Worldwide demand for gold rose 6.2 tons year-over-year in Q3, led by robust central bank buying of 148.4 tons, the highest level of quarterly new purchases since 2015, reports the World Gold Council. Bar and coin demand by individual investors climbed 298 tons.
The housing market is one of the leading indicators of economic activity, and the US market is suffering its longest slump in four years. Sales of previously owned homes fell 3.4% in September from August and were down 4.1% from last year, for the seventh straight month of declines.
David Stockman, Budget Director (1977-1981) under Ronald Reagan, offers unique analyses on today’s economic and political developments. Unlike a lot of analysts, Stockman has a grasp of the economic situation and political developments. He is a bear on stocks and on the economy. Below are links to recent Bloomberg interviews with him.
The stock markets seem oblivious to the Fed’s stated objective of higher interest rates, with some major averages making new highs and other just shy of new highs. However, some segments of the economy are already being impacted by higher rates, namely the housing market. Across the nation, home sales have declined four months in
. . . so writes Ben St. Clair in a recent issue of The Wall Street Journal. The essence of St. Clair’s argument is that gold is down 4% this year and that lower prices have not generated buying. But, has gold lost favor as a safe haven? No, and here is one reason why
“The great financial crisis of 2007/08 will be eclipsed. In a nutshell, this time the quantity of new money required will likely lead to the destruction of the “full faith and credit” in the currencies themselves, which until now has been broadly unquestioned by ordinary members of the public.” — Alasdair Macleod
But, a repeal of Dodd-Frank is not without its downside risks and upside benefits for gold and silver investors. The 2010 enacted Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) will be eviscerated when the House passes an amendment to the law. Because the Senate passed the amendment with a bipartisan vote, the House
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”
Rather than endure another government shutdown, in the early hours of February 9, GOP and Dem Swamp Creatures joined hands and laid on the American people a budget-busting two-year agreement that will add $400 billion to the national debt. The deficit is now locked in at $1.2 trillion or 6% of GDP for fiscal year 2019. The
Anthony Ward, famed London commodities trader, closed shop after nearly forty years of trading. His reason: he couldn’t keep up with computer trading. According to Reuters, Ward blamed the rise of computer-driven funds and high-frequency trading. Other well-known commodities investors also threw in the towel. They are now looking for opportunities where machines can’t make