This post was published at CNBC Television
The New Year is one full of economic, political, and war threats.
Among the economic threats are stock, bond, and real estate markets artificially pumped up by years of central bank money creation and by false reports of full employment. It is an open question whether participants in these markets are aware that underlying reality does not support the asset values. Central banks support stock markets not only with abundant liquidity but also with direct stock purchases. The Japanese central bank is now one of the largest owners of Japanese equities. Central banks, which are supposed to provide economic stability, have created a massive fraud.
Throughout the Western world politics has degenerated into fraud. No government serves the public’s interest. (See: ) Except for some former Soviet satellites in Eastern Europe, European governments have defied the will of the people by admitting vast numbers of refugees from Washington’s wars and others pretending to be refugees. The European governments further imperil their citizens with their support for Washington’s rising aggression toward Russia. The universal failure of democratic politics is leading directly to war.
This post was published at Paul Craig Roberts on December 30, 2017.
On Dec. 31, 2016, the price of gold stood at 1,156.00. Today, it is knocking on the $1,300 mark. The yellow metal is on track to gain about 12% in 2017, its best year since 2010. Gold has made these gains despite a number headwinds that we would expect to put a significant drag on gold.
Here are seven major themes that have driven gold news over the past year.
Over the last year, we’ve talked a lot about geopolitical risk. Could turmoil around the world now be the new normal?
Some analysts think so.
The focus has primarily been on tensions between the US and North Korea. But there have been plenty of other risk factors popping up around the world, including ongoing uncertainty about Brexit, the secession movement in Catalonia, war in the Middle East, terror attacks, tensions between the US and Russia, various elections, a coup in Zimbabwe, and more. On top of that, outside of the US, a lot of people think Americans should be looking at the geopolitical risks right here at home due to political divisions and uncertainty in Washington D. C.
This post was published at Schiffgold on DECEMBER 29, 2017.
“American politics have rarely presented a more disheartening spectacle. The repellent and dangerous antics of Donald Trump are troubling enough, but so is the Democratic Party leadership’s failure to take in the significance of the 2016 election campaign. Bernie Sanders’s challenge to Hillary Clinton, combined with Trump’s triumph, revealed the breadth of popular anger at politics as usual – the blend of neoliberal domestic policy and interventionist foreign policy that constitutes consensus in Washington.
Neoliberals celebrate market utility as the sole criterion of worth; interventionists exalt military adventure abroad as a means of fighting evil in order to secure global progress. Both agendas have proved calamitous for most Americans.
Many registered their disaffection in 2016. Sanders is a social democrat and Trump a demagogic mountebank, but their campaigns underscored a widespread repudiation of the Washington consensus. For about a week after the election, pundits discussed the possibility of a more capacious Democratic strategy. It appeared that the party might learn something from Clinton’s defeat. Then everything changed.”
Jackson Lears, What We Don’t Talk About When We Talk About Russian Hacking, London Review of Books
Stocks wobbled sideways, sliding out stealthily on light volumes, into the new year.
Gold and silver managed to extend their rally off the NfP-FOMC short term bottom.
This post was published at Jesses Crossroads Cafe on 27 DECEMBER 2017.
This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.
Buying gold is a good idea in 2018 for investors not only looking to protect their wealth, but to also grow it.
According to Money Morning Resource Specialist Peter Krauth, the price of gold will rally significantly next year. He expects gold prices to hit $1,350 by late February 2018. But it’s nothing compared to his 2020 gold price target.
Everyone knows that gold is an excellent hedge during times of uncertainty and political turmoil.
Events like North Korea’s recent missile testing and the continuing controversies in Washington drove the price of gold from $1,150 to as high as $1,350 in September of this year.
This post was published at Wall Street Examiner by Money Morning Staff Reports ‘ December 22, 2017.
Gold prices rose against a falling US Dollar on Wednesday morning, touching 2-week highs at $1266 per ounce despite an overnight jump in longer-term US interest rates after lawmakers in Washington voted to approve President Trump’s tax plan.
Adjusted for market-based inflation forecasts, 10-year US interest rates typically move opposite to the direction of gold priced in Dollars.
On a weekly basis, however, this negative correlation between gold and real 10-year Treasury yields has been weakest over 2017 since the 12 months ending July 2015, reading -0.43 against an average over the last decade of -0.74.
Due for a re-vote today owing to a procedural snag, Trump’s tax cuts will add $1.4 trillion to the annual federal deficit over the next decade according to the bi-partisan Congressional Budget Office.
This post was published at FinancialSense on 12/20/2017.
“When the going gets weird, the weird turn pro.”
Hunter S. Thompson
Things in Washington are becoming so odd on both sides of the aisle that normal ways of doing the business of the people are out the window. It is like Disneyland on the Potomac – and Trump is goofy.
I grew up in the 50s and 60s and have seen some seriously weird stuff in my day. And this is weirdness turned pro.
Stocks were on a tear for the quad witching December stock option expiration.
This post was published at Jesses Crossroads Cafe on 15 DECEMBER 2017.
Last week, Pres. Donald Trump nominated Marvin Goodfriend to fill a vacancy on the Federal Reserve Board of Governors. When we reported the news, we called him ‘another swamp creature’ – a member of the Washington D. C./Wall Street clan Trump promised to drain away.
We’re not alone in our thinking. In an article on the Mises Wire, Tho Bishop called Goodfriend’s nomination ‘a dangerous act of outright betrayal to Trump’s core constituency of working-class voters.’
It’s true Goodfriend’s views on monetary policy don’t fit in with the current Fed status quo. But that’s not a good thing. Goodfriend isn’t a fan of the conventional radical policy of quantitative easing. He’s actually a proponent of an even more radical policy.
Following is Bishop’s analysis in its entirety.
Donald Trump nominated Marvin Goodfriend to the Federal Reserve Board of Governors, one of the numerous vacancies that have emerged over the course of the past year. While his prior nominations of Jay Powell as Chairman and Randal Quarles as Vice Chair represented a disappointing commitment to the status quo, his selection of Goodfriend is a dangerous act of outright betrayal to Trump’s core constituency of working class voters.
This post was published at Schiffgold on DECEMBER 5, 2017.
‘The gods are deaf when we pray to them, their fire
Recoils from our offering, their birds of omen
Have no cry of comfort, for they are gorged
With the thick blood of the dead. O my son,
These are no trifles! Think. All men make mistakes,
But a good man yields when he knows his course is wrong,
And repairs the evil. The only real crime is pride.’
“I think it would be nice just tonight to just acknowledge that this tax cut is really not for the middle class; it’s for the rich. And that whole thing about higher wages, well, it’s a good selling point, but we know companies don’t just give higher wages – they don’t just give away higher wages just because they have more money. Corporations are sitting on a lot of money. They are sitting on a lot of profits now – I don’t see wages going up.”
Senator Sherrod Brown (D)
‘I think not having the estate tax recognizes the people that are investing. As opposed to those that are just spending every darn penny they have, whether it’s on booze or women or movies.’
Senator Chuck Grassley (R)
I think Chuck forgot about healthcare, food, rent, and education. The kinds of little details and modern problems that are not a problem for the elite living within the Washington power bubble.
This post was published at Jesses Crossroads Cafe on 05 DECEMBER 2017.
Gold prices dropped on Wednesday as new data said the US economy expanded 3.3% per year between July and September, its fastest pace since 2014.
Falling from its 6th attempt above $1296 so far this week, the gold price lost $10 per ounce against a rising US Dollar while silver and platinum fell sharper still.
Broader commodity prices slipped for the second day running as major government bond prices fell, edging the yield offered by 10-year US Treasury debt up to 1-week highs above 2.35%.
North Korea’s overnight missile test – reported by the dictatorship of Kim Jong-un as proving Pyongyang could hit anywhere in the United States with a nuclear weapon – saw US President Donald Trump vow to “take care of it.”
But the test “appeared calculated to avoid crossing red lines that could provoke military action by Washington,” according to the Wall Street Journal.
With gold prices erasing this week’s previous 0.9% gain to the Dollar, silver fell twice as hard, hitting new November lows at $16.71 per ounce.
This post was published at FinancialSense on 11/29/2017.