Fed Encourages Runaway Debt as “Minsky Moment” Approaches

By Clint Siegner – Re-Blogged From Gold Eagle

Federal Reserve officials like to pretend they can use interest rates like a motorcycle throttle on the U.S. economy. They can either rev things up by dropping interest rates or slow things down by moving rates higher.

The public has been led to believe the central planners can do whatever is needed with rates to keep things purring along.

Continue reading

Advertisements

Deep State And Financial Powers Worry About Alternative Currencies

By Mike Gleason – Re-Blogged From Silver Phoenix

As markets continue to gyrate on global trade and tariff threats, precious metals are struggling to capture investor interest.

Lately, the big push in alternative assets has been in Bitcoin. The cryptocurrency has doubled in price over the past two months, though it remains well below its old high.

The full implications of new U.S. tariffs and retaliatory tariffs by China have yet to be reflected in markets. The media has reported on how tariffs could help or hurt particular industries. American farmers, for example, are worried they will suffer most from Chinese retaliation.

Continue reading

Chinese Lunar Rover May Have Identified Mantle Exposure

By David Middleton – Re-Blogged From WUWT

Chang’e-4: Chinese rover ‘confirms’ Moon crater theory
By Paul Rincon
Science editor, BBC News website,15 May 2019

The Chinese Chang’e-4 rover may have confirmed a longstanding idea about the origin of a vast crater on the Moon’s far side.

The rover’s landing site lies within a vast impact depression created by an asteroid strike billions of years ago.

Now, mission scientists have found evidence that impact was so powerful it punched through the Moon’s crust and into the layer below called the mantle.

Chang’e-4 has identified what appear to be mantle rocks on the surface.
It’s something the rover was sent to the far side to find out.

Chunlai Li, from the Chinese Academy of Sciences in Beijing, and colleagues have presented their findings in the journal Nature.

Continue reading

Slowdown Confirmed

By Mike Savage – Re-Blogged From Gold Eagle

I have had a rough time for the last few weeks coming up with commentary that has anything new to say. It seems that we are bombarded day after day with talk of trade wars, tariffs and counter-tariffs.

Just today, April retail and industrial production numbers came out in China and in the USA. To say the least, the numbers were uninspiring at best.

In the USA retail sales for April contracted 0.2%. Much of the weakness was in auto sales because taking the auto numbers out there was a .1% gain in April. Electronics and building materials also fell. US industrial production, which has been stagnant all year, was not expected to grow in April either. It still surprised on the downside contracting 0.5%. That is the largest monthly drop since May of 2018.

Durable consumer goods dropped 0.8%. What caught my eye, however, was production decreased for business equipment, construction supplies and business supplies. This appears to confirm that 500,000 less people are actually working today than were at the beginning of 2019 even though we have “full employment”. What a joke that is! The only reason production wasn’t hurt worse was an increase in defense and space equipment materials.

Continue reading

Did Trump Tank Trade Talks Deliberately?

By Rick Ackerman – Re-Blogged From Silver Phoenix

Was it President Trump’s intention all along that trade talks with China fail? That’s the contention of ‘Farmer,’ a long-time subscriber who lives in Nairobi. He posted earlier today as follows in the Coffee House, a chat room that runs alongside the Rick’s Picks Trading Room:

“Just for perspective, the average dollar volume of imports being bought from Russia is only $18 billion during the past five years. That’s just 4% of the goods imported from China. Why? Because after decades as a nuclear cold war adversary, it was seen as ill advised to be running massive deficits with a country we were threatened by.  It is not that Russia could not supply goods cheaply that American consumers needed. They have always been technologically advanced. But if they had been favored over China with billions of dollars of orders in hand, they would be the most powerful nation in Eurasia today.

Continue reading

Legislation Requires Full Audit Of America’s Gold Reserves

By Stefan Gleason – Re-Blogged From Gold Eagle

Washington- U.S. Representative Alex Mooney (R-WV) introduced legislation this week to provide for the first audit of United States gold reserves since the Eisenhower Administration.

The Gold Reserve Transparency Act (H.R. 2559) – backed by the Sound Money Defense League and government accountability advocates – directs the Comptroller of the United States to conduct a “full assay, inventory, and audit of all gold reserves, including any gold in ‘deep storage,’ of the United States at the place or places where such reserves are kept.”

HR 2559 requires more than just a physical assay, inventory, and audit, however. Even if all United States gold can be physically accounted for, it may nevertheless be encumbered with third-party obligations – or otherwise be impaired by bank financialization.

Continue reading

First Day of US-China Trade Talks Ends; Trump’s Tariff Hike Set to Take Effect

By Reuters – Re-Blogged From IJR

Top U.S. and Chinese trade negotiators concluded the first of two days of talks on Thursday to rescue a trade deal that is close to collapsing as Washington prepares to go ahead with plans to hike tariffs on hundreds of billions of dollars of goods imported from China.

Tension between Washington and Beijing has risen after a major setback in negotiations last week when China revised a draft deal and weakened commitments to meet U.S. demands for trade reform.

President Donald Trump responded by ordering a tariff hike, and China has said it would retaliate. The 10-month-old trade war has already cost companies in both countries billions of dollars.

Continue reading