This Is New: Governments Ramp Up Borrowing IN ANTICIPATION Of A Slowdown

By John Rubino – Re-Blogged From Dollar Collapse

The business cycle has its stages, and they’re usually both predictable and logical. For example, governments tend to generate a lot of tax revenue late in an expansion as more people get jobs and start paying income taxes and rising stock prices generate big capital gains. Meanwhile, less has to be spent on social safety net programs because everyone is working. Combine higher tax revenues and lower spending and you get shrinking deficits.

But not this time. Government borrowing soared around the world in 2018, even as economic growth, employment and stock prices peaked. Why the change? Well, apparently governments have decided – for the first time since the inception of the business cycle – to preemptively attack the next recession.

Continue reading

India’s Booming Economy Expected To Firm Up Gold Demand

By Frank Holmes – Re-Blogged From Gold Eagle

Starting today, the five-day festival known as Diwali—literally, “a row of lights”—will be observed by millions of Hindus, Sikhs and Jains worldwide. A celebration of good triumphing over evil, the festival typically coincides with the Hindu new year. Regular readers of Frank Talk should know that Diwali is also an auspicious time to buy gold coins and jewelry as gifts for loved ones, and in the past the increased demand has been enough to move gold prices to the upside.

Continue reading

Global Central Banks Enter the Danger Zone

By Michael Pento – Re-Blogged From Pento Portfolios

Investors are experiencing huge moves in commodities, currencies, equities and in sovereign debt across the globe. And now the fall has arrived. Expect the volatility currently witnessed in markets to only surge.

This is because global central banks have overwhelmingly turned hawkish in a vain attempt to gradually let the air out of the massive bubbles they have spent the last decade recreating. Unfortunately, that is not the nature of asset bubbles—they don’t end with a whimper–and they are about to burst in violent fashion.

Continue reading

Gerald Celente: Fed May Bring Down the Economy, Crash Markets

[To hear the interview (my preference) go to the podcast. -Bob]

By Mike Gleason – Re-Blogged From Money Metals Exchange

Oil Prices, War Fears, and Rising Inflation All Point to Gold Strength

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason

Coming up the one and only Gerald Celente joins me for another explosive interview on the state of the markets. Gerald tells us why he’s not only focused on the dollar but also oil and explains what is likely to happen if the Fed continues to hike interest rates. Don’t miss my conversation with the top trends forecaster in the world, Gerald Celente, coming up after this week’s market update.

Continue reading

Will The Fed’s Tightening Trigger Another Crisis?

By Arkadiusz Sieron – Re-Blogged From http://www.Gold-Eagle.com

The recent currency and debt crises in Argentina and Turkey raise questions about the condition of the global economy in general and the emerging countries in particular. Are they merely isolated events without broader implications or are they canary in the emerging market mine?

This question is timely and worryingly justified in the context of the ongoing Fed’s tightening cycle and the ECB’s shy steps toward normalization of its monetary policy. Historically speaking, the Fed’s tightening used to end with some sort of market crisis, including U.S. recession and turbulences in the emerging markets which rely heavily on dollar-denominated debt (as a reminder, the dollar lending outside the U.S. stands at about $11 trillion today). As one can see in the chart below, practically all recessions in America occurred after the Fed’s tightening cycle.

Continue reading