Recession

What Went Up Came Down And Up And Will Come Down Again

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By David Haggith – Re-Blogged From Silver Phoenix

It can’t come as any surprise that the stock market’s lofty balloon ride during the past couple of months fell because of a few words this week. It only rode up on sweet tweets by Trump about trade, which created a thermocline for it to ride. So, of course, the market plummeted this week in the unexpected downdraft of Trump’s out-of-the-blue statement that his trade deal may be a year away … even for phase one.

I don’t know if ignorant traders drive these vain accessions and declensions or just ignorant machines that have no ability to discern truth, so blindly they take all presidential headlines at face value.

Who could be surprised that stocks got off to their worst December start since the beginning of the Great Recession when Trump said a trade deal might best be shelved until after the 2020 elections? It was, however, apparently a fleeting horror to those who had actually believed Trump about a phase-one deal being imminent this month. One could only watch the surprised reactions with amusement, given there was no reason there should have been any surprise at all.

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The Relentless Road to Recession

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By David Haggith – Re-Blogged From The Great Recession Blog 

“Show me the data,” demand those who cannot see a recession forming all around them and who keep parroting what they are told about the economy being strong because it is what they want to believe; yet, the data look like an endless march through a long summer down the road to recession.

And that is what you are going to get in this article, a seemingly endless parade of data along the recessionary road. This is for the data hounds.

As we end the summer of our discontent when few would deny that most economic talk turned toward recession and, as we begin the time when I said the stock market appears it may fulfill my prognostication of another October surprise, it’s time to lay out — again — the latest data that support my summer recession prediction. We’ll have to wait until next year for the government to officially declare a recession if one did start in September. (Yes, September is a summer month.) In the meantime, the data stream is a long line of confirmation.

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Sounds of Silence and Hopium

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By Gary Christenson of Miles Franklin – Re-Blogged From Deviant Investor

What Silence?

Have you heard loud warnings from Mainstream Media or from official government sources about the following huge problems? No! Official sources and the media are largely silent. They can’t/won’t discuss our serious problems and prefer the hopium strategy.

Gold and Debt: Asia has accumulated thousands of tons of gold. The U.S. has created over $22 trillion in federal government debt and $72 trillion in total debt per the St. Louis Federal Reserve. What happens when they devalue the dollar further, and gold prices go sky high?

Answer: Consumer prices for Americans will climb much higher. Gold will protect purchasing power, but few will own it. Asian economies will flourish, and the west will drown in debt.

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Disaster Of Negative Interest Rates

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By Ellen Brown – Re-Blogged From Gold Eagle

President Trump wants negative interest rates, but they would be disastrous for the U.S. economy, and his objectives can be better achieved by other means.

The dollar strengthened against the euro in August, merely in anticipation of the European Central Bank slashing its key interest rate further into negative territory. Investors were fleeing into the dollar, prompting President Trump to tweet on Aug. 30:

The Euro is dropping against the Dollar “like crazy,” giving them a big export and manufacturing advantage… And the Fed does NOTHING!

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Great Recession 2.0 is Obscured but Here!

usissuescom GDP & Employment, Monetary Policy , , , , ,
By David Haggith – Re-Blogged From The Great Recession Blog

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Scary Warning Signs In Cash Funding Markets

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By Mike Gleason – Re-Blogged From Gold Eagle

Mike Gleason: It is my privilege now to welcome back Michael Pento, President and Founder of Pento Portfolio Strategies. Michael is one of our very favorite market commentators that we have on the podcast and is a well-known money manager, and author of the book The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market. He’s been a regular guest right here with us over the past few years, and we always love getting his wonderful insights. Well, Michael, I’d like to start out with a question about the repo markets and I’m hoping you can make sense of all this for us. Now the Fed is pumping hundreds of billions of dollars into these markets in ongoing overnight operations. We’re being told that this is just a matter of routine.

The markets certainly don’t seem too bothered, perhaps because Fed officials are out front assuring people that there is nothing to worry about. Unfortunately, that may be a signal that the opposite is true. Our central bankers are notorious for not telling the whole story and for being wrong, if not outright dishonest. So, if these operations are not extraordinary, one has to wonder why we don’t see the Fed doing this on a regular basis.

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The Yield “Curve” Knows

usissuescom Monetary Policy , , , , , , ,
By Craig Hemke – Re-Blogged From Gold Eagle

As global interest plummets to historically negative levels—and as the U.S. bond market reveals a deeply inverted yield curve—it’s time again to assess what all of this means for the precious metals investor.

Just yesterday, a fellow on CNBC remarked that “no one had seen this coming”. By “this”, he meant a sharp rally in both gold and bonds. Oh really? We write these articles for Sprott Money each and every week.

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