US Markets, Gold, and The USD
Chris Temple joins me today to recap some of the moves in US markets, gold, and the USD. Gold was the real standout when we recorded as it was holding its early gains while the dollar was also moving higher. Since we recorded gold has sold off but is still showing some strength in the face of a strong dollar today.
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“Markets aren’t going to get what they want from the Fed”
Trump wants lower interest.
Market expects nothing
What does market want?
Before he became president, he said stocks were in a bubble and that rates were too low. Now stocks are twice as bubbly and he wants rates lower?! What this super Keynesian is going to accomplish is a collapse that gets conveniently pinned on the right and its free-market types. Of course it will be the century of lefty monetary policy that brings the collapse but good luck convincing Joe Blow of that.
The price of capital, the interest rate, is easily the most important price there is and that market hasn’t been free for over a century.
What a coincidence, Peter Schiff just posted this an hour ago:
Trump Is Keynes on Steroids
https://www.youtube.com/watch?v=KUWack5hLB8
The Fed is a reactive body.
When is any reactive body not late in action?
We know interet rates will be dropped eventually, because we are following Japan for the next decade at least.
There is clearly enough supply of gold into the market.
https://3.bp.blogspot.com/-Ns1gCznieJs/XQKy7IYEJBI/AAAAAAABa0Q/-ki6w6_SL38cC7Z6qtALSXYVbspqSBzBQCLcBGAs/s1600/SilkRoadDemand20190613.gif
or thw price woud have risen further to cover demand.
(Despite COMEX manipulation.)
Of course, measured in ounces of Silver, gold’s price has risen dramatically (almost to a new all time high.)
I can’t see the Fed reacting unless the conventional markets start to get hit again.
Off Topic:
The news is full of mis-statements of the Trump-Stephanopoulos interview and of False Flag attacks in the Gulf.
Iran has threatened (Repeatedly) to close off oil flow from Saudi Arabia through the Gulf. I do not know whether the drone surveillance footage of Iran recoveringing an unexploded mine from the tanker is false or true.
I do know several other related facts however.
https://www.reuters.com/article/us-iran-nuclear-eu/iran-has-accelerated-enrichment-of-uranium-iaea-says-idUSKCN1TB0IT
(Mr. Moriarty, please note this is not Israel sourced.
So President Trump has been faced with the dilemma of Iran having a nuclear bomb in 6-9 months or stop the enrichment.
I do know Israel does not have the capability of destroying the enrichment facility.
Perhaps this information not discussed in the media will aid understanding.
CFS, you’re slightly more naive than I thought.
Matthew, if you want to make personal comments, back them up with reasoning or I cannot learn.
The reason I stated Israel cannot destroy the facility, was simply that it is buried under a mountain.
The US refused to sell block-buster bombs to Israel and even if it did, Israel does not have a bomber capable of carrying a block-buster.
Further, while Israel was able to destroy centrifuges before by speeding up above technical speed capability, that method is no longer possible because of modifications made by Iran (Thanks to the French!)
Even worse, is that the IAEA does even have access to the Iranian major research site where nuclear bomb manufacturing will take place and the missiles will be multiple headed….. apparently this will be mirved due to technology from Korea in exchange for oil.
I do not expect the U.S. to invade Iran, but I do expect a U.S. strike.
So now explain my naivety……..Am I supposed to believe the attacks on 6 tankers were only false flag attacks, even though Iran has repeatedly said it will close down the straits of Hormuz?
oops IAEA does NOT even have access to ….
CFS, I was referring to your implication that Reuters is more credible than the rest of the MSM. Learning is up to you.
Reuters is more independent than Times of Israel!
Although based in London, Reuters is actually owned by a Canadian Toronto) operation: Thompsons.
The Thomson (no “p”) Corporation acquired Reuters forming Thomson Reuters. The Woodbridge Company Limited is the controlling shareholder.
Well, Washington said Iranians detained the Japanese crewmen of whom some were Russian. Once again, the propaganda falls apart when Russia thanked the Iranians for “saving” the crew.
I believe Iran wants a higher price for oil to counteract sanctions.
I don’t really think Iran wants to close the Straits of Hormuz; that is probably bluster more than anything in attempting to drive up oil prices. Since Saudi is aligned with Israel, I don’t think Iran would mind damaging Saudi oil flow, as long as they didn’t get caught very clearly. I believe Iran has repeatly attempted to knock every U.S. surveillance drone out of the air, that it sees.
This whole Iranian mess puts Trump in a quandary. One of the infrequent areas I disagreed with Trump was his pulling out of the Iranian nuclear deal. It puts him at a loggershead with his penchant for non-interventionism. If he starts a war with Iran, this country is in deep trouble—remember how the debt exploded under Bush’s ill-fated adventure into Iraq. Also, Iran is not Iraq plus I can’t see Russia and China sitting on their hands if we would try to overthrow the Iranian regime. One wonders what they have conveyed to Trump privately about their feelings.
Once again gold approaches the hard resistance barrier and right on cue backs off almost immediately. Just like clock work. Status quo remains!
With regard to the Fed, this is much in line with my beliefs:
https://www.youtube.com/watch?v=ZfEK7IMK6VE
Meanwhile Brennan has his head down:
https://consortiumnews.com/2019/06/13/ray-mcgovern-doj-bloodhounds-on-the-scent-of-john-brennan/
Hey, I’ll volunteer to take Sarah Huckabee Sander’s job. I’m only about three inches shorter than James Comey, which should be an easy playing field to level
Central Banks ….are nothing but Fraud………like duh…..
Same old story…..gold going down, at this juncture , is no big deal.
In usdollars, gold trading by paper gold, not phyz.
Gold trading paper is 1400 times the amount of phyz.
In other currencies…… gold is already at new highs, as mentioned earlier.