The government’s reaction to the coronavirus has caused financial problems of monumental proportions. With the shutdown of businesses and massive layoffs, states and municipalities suffered huge losses in revenue. Two-thirds of state revenues come from income taxes or sales taxes.
Back on March 16, a report by Imperial College London forecast 2.2 million Americans would die from the coronavirus and that 81% of the U.S. population would be infected. Consequently, Trump and his team of experts, namely Dr. Anthony Fauci and Dr. Deborah Birx, began holding daily press conferences and quickly scared the daylights out
Goldman Sachs forecasts a federal deficit of $3.6 trillion for the current fiscal year. Last year’s deficit was a mere $984 billion, for a 3.6- fold increase. Fedgov’s fiscal year ends September 30.
I read many articles and newsletters about topics that may affect the gold/silver markets. The one I never miss is David Stockman’s Contra Corner. Stockman was Budget Director during Ronald Reagan’s first term. Below is the start of his blog post for Thursday, December 19, 2019. “The Turbulent Twenties begin 13 days from now. It
“Central Banks only hold gold because of tradition (if you believe their nonsense), so it probably comes as some surprise to many that central banks bought more of this ‘traditional’ asset in the first half of 2019 than they have done in any other first half on record.
In 2018 the Fed imposed four rate hikes, and stocks were virtually flat for the year. Actually, in the fall of 2018, stocks took a huge tumble.
Incredibly, a bank in Denmark is offering home buyers 10-year mortgages at an interest rate of -0.5%. Borrowers who opt for these mortgages will pay back less than the amount borrowed. This has come about because of the massive money creation by the world’s central banks.
Before he was appointed chair of the Federal Reserve, Alan Greenspan was a “goldbug.” He didn’t just believe that at times gold was a good investment. He believed that gold was the foundation of an economic system (read below).
Record-breaking central bank and ETF buying boosted 2019’s first half demand to a three-year high, according to the World Gold Council. Also contributing to demand was a more positive environment for Indian consumers, which have always been big jewelry buyers.
Durable goods orders are one of the most watched indicators of economic activity. They comprise such items as automobiles, washers, dryers, furniture, firearms, and toys. Things that are supposed to last for years. The chart below clearly indicates the downward trend in durable goods orders, and I’m sure that members of the FOMC were well