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A very enjoyable weekend special that covers macro issues in the economy and inflation

April 27, 2015

Peter Boockvar joined Al and I last Friday for a spirited discussion on the macro-economic factors in the US. We then get into inflation and how Peter thinks a tick up closer to 2% could cause some unforeseen issues for the Fed.

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Discussion
20 Comments
    Apr 27, 2015 27:54 PM
    Apr 27, 2015 27:52 PM

    OPTION EXPIRY. KWN…today….. Turk notes that this is important, that gold jumped up today, since before the price of gold went down on OPTION EXPIRY. Mark(missing in action), was usually present the last several months to give us a heads up on the option expiry trade, but, since he is missing, …I POINT THIS OUT FOR SOME POSITIVE NOTES GOING FORWARD.

      Apr 28, 2015 28:59 AM

      Interesting point on the behavior around options expiry.

    Apr 27, 2015 27:20 PM

    I support these views entirely. As I have said many times inflation is occurring and I can’t see the deflationary environment that rick subscribes to. Canada just announced higher than expected inflation earlier this month. In a low oil environment. Oil goes higher due to geopolitical issues and look out.

    Apr 27, 2015 27:28 PM

    Reverend Andrew…needs to duck in now.

    This whole world is in a rough patch. This
    has not been no cake walk in precious metals.

    Anyway, hope everything gets back to normal
    with Reverend Andrew being present.

    Even when I never posted for a long time enjoyed
    reading the posts once and a while. Looking likely
    a leave of absence is in order for me very soon.
    Nice to see everyone return before I duck out.

    Peace and blessings to everyone especially those
    that are ๐Ÿ™ not here.

      Apr 28, 2015 28:59 AM

      ๐Ÿ™

        Apr 28, 2015 28:15 AM

        And the gold bears get creamed….once again.

        Ha…Ha….comical misinformation propaganda.

        Lock em up and throw away the key.

    Jay
    Apr 28, 2015 28:01 AM

    Great interview guys! Looking forward to more from Peter!
    One guy who has had inflation on his radar for months (if not years now) is Gary whom I agree with.

    http://www.kereport.com/2014/11/01/qe-current-state-markets/
    Still one of the better debates on kereport re inflation / deflation imo ๐Ÿ˜‰

      Apr 28, 2015 28:06 AM

      Agreed. This was a great interview from Peter and I really think he has a clear-headed macro picture that he states very clearly. Good stuff Al, Cory, and Peter!

    Apr 28, 2015 28:15 AM

    http://stockcharts.com/h-sc/ui?s=GLD%3ASLV&p=D&yr=3&mn=0&dy=0&id=p85414197108

    “up is up until it ain’t”

    Long as the gld/slv ratio is above 200 day ma, it’s UP imo.
    and while that’s the case, I’m in sell mode not buy.

    But I will grant you that a rounding top seems to be forming.
    I’ll know more in ten months.

    Apr 28, 2015 28:45 AM

    Those were pretty interesting comments Peter. I agree inflation could be on the rise in the not distant future. And what is inflation if not a form of currency devaluation when we look at it strictly from a domestic perspective and consider commodities are all priced in dollars. In fact, it is my belief that inflation is all but guaranteed in the absence of zero bound rates. In other words, if we cannot stimulate with the Fed Funds rate near zero then the only alternative is to goose inflation and that by default means that most commoities will rise off their bottoms and gold along with energy will begin to rise again. That’s all pretty much baked in the cake though is it not? That is what our charts are telling us in no uncertain terms…..so inflation is indeed coming and it has been timed by the Fed to coincide with a bottom in resource prices and the end of the zero rate environment. It is just so obvious I wonder why so few seem to get it. In the final summation, the dollar is heading down exactly as I have predicted in many of my posts these past weeks.

      Apr 28, 2015 28:48 AM

      It was…I…that predicted the dollar going down. j/k ๐Ÿ™‚