The Approaching Storm

By Gary Christenson -Re-Blogged From Gold Eagle

Peter Schiff explained “What Happens Next.” This article takes his “likely sequence of events” and expands the discussion.

His sequence:

  1. Bear Market
  2. Recession
  3. Deficits explode
  4. Return of ZIRP and QE
  5. Dollar tanks
  6. Gold [and silver] soars
  7. CPI spikes
  8. Long-term rates rise
  9. Federal Reserve is forced to hike rates during a recession
  10. A financial crisis without stimulus or bailouts.

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Inflation Target Regrets

By Michael Pento – Re-Blogged From Silver Phoenix

Beginning this fall, and continuing throughout 2019, the stock market’s performance should be vastly different from what has occurred during the prior few years. Indeed, the huge reconciliation of stock prices is arriving now.

The primary reason behind this is the watershed change in global central banks’ monetary policies. For years central banks had been keeping rates near 0%, or below, and at the same time printing over a hundred billion dollars’ worth of fiat currencies each and every month to purchase bonds and stocks. That is all changing now. According to Capital Economics, fourteen major global central banks are either in the process right now, or have indicated that they be will next year, in the process of raising interest rates. At the same time, QE on a global net basis will plunge from $180 billion per month at its peak during 2017, to $0 by December…and will then go negative in 2019.

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Stocks’ Last Cheap Sector

By Adam Hamilton – Re-Blogged From Gold Eagle

The lofty stock markets suffered a sharp selloff this week that may prove a major inflection point.  There was one lone sector that bucked the heavy selling to surge in the carnage, the gold miners’ stocks.  They are the last cheap sector in these bubble-valued stock markets, long overlooked and neglected.  Wildly undervalued today, the gold stocks have great potential to soar dramatically even if stock markets keep weakening.

Just several weeks ago, the US stock markets hit new all-time record highs stoking universal euphoria.  The flagship S&P500 broad-market stock index (SPX) closed at 2930.8 in late September, extending its monstrous bull to 333.2% over 9.5 years.  That made for the 2nd-largest and 1st-longest in US stock-market history!  It also left these markets dangerously overvalued, literally trading at bubble valuations.

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New Age Fiscal Stimulus Is Unprecedented

By John Rubino – Re-Blogged From Dollar Collapse

In a normal business cycle, the economy expands for a while and businesses hire lots of new people at somewhat higher wages, generating enough tax revenue to shrink the government’s budget deficit – and in rare cases produce a surplus. So, for a while, the government borrows less money.

Not this time. The current recovery is nearly ten years old and the labor market is so tight that desperate companies are trying all kinds of new tricks to attract workers – including higher wages.

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Inflation Is Back, Part 9: Two Sentences Say It All

By John Rubino – Re-Blogged From Dollar Collapse

Okay, one more look at wage inflation, followed by a short diatribe on the unfairness of life.

As the labor markets get tighter, power is finally shifting from companies to workers. For some reason Iowa is leading the way (the promised two sentences are in bold):

Say Hello to Full Employment — Want to know where the economy is headed? Look at Des Moines

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Stock Markets Hyper-Risky 3

By Adam Hamilton – Re-Blogged From http://www.Silver-Phoenix500.com

The lofty US stock markets remain riddled with euphoria and complacency, fueled by an exceptional bull. Investors believe downside risks are trivial, despite long years of epic central-bank easing catapulting valuations to dangerous bull-slaying extremes. This has left today’s markets hyper-risky, with a massive bear looming as the Fed and ECB increasingly slow and reverse their easy-money policies. Caveat emptor!

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Cheap Gold Stocks Basing 2

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold miners’ stocks are drifting listlessly in the summer doldrums, largely forgotten by investors and speculators. They are missing a fantastic opportunity to buy low in this barren sentiment wasteland when no one else wants to. The gold stocks remain exceedingly cheap relative to the metal which drives their profits, and they continue to establish a strong technical base. They are ready to soar as gold returns to favor.

Gold-stock investing feels pretty thankless these days, like an exercise in self-flagellation. Thus there aren’t many traders left in this realm. Week after week as gold stocks continue to drift on balance, the ranks of remaining investors and speculators dwindle. Interest in this sector is among the lowest I’ve ever seen in decades of actively trading gold stocks. They’ve been left for dead as contrarians vanish.

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