Will Corona Virus Lead To A Gold Standard?

By Alasdair Macleod – Re-Blogged From Gold Eagle

Even before the coronavirus sprang upon an unprepared China the credit cycle was already tipping the world into recession. The coronavirus makes an existing situation immeasurably worse, shutting down China and disrupting global supply chains to the point where large swathes of global production simply cease.

The crisis is likely to be a wake-up call for complacent investors, who are content to buy benchmark bonds issued by bankrupt governments at wildly excessive prices. A recession turned by the coronavirus into a fathomless slump will lead to a synchronised explosion of debt issuance for which there are no genuine buyers and can only be monetised.

The adjustment to reality will be catastrophic for government finances, and their currencies. This article explains why the collapse in overpriced financial assets and fiat currencies is likely to be rapid, perhaps giving ordinary people in some jurisdictions an early prospect of a return to gold and silver as circulating money.

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Motte And Bailey Fallacy

By Keith Weiner – Re-Blogged From Gold Eagle

This week, we will delve into something really abstract. Not like monetary economics, which is so simple even a caveman can do it.

A Clever Ruse

We refer to a clever rhetorical trick. It’s when someone makes a broad and important assertion, in very general terms. But when challenged, the assertion is switched for one that is entirely uncontroversial but also narrow and unimportant. The trick is intended to foreclose debate of the broad assertion, not really to retreat to the narrow one.

The essence is bait-and-switch, or equivocation.

So let’s start with a simple example: diversity in a corporate board body is good. Suppose you demand why. The predictable answer is that it would be a boring world with less creative solutions if everyone on the board had the same background and perspective. Most people would agree with this, of course.

And that is the trick.

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The Yield “Curve” Knows

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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Deep State And Financial Powers Worry About Alternative Currencies

By Mike Gleason – Re-Blogged From Silver Phoenix

As markets continue to gyrate on global trade and tariff threats, precious metals are struggling to capture investor interest.

Lately, the big push in alternative assets has been in Bitcoin. The cryptocurrency has doubled in price over the past two months, though it remains well below its old high.

The full implications of new U.S. tariffs and retaliatory tariffs by China have yet to be reflected in markets. The media has reported on how tariffs could help or hurt particular industries. American farmers, for example, are worried they will suffer most from Chinese retaliation.

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The Fed’s Failure is a Fait Accompli

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

Here is a single chart that proves how completely the Fed’s end-game for its recovery failed, which means the fake recovery, itself, is failing. It’s not hard to figure out what happened here.

Talk about a euphoric rise at the end of the Trump Rally heading into 2018, followed immediately by a massive blow-off top. When you compare the size of the blow-off to the total size of the S&P 500, it looks almost like Mount Saint Helens blew its top off.

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How “Free Money” Helped Create Sizzling Housing And REIT Gains In Recent Years

By Dan Amerman – Re-Blogged From Silver Phoenix

Housing prices and the associated REIT returns have worked very differently in the United States since the recession of 2001. The increasing financialization of the real estate markets by Wall Street, and the aggressive and unconventional interventions by the Federal Reserve over that time, have combined in multiplicative fashion to produce new and volatile sources of housing profits and losses.

One such change has been the creation of an extremely powerful profit engine for housing, that most real estate investors have not been taking into account. Indeed, there is a strong mathematical case to be made that “yield curve spread compression” has supported and enabled the substantial majority of housing price gains for homeowners and investors on a national average basis since the beginning of 2014.

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“The PetroDollar Matrix”

At the forefront of the media’s attention today is Russia. We’re not really sure why, (well, of course we are) but it seems that Russia has become the new boogeyman. Everything is Russia’s fault. I’ve even heard rumors that the National Weather Service has plans to blame Russia for all the confounded rain in the Northeast and Mid-Atlantic this summer. We know – right away you’re thinking this is going to be about Russia but it’s really not. It’s about what the media isn’t telling you. It’s why (we believe), Trump’s Tweets, Ivanka’s Sweets, Russiagate, the left’s hate, the right’s hate (aka, establishment theatre) are all taking the headlines while a very disturbing trend is left in plain sight. It’s the 800-pound gorilla in the room during any discussion involving economics and geopolitics, but nobody wants to talk about it.

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