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
Gross Domestic Product (GDP) grew at 2.1% in the second quarter according to the Bureau of Economic Analysis’ (BEA) “advanced” estimate. The first quarter saw an increase of 3.1% Both estimates are subject to change as more data is analyzed by the BEA.
Both parties are happy with the spending deal reached Tuesday night between the Trump administration and the Pelosi-controlled House. The Trump administration will see defense spending going to $750 billion while the Dems (and, admittedly, some in the GOP) will see an equivalent increase in domestic appropriations.
From 1870 to 1970, the ratio of debt to GDP in the US averaged 1.48. Today, the ratio is 3.47, which means that the economy bears the weight of three times the debt that it did up until 1970. Not coincidentally, it was August 15, 1971 that the President Nixon made the dollar no longer