Pandemic Virus Impacts An Economy Already In Decline Before The Crisis

By David Haggith – Re-Blogged From Silver Phoenix

The soup lines hadn’t formed yet. Jobs had not even noticeably started to dry up, but they weren’t as easy to find anymore. You had to be angry to quit without having a better job firmly in hand. Stocks were climbing furiously above an economy that had been slowly ebbing away since summer. Sales were down for months, so revenues were down for months, and profits were down. Funding in the world’s easiest credit market — interbank repos — was extremely tight — so tight the Fed had to come to the rescue every single day for months, and the problem was only getting worse.

Such were the times before COVID-19 struck the world in 2020 like an asteroid from some far reach of the solar system crumbling the walls that already sat on cracked foundations, burying in ash a partying world that hadn’t yet figured out it was already slowly dying from its own internal decay.

3 Upside And 1 Downside Risk For Gold

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

Our base scenario for 2020 is that it might be a worse year for gold than 2019 was. However, there are three major upside (and one downside) risks for the gold market, which could materialize in 2020. Today’s article will introduce you to these potential catalysts that could send gold prices higher (or significantly lower) in 2020.

We stated earlier that unless something bad happens, 2020 may be worse for the yellow metal than 2019, as gold fundamentals seem to have deteriorated since the last year. Of course, bad things are happening all the time, but do not result in any possible negative developments. Rather, we have in mind three downside risks to our macroeconomic outlook, or three upside risks for gold. What are they?

Continue reading

NOT-Predictions For 2020

In the red corner, unpayable debt threatens to crush the US economy, stock and bond markets, and main street Americans.

In the green corner, the levitating power of the Fed might save the economy, stock and bond markets, and Wall Street Banks.

Red or green? Who wins?

Breaking news: Apple stock closed over $315. The S&P 500 Index closed over 3,300 in January. Liquidity rules, for now…

Continue reading

Why Nobody Talks About Ballooning Federal Deficits

By Clint Siegner – Re-Blogged From Money Metals Exchange

The presidential race will mesmerize Americans over the next 11 months. The country hasn’t been this polarized since the Civil War.

Voters on the left desperately want a story which undermines support for President Trump. They are also searching for a candidate who can actually win.

Many Republicans are outraged about the Deep State and corporate media campaign obsession with unseating a duly elected president – and they worry an avowed socialist could win the Democratic primary and, just possibly, the general election.

Plenty about the year ahead is unpredictable. Massive federal budget deficits and unrestrained borrowing, however, are a certainty.

Continue reading

Holiday Sales May Be Missing In Action

By Dave Kranzler – Re-Blogged From Silver Phoenix

I’m sure most of you are inundated with “Black November,” “70% off” and “clearance” email promotions from the usual cast of brick/mortar/online chain retailers. It started with my inbox in October.   This is because retailers are terrified of what could be one of the worst holiday spending seasons in years.

The mainstream financial media, planted with sound-bytes from Wall Street snake-oil salesmen, have already created this year’s “the dog ate my homework” excuse for poor holiday spending with the absurd notion that the period between Thanksgiving and Christmas is shorter this year.  Quite frankly, I would not be surprise if many households used Amazon’s Prime day and easy Amazon credit lines offered to buy holiday gifts early this year.

Speaking of AMZN, it warned that its expected holiday sales would be lower than previous guidance.  And Home Depot lowered its Q4 revenue estimates for the second time in three months.

Continue reading

Targeting nGDP

By Keith Weiner – Re-Blogged From Gold Eagle

Not too long ago, we wrote about the so called Modern Monetary so called Theory (MMT). It is not modern, and it is not a theory. We called it a cargo cult. You’d think that everyone would know that donning fake headphones made of coconut shells, and waving tiki torches will not summon airplanes loaded with cargo. At least the people who believe in this have the excuse of being illiterate.

You’d think that everyone would know that printing fake money and waving bogus theories around will not create new wealth. The excuse is that so called the wealth effect is so pleasant. Like drugs provide a happiness effect.

There is an old joke about a guy who talks to a psychologist about his crazy brother.
The guys says, “Doc, my brother thinks he’s a chicken.”
The psychologist says, “You should make sure he gets therapy for this delusion.”

“I would, but the eggs are good!”

Continue reading