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Peter reiterated that the Fed is going to go back to 0% interest rates, and he pointed out that there isn’t a lot of room between the current rates and that zero level. He said the real “stimulus” is going to be QE 4, which will be bigger than the first three rounds combined.
“The Fed is going to go back to QE. They are going to do whatever they can to try to stop the bear market and to try to prevent the recession. But they’re going to fail. They are going to make it worse this time.”
During his remarks, Powell said that this isn’t unconventional policy anymore. He called it “business as usual.” Peter said the reason we didn’t have a dollar collapse and inflation didn’t take off in the aftermath of the Great Recession was because everybody thought the Fed’s monetary policy was temporary. They thought it was an emergency measure, that the central bank would eventually normalize rates, and that it would shrink its balance sheet.
“But when the markets realize what they should have realized from the beginning – that this is a permanent expansion of the balance sheet; this is debt monetization, that there is no end in sight, that it’s going to be zero percent forever, then the bottom is going to drop out of the dollar and then we’re going to get all the inflation that we should have had, only more.”
Liz asked Peter what people should do to prepare. One of the things he emphasized was to buy gold. Even above $1,300 an ounce, the yellow metal is a bargain.
“Remember, we got as high as $1,900 back in 2011 when people were actually worried about QE. Well, they were right to worry. The mistake was in thinking that everything was OK. So, when we go back to QE and zero percent interest rates, gold is not stopping at $1,900. We’re going to $5,000 to $10,000.”
“AMERICA’S RAILROADS DELIVER THE GOODS” is an old advertising line… and it’s true. From the container ports on the coast, those containers ride the rails to their regional destinations. There are huge railroad yards dedicated to on- and off-loading container traffic.
George Ure at Urbansurvival.com sometimes posts economic data from the ports, and also railroad car loadings nationwide. The rail car traffic is a good indicator of economic activity.
that if – and a big IF – the actual jobs report follows the ADP report then gold might get a lift, but as you know, everything depends on Crimex dumps so we could see a week jobs report and gold get crushed just because.
Been a good few days, but I don’t believe much of anything with regard to gold and gold stocks anymore.
DOW has rebounded 600 points in two days?
Maybe Wolanchuk’s first call about DOW rebound, PM’s soft was more accurate before the next move higher. Maybe he wasn’t right about PM’s at all and this is all we get.
Still wouldn’t be surprised to see a delayed rally based on Fed cuts, a stalling economy, and at least 173 reasons we have been accumulating since 2011.
This combination of rising gold and falling crude — rare as to the extent of the divergence — has delivered to some nasty consequences for the broader market over the years, as you can see by this illustration
Only three other times in history precious metals surged while oil plunged! All of them happened during severe bear markets and recessions,” —“Buckle up, folks.”
BUY the Country then pay them with their own money ! hehe
or Buy the Bank and pay them with their own money !If buying the Country is too ambitious for you ..Think BIG ! You can use the Bank as Collateral for the Loan ,its an offer they cant refuse …Has the best Collateral possible..!
Many years ago I bought Great A & P stock for $5.25 per share ,and at the same time they had $11.00 per share in the BANK in cash and an over funded Pension account .Which meant I got all the stores and real Estate for nothing…A few years later I sold it for $55.00 per share. ! Yes it Happens !
Looking at the days’ charts of all the PM stocks and ETFs, one has to conclude that the coma was successfully induced around 11:30 am…I think what did it was the 8:30 am ADP report showing 27K jobs for the month of May…forces were mobilized…the $ sank on that news but has been algoed back to a gain of .231…this pullback went way beyond the usual intra-day shakeout to gather merchandise wholesale before the next mark up…the whole enchilada could be over and gold sent to new lows…I don’t think so but given golds track record, such a possibility can’t be ruled out. Again, it’s hard to see gold as a liquidating asset given all the macro situation.
My bank in Denmark just offered me a NEGATIVE rate of interest to borrow money
Yesterday I called my bank in Denmark, Nordea, and couldn’t believe what they told me…
They offered to lend me money at MINUS 0.12% for a ten-year mortgage.
In other words, the bank would PAY ME to take out a loan.
Of course, as a Sovereign Man editor, I’ve written a lot about negative interest rates. But most of these cases were always reserved for big banks or institutions.
I think the banksters picked up a bunch more gold at firesale prices. Maduro should have just sold it outright.
A shame what’s happening to the people in Venezuela … but I’m opposed to using military force to topple him. The regime will fall apart just fine on it’s own.
I see what looks like Building supply’s going out but apparently not here except building houses condos or apts. lobbyists pushing to get permits for up the hill in what as mostly horse and cow property to build. They built expensive track homes all over and working in more. I bet they have their eyes in ranchers land and hope they don’t sell.
Once they build more up there housing might get cheaper here for awhile as people sell and move up the hill. There is no known homeless up there but probably coming once they start building. Traffic which there hardly is now and not enough stores in close approximation. There seems no be no consideration for the burden to cities with those greedy Fs.
I looked up UP right after I posted and it’s been going straight up since 2016.
…and a very, very, steep one it has been..that said, I think it’s time for the bounce back…and JNUG could be a buy right here, right now in the 8.40 area…from the days high to the days low it had about a 13% pullback…about a buck…JMO-DYOD
IN ZH they said all the algos–to the tune of $20 billion– flipped to 97% long from 100% short yesterday, on the big rally–if stocks roll over now or tomorrow, things could get dire in a hurry and gold should resume its rise
Monday’s Nasdaq CTA “-100% Short” was “stopped-out” after clearing 7133 and triggered a “flip”, with an estimated ~$20B of Futures buying— and the Nasdaq model signal now too stands at “+97% Long.”
He can fool with the Politicians ,but not the BANKSTERS !
same happened in AFRICA when Mandela came to power and seized gold mines …He found out that the miners borrowed Gold from the Banks ,sold it ,removed the money from S,Africa ,then left the MINES with a Mortgage on them that had to paid in GOLD back to the BANKS…Thats how you deal with Communists ..use the Banksters to do it..Maduro never learned that lesson !
That said…we know the drill…and the Cartel could put the horse back in the barn and induce a coma state…It doesn’t look good but I ain’t dumping my calls just yet…
Ecuador’s new mining policy backs large-scale projects
The Vice President of Ecuador, Otto Sonnenholzner, and the Minister of Energy and Non-renewable Natural Resources, Carlos Pérez, presented the country’s new Public Mining Policy, whose focus will be on supporting large-scale operations and investments, and eradicating illegal mining.
The announcement was made during a visit to the southern Zamora Chinchipe province, where Lundin Gold’s (TSX:LUG) flagship Fruta del Norte gold project is located. Both Sonnenholzner and Pérez stopped by the mine site and met with representatives of the Canadian company, who said 50% of the construction phase is completed.
been shaken out a few times by them…only to see G&S come right back by days end…i highly doubt that we are gonna end the day down $15-$20…but anything is possible…2 things should support PMs–the FED signaling as many as 3 easings this year and the stinking jobs report on Friday…not to mention the other lonnnnnng list of macro reasons to own gold…hard to imagine gold as a liquidating asset now.
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