Silver Readies For Biggest Monthly Gain In Nearly 7 Years
.Silver Readies For Biggest Monthly Gain In Nearly 7 Years
May 22, 2020 By Myra P. Saefong
Silver’s rise may be ‘overdone’: analyst
Silver futures have climbed by 50% from their March settlement low AFP/Getty Images
Referenced Symbols SIN20 +1.87% GCM20 +0.74%
Silver has far outperformed gold so far in May as improving demand has set the metal up for its biggest monthly percentage climb in close to seven years.
“Silver has a well-documented habit of coming late to gold’s party, only to then dramatically outperform the yellow metal,” said Brien Lundin, editor and publisher of Gold Newsletter.
The most-active July contract for silver futures SIN20, +1.87% settled at $17.693 an ounce on Friday. It trades about 18% higher month to date, which would mark the strongest monthly percentage climb for a most-active contract since August 2013, according to FactSet data.
Silver Readies For Biggest Monthly Gain In Nearly 7 Years
May 22, 2020 By Myra P. Saefong
Silver’s rise may be ‘overdone’: analyst
Silver futures have climbed by 50% from their March settlement low AFP/Getty Images
Referenced Symbols SIN20 +1.87% GCM20 +0.74%
Silver has far outperformed gold so far in May as improving demand has set the metal up for its biggest monthly percentage climb in close to seven years.
“Silver has a well-documented habit of coming late to gold’s party, only to then dramatically outperform the yellow metal,” said Brien Lundin, editor and publisher of Gold Newsletter.
The most-active July contract for silver futures SIN20, +1.87% settled at $17.693 an ounce on Friday. It trades about 18% higher month to date, which would mark the strongest monthly percentage climb for a most-active contract since August 2013, according to FactSet data.
By comparison, June gold GCM20, +0.74% has seen a more than 2% monthly rise, based on its Friday settlement at $1,735.50 an ounce.
“Once gold has somewhat run its course and starts to look expensive, a lot of people turn to the cheaper counterparty, namely silver, which has attracted fund and investor money,” said David Govett, head of precious metals at commodity brokerage Marex Spectron.
Quarter to date, silver futures are up around 25%, while gold pales in comparison with its nearly 9% rise.
Prices for silver have seen a “supply side tailwind” because of the amount of supply that temporarily came offline, said Rohan Reddy, analyst at global exchange-traded fund provider Global X.
An estimated two-thirds of the world’s silver mining supply was affected by COVID-19 related shutdowns, with large silver mining countries like Mexico and Peru shutting down for an extended period, he said, adding that Mexico is only now beginning the reopening process for mines. The “supply-demand imbalance” challenge may persist until “governments and private companies feel comfortable in beginning full scale mining reopenings.”
The tighter supplies fed higher prices, with silver up by 50% from their March settlement low, when prices dropped to $11.772, their lowest finish January 2009.
To continue reading, please go to the original article here:
Opinion: Gold Prices Could Move Higher If………
.Opinion: Gold Prices Could Move Higher If………
Opinion: Gold prices could move higher if these 2 things happen with the economy and market timers
May 22, 2020 By Mark Hulbert
Stronger consumer spending and more pessimism from market timers could set up a gold rally
Referenced Symbols GC00 +0.74% SPX +0.23% GDX -0.30%
Why hasn’t the Federal government’s extraordinary fiscal and monetary stimulus led to higher inflation and bigger increases in gold? Imagine if we were told last February that $5 trillion would be injected into the U.S. economy by May — a $3 trillion increase in the Federal Reserve’s balance sheet and $2 trillion in Congress’ fiscal stimulus (the CARES act). I would have expected both gold prices and inflation expectations to explode.
Yet they instead have reacted with little more than a shrug. According to the Cleveland Federal Reserve, expected inflation annualized over the next 10 years has fallen to 1.16% from 1.62% in February.
Opinion: Gold Prices Could Move Higher If………
Opinion: Gold prices could move higher if these 2 things happen with the economy and market timers
May 22, 2020 By Mark Hulbert
Stronger consumer spending and more pessimism from market timers could set up a gold rally
Referenced Symbols GC00 +0.74% SPX +0.23% GDX -0.30%
Why hasn’t the Federal government’s extraordinary fiscal and monetary stimulus led to higher inflation and bigger increases in gold? Imagine if we were told last February that $5 trillion would be injected into the U.S. economy by May — a $3 trillion increase in the Federal Reserve’s balance sheet and $2 trillion in Congress’ fiscal stimulus (the CARES act). I would have expected both gold prices and inflation expectations to explode.
Yet they instead have reacted with little more than a shrug. According to the Cleveland Federal Reserve, expected inflation annualized over the next 10 years has fallen to 1.16% from 1.62% in February.
And while gold GC00, +0.74% has rallied after initially falling along with the S&P 500 SPX, +0.23% in late February and early March, its price now is almost 3% below its mid-April high — including a 1.5% decline on Thursday of this week alone.
Cautious consumers
The first factor that helps to explain these otherwise inscrutable reactions is the declining velocity of money — how often money changes hands. That’s because increasing the supply of money, as the federal government has done, will be less stimulating to the extent people are less inclined to use it.
There’s no doubt that the velocity of money has fallen. In fact, as you can see from the chart below, it has plunged. Part of the reason that the velocity has fallen is that many of us have been sheltering in place and therefore have had fewer opportunities to spend than previously.
But we’re also reticent to spend because we’re worried about the future — whether we’ll have a job, whether a crashing stock market will sabotage our retirements, and so on.
![MW-IG997_m2_sup_20200521134630_ZG[1].jpg](https://images.squarespace-cdn.com/content/v1/5d5222a44813620001d89582/1590247469553-WB96SIDVNW8TZQ6H1UXC/MW-IG997_m2_sup_20200521134630_ZG%5B1%5D.jpg)
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Here’s Why Stashing Some Gold Could Soon Be Illegal
.Here’s Why Stashing Some Gold Could Soon Be Illegal
Stashing some gold? Here’s why that could soon be illegal, according to one notable hedge-fund bear
May 20, 2020 By Shawn Langlois
‘It is no surprise that people are buying gold. But the authorities may attempt at some point to de-monetise gold, making it illegal to own as a private individual. They will only do this if they feel the need to create a stable unit of account for world trade.’
That’s Crispin Odey, a European hedge-fund manager known for stealing headlines with his doomsday predictions, explaining in a note posted on Bloomberg News on Wednesday why he believes that private gold ownership could be banned if the government loses control of inflation.
Here’s Why Stashing Some Gold Could Soon Be Illegal
Stashing some gold? Here’s why that could soon be illegal, according to one notable hedge-fund bear
May 20, 2020 By Shawn Langlois
‘It is no surprise that people are buying gold. But the authorities may attempt at some point to de-monetise gold, making it illegal to own as a private individual. They will only do this if they feel the need to create a stable unit of account for world trade.’
That’s Crispin Odey, a European hedge-fund manager known for stealing headlines with his doomsday predictions, explaining in a note posted on Bloomberg News on Wednesday why he believes that private gold ownership could be banned if the government loses control of inflation.
Odey said that when the economy recovers from the coronavirus pandemic, which he has likened to the Great Depression, central banks won’t be able to contain inflation.
“History is filled with examples where rulers have, in moments of crisis, resorted to debasing the coinage,” said Odey, who has raised his gold position in his flagship Odey European fund all the way up to 39.9% as of the beginning of the month from 15.9% at the end of March.
The fund cashed in on the initial market crash with a 21% surge in March, according to the letter. It dropped 9.5% in April as investors warmed back up to a risk-on approach.
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Another Week, Another $3 Trillion Bailout
.Another Week, Another $3 Trillion Bailout
Notes From The Field By Simon Black May 18, 2020 Bahia Beach, Puerto Rico
At precisely 9:26pm this past Friday night, May 15th, the House of Representatives in the United States passed the “Health and Economic Recovery Omnibus Emergency Solutions Act.”
For short, they call it the HEROES Act.
And yes, it’s as ridiculous as it sounds.
Bear in mind that Congress passed the first bailout bill-- the “Families First Coronavirus Response Act” on March 14th. That set the taxpayers back $1.3 trillion.
Less than two weeks later, Congress passed the “Coronavirus Aid, Relief, and Economic Security Act”, or CARES, which cost a hefty $2 trillion.
Another Week, Another $3 Trillion Bailout
Notes From The Field By Simon Black May 18, 2020 Bahia Beach, Puerto Rico
At precisely 9:26pm this past Friday night, May 15th, the House of Representatives in the United States passed the “Health and Economic Recovery Omnibus Emergency Solutions Act.”
For short, they call it the HEROES Act.
And yes, it’s as ridiculous as it sounds.
Bear in mind that Congress passed the first bailout bill-- the “Families First Coronavirus Response Act” on March 14th. That set the taxpayers back $1.3 trillion.
Less than two weeks later, Congress passed the “Coronavirus Aid, Relief, and Economic Security Act”, or CARES, which cost a hefty $2 trillion.
A few weeks after that, they passed another half-trillion dollar bill, the “Paycheck Protection Program and Health Care Enhancement Act,” which, sadly, did not come with a catchy acronym.
Are you keeping score? In total that’s around $3.8 trillion in federal bailouts.
And now on top of that, the House just passed the HEROES Act, which adds another $3 TRILLION to that total.
If the HEROES Act becomes law, that will bring the total bailouts in the Land of the Free to nearly $7 trillion, more than 30% of the entire US economy!
The HEROES Act itself is extraordinary. At 1,815 pages and nearly 300,000 words, it’s more than twice as long as the New Testament.
And I spent several hours this weekend reading it.
With a high-sounding name like “HEROES,” I naively thought the focus of the bill is to take care of front-line healthcare workers.
But I was wrong.
HEROES hands over taxpayer money to everyone from the Fish and Wildlife Service to the National Endowment for the Humanities.
There’s money for school lunches, broadband Internet access in rural areas and tribal lands, prison phone calls, “environmental justice grants,” and pretty much anything else you can think of.
There’s a phrase they use in this bill over and over again: “to prevent, prepare for, and respond to coronavirus. . .”
For example, they’re giving the General Services Administration (GSA) $1 billion to modernize their technology… leading a rational person to wonder,
“Hey wait a minute-- what does that have to do with Covid?”
Nothing. And that’s why they include those magic words-- The GSA will receive $1 billion “to prevent, prepare for, and respond to coronavirus.”
Oh gee, then I guess it makes sense.
It reminds me of right after 9/11, nearly two decades ago. Back then the government could get away with anything they wanted. They just had to use the magic words “for your safety and security,” or “in the interest of national security.”
They were able to pass the most insidious laws and say the most ridiculous things. But as long as it was for your safety and security, it was all OK.
Today it’s the same thing.
If this HEROES bill passes, for example, the National Endowment for the Humanities will receive a bunch of taxpayer money “to prevent, prepare for, and respond to coronavirus.”
Wait, what? What does one thing have to do with another?
Nothing. It’s just empty justification to spend all the money they ever wanted.
But astonishingly, even this doesn’t seem to be enough.
Last night the news show 60 Minutes aired an interview with the Chairman of the Federal Reserve, who expressed clear concern that all the government spending and all the federal reserve money printing so far might not be enough:
Reporter: “In terms of stimulus, has Congress done enough?”
Fed Chairman: “. . . I don't think we know the answer to that. It may well be that the Fed has to do more. It may be that Congress has to do more.”
The interview was pretty extraordinary-- the Fed Chairman didn’t bother sugarcoating what they’re doing-
Reporter: “Fair to say you simply flooded the system with money?”
Fed Chairman: “Yes. We did. That's another way to think about it. We did.”
Reporter: “Where does it come from? Do you just print it?”
Fed Chairman: “We print it digitally. So as a central bank, we have the ability to create money digitally. And we do that by buying Treasury Bills or bonds for other government guaranteed securities. And that actually increases the money supply. We also print actual currency and we distribute that through the Federal Reserve banks.”
Reporter: “In terms of size, Mr. Chairman, how does what the Fed is doing right now compare to the unprecedented action it took in 2008?”
Fed Chairman: “So the things we're doing now are substantially larger. The asset purchases that we're doing are a multiple of the programs that were done during the last crisis. . .”
That pretty much sums it up.
The government is on track to have a nearly $7 trillion bill for Covid so far, while the Federal Reserve has already expanded its balance sheet by nearly $3 trillion.
And even with that bonanza of money, they’re still not sure if it’s enough.
They acknowledge that they’re simply [digitally] printing money, and that the size of the problem is MUCH bigger than the last crisis.
He then acknowledges later in the interview-- sure there will be consequences to all the debt and money printing, but we’ll worry about it later: “This is not the time to prioritize that concern.”
So, on top of everything else, they’re flat-out telling you that there are going to be problems down the road… but they’re going to keep printing and going into debt regardless.
No one here is being subtle.
And you’re not some wild conspiracy theorist to think that there might be consequences down the road. The Federal Reserve is telling us that this is the case.
And they’re also telling us that they’re going forward with their plan to print money and facilitate government debt regardless of the long-term damage.
If that’s not a reason to own precious metals and real assets, I don’t know what else could be.
To your freedom & prosperity, Simon Black, Founder, SovereignMan.com
https://www.sovereignman.com/trends/another-week-another-3-trillion-bailout-27775/
"Dying Economy, Fed Incompetence"
."Dying Economy, Fed Incompetence" - Robert Kiyosaki Sees Bitcoin At $75k In 3 Years
By Tyler Durden Sun, 05/17/2020 – Zero Hedge Authored by Jeffrey Albus via CoinTelegraph.com,
Robert Kiyosaki (Rich Dad Poor Dad) predicts that Bitcoin’s price will rise nearly 100% per year over the next three years.
Robert Kiyosaki, businessman and best selling author of the book Rich Dad, Poor Dad, has taken to Twitter once again to proclaim his bullish position on Bitcoin.
His prognosis? BTC’s price is heading to $75,000 in three years.
How Kiyosaki values each asset
In a viral May 16 tweet, Kiyosaki states that his fear of a dying economy has led him to purchase more of three assets that he ostensibly considers valuable outside of the traditional financial system: Gold, Silver, and Bitcoin (BTC).
"Dying Economy, Fed Incompetence" - Robert Kiyosaki Sees Bitcoin At $75k In 3 Years
By Tyler Durden Sun, 05/17/2020 – Zero Hedge Authored by Jeffrey Albus via CoinTelegraph.com,
Robert Kiyosaki (Rich Dad Poor Dad) predicts that Bitcoin’s price will rise nearly 100% per year over the next three years.
Robert Kiyosaki, businessman and best selling author of the book Rich Dad, Poor Dad, has taken to Twitter once again to proclaim his bullish position on Bitcoin.
His prognosis? BTC’s price is heading to $75,000 in three years.
How Kiyosaki values each asset
In a viral May 16 tweet, Kiyosaki states that his fear of a dying economy has led him to purchase more of three assets that he ostensibly considers valuable outside of the traditional financial system: Gold, Silver, and Bitcoin (BTC).
"ECONOMY [is] dying. FED incompetent. Next BAILOUT trillions in pensions. HOPE fading."
The author’s tweet outlines just how valuable he thinks each asset will be in the coming years. He reveals:
“Bought more gold silver Bitcoin. GOLD [currently] at $1700. Predict $3000 in 1 year. Silver [currently] at $17. Predict $40 in 5 years. Bitcoin [currently] at $9800. Predict $75000 in 3 years.”
To continue reading, please go to the original article here:
The Great Deflation Then Hyperinflation
.Join Mike Maloney and Harry Dent in this epic 60 minute discussion about deflation, filmed in late 2015.
This first video was originally the 'Bonus Feature' for Episode 6 of Mike Maloney's 'Hidden Secrets of Money' series, but it contains so much useful information on how a deflationary period may play out that we have decided to release it here now on YouTube to as many people as possible. Thanks for watching, and thanks for sharing the video.
Almost 5 years to the very day of the original video on The Great Deflation this second video interview with Mike talks about current economic events – He covers many areas such as Gold – Silver – Transfer of Wealth – Corona Virus -Federal Reserve – IMF – Free Market – Socialism – Economic Collapse - Supply Chain - Fragile Monetary System - Gold Standard - Cryptocurrency - and so much more – Very Informative - Don’t Miss These Videos!!
The Great Deflation Then Hyperinflation
Join Mike Maloney and Harry Dent in this epic 60 minute discussion about deflation, filmed in late 2015.
This first video was originally the 'Bonus Feature' for Episode 6 of Mike Maloney's 'Hidden Secrets of Money' series, but it contains so much useful information on how a deflationary period may play out that we have decided to release it here now on YouTube to as many people as possible. Thanks for watching, and thanks for sharing the video.
Almost 5 years to the very day of the original video on The Great Deflation this second video interview with Mike talks about current economic events – He covers many areas such as Gold – Silver – Transfer of Wealth – Corona Virus -Federal Reserve – IMF – Free Market – Socialism – Economic Collapse - Supply Chain - Fragile Monetary System - Gold Standard - Cryptocurrency - and so much more – Very Informative - Don’t Miss These Videos!!
Original description: Two of the world’s foremost experts on economic cycles believe a punishing wave of deflation is coming. Just like the Great Depression, it could sink the value of stocks, homes, and even savings accounts. Billions could be wiped out.
To help you prepare, Mike Maloney and Harry Dent explain how in this 60-minute bonus video.
For those wondering why our videos don't appear in their subscription feed immediately - we release our clips to our free weekly email readers first, then later we publish to YouTube. Sometimes it's just hours, sometimes it's a couple of days later.
This is to encourage people to join our free newsletter - because one day, we may not have YouTube to rely on. Join our free newsletter list by going to https://goldsilver.com/ and entering your email address in the 'Get Market Alerts' box at the bottom of the page. As always, thank you for your support. M.
Download Mike's best-selling book for free here: https://pages.goldsilver.com/freebook
VIDEO ONE The Great Deflation IS HERE - Mike Maloney & Harry Dent
186,622 views•Premiered Mar 21, 2020 Gold Silver (w/ Mike Maloney) 552K subscribers
VIDEO TWO Deflation Then Hyperinflation - Interview with Mike Maloney
96,683 views•Mar 23, 2020 https://www.youtube.com/watch?v=-lanXyRFUcs
How To Store Silver Bars and Coins At Home - Mike Maloney
.How To Store Silver Bars & Coins At Home - Mike Maloney
There are lots of reasons to buy silver—it’s a real asset, the coins are beautiful, it will likely outperform gold, and it’s more affordable. But that affordability comes with a catch. Once you start to accumulate, you quickly realize that silver requires a lot more storage space than gold.
It’s relatively easy to hide some gold coins in a sock drawer or cookie jar, but those hiding places are impractical for the same dollar amount of silver. So how do we store our silver bullion both efficiently and safely? And should it be stored at home anyway? This article has some potential solutions for those investors that are stacking silver…
How To Store Silver Bars and Coins At Home - Mike Maloney
There are lots of reasons to buy silver—it’s a real asset, the coins are beautiful, it will likely outperform gold, and it’s more affordable. But that affordability comes with a catch. Once you start to accumulate, you quickly realize that silver requires a lot more storage space than gold.
It’s relatively easy to hide some gold coins in a sock drawer or cookie jar, but those hiding places are impractical for the same dollar amount of silver. So how do we store our silver bullion both efficiently and safely? And should it be stored at home anyway? This article has some potential solutions for those investors that are stacking silver…
Storing Silver Bullion at Home
Everyone should keep some silver (and gold) in a place that is easily and immediately accessible. One advantage bullion offers is its high liquidity in a period of crisis—no worries about bank closures, lack of access to funds, or internet problems. So, if you have some bullion close by, you have the ability to fight through a crisis. On the other hand, if your silver is two days away or time-consuming to get to, its use as an emergency asset has diminished.
As Mike Maloney pointed out in his book, Guide to Investing in Gold and Silver, “I believe everyone should have gold and silver in his or her own private possession, where you can lay your hands on it, because they are one of the few financial assets that can be completely private and not part of the financial system.”
This doesn’t necessarily mean you should keep it inside your house. It means you want some of it readily accessible in an emergency, whether that emergency be a personal one or on a national scale.
If you enjoyed watching this video, be sure to check out the Hidden Secrets of Money website at https://www.hiddensecretsofmoney.com/. It’s a world-leading educational series by Mike Maloney, the bestselling author of the Guide to Investing in Gold & Silver.
As Mike explains in the series and his book, we live in an economic system that is made complicated by design. Basically, it’s set up so most people don’t even try to understand it. In Mike’s videos, he breaks down these concepts using easy-to-follow analogies, real pages from history, and animations that tie it all together.
Download Mike's best-selling book for free here: https://pages.goldsilver.com/freebook
919,400 views•Apr 4, 2017 https://www.youtube.com/watch?v=SXFLZub7DaU
USA's DEBT CRISIS: Is This The End Of The System?
.USA's DEBT CRISIS: Is This The End Of The System?
Mike Maloney 130,807 views•Premiered May 6, 2020
GoldSilver (w/ Mike Maloney) 551K subscribers
Join Mike Maloney as he takes an x-ray machine and a scalpel to the budget books of the US Government.
In this Special Report you’ll get an in-depth look at why Mike believes the USA has painted itself into a corner without any thought of how to get out. What are the ramifications? As Mike says, we may very well be witnessing the end of the current fiat system.
USA's DEBT CRISIS: Is This The End Of The System?
Mike Maloney 130,807 views•Premiered May 6, 2020
GoldSilver (w/ Mike Maloney) 551K subscribers
Join Mike Maloney as he takes an x-ray machine and a scalpel to the budget books of the US Government.
In this Special Report you’ll get an in-depth look at why Mike believes the USA has painted itself into a corner without any thought of how to get out. What are the ramifications? As Mike says, we may very well be witnessing the end of the current fiat system.
This is a very detailed video, so get comfortable and make sure you watch to the end for the conclusion. If you can understand what Mike is revealing here - you’ll be well-placed to make plans for your immediate future. Best of luck. Thanks for sharing and clicking that 'Like' button.
Download Mike's best-selling book for free here: https://pages.goldsilver.com/freebook
For those wondering why our videos don't appear in their subscription feed immediately - we release our clips to our free weekly email readers first, then later we publish to YouTube. Sometimes it's just hours, sometimes it's a couple of days later.
Did The Coronavirus Kill The Global Economy?
.Did The Coronavirus Kill The Global Economy?
By: Andrew Moran
Please, Sir, May I Have Some More?
Before the Coronavirus pandemic put the world’s largest economy behind bars, surveys revealed that anywhere from a fifth to one-third of Americans were living paycheck to paycheck. The polls discovered that many U.S. households were one financial emergency away from ruin, or a lot of consumers could not find $300 to cover an unforeseen circumstance.
And this was in one of the greatest bull markets in modern history. Now that the country has been shut down for more than a month and millions have lost their jobs, it is difficult to make ends meet and maintain a basic living standard. The federal government tried to remedy the situation by cutting most people a check. But is $1,200 enough?
According to the results of a new WalletHub study, 84% of Americans want a second round of stimulus checks. The site’s “Coronavirus Relief Survey” essentially serves as an assessment on the state of the union in a time of COVID-19, and it offers some interesting insights into Americans’ perspectives on what is happening.
Did The Coronavirus Kill The Global Economy?
By: Andrew Moran
Please, Sir, May I Have Some More?
Before the Coronavirus pandemic put the world’s largest economy behind bars, surveys revealed that anywhere from a fifth to one-third of Americans were living paycheck to paycheck. The polls discovered that many U.S. households were one financial emergency away from ruin, or a lot of consumers could not find $300 to cover an unforeseen circumstance.
And this was in one of the greatest bull markets in modern history. Now that the country has been shut down for more than a month and millions have lost their jobs, it is difficult to make ends meet and maintain a basic living standard. The federal government tried to remedy the situation by cutting most people a check. But is $1,200 enough?
According to the results of a new WalletHub study, 84% of Americans want a second round of stimulus checks. The site’s “Coronavirus Relief Survey” essentially serves as an assessment on the state of the union in a time of COVID-19, and it offers some interesting insights into Americans’ perspectives on what is happening.
Researchers discovered that 63% of Americans are less than three months away from running out of cash. But millions of others are coping with the madness differently. Ten percent of Americans will feed their addictions (alcohol, drugs, or tobacco), while one-third say that they will donate at least a portion of their relief funds to those in need. Most will be covering their rent or mortgage payments.
Opinions on how the money should be allocated vary. A little more than half of Americans do not believe people’s unemployment income should be more than their previous earnings. Seventy percent of survey respondents think only businesses impacted by the outbreak should receive aid.
Millennials are 25% more likely than Baby Boomers to argue that stimulus checks should only be granted to individuals suffering a loss of income. In the end, 62% of respondents agree that all workers should receive a stimulus check, regardless of income or job status.
Will the nationwide shutdown persist, or will the country reopen only for a second wave of the outbreak to force a coast-to-coast closure sequel? In either case, Washington would have no other alternative but to send out additional relief checks to citizens. Indeed, $1,200 may be a temporary lifeline.
Still, for low-income unemployed Americans, the money might only act as financial relief for a month after the rent has been paid and food has been stocked up in the refrigerator. Will the plight of the average worker be enough to reopen the country? As the old saying goes, time will tell.
Japan Goes Fed
In its recent semi-annual report, the Bank of Japan (BoJ) warned that there were three threats to the financial system: higher credit costs, security investment losses, and foreign currency funding problems. The central bank noted that many vulnerabilities were amassing because of 0% interest rates that the BoJ adopted to stave off a recession and spur economic growth.
It has also intervened many times in the marketplace, most prominently by becoming a top shareholder on the Tokyo Stock Exchange. Despite losing billions in the stock market, the BoJ is adding to its positions to help cushion the Nikkei by mirroring the Federal Reserve’s whatever-it-takes approach in the process.
The BoJ is set to unleash quantitative easing infinity by scooping up unlimited Japanese government bonds. It also plans to double its annual acquisitions of corporate debt and commercial paper to assist cash-strapped businesses in response to the pandemiconomy. It is estimated that the central bank would elevate its bond-buying spree to just under $900 billion a year to start.
Governor Haruhiko Kuroda will keep its -0.1% interest rate and guide the 10-year note yield to 0%.
This comes soon after Prime Minister Shinzo Abe announced the largest-ever $1 trillion stimulus package. The relief legislation includes cash handouts to eligible households, business tax deferrals, wage subsidies, and the purchase of Avigan anti-flu drugs for two million people this fiscal year.
Tokyo proposes to issue more bonds to fund this massive expenditure, but it appears the only one with an appetite for the left hand’s debt is the right hand.
How did the central banks pump $23.4 trillion into the financial system in a little more than a month? All you need to do is to take a gander at the plethora of actions by central banks Liberty Nation has reported since the outbreak began.
Gold Is Au-Some
Billionaire icon Warren Buffett is not a fan of gold: “[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.” And yet, gold is eyeing $2,000 per ounce because the market places a value on the precious metal.
Even if financial markets return to their record highs in February, the amount of money that has been injected into the system is unprecedented. Central banks have the printing presses working around the clock, trying to stop the bleeding by using fiat money as bandages. No matter what happens, a spike in inflation is inevitable – and this is where gold intervenes.
The Bank of America captured international business headlines when it raised its 18-month gold-price target to $3,000, which would be more than double its existing price record. In a report titled “The Fed Can’t Print Gold,” BofA analysts warned that fiat currencies “could come under pressure” as economic output contracts, fiscal outlays skyrocket, interest rates are cut to 0%, and central bank balance sheets surge. This would be a boon for the yellow metal because investors would seek shelter from the turmoil.
Despite its bullish case for bullion, BofA says gold would need to overcome a strengthening U.S. dollar, reduced volatility, and bearish jewelry demand in China and India to top $3,000 by the end of 2021.
The greenback has been one of the most reliable assets in the coronapocalypse as investors sought shelter from the economic storm. Investors liquidated their accounts to get dollars, elevating the U.S. Dollar Index, which measures the buck against a basket of currencies, to 103.00.
The only way the greenback can survive the astronomical money-printing by Jerome Powell and Associates is through market demand. If there is enough demand among investors, hedge funds, money managers, pension funds, and any other entity in this mad, mad, mad, mad world, then the dollar could extend its shelf life. If not, it may be time to fill your basement vault with gold bars, build gold positions in your portfolio, and purchase the former World Championship Wrestling heavyweight title!
https://www.libertynation.com/swamponomics-did-the-coronavirus-kill-the-global-economy/
Will COVID-19 Reset The Global Monetary Order?
.Will COVID-19 Reset The Global Monetary Order?
By: Andrew Moran May 08, 2020 Articles, Economic Affairs, Politics, Social Issues
Who will stand tall and who will fall to the Coronavirus after the pandemic?
In response to the Great Recession a decade ago, the international community fired off the big guns to stave off the inevitable decay of the global economy that had been manipulated and distorted through the Keynesian doctrine. Despite the massive fiscal and monetary stimulus at the time, many countries failed to recover from the financial crisis – and those that survived the market meltdown are still paying for the spending and bailouts.
After pulling the trigger on the Coronavirus-targeted bazookas, the world’s pockets are empty, potentially creating a scenario for a reset in the global monetary order. On the other side of the lockdown, who will stand tall and reign supreme? If history is any indicator, it will either be the country with a lifetime supply of printing press ink or the one with a vault full of gold.
Will COVID-19 Reset The Global Monetary Order?
By: Andrew Moran May 08, 2020 Articles, Economic Affairs, Politics, Social Issues
Who will stand tall and who will fall to the Coronavirus after the pandemic?
In response to the Great Recession a decade ago, the international community fired off the big guns to stave off the inevitable decay of the global economy that had been manipulated and distorted through the Keynesian doctrine. Despite the massive fiscal and monetary stimulus at the time, many countries failed to recover from the financial crisis – and those that survived the market meltdown are still paying for the spending and bailouts.
After pulling the trigger on the Coronavirus-targeted bazookas, the world’s pockets are empty, potentially creating a scenario for a reset in the global monetary order. On the other side of the lockdown, who will stand tall and reign supreme? If history is any indicator, it will either be the country with a lifetime supply of printing press ink or the one with a vault full of gold.
A New Monetary Order
Jp Cortez, the policy director at the Sound Money Defense League, believes the global pandemic could usher in a new era of sound money in the future. However, before that happens, he thinks the immediate fallout will lean against a fundamentally stable currency structure.
“Countries have massively overleveraged their economies, leaving them with two options: print now and deal with inflation later, or collapse,” Mr. Cortez explained during an interview with Liberty Nation. “While the printing presses are already running at high speed, politicians and unelected bureaucrats will seize this opportunity to pass measures with massive price tags.”
“The inevitable inflationary consequences will show up down the road as economic demand starts to recover and money velocity picks up,” he continued. “When rising inflation begins destroying the real value of trillions of dollars in U.S. Treasurys held by central banks around the world, that could be a catalyst for a monetary reset.”
The fiat monetary experiment has failed. The Modern Monetary Theory (MMT) and helicopter money proposals are nothing more than aggressive interventionist policy tools emanating from the minds of the globalist progressive Dr. Frankensteins. They might be marketed as feel-good measures to help the common man instead of the fat cats on Wall Street, but they are toxic eyes of newt to make the economy further dependent on the Leviathan.
Following the end of the Second World War, the international monetary order established the Bretton Woods system. This framework made payments based on the U.S. dollar, which was still convertible into gold. Thirty years later, the world entirely abandoned the precious metal and commercial and financial relations were executed on faith in paper. In the aftermath of the Coronavirus, something new could be constructed.
Until the international community holds a teleconference and commits to a new standard, will there be a new crop of nations committing mutiny and steering the ship in a post-Coronavirus world? Or, will the U.S, China, and Europe continue to be the standard-bearers of the status quo?
Anatomy of a Winner – and Loser
Robert Wenzel, the publisher of Economic Policy Journal and author of The Fed Flunks, is skeptical that anybody will come out of this unscathed, pointing to the considerable global centralization push.
“I don’t think anyone will come out better off. Central planning, which always makes things worse, is likely to increase across the globe,” Wenzel told Liberty Nation. “It is a race to the bottom. Everyone will be weak. It will be a fight amongst the desperate.”
Governments all over the world are spending trillions of dollars to contain the economic fallout from COVID-19. Central banks are being just as aggressive, injecting $23.4 trillion – and counting – into the financial system and extending bailouts and handouts to businesses and consumers. The United States is leading the charge, spending and printing about half that sum.
Most central banks have revealed that they are ready to intervene more than they are doing now. Federal Reserve Chair Jerome Powell told reporters after the April Federal Open Market Committee (FOMC) meeting that the Eccles Building is prepared to do whatever it takes to ensure the U.S. economy does not crumble due to the outbreak. He also encouraged lawmakers to adopt additional fiscal measures to facilitate a strong rebound in the second half.
Even countries that have seen some sort of advantages in the chaos are trying to limit their success. The Swiss National Bank (SNB), for instance, has been regularly intervening in the foreign exchange market to fight the franc’s appreciation. Investors have been pouring into the conventional safe-haven asset to shield themselves from the uncertainty in global financial markets, and the powers do not like it.
Could anybody be better positioned in the post-Coronavirus world? The nations with low debt levels and in possession of real assets might emerge the victors, according to Cortez, who said:
“Clearly, a lot of countries are in trouble. China’s international reputation has taken a massive hit. The economies of oil-producing countries have been crushed. And the United States has taken on unprecedented and unsustainable new debt obligations to try to stave off another Great Depression.
The U.S. has the advantage of being home to giant technology and e-commerce companies that are finding ways of benefiting from global economic lockdowns. Once the crisis passes, however, shortages of commodities coupled with rising inflationary pressures could turn the tables. Countries with relatively low debt levels and real assets backing their economies may ultimately fare the best.”
As the globe’s attention is primarily focused on the virus, policymakers appear to have forgotten everything that had been taking place in the years before. America’s repo market madness, Europe’s anemic growth, sanctions, trade spats, skyrocketing debt, and bubblemania – these were just some of the problems that plagued economies everywhere. Since everyone is trying to resolve the Coronacrisis and mitigate the COVIDepression, yesterday’s issues have been abandoned on the side of the road like an unwanted pet.
With talks of implementing a Green New Deal, MMT, and a universal basic income, everyone is quick to forget that the U.S. still cannot even pay for the old New Deal, the current entitlements, and the $200 trillion in unfunded liabilities and expenditures.
It might require humbler monetary policy, sound money, and a seven-billion-year-old metal to save us.
As Good as Gold
In recent years, central banks have been going on a gold buying spree. Russia, India, and China are just some of the states to become metal fanatics following the 2008-2009 recession as they accumulated massive reserves. Central bank gold hoarding is at a 50-year high after these institutions collected nearly 700 tons in 2019.
This could be the one advantage that distressed markets have over their rivals, says Cortez.
“Countries that have spent the last several years stockpiling gold will certainly find themselves better positioned at the end of this than countries that didn’t. China, India, and Russia, for example, have been very public about their gold purchases over the last several years,” he told LN.
Moscow owns more than 2,200 tons of gold, New Delhi possesses 625 tons, and Beijing controls just under 2,000 tons. At the same time, the ruble, the rupee, and the yuan are all under significant stress due to their troubled economies and staggering monetary expansions. While gold and silver might not be enough to ensure their survival, Robert Wenzel notes that they can be used to protect against collapsing currencies.
“I am not sure it will play a role in their survival, but given the near-global price inflation I expect, countries who have purchased gold will be in a much stronger global financial position,” the economics guru said. “Gold and silver are the best investments to own as a hedge against collapsing currencies.”
During the market mayhem in March, gold’s status as the chief safe-haven asset had come into question due to the vast selloff. This had more to do with investors’ liquidation and matching margin calls than the efficacy of the yellow metal. With a bit more stability on stock exchanges everywhere and fears over a spike in price inflation, the commodity is testing all-time highs, and it has been trading at record levels in other currencies.
Gospel of Keynes
Policymakers have fallen for the coquettish and Mephistophelean charms of John Maynard Keynes and his disciples. By unleashing a tsunami of paper money onto the world and transforming sovereign nations into dependents of the fiat system, they have sold their souls for affluence and influence. The antiquated ideas of fiscal responsibility and monetary sanity have been sacrificial lambs in the central banks’ crusade to appease the Keynesian gods.
Centralization has bastardized the laws of free-market capitalism, transferring power over the economy to a select few. COVID-19 may either be a blessing in a disguise or a catalyst to something more odious. As John McAfee recently told LN’s Legal Affairs Editor Scott Cosenza, hold onto your peanut butter, raisins, and Glock 17s – it is going to be a bumpy night.
https://www.libertynation.com/will-covid-19-reset-the-global-monetary-order/
And The Winner Of The Next Half Trillion Dollar Bailout Is...
.And The Winner Of The Next Half Trillion Dollar Bailout Is...
Notes From The Field By Simon Black May 4, 2020 Bahia Beach, Puerto Rico
At precisely 4pm on Friday October 17, 1975, New York City’s government would have a $453 million debt to repay.
But literally the night before, the city’s government had only $34 million on hand.
It was the makings of an epic financial crisis: the wealthiest city in the world was about to declare bankruptcy.
New York City’s mayor Abe Beame had called US President Gerald Ford numerous times begging for federal assistance, but Ford refused. The nation had bigger problems to deal with.
New York was desperate.
And The Winner Of The Next Half Trillion Dollar Bailout Is...
Notes From The Field By Simon Black May 4, 2020 Bahia Beach, Puerto Rico
At precisely 4pm on Friday October 17, 1975, New York City’s government would have a $453 million debt to repay.
But literally the night before, the city’s government had only $34 million on hand.
It was the makings of an epic financial crisis: the wealthiest city in the world was about to declare bankruptcy.
New York City’s mayor Abe Beame had called US President Gerald Ford numerous times begging for federal assistance, but Ford refused. The nation had bigger problems to deal with.
New York was desperate.
But with only hours to spare, they managed to convince the powerful Teachers’ Union to use its gigantic pension fund to buy up the bonds and save the day.
The plan worked, and New York City was very narrowly able to escape bankruptcy.
But that wouldn’t happen today; a number of state and local governments are teetering on the edge of default, and public pension funds are in no position to bail them out.
Pensions are actually a huge part of the problem.
New York’s Teachers’ Retirement System-- the same union that bailed out the city in 1975, is today technically insolvent.
According to the pension fund’s most recent financial report, the fund is about 40% short of being able to pay out its obligations.
And the numbers are similar across the board for New York’s Fire and Police pension funds as well.
And New York is definitely not the only problem spot.
Public pensions in the State of Illinois are 60% underfunded, on average. And more than 65% in New Jersey.
In fact, only TWO states in the Land of the Free have fully-funded public pensions as of 2019: Wisconsin and South Dakota.
So, most pension funds are in serious trouble and in no position to bail anyone out.
State governments are even worse off: Illinois’ debt is rated one level above junk, and the state legislature asked the federal government for a $40 billion bailout.
California, New Jersey, and New York are also lining up for a federal bailout.
And amazingly enough, Congress is actually considering a $1 trillion bailout for state governments.
Plus, last week, the Federal Reserve announced that it will step in and buy $500 billion worth of bonds from states, counties, and municipalities.
So that’s another $1.5 trillion for state and local governments, on top of the trillions of dollars worth of bailouts they’ve already made.
Remember-- all of this money is just being conjured out of thin air. These politicians and central bankers believe they can print all the bailout money they need without ever having to make a difficult decision.
But this solution is a ridiculous fantasy: you cannot borrow or print your way to prosperity.
If that were the case, Zimbabwe would have become the wealthiest country in the world long ago.
It’s perfectly fine to remain optimistic and hope that, maybe just maybe, the virus will just magically disappear, everything will go back to normal, and there will never be any consequences from all of this money printing.
And while I’m at it, I can also hope that the Dallas Cowboys decide to make me their starting quarterback next season.
But back here on Planet Earth, it’s far more likely that the virus will be around for a while... that decisions will continue to be made by weak leaders whose greatest fear is not being re-elected… and that all this money printing will eventually become a problem.
Let’s be frank: there are VERY few instances throughout history where so much money has been created without any nasty consequences.
We know the famous stories like hyperinflation in Zimbabwe and the Weimar Republic.
Then there are stories from ancient and medieval times, like the insufferable inflation of China’s Jin and Yuan dynasties (both of which used paper currency and printed it freely).
Even in the United States in the 1970s, cheap interest rates and expansion of the money supply led to some of the worst inflation in US economic history.
You really don’t need a PhD in economics to understand that conjuring trillions of dollars out of thin air might hurt the long-term value of the currency.
This is why I keep writing that real assets make so much sense.
There is no sure thing right now. But real assets like productive land, profitable businesses, and precious metals tend to be safe havens at a time when governments and central banks are willing to sacrifice the currency.
Compared to the amount of money that’s being printed right now, precious metals are actually fairly inexpensive.
Gold is undervalued relative to the money supply, and silver is downright cheap relative to gold. LINK
Again, there is no sure thing. And we could see a real roller coaster ride in prices.
But if you believe (as I do) that they’re going to continue printing money to bail everyone out, then there’s a very strong, long-term case to own precious metals right now. And especially silver
While silver looks like an incredibly compelling opportunity right now, there’s one problem…
Silver demand has gone through the roof because of Covid, and investors are now paying 20%, 50%, even 100% above the price to get their hands on physical silver.
We think that’s crazy.
So we put together a special report for members of Sovereign Man: Confidential, providing step-by-step details about how to buy silver through the futures market for a fraction of these insane premiums.
To your freedom & prosperity, Simon Black, Founder, SovereignMan.com