The rioting and looting we see across America today go much deeper than black vs white. While the violent protests may have been triggered by the tragic death of George Floyd at the hands of a murderous police officer, evidence suggests these riots and attacks on the American way of life are rooted in something much deeper that just racism.
There is HUGE temptation to “jump into” oil, as it makes news headlines with negative prices. Don’t! The situation is about to get worse!
In the past four weeks, the Federal Reserve has increased the base supply of dollars in the economic system from $4.2 Trillion to $6.4 Trillion. That 52% increase is STILL GROWING RAPIDLY!
For the past few weeks, spot gold prices seem stuck around $1600/oz. But wait! If I go online or to local bullion dealer, I can barely get an ounce of gold for less than $1800! Why is the bullion dealer selling it for so much more? Of course, this is wrong question! The right question is why is the listed spot price of gold so unnaturally low on the COMEX?
John Maynard Keynes laid the foundation for modern economic theory, a theory born out of the experiences of the Great Depression. Time Magazine featured the famed economist on the cover of their December 1965 issue. And President Richard Nixon, upon taking the world off the gold standard on August 15, 1971, proclaimed “We’re all Keynesian’s Now”, a quote attributed to Keynes rival economist Milton Friedman.
As written in William Shakespeare’s Hamlet, Marcellus stated “Something is rotten in the state of Denmark”. Indeed, something is clearly not right with silver these days!
The Federal Reserve just announced, moments ago, they are dropping interest rates to ZERO, and also started a massive new $700 Billion Quantitative Easing program. Quantitative Easing (or QE) is a fancy name for printing more currency and pushing it into circulation.
I am sure this post will get a rash of blogger hate-mail accusing me of being a “doom & gloomer”, but this is a topic I believe needs discussion. We can’t stick our heads in the sand, and pretend there is no crisis. It is real. It is here. Those who have known me a long time know I prefer the positive, but when facts justify decisive action, I will act accordingly using best judgement, backed by data, without all the emotional baggage.
Major banks and hedge funds around the world have for years remained high “mainlining” their drug of choice, a cheap dollar. Their drug “dealer”, the Federal Reserve, has been complicit in their addiction, and today made yet another delivery by increasing the daily dosage allowed to $175 billion from $150 billion!
Have ALL leading members of the Federal Reserve system lost their flipp’in minds? Just three weeks after former Federal Reserve Chairwoman Janet Yellen suggested the Fed should buy stocks, Boston Fed President Eric Rosengren this week also suggested that the Fed should buy “a broader range of assets” such as corporate bonds, and YES, STOCKS! So let me get this straight: The Fed’s irresponsibility creates a big fat massive credit market problem, but they want to instead fix to the stock market???