Loading ...Got gold?—$13 trillion in subzero yielding debt, and shacks sell for a million bucks.
Alex, R6
Alex – I certainly hope that’s the case with junk silver. That’s what we’ve always been told about holding real money. I wonder though what the price of eggs will cost in terms of junk silver at that time? Are we living in a Mad Max period?
R6 – that paragraph you pulled was most notable. Course prior to that he also did say based on his calcs and chart work, after that he was looking for a 50-70% retrace.
Thanks for responding gents!
Re: Silver
If/When TSHTF , it is my honest opinion that there will be nothing like junk silver for bartering to get daily essentials . Circulated (worn) pre-1963 coinage will be virtually impossible to counterfeit economically , unlike gold coins which are now being faked extensively . In the event of the unthinkable , I could see a dozen eggs or a quart of milk being bartered for a 90% silver dime . The problem will be getting to a farm and home again safely .
Buygold–that. ZH History Repeat article-I liked it…not sure if. he’s got. all the gyrations and squiggles right–but. who does?
I have been saying that I think the big. surprise will be NOT having. a long, drawn out 2000 to 2011 style rally–I also said that it might be impulsive like Bitcoin–so I am glad to see that. he agrees=
Capt. Hook–thanks for the bullish commentary–it helps strengthen my tenuous conviction
Bullish is not a dirty word–no one believes in jinxing–or hexes–or the evil eye…that’s so old school ya know…so we will use that word and feel comfortable about it until proven differently
Like it or not, get used to the new normal of dependent central banks, perpetually low interest rates and quantitative easing,’
July 8 – Bloomberg (Cagan Koc, Nacha Cattan, and Alister Bull): “The ‘heyday of central bank independence now lies behind us,’ Pacific Investment Management Co.’s Joachim Fels declared… He is not alone among economists in delivering the last rites after Turkish President Recep Tayyip Erdogan fired his country’s top monetary policy maker and President Donald Trump continued to attack Federal Reserve Chairman Jerome Powell for raising interest rates too high… ‘Like it or not, get used to the new normal of dependent central banks, perpetually low interest rates and quantitative easing,’ Fels, Pimco’s global economic adviser, said…
Experienced traders could go long SLV on strength above $14.50 and $15.30. Risk to $13.75.
[I prefer to use CDE for a silver rally-if. we ever get one–but I guess call option inundated SLV would. have to tag along]
Silver? Small mining companies or “juniors”? Platinum? The dollar? These are some of the indicators that “gold bugs” watch to judge whether a gold rally has staying power. Let’s check out the charts of the silver iShares Silver Trust ETF (SLV) today.
The Black Hole Engulfing the World’s Bond Markets
There’s a multitrillion-dollar black hole growing at the heart of the world’s financial markets. Negative-yielding debt — bonds worth less, not more, if held to maturity — is spreading to more corners of the bond universe, destroying potential returns for investors and turning the system as we know it on its head. Now that it looks like sub-zero bonds are here to stay, there’s even more hand-wringing about the effects for mom-and-pop savers, pensioners, investors, buyout firms and governments.
Morning Captain – Nice Post
Definitely think you’re on the mark that at some point the silver market is going to explode and the bankster scum is scared shitless of it, which would make sense as to the relentless daily pressure on that market.
A lot of these pundits are also scared shitless of the action in the futures markets and rightly so. We’ll see what happens.
I am not usually encouraged when ZeroHedge posts a pm bullish article but this is interesting nonetheless, at least historically.
Will History Repeat Itself In The Gold Market?
Buygold
Yes and last week’s relatively strong close increases the probability of a good showing this coming week.
Add to that a ‘big picture view’ that is the most bullish for PM’s ever possibly – reminiscent of stagflation times in the 70’s, and we do indeed have the stars aligning for a big move.
Then we have The Donald wishing to be re-elected and knowing the only way this will happen is if the bubbles remain inflated. So he is populating the Fed with uber-doves. So administered rates will always be lower than market rates at least until the election next year, meaning real rates, the primary driver of PM’s in our present system, will always be negative too. This means ‘high powered money printing’.
Then we see a comment from Eric Sprott this week, for whom I have a great deal of respect, pointing out if Poland had directed the amount of capital required to buy 100 tons of gold towards the silver market, it would have bought all the available above ground silver by a factor of two (likely more like four of five because it’s not all available). That’s just one buyer…could have bought all the world’s silver by a factor of two, or five.
For me, that sounds like a bullish recipe all by itself…especially if the Chinese ever decide to start drawing down SLV silver in an attempt to secure the supply they need for manufacturing.
Then we will see if COMEX stock reports are just another lie.
One would think this is quite possible…no?
That’s why silver is not allowed to move…because da boyz are scared sh*tless the silver reverse bubble is about to explode.
Cheers
Hate to say it (well maybe not)
Hope the pundits reliance on past performance keep them out for a long time.
The action in silver and the shares no doubt encourages their belief’s.
Can’t really blame them, just hope they miss it.
Yo R6 – Good morning
Thinking Rosenberg has the dots connected on the sort of world economic conditions, even here in the U.S. Here in Idaho I’m seeing falling gas prices – now below $3 – which is highly unusual for us this time of year. We always see the prices at the pump jacked up during the summer tourist season when everyone wants to go to Yellowstone and the Tetons and other places, including places for rafting and fishing.
This year we saw the usual hike at the beginning of summer but prices have fallen ever since from $3.50 to $2.90
Think your other article from Orsley is more spot on about the gov’t debt situation. Just sayin’
Hoping we see a revival of the gold bull next week after the consolidation of the last couple of weeks.
Today’s “crazy” is incredibly dangerous. No check and balances. Markets have lost the capacity to self-adjust and correct.
Today’s bond market intimidates no one. Threatening – or even firing – the head of a central bank for not cutting rates – is a non-issue for today’s bond market. Ditto massive deficits. Why worry about supply, myriad excesses or politicizing monetary management when the magic of QE can make everything good?
Today’s “crazy” is incredibly dangerous. No check and balances. Markets have lost the capacity to self-adjust and correct. Sovereign debt, the foundation of global finance, has succumbed to unprecedented price distortions – and it only gets worse from there: The Speculative Blow-Off for Global Financial Assets. And I appreciate it all appears reasonable and unsustainable – so long as securities prices continue to inflate. But it will function poorly in reverse. The crazier things get the more unsustainable Bubble prices become.
credit bubble bulletin
There WILL be rate cuts….
Core crude PPI (the earliest stage of the production process) fell 0.5% after declining 4.5% in May and 1.2% in April. The YoY trend, which was already firmly in negative terrain, melted further – to -9.6% in June from -8.6% previously. Deflation risks dominate.
The. inevitability of gold=All of the Czech Republic’s euro-denominated debt, for example, now trades at sub-zero yields
July 10 – Financial Times (Tommy Stubbington): “In the bizarro world of global debt, even bonds from Europe’s emerging markets are spewing out negative yields. Sky-high bond prices… are increasingly spilling into what was once considered risky territory. All of the Czech Republic’s euro-denominated debt, for example, now trades at sub-zero yields… Short-dated Hungarian bonds and a growing slice of Poland’s debt are following suit, with Warsaw’s 10-year yields just fractionally above zero. Emerging market investors, who traditionally viewed these markets as their domain, are being forced to look further afield for returns, fueling a debt rally from Croatia to Kazakhstan.”
Bizarro World, indeed. Why is financial history strewn with markets succumbing to bouts of end-of-cycle insanity? The obvious answer is greed – greed that became deeply ingrained after a protracted period of being richly rewarded (with fear and caution punished mercilessly). The longer the cycle the more intense and resilient the greed dynamic. The more of the “house’s” money available to gamble, the more extravagant the bets. I would add that prolonged cycles typically have some type of underlying government support that over time comes to underpin confidence and risk-taking (playing an especially critical role late in the cycle).
The great late-twenties Bubble doesn’t inflate if not for confidence that the Federal Reserve possessed both the will and capacity to sustain the boom. The mortgage finance Bubble doesn’t inflate without implicit Treasury mortgage debt guarantees and the prevailing view “Washington will never allow a housing bust.” The ongoing historic Chinese Credit Bubble deflates years ago without faith that Beijing will backstop virtually the entire financial system. Confidence that global central bankers will do “whatever it takes” to sustain the boom is fundamental to the ongoing inflation of the all-encompassing “global government finance Bubble.”
But greed and governmental support are insufficient to inflate Bubbles. Bubbles are fueled by Credit. I would add that “money” is also key. Credit booms can’t survive to become “protracted” without the expansion of perceived safe and liquid (money-like) Credit instruments (enjoying insatiable demand). Some monetary disturbance that takes root. A self-reinforcing expansion of “money” and Credit foments Monetary Disorder and, if not contained, culminates in a parabolic spike in the prices of speculative assets.
