Daily Gold Chat

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Wednesday, December 6, 2017

Silvers high for today "One-666" again!
(Au Gratin)
04/13/2018 - 10:37
12/06/2017 - 10:37

One 666, silver's high for the day AGAIN. Friday the 13th, 2018

We are entering a new paradigm >
(chris-d)
04/07/2018 - 15:34
12/06/2017 - 03:34

> With a rising US deficit, it will become ever more difficult to finance the US trade and budget deficits because of the rising rate of interest. Domestic savings are far from being sufficient, thus the need to attract financing from abroad. The US has to raise interest rates to attract foreign capital and at the same time has to let the dollar fall in value to increase the price of imported goods which will help rebuild the lost manufacturing industry in the USA. The two of them don't go together. It is now only a matter of time before a national sales tax will replace tariffs to be.

As this dynamic with the US dollar plays out, most western central banks will have to buy massive amounts of foreign exchange reserves or their respective currencies will gain in value and their economies will be hurt. Owning US bonds in the future will be a bad idea for them and all other investors of US$ denominated debt as the dollar falls in value. The US Fed will become the biggest buyer of Treasury bonds. The Fed will do it by printing thin air credit units that become debt units that then circulate as IOU's in our system of so called money that will need ever more taxes to service those circulating debt IOU's. Debt IOU's are now our money supply. Debt to keep the system going is what we are best at when it comes to manufacturing. We produce a lot more of it then anyone else on the planet earth. As long as institutions and entities can create debt out of their own stock currency, and in the process increase the quantity of debt held as an asset, the USA will continue to live off of ever more debt. Only when that currency becomes worthless will this stupidity stop.

Most Asian bond markets are now net sellers of US$ denominated assets, so they can invest in Asian assets that gives them a better yield. As the US moves into more inflation via dollar devaluation, other currencies will go up in value. China is trying to build a diversified portfolio of Asian bonds and sell US$ denominated assets to pay for it.

The USA has experienced 30 some years of mostly cheaper prices in goods and higher prices in the value of assets. That is changing. We are now in a new short term paradigm of falling asset prices and rising prices for goods and services with the exception of agricultural prices, but that will be short lived. The tariffs will equalize trade for both China and the USA and at the same time bring in needed revenue for both countries. Both countries will replace the tariffs with a national sales tax, sooner or later.

Yesterday I visited the Atlanta Texas Walmart and I was surprised to find that Walmart is increasing the prices on goods. They know what is coming.

Politicians in the United States keep kicking the can down the road on the debt issue because the national debt is a long-term problem that won't affect whether or not they get re-elected. Debt/deficit issues are not going to affect much in the short-term and the average citizen doesn't see these issues as significant problems that need to be addressed. But that is a mistake.

The writing is on the wall. At some point, you have to start cutting expenses to keep the debt from growing ever faster. Net interest on debt is now a top five budget item and at the rate we are going it will soon be the #1 budget item. America is not too big to fail.

The beginning of parity of thought, Limited gold on the horizon
(Brett Star)
04/05/2018 - 10:47
12/06/2017 - 10:47

Bloomberg....a step above the pundits, the Bitcoin theory may work.

https://www.bloomberg.com/.../gold-price-seen-moving-north-as-world-fail......

There is no precedent for current stock market action.
(Brett Star)
04/03/2018 - 11:48
12/06/2017 - 11:48

Previous stock markets relied on human management. Today we have a market controlled by computers.....no heart, no emotion. Other than the Chinese throwing a large spanner amongst the chickens, wholesale sell out of US debt or serious rather than punitive tariffs, the market will proceed into nosebleed territory.

First strong support for Dow Index in bear correction is 21,500
(Vronsky)
04/02/2018 - 16:17
12/06/2017 - 04:17
The stock market crash is NOT IMMINENT...IT IS ACTUALLY IN PROGRESS
(Vronsky)
04/02/2018 - 16:11
12/06/2017 - 04:11

DOW Index Bubble has finally burst...KATIE BAR THE DOOR

...as indicated by the recent soaring of the Volatility Index...which broke upside of the 9-year downtrend.
KATIE BAR THE DOOR as Wall Street Stocks will surely tumble...Tumble...TUMBLE!!!

http://www.silver-phoenix500.com/sites/default/files/chan032418-i4.png

And here are the reasons why the Wall Street Bubble is bursting:
http://www.gold-eagle.com/article/mother-all-bubbles%E2%80%A6us-stocks

China, China, China!!
(Brett Star)
04/02/2018 - 13:11
12/06/2017 - 01:11

I started my first company in 1970. In 1972 the economy was dwindling and recession was looming. I decided at the time that my company would shrivel up and die if I didn't try a new avenue. This is when I started shipping to europe. My company prospered.

In the mid 1980's I again experienced a deteriorating economy. This is when I discovered Taiwan. My company prospered. This led me to mainland China. China, whether or not Trump wants to acknowledge it, has been the end game. Interesting how Trump has not placed import duties on the Trump products produced and shipped from China....of course what does he know? I have a dear friend in California who ships her wine to China...one of the Chinese import duties just raised by 25%.

To get back to China.......the largest holder of USA debt, the purchaser of huge amounts of raw materials..... the duties Trump has yet to enforce while China has leapt into the fray with immediate action.....is an unfinished tale. Trump is an empty suit. His actions are simply reactions to the muck and mire he finds himself in....god save us from the man, he knows not what he does.

Market is held up by debt
(chris-d)
03/28/2018 - 16:05
12/06/2017 - 04:05

I agree that the market is held up by debt and financial engineering is helping the debt market look better then what it really is. The financial engineering of make believe numbers that look good does not make a better economy.

It is absolutely ridiculous to assert that we are anywhere near full employment when more then 1/3 of the working population is clinging to part time or low pay jobs in their attempt to make ends meet. More then 1/3 of the working population is struggling financially to make ends meet. It is absurd to think that the 1/3 of the working people not making enough to live will be able to carry the economy as serious consumers. We are in the middle of a failed experiment as far as employment and the economy goes. The new normal is showing us her hand and it is not looking good. Even if we had full employment, we can not pay our debt obligations. It is financial engineering to create report-able earnings that don't exist that is bankrupting this country along with the military industrial complex that is wasting hard earned dollars. Electing idiot representatives does not help.

It is no longer possible to accurately estimate the potential workforce which makes determination of full employment problematic, mainly because of how the unemployment number have and are being manipulated. We are far from all people making enough pay to pay the bills with.

Inflation will come not from workers demanding increased wages to survive, they should be doing that already. It will come from true core inflation in real things like eggs, fruits, etc., and the coming trade war. All those who think inflation is a good thing will rapidly realize increased inflation is not good when demand expands faster than supply. The government has been playing fast and loose with inflation for years. Americans are already heavily bashed by increased housing, education, and healthcare costs. That's why there is no real recovery. And because there is no real recovery, Wall Street has topped, and we are now in a bear market. There is no longer a market of stocks, for 90% of all trades are simply computer generated. Thin air credit, buying and selling the market is not the same as millions of share holders buying and selling to make a market. We no longer have a market created by real buyers and sellers, for over 90% of all trades are computer generated. The owners of credit now create the market moves. This will all have to end sooner or later.

An imminent stock market demise is based on old suppositions.
(Brett Star)
03/26/2018 - 15:40
12/06/2017 - 03:40

The market is held up by debt and vice versa. The ledger is useless. Once the Yuan emerges as the coin of the realm we might see the doom and gloom a few expose. But having Vronsky control what is said on Gold-Eagle is poor behavior, probably why no one posts anymore.

DOW Index Bubble has finally burst...KATIE BAR THE DOOR
(Vronsky)
03/24/2018 - 13:01
12/06/2017 - 01:01

...as indicated by the recent soaring of the Volatility Index...which broke upside of the 9-year downtrend.
KATIE BAR THE DOOR as Wall Street Stocks will surely tumble...Tumble...TUMBLE!!!

http://www.silver-phoenix500.com/sites/default/files/chan032418-i4.png

Wednesday, December 6, 2017

Gold is still being mined and refined at the rate of almost 2,600 tonnes per year.