Loading ...This is one of the things that really troubles me. I see the reality of what’s been happening and wonder how long it can go on. For about fifteen years I have believed we are headed for financial meltdown, and have preached it as a caution to family and friends. This fiat expansion is unsustainable and has to collapse. Yet the game goes on. And on. And, according to the author of R’s post, on some more… ten years more. Can it? How will it end? What will make it end? A loss of confidence in fiat currency? By whom? The ones who are seeing their stocks rise and rise? Not likely. It’s so discouraging to be on the wrong side of a trade for such a long time simply because it shouldn’t be. But it is, and continues to be. I am one of the people in that post, ranting that it can’t be, all the while watching as it is what it is. Are you one of those people, too? Any thoughts about changing your position?
I’m about to go buy Zimbabwe bonds and JPM stock
and the rest of it I’ll spend on FREON
Money is funny but I’m not laughing anymore
a copper colored dawn??
copper stocks rising, on the cusp of a breakout…
copper (metal) prices rising…
copper has in the past, often been the bellwether of a commodities bull.
it may be too early to break out the bubbly, but there’s room for optimism.
Stocks, bonds have a foundational bid underneath them for the next decade=Peter Lynch meets Warren Buffet type equity analysis of yesterday
- On one hand they acknowledge the global profligacy of fiat creation (inflation) by virtually every central bank
- They understand that banks around the world (who the primary recipients of these inflated fiats) distribute these fiats via loans to govts, corps, small biz and consumers. (Bonds and equities..so there is an incredibly massive standing bid for these assets…to just deploy capital)
- They comprehend that policy makers are the ones giving the money directly to the consumers via handouts and tax breaks, but this is markedly harder then it is for the CB’s to orchestrate
- For 20 years now they see these kids have valued these companies on clicks, page-views and likes over traditional revenue GAAP metrics
- And recognize HFT (which amounts to 80% of equities trading), has models that virtually ignore valuation metrics and are algorithmically looking at technical set-ups, trends and literally “tweets”
- And put that all together and you have tons of liquidity schloshing around the system, chasing assets, ignoring yesterdays valuation heuristics.
- And yet, we continually get these articles blatantly ignoring the realities above, and reverting back to some Peter Lynch meets Warren Buffet type equity analysis of yesterday, in a world that has just inherited trillions of dollars in profligacy, sitting uninvested, and needing to be deployed…and they’re shocked???????
The article by Diane Francis in today’s Financial Post lays out the prospects for
the two-thirds of Canadian voters who carelessly gave temporary and illusory governing power to the unstable left-leaning side of the political spectrum in Canada ( namely, the Liberal Party of Canada, the New Democratic Party, the Green Party, plus a sizable contingent of newly-elected and left-leaning members of Parliament from Quebec) . The Diane Francis article would not link for me to post here, but it can be accessed under the title “The inevitable Trudeau recession will ravage the West and the middle class”. I hope you lefties sink the furthest into the economic hell-hole you have just set up for the rest of us.
Back to $gold talk
Despite all the important goings on, there is still the state of the gold market to consider. And despite the Friday gold market debacle re: the blowout jobs report…All my signals remain GO, and I’m all in long. Perhaps a few days or even a week early but, I have now solid signals that we have entered a new intermediate long cycle.
Alex Valdor
Re Horowitz…..no society can survive a two tier system, something will crack eventually.
Gold and Economic Freedom by Alan Greenspan 1966
Parts:
“With a logic reminiscent of a generation earlier, statists argued that the gold standard was largely to blame for the credit debacle which led to the Great Depression. If the gold standard had not existed, they argued, Britain’s abandonment of gold payments in 1931 would not have caused the failure of banks all over the world. (The irony was that since 1913, we had been, not on a gold standard, but on what may be termed “a mixed gold standard”; yet it is gold that took the blame.)
But the opposition to the gold standard in any form — from a growing number of welfare-state advocates — was prompted by a much subtler insight: the realization that the gold standard is incompatible with chronic deficit spending (the hallmark of the welfare state). Stripped of its academic jargon, the welfare state is nothing more than >>>a mechanism<<< by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes.
A substantial part of the confiscation is effected by taxation. But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money, by issuing government bonds, to finance welfare expenditures on a large scale.
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.
complete story:
https://www.cnbc.com/2019/12/09/paul-volcker-the-carter-reagan-fed
GS used to be smarter than this.
Goldman Bails-Out Softbank With $1.75 Billion Loan To Bail-Out WeWork
https://www.zerohedge.com/markets/goldman-bails-out-softbank-175-billion-loan-bail-out-wework
Floridagold
If u check out the Zerohedge eulogy about Volker, u can see that they are ex bond traders, as they call him the last great Central Bankers and all that have come since as trash, especially Greenspan !!!!!
Repo crisis explained……hint…..it ain’t technical and it sure ain’t good
Imo….This is zerohedge at it’s best
More background on what Fall st is upto
