Debt | CMI Gold & Silver

The graph below is scary

Whenever corporate debt-to-GDP has had sharp runups, reaching levels of 40% plus, recessions have followed. Three times since 1986, aggressive taking on of corporate debt has been followed by recessions.

A crisis is coming

Listening to analysts and economists who are frequent guests on financial programs, you might conclude that higher interest rates — which the Fed is imposing — will be good for the economy. No, they won’t.

All is well

If you watch the financial news networks, especially Fox, you are told that “All is well,” that the economy will grow this year somewhere near 3% and that stocks are still good buys. However, there are indicators of strains on the economy that are not often mentioned on Fox.

Gold out performs stocks

So far this year, gold has outperformed stocks, up 2.5%, about what the Dow Industrials are down, for a 5% difference. Still, gold’s performance this year has been disappointing to many investors considering the huge downside moves that stocks put in this year. For 2017, the S&P 500 gained 19.4%, the Nasdaq 28.2%, and the

$210 trillion dollars in unfunded liabilities

According to news wire reports, gold’s $20 plus upside move today is part of a rush to safe havens. US Treasuries are up also, which means that yields are down. The blame, again according to reports, lies with the tariffs that Trump laid on Chinese imports. China fired back with tariffs of its own. Will

The dollar will be destroyed

In my post No reflation?, I discussed the perma-bulls’ continued recommendation of “buying the dips.” In support of their position, TV talking heads speak of an “improved economy and higher corporate earnings” as reasons to continue buying stocks. However, if I’m reading David Stockman’s reports correctly, what the perma-bulls are really counting on is “reflation”

A dire financial condition

Gold bugs know the dire circumstances of the federal government’s financial condition, but now mainstream columnists and talking heads are throwing out statistics that should cause even the most devoted stock investors to consider buying gold or silver:

Dollar down, gold up; deficit spending the catalyst

The dollar sank 11.7% over the last twelve months, and gold climbed 10%. The dollar is measured against a basket of non-redeemable paper currencies, the euro (57.6%), the yen (13.6%), pound sterling (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%) and the Swiss franc (3.6%). Only a few decades ago currencies were measured against gold. For

A flawed assumption

All the talk in political and monetary circles is about the GOP efforts at tax reform. At this time, it is not possible to know the final form the bill will take. The Senate has its version, the House has its version. Compromises will have to be made, and there will be some serious horse

What to buy?

Recently a client wrote: “In 2004, I started buying gold and silver because of increasing US debt, thinking that inflation would come about and the dollar would suffer. Now David Stockman (former Budget Director under Ronald Reagan) forecasts imminent doom for the stock and the bond markets. And, I agree that it will most likely

Category: Debt

The graph below is scary

A crisis is coming

All is well

Gold out performs stocks

$210 trillion dollars in unfunded liabilities

The dollar will be destroyed

A dire financial condition

Dollar down, gold up; deficit spending the catalyst

A flawed assumption

What to buy?

Recommended Gold Bullion Coins

Additional Gold Coins

Gold Bullion Bars

U.S Silver Coins

Silver Bars

Additional Bullion Products