If the EU puts troops into Ukraine and a war results with Russia ... should the US come in and support the EU?
Total Voters: 30
Loading ...Euroweenies maybe. Lol
I’m glad you brought up the Aden sisters. The way things are going this time seems like gold could continue to shine for years to come. But they are probably following the general 10 yr pattern followed by a 4 yr take down. It’s when it’ perceived to start again after the 2011 high last time first in silver then in gold then the 4 yr draw down would it be 2015-16 in 10 yrs leading to 2025-26. Seems different this time but just saying.
Re What do you guys export anyways. That’s the point. It used to be everything and we were constantly inventing new things to make life easier. But came the problem especially after WW11 is people in other countries weren’t able to buy if they themselves didn’t have exports and that’s how that got started but other countries particularly China got a little too greedy while at the same time we had criminals in government selling us our making it worse like Clinton’s and NAFTA. Everyone wanted a piece of the pie invited or not like a frenzy either by outsourcing or coming here even if not needed because no limits were set. As far as the dollar country’s with no industry’s or products to sell their dollar gets weak even without theft. Zimbabwe Trump’s putting a stop to it all.
Unless your planning on buying a new car with prices offset on what’s made here I wouldn’t worry much about that as much as medicine and if you have enough to get you through any interruption if in the US anyways until we get our manufacturing back which was insane to farm out in the first place.
I can’t read the article either, but a lower dollar has many facets. Yes, it makes your exports cheaper, but it makes your imports more expensive, Stellantis are saying tariffs will add $5,000 per vehicle because of the volume of parts made overseas so in addition to tariffs they’ll be paying a currency premium too – a lower dollar is price inflationary.
The USD is supposed to be the reserve currency. To be relevant a reserve currency has to be strong, it’s pretty much the definition of a reserve currency! A reserve currency is used for international trade, international currency reserves, acquiring US treasuries as another form of currency reserve; it’s a matter of national pride too. Trump’s risking the reserve currency status here, playing directly into the hands of the Chinese. Especially if they devalue the Yuan themselves as a reaction to tariffs after the USD devalues, Trump can hardly point the finger at them for trying to race him to the bottom.
As the USD weakens, at what point does it reach a Minsky moment when hitherto USD lovers say “hang on, how much lower can this thing go? What’re ‘loose cannon’ Trump’s plans here? Our USTs are falling in value every day as shown by the increase in yields. Should we sell now, particularly as we have that basis trade thingy hanging over yields too?”. Because the USD isn’t backed by anything. The Aussie is backed by commodities – high demand for coal and iron ore (hello China) higher AUD. Norwegian and Middle Eastern countries likewise with oil. America? Armaments to a certain extent, Boeings, debt, but no definable backstop for the USD.
What exports will actually benefit from a lower dollar? What do you export nowadays anyway? We see American foodstuffs on our shelves like almonds, and maybe bacon, but we also have almond growers here too and we will always buy Australian given the chance – we definitely don’t buy Chinese, and if the country of origin isn’t actually stated then we don’t buy. In Oz, COO must be stated but there’s loophole whereby they can say, on ham for example, “Australian content <27%” (which always makes me laugh, how can a pig be 26% Australian and 74% somewhere else!) without specifying where the balance comes from. No deal from the ferrets. Sure we don’t mind buying American, but we don’t see it often.
But. as you say, none of the above is negative for gold. Just the opposite.
When we were a founding nation and got our independence in 1776, we won our independence in the world. And we had Gold and Silver as money. Zero inflation. But by 1907 the global bankers (no allegiance to any country) started meetings to get us to form a central bank, which the founding fathers abhorred.
By 1913 they got it pushed thru Congress, the camel got its nose under the tent, with the new world order of the Fed Res Act. Just so the USA could finance wars so the bankers could make money from interest rate loans.
Bottom line. Over time they gradually weaned Gold and Silver money out of our system, over more time people realized the fake money would lose value over time. US Dollars became a Time Wasting Asset.
So people for their savings turned their money into Stocks Bonds and Real Estate. With everything in reverse, Stocks Bonds and Real estate will go down, and Gold probably along with Silver, will go up in value. This deflationary trend has already started with less gold (real money) required to buy houses and so many other things.
If stocks bonds and real estate drop, it would be huge drop in money supply. Things get cheaper. The last time TPTB decided to kill the money supply was in 1982 with a 21% prime interest rate. They wiped out millions of inflation invested people, stocks bonds and real estate went NOWHERE from 1968 to 1982. After which they started dropping rates. And started a new game that lasted until 9/11/01 which ended the game.
Bonds have been dropping, with interest rates rising since 2020.
If not, they seemed to be limping a little bit and having to pick their spots. Gold is simply too strong.
It sure seemed like they gave it all they had last Thurs., Fri, and Monday before it blew up in their faces on Tuesday, especially in silver. Silver has the most unbelievably mangled, manipulated chart I’ve ever seen. RSI is still below 50, and nothing but air up above just to get us back to where we were.
It feels like that last silver dump of $5 over 3 days, was a hail Mary and a last call for whoever needed to cover their positions.
Just conjecture on my part, but we might see something spectacular in silver here soon.
Smokin’s the hopium tonight. Maybe Larry Fink is losing his grip on the US markets a little bit and regular people get to win for a while.
Earnings are going to explode….and the shorts have to pay them……
Maybe they are euroweeny haters …….
You bet! The Adens have been pretty good I think … a several year gold bull would suit me just fine!
All the gold brought into Comex since December could be gone by June – if not sooner.
Gold vault additions slow while physical gold bought for immediate delivery are at record highs
The cabal is screwed.
Chuckle
Re Maund..tks for that…..the Adens have said for quite a while that they expect Gold to top in 26/27 and more likely 27, as they have seen a huge bull coming…their proprietary indicators have plenty of room to rise. particularly the Long Term one.
10 yr @ 4.47% down from 4.62%
Dollar strengthened a bit because of it.
Have to love the reaction, SM pops, pm’s soften a little, but pm shares pop with the SM. Dollar slips back a little and pm’s rise.
THIS IS NORMAL MARKET ACTION!
I’m not seeing the ones into Bitcoin as Trump haters. Actually it would be kinda hypocritical if they did as far as getting out of fiat instead of making money out of it but might be a geographical thing and now tarriffs in their own interest even though they know things aren’t working the way they are now.
… how small juniors don’t start outperforming here …
The ratio is clearly at an extreme.
This would signal the end of the sector intermediate term move is still weeks away – maybe May.
This would signal a correction into Fall (tops in May often bottom in November) – just like in year 2000 – the start of the last larger cycle move that lasted 10-years.
Cheers all
Chinas devaluation of their paper money results in inflation for the people over exports along with not raising wages or pensions I can guess if any and tarriffs going into Zee’s pockets while treating the citizens as slaves. They can’t even leave their neighborhood without permission from a ID machine. Their social programs and orphanages are horrible and if they have medical issues they let them die. But the left around the world want to follow that model that’s doomed to fail.
Ipso Trump has been criticizing the Fed for destroying this country was before he became president. One of the few billionaires who put principle over money or exploiting it for themselves. Why should the Fed care if there’s no one that will hold them accountable. Fed also gives in to corruption for a sort of quid quo pro. They bail each other out. They bail out banks, mortgage backed securities, hedge funds, in turn they buy treasuries.They lose nothing the people lose everything.
I can understand what you mean though like if the traitors were in charge again but Powell isn’t exactly working for the people anyways.
but I believe it’s an important point in that a weaker dollar will offset the tariffs by making our goods more affordable overseas.
China has been getting away with this for decades. I’m pretty sure the administration wants a weaker dollar as inflation cools, and they are getting both right now. The cog in the wheel for them is the Bond market. They definitely don’t want rates out of control.
I give it another week before Trump starts getting really loud and up in the Fed’s face about lowering rates by any means necessary. Probably QE.
Don’t think any scenario at the moment is bad for our metals though.
…stronger currencies in other countries gives the administration a convenient off-ramp to soften still onerous tariffs further.
I’ve got a warm tingly feeling all over. It’s time to get solvent!
I guess when the midgets get going it’s probably confirmation of the “generational” bull in pm’s?
Silver very quietly up over a buck. I like it, keep it quiet.
Fortuna announces sale of Yaramoko Mine, Burkina Faso
https://ceo.ca/@GlobeNewswire/fortuna-announces-sale-of-yaramoko-mine-burkina-faso
Michael Gentile Announces Filing of Early Warning Report Related to Acquisition of Units of Leviathan Gold Ltd
https://finance.yahoo.com/news/michael-gentile-announces-filing-early-124500550.html
The market cap for Leviathan is 6.71M. Tiny! I think Parker Schnabel’s co is worth more!
I have a few from a spin off.
Just looked at the bond market and they are getting crushed.
Maybe some truth to a $2 Trillion blow up?
What then does Powell and Bessent do?
Midgets doing very well today! Even some of those with their sites trained on 0 are moving higher …
was an $80 stock in 2011 – $55 now.
If gold keeps running but more importantly starts to move up towards $50
NEM at $80 might look cheap.
I would also hope that we start to see some consolidation and some of these midgets get taken over.
Dolly Varden, Goliath, Tower Hill and I’m sure others I don’t watch catching a bid. No volume yet, but moving the asks.
