I remember the prime rate was 21%, I also remember James Dines saying, “For you conservative investors, I am recommending 30 year US Bonds paying 16% for 30 years with no call back provision.
We have never seen anything like this in our entire lives. I also remember June 1982 Dines telling everybody to sell all inflation related assets and to get into Dow at 796. After 14 years of staying under Dow 1000.
Yes rates were massively high in early 1980s actually the one year was higher up to 17 percent according to different data high 16s to 17, who 10 and 30 were lower in the 15s percent but they had lower debt back then. Miniscule compared to now keeping rates lower. If they went that way now there would be definite fears of default unless backed by something but what?. Illegal Muslim hostages? It won’t help the housing market either with crime around. If gold we don’t even have a audit. So that could keep rates low giving the illusion they’re low or basically due to debt irrelevant.
They may recognize debt but they don’t do anything about it, they just add to it and using it to create jobs just in a different way, manufacturing weapons. It’s all a scam here or there.
“rates” Yes that’s right. Let’s see them with the 10 year at 14% like then. It just can’t happen so they’ll be forced to open the money-fiat spigot.
Rates didn’t stop the 70’s/80’s move, until they were massively Hi…..plus the higher rates go, the greater the poss of default/bankruptcy , which has to be bullish PM’s .
But it will deter some….then they have to buy later !!!!
Maddog – good call. Boy did I miss.😳
deer79 – yeah, I think you’re right, and then maybe you have to wonder what the world will look like when we get there.
I still cannot make any sense of the Dec. call buyer out at 15-20k.
will never ever stop. Or, I should say, the machines will never ever stop. Like the Terminator, they will keep trying to hold the metals back, because it hides the truth, and legitimizes the existing ponzi scheme….
IMHO, it will take some sort of exogenous event, to finally break the algorithm…
Those rising rates are gonna put the kibosh on the party!
Re Bonds…..u can say the same about all the Euro bonds….UK, Germany, France all breaking out to upside ……
The Kobeissi Letter
@KobeissiLetter
·
Aug 16
Key Events This Week:
1. July Housing Starts data – Tuesday
2. July Pending Home Sales data – Tuesday
3. Fed Meeting Minutes – Wednesday
4. August Philly Fed Manufacturing Index – Thursday
5. August S&P Global Services PMI data – Friday
6. August S&P Global Manufacturing PMI data – Friday
The S&P 500 is now up +13.5% year-to-date.
Looks like the bears are gonna make a stand around here, they did not like that move back above 4400, just now.
and the shares are being sat on…..first hour will tell a lot, there is certainly buying around…that was clear everytime we went below 4400, this morning.
Joins GFI among the large caps. Hopefully an early sign of things to come. I don’t know.
edit: Maybe I got a bit over eager. 🙂
It seems to me that we are on the cusp of decoupling from a SM that “could” be in the early stages of a selloff. Course I’ve thought that many times before in the past several years.
I’m looking at the shares premarket, and they aren’t down nearly as much as they would have been just a few weeks ago when the metals were taking a hit. It makes me wonder if the metals are going to recover after the SM opens. All pure speculation on my part with an added dose of hopium, but we have been quietly outperforming the SM lately.
I guess we’ll find out soon enough.
GFI is quietly higher premarket, no news I can see. That is one of the weirdest performing stocks among the large caps.
ferret – your 17:02 to maddog was an excellent summation of the invader situation. The most disgusting people on the planet (other than white UK police) are the white (or Spanish) liberals who support the destruction of their race and its culture.
treefrog – I think there’s a chance that the harvest could be special this year.
What did he expect from the visit? He had sort of backed himself into a corner, really. Demanding a visit, finally getting one, unless he turns up with a horde of auditors wielding gold analysis meters ready to spend a month there …. they show him some bricks, it seems weak if he just says “I’ve seen some gold but that’s not an audit”.
Swamp 1, RP 0.
…just hit the fan. silver down a buck in 15 minutes. gold down sharply too.
Well said and so true.
He’s very fast!
Rather a disappointment. Are we supposed to swallow this report?
In fairness though after his visit … what else is he going to say?
The Hormuz Letter
@HormuzLetter
BREAKING: Iran gives the US an ultimatum of “3-4 weeks” to meet all of its demands or it will “severely escalate in the Strait of Hormuz” and launch its planned preemptive strike on US-backed Gulf infrastructure, and US & Israeli assets, a senior Iranian source in Tehran familiar with the matter says.
Iran’s demands include:
1. $300 billion in reconstruction funds
2. Full release of Iran’s frozen assets of up to $120 billion
3. Lifting of the U.S. naval blockade
4. End to the war across all fronts, including Gaza and Lebanon
5. Accepting Iran’s permanent control of the Strait of Hormuz, including up to 7% of transit fees
6. The lifting of all US sanctions on Iranian oil, petrochemical products, and gas
https://www.zerohedge.com/economics/rand-paul-goes-fort-knox-verify-us-gold-stockpile-still-exists
He thinks we are all idiots. There are supposed to be 350,000 bars there, and he’s saying he’s checked them all on a one day visit.
Where are the stock take sheets?
And before the nitpickers start, “here” is where you live, where I live, where I used to live – pretty much anywhere where white people live. The invasion tactics against a society so weakened by luxury concepts of ‘fairness’ and ‘equality’ are cynically brilliant. The only way to stop the Ceuta invasion of unarmed, hungry and thirsty people was to start shooting at them. The only way to stop the inflatables in the Channel, once they’d entered territorial waters and refused to turn around, was to sink them. The fact that they are all fit males of military age is just so blatant. “This is an invasion. We can’t make it any clearer, but we know that you are so weak and place so little value on your own culture that you will let this happen. Weak people deserve to be subjugated by the strong.” And the physical invaders, not the ones pulling the levers and providing the finance, are low IQ men easily led into whatever ideology will give them the illusion of power, women, food and the easy life, so that the leaders of the ideology will gain power.
Funny how Hollywood wouldn’t include “The Scouring of the Shire”, the chapter that Tolkien considered to be the most important in the book.
Thank you for the synopsis re. CTGO
the reason september/october is the season for large market shifts may be because that’s the timing of north hemisphere harvest – arguably the most important annual event in the global economy.
Thanks for the thoughts. I don’t know what’s coming, whether SM crash ala 1929, or a revaluation, or something else. I suspect someone knows or knows what to expect and preparations are being made for it.
I guess we’ll find out soon enough. We are heading toward Sept.-Oct. and it seems that big stuff always comes in those months, more than any other time of the year. This year might be a whopper. 🙂
FWIW, I think we walked away with a win today.