It is inevitable that the dollar will go down. I just gave a talk at an Austrian economics conference in Madrid “There Is No Extinguisher of Debt” (paper to be published soon). The collapse of the dollar is baked into the mathematics.

People could buy gold today at an 88% discount from that price. But do yourself a favor. Watch any politician on TV. Watch a Republican promise to “grow our way out of the debt”. Or watch a Democrat promise a free university education to everyone. Watch even many libertarians promote Universal Basic Income(!).

If you think they don’t understand, you are right. But the vast majority of voters support these politicians. The voters, too, don’t understand. And the same holds for investors.

Buying gold is a non-expiring hedge. But only people who perceive a need to hedge, will buy the hedge. The rest may think that stocks are a bargain here, being down almost 7% from the high last month. So far in this incredible boom following the crisis, every time people who bought the dip were rewarded.

Are we getting close to the point where it won’t be? If GE is any indication, if GE will have a contagion effect (remember that word?) then the answer is likely yes.