Loading ...Let’s hope the worst scenario doesn’t happen! Glad I don’t live there!
re Bullion Bank Short-Covering Will Become Year-End Profit-Taking
That fits perfectly with my 16:16 post.
If this gold rally that started on 12/12/17 continues, exactly like the ’15 and ’16 rallies then we have to assume some kind of manual forces or adjustments. It could NOT possibly be a coincidence.
JP MORGAN
said Gold is money ,everything else is credit…..
From Mike Ballinger today-The good (and possibly GREAT) news came Friday afternoon with a 70,427-contract swing comprised of new long and covered short positions and one of the top five Commercial purchase COT weeks in history.
I opined at the end of November that “Bullion bank short covering will become year-end profit-taking” and received confirmation last Friday when they covered the equivalent of over 5.6 million “ounces” and it set a floor for pricing as it closed with its first weekly gain in the past four and only the third up week in the last twelve. The good (and possibly GREAT) news came Friday afternoon with a 70,427-contract swing comprised of new long and covered short positions and one of the top five Commercial purchase COT weeks in history. This is a classic repeat of the lows seen in early December of 2015 and while not as extreme in terms of the aggregate short position, the size of the drawdown was breathtaking and bullish for the near-term outlook. But then again, that was the analysis I gave in late November and again last week and continue to believe that the gold miners are dirt cheap here and certainly less stretched than the valuations virtually everywhere else. There are no champagne flutes tinkling at the gold miner parties this year; it has been a “beer and pretzels” year and not a great deal of fun.
Deficit can never go down
the money to pay it down was never printed ,therefore it can only come from current expenditures ,just as in a zero sum game.only by printing US NOTES again as money and not Fed Reserve notes can it be paid down and Rothschilds will kill before they let that happen again IE:JFK.Money enters the system via BONDS that carry interest,only with money entering the system without interest attached can debt be paid down.Thats the difference of US TREASURY NOTES VS Fed Reserve notes.!Trying to pay it down under current system is why we have recessions ,it sucks money out of the economy and so its only done for very short periods Politicians quickly reverse that idea because its suicide for them.
Its what causes recessions ..the stupid idea of paying down debt while trying to keep the Federal Reserve system intact…it aint gonna happen ! because it cant!
David stockman re Gov’t Has to cut spending and entitlements
If Uncle Sam ever cut spending and defense/entitlements, the USA would have a 50% unemployment rate. Maybe even more. 🙂
Thanks again R640 for Stockman
What about the so-called Trump tax cuts? Stockman predicts, “I think it’s going to be a fiscal calamity of Biblical proportions. I want to be clear. I am always for tax cuts and shrinking the size of government, but you have to earn it. You have to cut spending and entitlements and this massive defense budget. Obviously, they didn’t do that. If you look at honest accounting . . . this bill will add $2.5 trillion to the public debt which, and this is a key point, is already going to rise by $10 trillion over the next decade based on the current law and taxes that is still in.”
If Stockman is concerned about deficits then he should as well be anti-war and anti-imperialism. No doubt he is right about getting gov’t spending under control. We all know gov’t never shrinks, OTOH why the hell is he criticizing the tax cuts for growing a deficit that has gone from $5 trillion to $20 trillion under Democrap & Bush control, in large part because of wars, bank bailouts and gov’t pension bailouts which are never mentioned.
I’m just sayin’ 🙂
The pm complex is going to do great in the next couple of months JMHO
R640 – Gartman
That’s actually great news for gold.
Thanks for pulling that up!
David stockman chimes in…
So, what asset is safe? Stockman says gold and goes onto explain, “I think the time to buy (gold and silver) is ideal. Gold is the ultimate and only real money. Gold is the only safe asset when push comes to shove. They tell you to buy the government bond, that’s a safe asset. It’s not a safe asset at its current price. I am not saying the federal government is going to default in the next two or three years. I am saying the yield on a 10-year bond of 2.4% is way below of where it’s going to end up. So, the only safe asset left is gold. This crazy Bitcoin mania has drained off what would otherwise be a demand for gold. . . . When Bitcoin collapses, spectacularly, which it will because it’s sheer mania in the markets right now. When it collapses, I think a lot of that demand will come back into gold, as well as people fleeing the standard stock and bond markets for the first time in 9 or 10 years.”
What about the so-called Trump tax cuts? Stockman predicts, “I think it’s going to be a fiscal calamity of Biblical proportions. I want to be clear. I am always for tax cuts and shrinking the size of government, but you have to earn it. You have to cut spending and entitlements and this massive defense budget. Obviously, they didn’t do that. If you look at honest accounting . . . this bill will add $2.5 trillion to the public debt which, and this is a key point, is already going to rise by $10 trillion over the next decade based on the current law and taxes that is still in.”
Join Greg Hunter as he goes One-on-One with financial expert David Stockman.
Video Link
https://usawatchdog.com/gold-only-safe-asset-left- david-stockman/
Good day for the shares
Despite the metals being lackluster. The shares have always lead the big rallies, just hoping they are telling us what lies ahead.
Glad to see the HUI above 185
Bitcoin down over $1K today
What’s it all mean?
Good news for gold bulls: Dennis–we love him…we need him…he has lost interest in gold
Dennis Gartman yesterday…
As for gold we’ve little if any interest. We own some but our interest is of little consequence and the rally that spot gold has enjoyed from the low last week of $1235 to this morning’s peak of approximately $1265 is already running into strong resistance. Note then the chart this page at the immediate left and note that the volume on the rally has fallen. Hence, if volume is to follow the trend, then clearly the “trend” is not for the better but is indeed for the worse. Secondly, note that we’ve once again drawn “The Box” marking the 50-62% retracement of the last major move. The Box has proven formidable in the past; we suspect that it shall likely prove formidable again…
“Let’s use this opportunity to reduce this position a bit more cutting the trade in half once again and using the strength of the past several days to do so. We need “margin” money elsewhere and can use it more effectively there.”
And today:
As for gold we’ve nothing new to report or to be added here this morning, and barring some disconcerting geo-political news that might blow up at a moment’s notice we very seriously doubt we shall have anything new to report tomorrow or Friday either. That said, resistance between $1258-$1264 remains formidable
Late 2015, Late 2016, Late 2017 GOLD Low Points,
If this gold rally that started on 12/12/17 continues, exactly like the ’15 and ’16 rallies then we have to assume some kind of manual forces or adjustments. It could NOT possibly be a coincidence.
Does The USA Have Any Foreign Nations Sucking Away Our Wealth?
Think about that for a while. We have a $19 Trillion National Debt. Global corporations removed all our industries. We don’t make anything here anymore.
They ARE trying to fix us up lately, by lowering their Corp Tax to 20% because they want to bring some back. They RAISED it to 35% here and 20% over there before they moved it all away.
Nobody on TV is explaining WHY we were 35% effing percent in the FIRST place. They will NEVER admit anything good to know.
It Ain’t Just South Africa. Populism is growing. Globalization Is Failing
Crystallex, Venezuela Agree to Settle $1.2 Billion Mine Dispute.
parts
Venezuela agreed to settle a $1.2 billion dispute over the 2011 nationalization of a gold deposit in the South American nation.
The Canadian mining company, which was forced into bankruptcy in 2011 after the seizure of the Las Cristinas deposit, had asked the judge to approve the deal, saying it “may be the largest settlement that Venezuela has ever agreed to” relating to an arbitration award. That would put the deal at more than $1 billion, based on Venezuela’s prior settlements.
Gold Reserve, another Canadian company that also came to an accord with Venezuela over expropriated assets, said Wednesday that the sanctions have held up its payments due from Venezuela. Since the sanctions were imposed in August, intermediary banks have grown unwilling to pass along the cash from Venezuela to Gold Reserve’s U.S. bank accounts, the company said in a statement.
Comment:
I don’t feel sorry for any corporations that operate outside their own borders, into other countries. They got away with it, (just like slavery and suppressed woman) until it ended. Globalization is going into reverse because eventually people smarten up. (just like slavery and suppressed woman)
Like I said to everybody after the 2008 Crash…”If you are getting away with something, stop before you get caught”. Bernie Madoff was first.
Zimbabweization of South Africa
South Africa’s ruling African National Congress gushed a double whammy of capital-flight-creating rulings this afternoon. The Rand is tumbling on Bloomberg headlines that the ANC is said to seek constitutional changes for land expropriation (from whites) without compensation, but perhaps even more worrisome, the ruling party has decided that the Reserve Bank must be wholly owned by the state:
◦SOUTH AFRICA’S ANC ECONOMIC COMMITTEE CHAIR GODONGWANA SPEAKS
◦S.AFRICA ANC SEEKS CONSTITUTION CHANGES FOR LAND EXPROPRIATION
◦S. AFRICA’S ANC SAYS LAND EXPROPRIATION MUSTN’T HURT ECONOMY
◦S. AFRICA’S ANC SAID TO DECIDE CENTRAL BANK MUST BE STATE-OWNED
redneckokie1 @ 13:39
Roger, thanks for the comeback. Distortions all over the place. Even Gold should be cheaper than Platinum. Decades ago my newsletter had mentioned PGMs for catalectic converters, and car makers alternate between them.
Also mentioned a while back about more wealth and more cars in developing countries. Commercial trucks may also going need them. Platinum may be a real good longer term (or next rally) investment.
BTW, SBGL may be a good bet, (gold miner very cheap now) bought out or took over SWC. (PGMs also very cheap)
Winter in Hawaii…. Snow
Buygold isn’t the only one getting cold. Yesterday saw blizzard white-out conditions at the Mauna Kea summit observatories.
Today they are plowing the summit road.
Icy cold rain down here in the lowlands. Below 70 F. we are freezing. Farmboy obviously failed the coffee test… (sigh). If you want something done right, ya gotta do it yourself, I guess.
tax bill
not a single democrat congressman or senator voted to let americans keep more of what they earn.
Chalk one up for “The People!”
Judge Declares Mistrial In Bundy Case, Says Government Willfully Withheld Evidence
Bitcoin
slowly pulling back
mom shares slowly moving up
whats it all mean?
MrCopper
I posted the day palladium passed platinum on the futures. My only possible explanation is the use of palladium in capacitors for personal computers. I still remain confused.
i keep waiting for a new cryptocurrency to be backed by pm. Just think of the chaos that would cause!
rno