Domestic and International Drivers For The USD and Base Metals
Chris Temple joins me today to address a comment I received that focused on the USD. The ECB and BoJ monetary policy for next year was brought up as well as a technical comment on the weak bounce the dollar has experienced over the past couple months. We also look at the base metals and try to relate how the moves in each might be connected, and also to overall central bank policy.
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CFS – I wrote to you on the other editorial today from Doc.
Thad Cocoran SEN of miss. had surgery this am on skin cancer . He could die as his doctors announced that when they excised the skin CA it was found to be more extensive than they thought . This sometimes means they wernt able to go deep enough to get all of it. which means he may have an inoerable and growing skin CA. will he be able to vote soon ?? he may very welll expire before the 18 elections. we all pray for those who have CA . love to you all S
As a survivor of several cancers. Most cancer is now curable if you throw enough money and effort at it.
Look up CAR-T cell therapy.
Juncker is power crazy:
Chris’s point of not many more than the goldbugs already in the market could be true.
Ive been wondering that about some of my favorites.
It’s an interesting point on where the money will come from, but the error in thinking is that must come from new retail investors.
The money flow from institutional funds that rotate into this sector will move the sector up and at least lift the shareprice of the ETFs and Primary Gold/Silver producers . This is such a small sector that just a small allocation from some large funds would really move the needle.
Once that begins, THEN the generalist retail investors will find their way to this sector to get in the gains, and that will impact the Jr Miners in a big way.
So what we saw in 2016 for the first time in the Majors and Mid-tiers first was massive volumes coming into the space. We also saw those funds liquidate from last Summer to present.
This is where looking at Volume levels on companies or ETFs is key. When we start seeing days with 2-4 times the normal volume across the board, that is the clue that the big boy institutional investors are getting in place. Personally, I want my bets in before they get positioned and spike the prices.
MILAN (AP) β Italian tax authorities say Amazon will pay 100 million euros ($118 million) to end a dispute over its tax payments from 2011-2015.
The agreement announced Friday comes as many European countries seek to close loopholes in tax payments by major multinationals.
Amazon confirmed the agreement in a statement, without disclosing the amount it would pay.
The internet retailer headquartered in the U.S. state of Washington said it set up an Italian branch in May 2015 “with all retail revenues, expenses, profits and taxes due now accounted for in Italy.”
It further said it had invested more than 800 million euros in Italy and created 3,000 jobs since 2010.
TRENTON, N.J. (AP) β New Jersey’s electric utilities would be required to pay for credits from nuclear power plants under legislation lawmakers unveiled Friday as part of an effort the state’s largest energy company says is needed to rescue a major source of power in the state’s energy grid.
PSEG said that its two nuclear plants account for between 40 and 50 percent of electricity production in New Jersey, but are in danger of becoming financially unviable within two years. They said that would cost the state 1,600 jobs.
The financial rescue effort, which has been done in other states like New York and Illinois as well, has garnered significant opposition from consumer groups and environmental organizations.
“This bill is a direct subsidy from the ratepayers hidden in gobbledygook,” said New Jersey Sierra Club director Jeff Tittel.
I find it hilarious that the Sierra Club took no issue with terrible losses on Solar projects and Wind project, that the government funded or subsidized through taxation.
How does Jeff from the Sierra Club think he is going to charge up his electric vehicle or smart phone or trade cryptos without solid baseload power (and Solar and Wind are not going to cut it).
Much of the energy policy is subsidized or incentivized and my goodness look at all the money we spend securing our seat (through war, bribes, and backroom deals) in the Oil & Gas markets to ensure the Petro Dollar is utilized.
All energy creation comes at a price, and it is about time they started subsidizing Nuclear, or you’ll get the disaster that is the energy policy of Germany. No thanks.
Finnish cities investigate the potential for small nuclear reactors to decarbonize district heating
13 December 2017
Swiss people confirm that nuclear power has an important role to play in a transition to a low-carbon economy
Bern, Sunday 27th November 2017
The give me states, give me govt funded projects with a pocket full of bribes…….NY,NJ and of course Illinois……..
Re: the dollar, Gary had a very good video about it on his blog the other day. He thinks it’s about to roll over into a bear market.
https://blog.smartmoneytrackerpremium.com/2017/12/dollar-crisis.html
Many of us have been calling for the US Dollar to roll over and if it breaks back below 92-91 again and heads into the high 80’s you’ll have inflation, which will be a tailwind for the Resources Sector.
Ex,
Will it hit .80 with in less than68 months? If so, the coming dollar crisis will explode the PM+commodity markets.
6 months..and MAybe!
I believe the dollar will dip into the mid 80s in 2018. It looks like it is about to make another leg down on the charts and has looked bearish for the last 2 years.
It is in a bear already, in my opinion.
It just lost the 200 week MA… again…
http://stockcharts.com/h-sc/ui?s=%24USD&p=W&yr=5&mn=6&dy=0&id=p57487776804&a=557861725
I’d concur that the dollar is in a bear and has been in one. It looks poised to drop down the other side of the mound over the next 12 months. Reminds of a phase 4 leg down about to begin (ala Stan W.)
Interesting that Comey’s statement exonerating Hillary Clinton appears to have been written prior to any interview by FBI of Hillary, opening Comey up to Obstruction of Justice charges.
Military Ballots still not counted in Alabama senate race even though destruction of paper ballots is now reported.
Silver going nowhere………….
Charts of the Year……..Fake Fed….Fake Reports……
http://www.zerohedge.com/news/2017-12-15/four-charts-prove-economic-recovery-just-fed-induced-entitlement-program-wealthy
SILJ is up 9.5% since last Friday’s low:
http://stockcharts.com/h-sc/ui?s=SILJ&p=D&yr=0&mn=7&dy=7&id=p51893686759&a=563470252
Corker and Rubio…….must be getting a kickback………..
http://www.zerohedge.com/news/2017-12-15/stocks-yields-dollar-surge-news-rubio-yes-tax-bill
Crpto mining on oil computers……..Russian Oil company employee in big trouble…. π
http://www.zerohedge.com/news/2017-12-15/worlds-largest-oil-pipeline-company-uncovers-illegal-crypto-mining-operation
Just a typical employee , who needs to steal………
The XAU had a 4.3% week and looks good to go…
http://stockcharts.com/h-sc/ui?s=%24XAU&p=W&yr=6&mn=0&dy=13&id=p49874690017&a=505389797
Potential Swamp cleaning of the FBI….McCabe……..
http://www.zerohedge.com/news/2017-12-15/gowdy-eviscerates-andrew-mccabe-ill-be-surprised-if-hes-still-employee-fbi-time-next
The XAU priced in GLD managed to take back the 233 week MA after closing below it for the last 7 weeks straight…
http://stockcharts.com/h-sc/ui?s=%24XAU%3AGLD&p=W&yr=5&mn=7&dy=0&id=p51006595458&a=544104175
Tuesday:
On December 12, 2017 at 4:40 pm,
Matthew says:
SILJ:GDX has been below the 200 week MA for the last five weeks while becoming weekly oversold. If it can take that level back this week, it will be a good sign for the sectorβ¦
http://stockcharts.com/h-sc/ui?s=SILJ%3AGDX&p=W&yr=4&mn=11&dy=0&id=p08868930787&a=562800279
(It succeeded.)
Highlights Of GOP Compromise Bill To Overhaul Tax Code
By MARCY GORDON – Associated Press – 3 minutes ago
WASHINGTON (AP) β Republicans in Congress have blended separate tax bills passed by the House and Senate into compromise legislation that seeks to achieve a sweeping overhaul of the nation’s tax code. GOP leaders are looking toward passage of the final package by the House and Senate next week, with the aim of sending the measure to President Donald Trump to sign before Christmas.
___
Highlights of the legislation, which would make about $1.5 trillion in tax cuts:
β Personal income tax rates: The bill retains the current number of brackets, seven, but changes them to 10, 12, 22, 24, 32, 35 and 37 percent. The top bracket for wealthiest earners, 39.6 under current law, drops to 37 percent. But it will kick in at a lower level, $600,000 per married couple, instead of the current $1 million.
The reductions in personal income tax rates are temporary, ending in 2026.
β Standard deduction: Used by about 70 percent of U.S. taxpayers, currently $6,350 for individuals and $12,700 for married couples. The bill doubles those levels to $12,000 for individuals and $24,000 for couples, expiring in 2026.
β Personal exemption: The bill ends the current $4,050 personal exemption.
β State and local taxes: Ends the unlimited federal deduction for state and local income and sales taxes, allowing the deduction only for a total of up to $10,000 in combined property, income or sales taxes.
β Tax credits: Doubles per-child tax credit to $2,000 for families making up to $400,000 a year. Up to $1,400 of the $2,000 credit is available as a tax refund to lower- and middle-income families with relatively small tax bills. The per-child credit expires in 2026. The bill also creates a tax credit for each adult in a family; it retains the current adoption tax credit.
β Home mortgage interest deduction: Limits the deduction to interest paid on the first $750,000 of a new loan for a first or second home. The current limit is $1 million.
β Other deductions: Allows deduction for medical expenses not covered by insurance for 2018 and 2019 when expenses exceed 7.5 percent of adjusted gross income. That rises to 10 percent starting in 2020.
β Individual insurance mandate: Repeals the requirement in Democrat Barack Obama’s health care law that people pay a tax penalty if they don’t purchase health insurance.
β Alaska oil drilling: Bill opens Alaska’s Arctic National Wildlife Refuge to oil and gas drilling.
β Alternative minimum tax: The AMT is aimed at ensuring that higher-earning people and corporations pay at least some tax. For individuals, the bill increases the amount that can be exempted from the AMT. The tax is repealed for corporations.
β Inheritance tax: Currently, when someone dies the estate owes taxes on the value of assets transferred to heirs above $5.5 million for individuals, $11 million for couples. The bill doubles those limits and repeals the tax in 2025.
β Corporate taxes: Bill slashes the current 35 percent rate to 21 percent starting Jan. 1.
β Pass-through businesses: Millions of U.S. businesses “pass through” their income to individuals, who then pay personal income tax on those earnings, not corporate tax. The bill lets those people deduct 20 percent of the first $315,000 of earnings.
β Businesses: Bill allows companies to immediately write off the full cost of equipment they buy.
Businesses: Bill allows companies to immediately write off the full cost of equipment they buy………………..THIS would be better if it said……………….
Write off the full cost …IF MADE IN AMERICA
Gerald Celente:
Only from rabid nuts from California:
http://thehill.com/homenews/administration/365068-exclusive-prominent-lawyer-sought-donor-cash-for-two-trump-accusers
Ron Paul on Money and Power:
https://www.youtube.com/watch?v=h3DcNutyd2A