Monetary Failure is Becoming Inevitable

By Alasdair Macleod – Re-Blogged From GoldMoney

This article posits that there is an unpleasant conjunction of events beginning to undermine government finances in advanced nations. They combine the arrival of a long-term trend of rising welfare commitments with an increasing certainty of a global-scale credit crisis, in turn the outcome of a combination of the peak of the credit cycle and increasing trade protectionism. We see the latter already undermining the global economy, catching both governments and investors unexpectedly.

Few observers seem aware that an economic and systemic crisis will occur at a time when government finances are already precarious. However, the consequences are unthinkable for the authorities, and for this reason it is certain such a downturn will lead to a substantial increase in monetary inflation. The scale of the problem needs to be grasped in order to assess how destructive it will be for government finances and ultimately state-issued currencies.

Continue reading

Advertisements

The Housing Market In 2006-2007 And 2018-2019

As can be seen in the graph below, there is an almost uncanny similarity between housing prices at the 2006-2007 peak, and current home prices.

The biggest difference is that current home prices are substantially higher. Should we be worried about a repeat scenario – and another six year decline in home values?

This analysis explores in detail the similarities between 2006-2007 and current home prices, on a national average basis. When we dig beneath the surface, we also find some major differences as well, which means that the next round could be quite different than the last round.

Continue reading

What Makes This Gold Market Rally Different From All Others?

By Michael Kosares – Re-Blogged From Gold Eagle

1.  It is led by institutions and funds, not private investors. Global quantitative easing created a huge and mobile pool of capital in constant need of a place to call home. As the need for a safe haven became apparent among the stewards of that capital, the demand for gold flourished. The consistent presence of funds and institutions as buyers in this rally, as represented by the growth in ETF stockpiles, is one of its hallmarks and represents one of the major differences between this gold rally and rallies of the past. Though private investors have been late to the game, the rapid development of the physical market for gold coins and bullion in the United Kingdom is testament to the fact that sentiment can change quickly.

2.  Day-to-day price reversals often originate in Asia and Europe, not just the United States.  For decades, the U.S. commodity markets set the tone for gold pricing and the rest of the world was content to follow. Even the old London price fix tended to follow along with trends established in the United States.  That all changed when the Shanghai gold market began offering its own pricing mechanism and the effects of Brexit began to have a profound impact on both sides of the English Channel. Now, price reversals often begin in Asian or European markets overnight and carry over to the open in New York rather than the other way around.  All of this is a reflection of ramped up global investor interest in gold and a leveling of the playing field in terms of who and what influences the price on a daily basis.  As such, it comprises our second important difference between the current gold price rally and rallies in the past.

Continue reading

New Law Requires You To Listen To Greta Thunberg Lecture Before Purchasing Gasoline

Reposted from The Babylon Bee – Re-Blogged From WUWT

article-4930-1

U.S.—A series of new bills working their way through state legislatures in New York, California, Oregon, Hawaii, and several other progressive states will require you to listen to a Greta Thunberg lecture before purchasing gasoline.

Motorists will be required to watch a 20-minute lecture by the 16-year-old climate activist before they purchase gallons and gallons of harmful fossil fuels.

“We want to make sure drivers are informed,” said California Governor Gavin Newsom, who says he will sign the bill into law. “So we are having them get lectured by a 16-year-old so they will have all the facts before they do something rash like put gasoline in their cars to go to work.”

Once the driver has listened to Thunberg’s entire lecture, they will be prompted to complete a quick, fifteen-question quiz to show they understand how horrible they are for driving a car. Drivers who get at least 80% will then be allowed to refuel their vehicles. As they refuel, the screen will simply play a clip of Thunberg saying, “How dare you!” over and over again.

The law will not apply to celebrities purchasing jet fuel.

CONTINUE READING –>

Massive subsidies & government dictated use drives renewables – absent these they’re ignored

By Larry Hamlin – Re-Blogged From WUWT

The EIA IEO 2019 report shows that end use energy sectors including industrial, residential, commercial and transportation made little use of renewable energy in 2018 with that trend forecast to continue through year 2050.

clip_image002

clip_image004

clip_image006

clip_image008

The end use energy sectors accounted for about 60% of total global energy use in 2018.

Continue reading

Turkey Says Syria Attack Plans Complete

By Reuters – Re-Blogged From IJR

Turkey said on Tuesday it had completed preparations for a military operation in northeast Syria after the United States began pulling back troops, opening the way for a Turkish attack on Kurdish-led forces long allied to Washington.

But U.S. President Donald Trump warned he would “obliterate” the NATO ally’s economy if it took action in Syria that he considered “off limits” following his decision on Sunday to pull 50 American special forces troops from the border region.

The U.S. move will leave its Kurdish-led partner forces in Syria vulnerable to an incursion by the Turkish Armed Forces (TSK), which brands them terrorists because of their links to Kurdish militants who have waged a long insurgency in Turkey.

Continue reading