Tag Archives: Debt and the Fallacies of Paper Money

Summary The pain of negative yields and social chaos will be very long lasting and very good for gold. So, gold must go up, but Brexit is not one of the reasons why it should. This tells me that in the short term there will likely be a correction in the gold price, creating an opportunity to trade Going Up for the Wrong Reason Gold is soaring. It should—and a lot—but in my view not for the reason it is. Indeed gold...

Summary The U.S. is too big, too varied, too much of everything. You can’t fix a single view of it, even in your mind. But now our problems, challenges, and discontents are big. They are national and international.  We cannot see them. We cannot understand them. Instead, we draw their measure from the news media – based on a flag that flutters and sags, depending on which way the wind is blowing. Bold Prediction...

  Summary People have become used to the idea that the State is their sugar daddy. Many apparently believe that it has some undisclosed, infinite stash of resources at its disposal which it can shower them with at will. The reality is unfortunately different. Hollande Threatens to Ban Protests Brexit has diverted attention from another little drama playing out in Europe. As of the time of writing, if you Google...

Summary On Wednesday, Janet Yellen pressed on the broken buttons again.  After the two day FOMC meeting, the Fed Chair announced they’d continue pressing the federal funds rate down to just a ¼ to ½ percent – effectively zero.  What type of insanity is this? If she keeps it up, and whole thing doesn’t implode, the yield on the 10-Year Treasury note could also slip below zero…along with the hopes and dreams of three...

  Godfrey Bloom, back in his days as UKIP whip Photo credit: Reuters Introductory Remarks – About Godfrey Bloom [ed note by PT: Readers may recall our previous presentation of “Godfrey Bloom the Anti-Politician”, which inter alia contains a selection of videos of speeches he gave in the European parliament. Both erudite and entertaining, Mr. Bloom constantly kept the etatistes of the EU on their toes.] Before becoming...

  The Sharp Move in the VIX Accelerates In Monday’s trading session, the upward move in the volatility index VIX (which measures the implied volatility of SPX options) continued unabated, vastly out of proportion with the move in the underlying stock index. “Brexit” fears continue to grow, which has apparently been the driving force behind this move. The “Brexiteers” are gaining support as the referendum date draws...

Believe It Or Not… There Actually Is Some Downside Risk BALTIMORE – Not much action in the stock market last week. A few little steps ahead to over the 18,000 line for the Dow. Then a few little steps back. Currently  the index sits at 17,732. DJIA, daily Fed chief Janet Yellen has made it clear she won’t do anything to disturb investors’ sleep. But that doesn’t mean they won’t have nightmares. Our research department...

  European Stocks Look Really Bad… Late last week stock markets around the world weakened and it seemed as though recent “Brexit” polls showing that the “leave” campaign has obtained a slight lead provided the trigger. The idea was supported by a notable surge in the British pound’s volatility. Battening down the hatches… Euro-Stoxx 50 Index On the other hand, if one looks at European stocks, one could just as well...

  Hero or Traitor? And it’s one, two, three, What are we fighting for? Don’t ask me, I don’t give a damn, Next stop is Vietnam; And it’s five, six, seven, Open up the pearly gates, Well there ain’t no time to wonder why, Whoopee! We’re all gonna die. Country Joe McDonald Robert McNamara, next to a map of Vietnam…in 1964 he participated in propagating the “Tonkin incident” lie, a false flag incident which drew the US...

  Battle of Wits  BALTIMORE – On Wednesday, the Dow rose over 18,000, for the first time since April. Hillary is riding high, too. She is a pro. She has the entire Deep State behind her – including almost every crony and zombie in the country – and a political machine that can turn out more claptrap than any in history. While her opponent rambles incoherently and mindlessly, every phrase from Hillary’s mouth is a...