One Table And Two Charts Show Why Stocks Are A Bad Place To Be

By John Rubino – Re-Blogged From Dollar Collapse

US stocks are behaving amazingly well given the political and economic near-chaos of the past few months. This is probably the first recession that inflated rather than popped financial asset bubbles.

Why? Because panicked governments and central banks are dumping trillions of play-money dollars into the system, a big part of which flow directly into the brokerage accounts of the 1%.

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Caught In A Debt Trap

[This author considers Public and Private Debt as equivalent – I DON’T! Private debt intends to create a good or service with more value than the debt incurred, while Public debt intends (though never said this way) to create a political good or service with less value than the debt it is created from. While sometimes – as with the Interstate Highway System –  the public debt can give something of value, most often the value is tiny or even negative. Ignore for a moment that Public and Private Debt inherrently are different, and the following can give reasonable insights.  –Bob ]
By John Mauldin – Re-Blogged From Silver Phoenix

We’re caught in a trap

I can’t walk out Because I love you too much baby

Elvis Presley’s rendition of Suspicious Minds topped the record charts in 1969. The lyrics portray a romance that couldn’t work, but was also impossible to escape. That’s also a good way to describe our relationship with government debt. We know it can’t last, but we can’t walk out. We love government spending and its benefits (like Medicare, Social Security, and unemployment insurance) too much.

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Gold, The Simple Math

By John Hathaway – Re-Nlogged From Gold Eagle

The current pullback in the precious metals sector is a buying opportunity. Since trading at a closing high of $2,064 an ounce on August 6, gold bullion has declined 8.34% as of this writing.1 Gold mining shares have followed suit, declining 9.26% since the August high. It is possible that gold and related mining shares could continue to chop sideways to lower until the U.S. presidential election results are known and even into yearend as the implications are sorted out. Whatever the electoral outcome, the path towards monetary debasement is bipartisan. It is crucial for investors to focus on the long-term trend and to avoid the distractions of short-term timing considerations.

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Employment’s Recovery Road Comes To An End

By David Haggith – Re-Blogged From Silver Phoenix

A September To Remember

By David Haggith – Re-Blogged From Silver Phoenix

Try to remember the kind of September,

When life was slow and oh so mellow.

Try to remember the kind of September

When grass was green and grain was yellow.

Try to remember the kind of September

When you were a tender and callow fellow….

–Tom Jones

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Is Gold Market Going Back Into The 1970s?

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

They say that time travels are impossible. But we just went back to the 1960s! At least in the field of the monetary policy. And all because of a new Fed’s framework. So, please fasten your seat belts and come with me into the past and present of monetary policy – to determine the future of gold!

At the end of August 2020, the Fed has modified its Statement on Longer-Run Goals and Monetary Policy Strategy – for the first time since its creation in 2012. As a reminder, the Fed will now target not merely a 2 percent rate of inflation, but an average inflation rate of 2 percent, which allows overshooting after the periods of undershooting. So, the Fed will try to compensate for periods of low inflation with periods of high inflation . Hence, on average , we will see a more accessible monetary policy and higher inflation – Good news for the gold bulls.

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Monetary Distortions of GDP in 2021

By Alasdair MacLeod – Re-Blogged From GoldMoney

This article explains the effect of monetary inflation on GDP. Nominal GDP is directly inflated by additional money and credit, so GDP growth is simply a reflection of additional money in the economy. It gives no clue as to the underlying economic situation. Whether the monetary planners know it or not, targeting GDP growth with monetary expansion is a tautology. They only succeed in covering up a deeper recession, the cost of which will become apparent subsequently as the currency’s purchasing power declines. And despite the wealth destruction being wrought by currency debasement,

in the coming months we will see monetary expansion deployed more aggressively. An inflationary solution cannot succeed; but future GDP numbers will be artificially increased, encouraging policy makers to claim some success. But we should understand the simple relationship between increased quantities of money and the gains they impart to GDP, which will mislead macroeconomic analysts into thinking the economy is more resilient than it actually is.

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Q2 Was Disastrous

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

The real US GDP plunged with a 31.4 percent annual rate in Q2 of 2020. In that regard, what’s next for the American economy and the gold market?

We all know that the second quarter was disastrous for the US economy. And now, it’s official. Last week, the Bureau of Economic Analysis published the third real GDP estimate in the Q2. According to the report, the real GDP decreased at an annual rate of 31.4 percent (slightly better than the second estimate of 31.7-percent plunge), or 9 percent more from the previous quarter and the second quarter of 2019, as the chart below shows. In other words, the US economy has suffered the sharpest contraction since the government started keeping records in 1947.

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The Emerging Evidence Of Hyperinflation

By Alasdair Macleod – Re-Blogged From Goldmoney

Note: all references to inflation are of the quantity of money and not to the effect on prices unless otherwise indicated.

In last week’s article I showed why empirical evidence of fiat money collapses are relevant to monetary conditions today. In this article I explain why the purchasing power of the dollar is hostage to foreign sellers, and that if the Fed continues with current monetary policies the dollar will follow the same fate as John Law’s livre in 1720. As always in these situations, there is little public understanding of money and the realisation that monetary policy is designed to tax people for the benefit of their government will come as an unpleasant shock. The speed at which state money then collapses in its utility will be swift. This article concentrates on the US dollar, central to other fiat currencies, and where the monetary and financial imbalances are greatest.

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Sales of New Homes Surge; Mortgage Rates Tick Up

By Associated Press – Re-Blogged From Headline Wealth

The market for newly constructed homes in the U.S. continued its upward climb in August, despite the ongoing pandemic and lingering worries about the future of the U.S. economy.

The Commerce Department said sales new homes rose by a very strong 4.8% in August to a seasonally-adjusted annual rate of 1.01 million units. That’s on top of the massive jump in new home sales that happened in July, climbing that month by 13.9%.

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Overvalued Stocks Head Into The Bunker

By Michael Pento – Re-Blogged From Silver Phoenix

The overvaluation of stocks relative to the economy has placed them in such rarefied space that the market is subject to dramatic and sudden air pockets. Our Inflation Deflation and Economic Cycle model is built to identify both cyclical and secular bear markets and protect and profit from them.

However, what it cannot do, nor can anyone else, is anticipate every short-term selloff in stocks. While the IDEC strategy protects and profits from bear markets, it also tends to soften the blow from short-term selloffs and prevents us from panicking at the bottom of every brief correction. This was the case in the latest plunge that started on September 3rd and lasted just three brutal days.

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Slow Recovery From Virus Unlikely To impede Strong Demand For Metals

By Rick Mills – Re-Blogged From Gold Eagle

Daily coronavirus cases may be down in the United States, but that is no reason to be complacent, especially given that cold and flu season is only a few weeks away, says the nation’s top doctor.

In a roundtable discussion Thursday at Harvard Medical School, Dr. Anthony Fauci warned that “we need to hunker down and get through this fall and winter, because it’s not going to be easy.” He compared the pandemic to the early days of HIV in terms of how quickly it escalated, and how it might continue to escalate, if current trends of low mask-wearing and social distancing continue. “We’ve been through this before,” he said. “Don’t ever, ever underestimate the potential of the pandemic. And don’t try and look at the rosy side of things.”

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Inflation, Deflation And Other Fallacies

By Alasdair Macleod – Re-Blogged From Gold Eagle

There can be little doubt that macroeconomic policies are failing around the world. The fallacies being exposed are so entrenched that there are bound to be twists and turns yet to come.

This article explains the fallacies behind inflation, deflation, economic performance and interest rates. They arise from the modern states’ overriding determination to access the wealth of its electorate instead of being driven by a genuine and considered concern for its welfare. Monetary inflation, which has become runaway, transfers wealth to the state from producers and consumers, and is about to accelerate. Everything about macroeconomics is now with that single economically destructive objective in mind.

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Arrival Of The Epocalypse And The 2020 Stock Market Meltdowns

By David Haggith – Re-Blogged From Gold Eagle

I just finished with one of my readers, Bob Unger, and I thought Bob’s questions led to a well-rounded expression of how, over the past two years, our economy got to the collapse we are in now, how predictable the Federal Reserve’s policy changes and failures were, why economic recovery has stalled, and why the stock market was certain to crash twice this year, including why the second crash would likely hit around September.

I’ve found Bob’s interviews with others interesting, so I recommend checking out his YouTube page. I had no idea where the interview below would go, but it wound up encapsulating my main themes for the past two years:

MarketWatch

(Other interviews I’ve done are linked in the right side bar where I usually just let people stumble onto them on their own.)

CONTINUE READING –>

Inflation By Fiat

By Michael Pento – Re-Blogged From Silver Phoenix

The Fed has now officially changed its inflation target from 2%, to one that averages above 2% in order to compensate for the years where inflation was below its target. First off, the Fed has a horrific track record with meeting its first and primary mandate of stable prices. Then, in the wake of the Great Recession, it redefined stable prices as 2% inflation—even though that means the dollar’s purchasing power gets cut in half in 36 years. Now, following his latest Jackson Hole speech, Chair Powell has adopted a new definition of stable prices; one where its new mandate will be to bring inflation above 2% with the same degree and duration in which it has fallen short of its 2% target.

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Economic Data Suggests Reopening, not Recovery

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

Retail sales growth has slowed down. What does it mean for the U.S. economy and the gold market? Retail sales increased 1.2 percent in July. The growth was worse than expected, which hit the U.S. stock market. As the chart below shows, the number was also much weaker than in the two previous months (8.4 percent gain in June and 18.3 percent jump in May), when it seemed that the economy started to rebound.

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Denial Dominates the Dummies

One of my reasons I started this website years ago was to counter all the denial that I saw in the mainstream media about how long and deep the problems from the Great Financial Crisis would be and about how we were failing in every way to resolve the greed, decay and especially faulty thinking that would assure our next collapse would be even greater than the Great Recession.

Today, the same lame thinking still dominates, but not just in the media. It’s pervasive in the general public, too. Of course, it is particularly prevalent among high-flying stock investors, who actually think because stocks can float above it all, the world must be doing fine.

US In Long-term Economic Decline

By David Haggith – Re-Blogged From Gold Eagle

Measured by the common man, we’re on the road to ruin. The US has been in decline for decades, but you can’t see that by looking at stocks. You can’t tell it from those who lie about the economy to make their living, but look at long-term real numbers, and you see an empire in decline that just got its wobbly legs kicked out by COVID-19.

The clamor of false profits

Listen to the kinds of false narratives being spun to claim the economy is largely recovering. Call it the relentless and unrealistic belief in a V-shaped recovery narrative or whatever you want to call it, but the nonsense is still flourishing, though not the economy.

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Will Vaccines Become a Bridge to Nowhere?

The monthly U.S. budget deficit for June 2020 was a heart-stopping record $864 billion. For reference, last year’s deficit for all of fiscal 2019 was just under $1 trillion. In other words, the June deficit was almost as much as the entire amount of red ink spilled one year ago. This year will see the worst annual amount of fiscal hemorrhaging ever—and by a whole lot. The figure will be at least $4 trillion in total, which is $2.6 trillion more than the peak suffered under the Great Recession. One has to imagine that with the Department of Labor reporting, there are now 32 million people collecting unemployment insurance as of June 27th–the amount of additional debt continues to pile up fast.

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The Express Train To Insolvency

By GE Christenson – Re-Blogged From Gold Eagle

·     Gold reached $1,800, close to its all-time high of $1,923.

·     Silver reached $19, a long way from its high of $50.

·     The NASDAQ hit another new high.

·     Tesla closed on July 10 at $1,544, a new high. Tesla looked outrageously high at $1,200.

Now  the bubble has blown even larger.

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Goldman’s Stacks of Gold

Goldman Sachs, JPMorgan, and BlackRock Financial Management are stacking up wealth like never before, thanks to the Great Recession 2.0, a.k.a. the Second Great Depression. Yet, the Fed maintains its recovery plans do not create wealth disparity.

Fed-hawk Ron Paul wrote this week,

Federal Reserve Chair Jerome Powell and San Francisco Fed President Mary Daly both recently denied that the Federal Reserve’s policies create economic inequality. Unfortunately for Powell, Daly, and other Fed promoters, a cursory look at the Fed’s operations shows that the central bank is the leading cause of economic inequality….

Fiscal Cliffs and the Self-Destructing Treasury

We can all be very confident that there will be no change to monetary policy for a very, very long time. But there is a fiscal cliff coming—and indeed has already begun.

It is clear that Mr. Powell is all-in on his unlimited QE and ZIRP. And, that he is “not even thinking about thinking about raising interest rates.” Therefore, the stock market does not have to worry about a contraction in the rate of money printing any time soon. However, equities could soon plunge due to the crash in the amount of fiscal support offered to the economy.

  • Last month, the auto-loan and credit-card forbearance period ended
  • On July 1, state and local government budget cuts kicked into high gear, as the $330 billion in aid already dispensed has been wasted

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A Look At China

By Mark J Lundeen – Re-Blogged From Gold Eagle

Since June 11th (the past month) the Dow Jones continues struggling with what it’s to do next; break above and stay above its BEV -10% line, or break below and stay below its BEV -15% line.

What’s the Dow Jones waiting for?  As seen in my next chart showing the weekly changes in the Federal Reserve’s holding of US Treasury Debt, the Dow Jones is waiting for another “injection” of “liquidity.”

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The Economic Death March Has Come To Town!

By David Haggith – Re-Blogged From Silver Phoenix

The coronavirus pandemic inflicted a “swift and massive shock” that has caused the broadest collapse of the global economy since 1870 despite unprecedented government support, the World Bank said.

“This is a deeply sobering outlook, with the crisis likely to leave long-lasting scars and pose major global challenges,” said World Bank Group Vice President for Equitable Growth, Finance and Institutions Ceyla Pazarbasioglu….

The depth of the crisis will drive 70 to 100 million people into extreme poverty.

How Deep Is Your Depression?

By David Haggith – Re-Blogged From Gold Eagle

We are nearing that mid-point in July when I said we would start to see the news turn from euphoria-inducing reopening positives to depression-developing realism.

Speaking of stock-market bulls who are stampeding uphill on the euphoria side, I wrote,

Right now the farce is with them — reopening has arrived! And these stupid people will believe that means they were right about the “V,” virtually assuring they continue to bet the market up for a little while…. The reopening means economic statistics will improve rapidly. That will give a lot of stupid people many reasons to believe they were right to think the obliterated economy would experience a V-shaped recovery.

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A Collapsing Dollar And China’s Monetary Strategy

Alasdair Macleod – Re-Blogged From Gold Eagle

This article describes how China can escape the fate of a dollar collapse by tying the yuan to gold. There is little doubt she has access to sufficient gold. Currently, her interest is to preserve the dollar, not destroy it, because it is the principal means of Chinese foreign interests being secured .

Furthermore, a return to sound money requires China to reverse its interventionism under Xi, returning to Deng Xiaoping’s original vision. Sound money can only last if the relationship between the state and the wider economy is properly addressed.

Of all the major economies, China’s is best placed to implement a sound money solution. At the moment it seems unlikely the necessary reforms will be forthcoming; but a general collapse of the global fiat currency regime presents the opportunity for reassessment and change.

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Alternate Unemployment Charts

By John Williams – Re-Blogged From Shadow Stats

The seasonally-adjusted SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated long-term discouraged workers, who were defined out of official existence in 1994. That estimate is added to the BLS estimate of U-6 unemployment, which includes short-term discouraged workers.

The U-3 unemployment rate is the monthly headline number. The U-6 unemployment rate is the Bureau of Labor Statistics’ (BLS) broadest unemployment measure, including short-term discouraged and other marginally-attached workers as well as those forced to work part-time because they cannot find full-time employment.

 

Public Commentary on Unemployment

Unemployment Data Series   subcription required(Subscription required.)  View  Download Excel CSV File   Last Updated: June 5th, 2020

May 2020 ShadowStats Alternate Unemployment is 34.0%, 36.5% net of BLS errors (Flash Nos. 1435 and 1439).

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Retail Sales Headlines Are A Complete Joke

By Dave Kranzler – Re-Blogged From Silver Phoenix

The stock market promoting mainstream media this morning reported “U.S. Retail Sales Rose Record 18% in May” (e.g. the Wall St Journal).  The S&P futures jumped from up 45 points to up 90 points.

But, as usual, the details are in the fine print of the report itself, and it’s apparent that nobody in the financial media bothered to look beyond the headlines.

In fact, the 18% rise is measured from April’s report, which was heavily depressed due to the shelter-in-place restrictions and the closure of many retail businesses. Funny thing about using the percentage change as the metric of measurement. If April had one dollar of retail sales and May had two dollars, the percentage gain would have been 100%.

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Is America Headed For A Post-Apocalyptic Currency Collapse?

By Stefan Gleason – Re-Blogged From Silver Phoenix

Just when it seemed as though America may be turning the corner after months of lockdown… just when it seemed as though we were on a path to reopening and gradually returning to normalcy… just when the prospects of panic-induced social unrest seemed to be behind us…

…America’s cities erupted into flames.

Antifa and BLM-organized rioting, looting, violence, and mayhem have pushed cities across the country into pandemonium. Even if the insurrections are soon quelled – as President Donald Trump promised to do in a speech in front of the White House on Monday – the consequences won’t soon go away.

The Global Forest Fire Is Here

It drives you absolutely mad to see a whole world living a lie. How can anyone believe that the fake world the Fed and their fellow central bankers have created has anything to do with reality. We have fake money, fake markets, fake companies, fake banks, fake interest rates, fake income, fake pensions, fake social security, fake wealth, fake bail outs, fake buildings, fake holidays, fake cars etc which create false lives for most of us especially in the West. All these fake material values have also created false moral and ethical values.

IT IS ALL AN ILLUSION 

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April’s Sales Drop Sets a Record

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Unintended Consequences Of Monetary Inflation

By Alasdair Macleod – Re-Blogged From Gold Eagle

“In short, the Fed is committed to rescue businesses from the greatest economic catastrophe since the great depression and probably even greater than that, to fund the US Government’s rocketing budget deficits, fund the maintenance of domestic consumption directly or indirectly through the US Treasury, while pumping up financial markets to achieve these objectives and preserve the illusion of national wealth.

“Clearly, we stand on the threshold of an unprecedented monetary expansion.”

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Rising Wages and More Bad News From Friday’s Horrific Payrolls Report

By Lisa Bellfuss – Re-Blogged From Barrons

The coronavirus pandemic claimed 20.5 million jobs in April as companies across America were forced to close and consumers stayed home to cap the disease’s spread.

The Labor Department said Friday that the job losses in April followed a downwardly-revised loss of 870,000 in March . So far, about one in five workers are unemployed.

Investors knew this would be one of the worst jobs reports in history . The decline in nonfarm payrolls for April is about three times as bad as the jobs lost over the entire Great Recession, with the depth of the losses not seen since the Great Depression. But the headline number was about in line with the 21 million job losses economists predicted, and the unemployment rate—at least on the surface—looks not as bad as feared. Stocks rose following the report, with the S&P 500 up about 1.1% and the Dow Jones Industrial Average higher by 1.2% in afternoon trading.

The question that remains is how quickly these laid off workers can be rehired and start spending again to restart the U.S. economy.

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Money Printing Is The New Mother’s Milk Of Stocks

By Michael Pento – Re-Blogged From Silver Phoenix

My friend Larry Kudlow always says that Profits are the mother’s milk of stocks. That used to be true when we had a real economy. But sadly, that is no longer factual because we now have a global equity market that is totally controlled by central banks. To prove this point, let’s look at the last few years of earnings. During the year 2018, the EPS growth for the S&P 500 was 20%; yet the S&P 500 Index was down 7% over that same time-frame.

Conversely, during 2019, the S&P 500 EPS growth was a dismal 1%; yet the Index surged by nearly 30%. What could possibly account for such a huge divergence between EPS growth and market performance? We need only to view Fed actions for the simple answer: it was the degree to which our central bank was willing to falsify asset prices.

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Fiercest Economic Collapse In History Is Best Month For Stock Market

By David Haggith – Re-Blogged From Silver Phoenix

It was the best of times, it was the worst of times. April closed as the best month for the US stock market since the V-shaped recovery that followed the Black Monday stock market crash of 1987. April also delivered the deepest, broadest economic collapse of any month in history.

The economic collapse was simultaneously global. What is written here about the US can pretty well be said for all nations in the world. The collapse crushed jobs, personal income, consumer spending, consumer sentiment, car sales, and general economic activity more than any month in the history of the nation. Some of those sharpest declines happened in March, but April relentlessly drove to to greater depths. But stocks rose.

It’s Only Paper

By Keith Weiner – Re-Blogged From Silver Phoenix

The response to the virus has added a new mechanism of capital consumption to the many we have documented over the years. Businesses are shut down, yet they continue to incur expenses. There is a popular misconception out there that this is merely a paper loss. One can almost picture a neutron bomb that somehow wipes out only paper, leaving all the physical assets and plant unscathed. It’s a pleasant fantasy. And it’s quite a popular one—not only amongst all the usual suspects, but even an Austrian school economist of our acquaintance asserted it.

As an aside, this illustrates that, too often, economists are unfamiliar with business. The economist looks at a closed restaurant and thinks there’s no reason why this restaurant can’t be mothballed for a day, a week, a month, or a year. The owner of the restaurant would object that he’s still paying certain expenses, even if he’s laid off all of his staff. And the economist retorts, “That’s just paper!”

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What’s Causing Job Loss

By Willis Eschenbach – Re-Blogged From WUWT

I’ve read claims on the web that the job losses in the US were due to the virus itself, and to the fear of the virus making people cut back on activities. The claims are that the job loss is more from that, and not so much a result of the American Lockdown. So I thought I’d take a look at the weekly new claims for unemployment insurance. Of course, the different states have been hit differently by the changes. Here’s the graph of weekly new unemployment claims for one of the least affected states, Oregon.

Figure 1. Weekly new unemployment claims, Oregon, since 1999. “Usual” refers to the one-year period preceding the record rise.

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Coronapocalypse Is Deeper Than The Great Recession

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

The recent economic reports show that the current coronavirus crisis will be bigger than the Great Recession. What does it imply for the gold market?

US Economic Data Paints a Gloomy Picture

This week was full of new reports about the US economy. And guess what, I don’t have good news… First of all, let’s start with the update about the weekly initial unemployment benefits. In normal times, the initial claims are not too keenly watched by investors. But in times of a pandemic, they are very informative. The spike in the initial claims may even become the symbol of this crisis. Anyway, the number of new claims for the unemployment benefits declined from 6.6 million in the previous week to 5.2 million in the week from April 4 to April 11, as the chart below shows.

Chart 1: Initial jobless claims from April 2019 to April 2020

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Does Gold Really Care Whether Coronavirus Brings Us Deflation Or Inflation?

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

One of the many bothering issues about the coronavirus crisis, is whether it will turn out to be inflationary or deflationary. What do both of these scenarios mean for gold ahead?

US Inflation Rate Declines in March

Many people are afraid that the coronavirus crisis will spur inflation. After all, the increased demand for food and hygiene products raised the prices of these goods. Moreover, the supply-side disruptions can reduce the availability of many goods, contributing to their increasing prices.

On the other hand, the current crisis results not only from a negative supply shock, but also from a negative demand shock. As a result of uncertainty, people cling to cash and forego unnecessary expenses. In addition, social distancing means reduced household spending on many goods and services, which exerts deflationary pressure. The most prominent example is crude oil, whose price has temporarily dropped to just $20 a barrel (although this was partly due to the lack of agreement between OPEC and Russia). Lower fuel prices will translate into lower CPI inflation rate. Entrepreneurs, especially those with large stocks of goods, will probably lower prices to encourage shopping. Moreover, the appreciation of the US dollar means lower prices of imported goods.

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Inflationary And Insolvency Implosion Of The Bond Market

We are all praying for the Wuhan virus to die. But there is something the virus can actually “cure” itself: deflation. I put the word cure in quotes because it’s not an actual issue in reality. Low inflation and disinflation are actually great conditions to enjoy and help an economy thrive. Increasing the purchasing power of consumers is something that should be cherished and targeted goal. Increases in productivity, along with a strong currency, raises your standard of living. In sharp contrast, Central Banks think any rate of inflation that is less than 2% is a deadly economic disease that must be vanquished faster than the Wuhan virus.

Many Austrian economists believed the money printing that occurred during the Great Recession of 2008 would engender massive inflation. That indeed turned out to be the case; but only with asset price inflation. The Fed’s balance sheet expansion left Consumer Price Inflation (CPI) far behind. This is because the Fed bailed out banks, not consumers. Mr. Bernanke printed trillions of new dollars to purchase bad assets from banks’ balance sheets. Thus, it gave banks credit in exchange for those assets; and that base money was primarily parked back at the Federal Reserve. In other words, there was a huge increase in Fed credit but not in loans that would have led to an increase in the broader monetary aggregates—the kind of money supply increase that leads to rising CPI. What money that was lent out arrived directly to Wall Street by the process of banks selling MBS, ABS and other troubles assets and then using that credit to buy more bonds and stocks. The rich got richer and the lower classes were, for the most part, left out in a big way.

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Will Fed And President Trump Save The US Economy

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

The Trump administration will seek an additional $250 billion to support small businesses hurt by the widespread economic shutdown and slowdown. Will the government and the Fed save the US economy? What would be the consequences for the gold market?

US Epidemiological Update

As of April 7, more than 360,000 people were confirmed to be infected by the coronavirus in the US, and more than 10,000 out of them died because of the COVID-19, as the chart below shows. Actually, the US is entering the worst period of the epidemic, as hospitals are struggling to maintain and expand capacity to care for infected patients.

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The Coronavirus Shutdown “Could Collapse The Mortgage Market”

– Re-Blogged From The Economic Collapse

The cascading failures that have been set into motion by this “coronavirus shutdown” are going to make the financial crisis of 2008 look like a Sunday picnic.  As you will see below, it is being estimated that unemployment in the U.S. is already higher than it was at any point during the last recession.  That means that millions of American workers no longer have paychecks coming in and won’t be able to pay their mortgages.  On top of that, the CARES Act actually requires all financial institutions to allow borrowers with government-backed mortgages to defer payments for an extended period of time.  Of course this is a recipe for disaster for mortgage lenders, and industry insiders are warning that we are literally on the verge of a “collapse” of the mortgage market.

Never before in our history have we seen a jump in unemployment like we just witnessed.  If you doubt this, just check out this incredible chart.

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US Sheds 701K Jobs, Ending a Record-Long Hiring Streak

Two-thirds of the job cuts during March were at restaurants, hotels and casinos…

US Sheds 701K Jobs, Ending a Record-Long Hiring Streak

A pedestrian walks by The Family Barbershop, closed due to a Gov. Gretchen Whitmer executive order, in Grosse Pointe Woods, Mich./AP Photo

A record-long streak of U.S. job growth ended suddenly in March after nearly a decade as employers cut 701,000 jobs because of the viral outbreak that’s all but shut down the U.S. economy.

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The Out Has Not Yet Begun To Fall

By Keith Weiner – Re-Blogged From Gold Eagle

So, the stock market has dropped. Every government in the world has responded to the coronavirus with drastic, if not unprecedented, violations of the rights of the people. Not to mention, extremely aggressive monetary policy. And, they are about to unleash massive fiscal stimulus as well (for example, the United States government is about to dole out over $2 trillion worth of loot).

The question on everyone’s mind is what will be the consequences?

The standard analysis is that governments will print massive amounts of money. And, this will, of course, cause massive inflation (i.e., skyrocketing consumer prices). There’s just one problem with this analysis.

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A Tale Of Two Markets

EU Green Leader Explains Climate Change and Democracy

By Eric Worrall – Re-Blogged From WUWT

According to Valentin Dupouey, head of communications for the European Greens, a pan-European federation of green parties, a major overhaul of Democracy is required to force acceptance of the economic de-growth required to address the climate crisis.

He also thinks its important to explain to China that because of climate change, “a Chinese average citizenwill never be able to reach the material lifestyle of a French minimum-wage worker.

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Bills Are Coming Due

By Associated Press – Re-Blogged From Headline Wealth

The outbreak of the coronavirus has dealt a shock to the global economy with unprecedented speed. Following are developments Friday related to the global economy, the work place and the spread of the virus.


UNDER REVIEW: This week, the U.S. reported that a staggering 3.3 million Americans applied for unemployment benefits last week, a five-fold increase over the last high sent in 1982. On Friday, President Donald Trump signed a $2.2 trillion aid package into law. Few believe it will be the last in the aftermath of this viral outbreak. Credit ratings agencies are taking note of the financial standing of the U.S., and other nations.

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The Energy Disaster Kicking Into Full Gear

By SRSrocco – Re-Blogged From Gold Eagle

There’s more evidence finally surfacing in the media of the dire energy predicament the world is now facing.  The negative ramifications of peak oil and the falling EROI were going to hit the world economy within the next 2-5 years, but the global contagion has sped up the process considerably.  Unfortunately, the world will never return back to the energy consumption and GDP growth experienced in 2019.  I believe the peak of unconventional oil production has finally arrived… FOREVER.

Here are a few highlights describing the ongoing ENERGY DISASTER taking place

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