The ECB Statement and Corresponding Market Moves

July 25, 2019

Chris temple joins me to discuss the statement from the ECB today and how the market reacted. With the swings today we ask the question of if the market is finally starting to focus a bit more on earnings and fundamentals over simply being central bank focused.

Click here to learn more about Chris’s newsletter.

    Jul 25, 2019 25:45 PM

    Draghi could have told the real truth:
    The influx of middle eastern “refugees” is destroying Europe, with:

    Increased violence, theft, etc.
    Increased welfare payments.
    Increased education expenses.
    Increasing health costs,
    Decreasing productivity gains.

    All for the purpose of stupid “virtue” signalling.
    Ask those raped, if the influx was virtuous.

    Jul 25, 2019 25:01 PM

    Chris: Why do the appointees at the Fed always fail to understand that without small corrections along the way and some bankruptcies for those badly run companys, their actions will eventually bring everything down? Why can’t they see what many on the outside see?

      Jul 25, 2019 25:37 PM

      Some do get it and understand economics very well but sound policies aren’t allowed at the Fed. Greenspan is one example and his actions at the Fed went directly against the sound principles that he understands and holds to be true to this day.
      He got a lot right in his 1966 essay: Gold and Economic Freedom

      Don’t fall for the myth that the Fed was ever intended to serve the people. It’s about power and it does exactly what it was designed to: transfer the wealth of the masses/society to an elite few. (It’s funny how the Republican half of the neocons call themselves conservatives despite their reliance on the Marxist institution for their war funding.)

        Jul 26, 2019 26:16 PM

        Ditto………on Don’t fall for the myth that the Fed was ever intended to serve the people
        I can not believe adults have not done their homework on the FAKE FED….and Central pretend TBTF..

          Jul 26, 2019 26:23 PM

          should have said….Fake Fed and Central Banks

          Jul 26, 2019 26:26 PM

          Money and Banking courses in college are a JOKE….showing the sheeple nothing but fraud.

      Jul 26, 2019 26:47 AM

      Well, I think some do; most recently as I pointed out several days ago, Boston Fed President Eric Rosengren. But by and large, the Fed as an institution (notwithstanding Chairman Powell’s gallant and proper, but doomed normalization effort for most of 2018) has embraced that “third mandate” – the markets.
      As I wrote in the last issue, part of Powell’s own 180-degree turn is that he now basically acknowledges that the Fed is the de facto central bank of the world. Even though economic statistics in the U.S. by and large do not support the case for a rate cut now, the greater stress and weaker economies elsewhere do support it.
      As I’ve already warned, the Fed taking these halting, double-minded steps now in the easing direction probably won’t be enough to take the steam out of the dollar which—if it hasn’t already done so by the time the F.O.M.C. meets—will probably hit yet another new high for this move afterward. So of all things, the Fed next week may do more harm than good (with yet a reversal of the recent reversal in the yield curve I wrote of last issue as well) it its 25-basis point cut isn’t CLEARLY seen as the first of several to come.
      Remember too that—in this overstretched fractional reserve system— the Fed and other central banks almost can’t allow recessions if they can be prevented. There is so much debt, on top of debt, on top of debt that even a garden-variety one would cause so much contagion as to bring everything down. One irony, of course, is that by their interest rate suppression and money printing to this point the banks have not only made imbalances, oversupply and shaky debt worse. . . but they have arguably spent most or all of the “ammunition” they might otherwise have to at least mitigate a coming downturn’s effects.

        Jul 26, 2019 26:59 PM

        Thanks Chris for the reply and also thanks to others who put down some thoughts. Was on the road all day so it was good to see the comments somewhat late. Truthfully, it really comes down to debt and the massive levels that can’t be paid from Governments and Individuals and all the promises that can’t be kept. There’s definitely a day of reckoning coming…………until then I guess most will party on!

    Jul 25, 2019 25:40 PM

    I think the Fed may actually be learning……
    They did suddenly change from raising rates.
    If we get a rate reduction this month, I will believe they may have finally got it.

    Unfortunately, with the whole world in a Japanized mode, I not sure of the outcome.

    In theory use of AI can increase productivity, but China is using AI for repression and population control.
    Corporate greed and government incompetence is so rampant, I worry whether increased productivity will not be just wasted.

      Jul 25, 2019 25:56 PM

      Shock and Awe Needed to Un-Invert the Yield Curve: Half-Point Cut Not Enough

      by Mish – 3 days ago

        Jul 25, 2019 25:58 PM

        Fed’s Asymmetric Bubble-Blowing Policy in Pictures

        by Mish – 4 days ago

        Jul 25, 2019 25:03 PM

        (PGM) (LRTNF) Pure Gold Closes Previously Announced Bought Deal Private Placement and Non-Brokered Private Placement Raising Gross Proceeds of C$47.5 Million

        July 18, 2019

        “Eric Sprott acquires approximately 10.2% of the Company”

          Jul 25, 2019 25:05 PM

          I’ve been starting to nibble and reposition in Pure Gold as they have things developed to the point where they seem like a good takeover target at this point.

          > (PGM) Pure Gold Mining – Corporate Presentation slide deck

            Jul 25, 2019 25:28 PM

            A good post from my buddy Nick the Mining Book Guy over at

            @MiningBookGuy – “Heads-up on $SWA (Sarama Resources), this is good to see:”

            Teranga Gold Announces a 27,000-Metre Drilling and Exploration Program at Golden Hill


            “I almost thought $TGZ (Teranga) was forgetting about #GoldenHill, as I think #Massawa in #Senegal has become a short-term priority. The #1 junior that greatly benefits from this activity is $SWA.”

            “Confirmation of big drill programs going on with $SMF (Semafo) on one side with #Bantou, $TGZ on the other side of $SWA main project with #GoldenHill. I should catch up with $SWA management to see if they can take better advantage of these positive activities with future promotional material.”

            Jul 25, 2019 25:43 PM

            Pure Gold = Poor Gold, Sprott is financing so many promising juniors these days that you just know the screw has turned. Being a contrarian is important but knowing when to strike is more important. If there is a crash everything will become much cheaper very quickly but then you must have cash sitting on the side ready to deploy. Either way the markets are never short of surprises. DT

            Jul 26, 2019 26:06 AM

            Hi DT. Yes, either investors are contrarians or victims. Contrarians have been deploying cash into the sector at the end of 2018 and during the dips in 2019.

            Really, Pure Gold has a very robust development project in Red Lake, and I used to own them a few years back, but divested the position when they were in the boring “orphaned” phase of development. Now the sector is heating up and pardon my pun, but “They are sitting on a gold mine.”

            Also, it isn’t just Eric Sprott that believes in PGM Pure Gold, but also Rob McEwen, AngloGold Ashanti, and Goldcorp. Just those 3 parties there own 25% of the shares 🙂

            It is nice to Eric Sprott investing further in companies like JAG Jaguar, EXN Excellon, and BTR Bonterra (by way initially of Metanor that Bonterra acquired last year).

            It is nice to see the big boys and funds deploying more money lately as that is the smart money getting into position ahead of the masses. Investors that have not been doing the same thing at the end of last year, or during the dip this year, are going to look back in a year or two wondering why they just sat on the fence.

            Jul 26, 2019 26:32 AM

            Great comments……one and all……….

    Jul 25, 2019 25:29 PM
    Jul 25, 2019 25:03 PM

    Tulsi Gabbard is suing google for election interference.
    50 million lawsuit.

    Same thing the msm did to Ron Paul.

    But but but we’ve been told its the Russians that interfere in elections.

    All the Israeli stuff doesnt count, if it did that would be antisemitism so thats a pigment of ur imagination. 😉

    Jul 25, 2019 25:15 PM

    But Social media, Facebook, Twitter, Google, etc. were responsible for much more election meddling and effecting votes/turn-out.

    (Don’t forget TV calling states incorrectly and very early)

      Jul 26, 2019 26:41 AM
      No matter how you rationalize it, the lesser of two evils is still evil.

      So how do you fight back?

      How do you fight injustice? How do you push back against tyranny? How do you vanquish evil?

      You don’t fight it by hiding your head in the sand.

      We have ignored the warning signs all around us for too long.

      As I make clear in my book Battlefield America: The War on the American People, the government has ripped the Constitution to shreds and left us powerless in the face of its power grabs, greed and brutality.

      What we are grappling with today is a government that is cutting great roads through the very foundations of freedom in order to get after its modern devils. Yet the government can only go as far as “we the people” allow.

      Therein lies the problem.

      The consequences of this failure to do our due diligence in asking the right questions, demanding satisfactory answers, and holding our government officials accountable to respecting our rights and abiding by the rule of law has pushed us to the brink of a nearly intolerable state of affairs.

      Intolerable, at least, to those who remember what it was like to live in a place where freedom, due process and representative government actually meant something. Having allowed the government to expand and exceed our reach, we now find ourselves on the losing end of a tug-of-war over control of our country and our lives.

      The hour grows late in terms of restoring the balance of power and reclaiming our freedoms, but it may not be too late. The time to act is now, using all methods of nonviolent resistance available to us.

      “Don’t sit around waiting for the two corrupted established parties to restore the Constitution or the Republic,” Naomi Wolf once warned. Waiting and watching will get us nowhere fast.

      If you’re watching, you’re not doing.

      Easily mesmerized by the government’s political theater—the endless congressional hearings and investigations that go nowhere, the president’s reality show antics, the warring factions, the electoral drama—we have become a society of watchers rather than activists who are distracted by even the clumsiest government attempts at sleight-of-hand.

      It’s time for good men and women to do something. And soon.

      Wake up and take a good, hard look around you. Start by recognizing evil and injustice and tyranny for what they are. Stop being apathetic. Stop being neutral. Stop being accomplices. Stop being distracted by the political theater staged by the Deep State: they want you watching the show while they manipulate things behind the scenes. Refuse to play politics with your principles. Don’t settle for the lesser of two evils.

      As British statesman Edmund Burke warned, “The only thing necessary for the triumph of evil is for good men [and women] to do nothing.”

        Jul 26, 2019 26:35 AM

        “The only thing necessary for the triumph of evil is for good men [and women] to do nothing.”

        And thats exactly whats going to continue to happen.

        Lets send more money to Israel.

          Jul 26, 2019 26:12 AM

          It is good that you point out the stupidity of sending more money……since the USof A….is BROKE…..Remember Israel is setting on one of the LARGEST OIL RESERVE in the World…

            Jul 26, 2019 26:15 AM

            You might need to speak to your nephews…….and see if they know the difference…between…..proclamation of the kingdom and grace….lol….

            Jul 26, 2019 26:18 AM

            But, what does that have to do with sending money to Israel….you might ask…..
            They might be able to get on the right side of the page….and figure out the Zionist .
            Start with a church pew warmer…..and get them on the right side of the page… 🙂

            Jul 26, 2019 26:03 AM

            I had family from out of province for a few days.
            Devout christians.

            I showed them the u tubes of Jewish leaders and Ahmadinejad hugging at their meeting.
            My family was shocked, they couldnt believe they have been lied to about Iran and Israel.

            They think twice before accepting anything about Israel now.

            These zionists are evil, the issue is they run the U.S.

            Jul 26, 2019 26:55 AM

            Hope your family continues to do their homework…….
            and do they know the difference between….
            the proclamation of the kingdom….and grace ….and their is neither Greek nor Jew…

            Jul 26, 2019 26:56 AM

            there not their

            Jul 26, 2019 26:04 PM

            As I said……get the pew warmers engaged……..and the zionist jew will be put to rest.

    Jul 25, 2019 25:22 PM

    ILLEGALS: statistics.


      Jul 26, 2019 26:45 AM

      For too long now, the American people have rationalized turning a blind eye to all manner of government wrongdoing—asset forfeiture schemes, corruption, surveillance, endless wars, SWAT team raids, militarized police, profit-driven private prisons, and so on—because they were the so-called lesser of two evils.

      Yet the unavoidable truth is that the government has become almost indistinguishable from the evil it claims to be fighting, whether that evil takes the form of terrorism, torture, drug trafficking, sex trafficking, murder, violence, theft, pornography, scientific experimentations or some other diabolical means of inflicting pain, suffering and servitude on humanity.

    Jul 25, 2019 25:39 PM

    A housing problem is starting, but giving mortgages to people that can’t afford them is not a solution.

    Jul 25, 2019 25:01 PM

    Silver Traders in trouble: CFTC Crackdown.

      Jul 26, 2019 26:33 AM

      CFTC doing civil action. Should be criminal. Cost of doing fraud for the bankers. CFTC should be charged criminally.

        Jul 26, 2019 26:29 AM

        Ditto David………exactly correct……to the bankers it is just a line item in the cost section

          Jul 26, 2019 26:32 AM

          CFTC……..cost for trading cash

    Jul 25, 2019 25:10 PM

    That also puts penalties for TREASON in a whole new light.

    Lock her up, or LINE her up?

      Jul 26, 2019 26:47 AM

      When does it become treason to say anything that exposes Israel?
      or will it become treason to boycott Israel?
      or not sign a loyalty oath?

      Will it become treason to point out the american army defends the poppy fields in Afghanistan or supports terrorists?

      Will it be treason for members of congress to attempt not support terrorist bills?

      so many things people could be called traitors for.

    Jul 25, 2019 25:37 PM

    I suspect it is only because Hughes feel the sum of the parts is worth more than the whole.

    Jul 26, 2019 26:33 AM

    By the very criteria laid out by Mueller for OBSTRUCTION OF JUSTICE,
    it appears to me that without any doubt, Mr. Mueller, in his failure to investigate the origins of the Steele Dossier, he himself is indeed guilty of Obstruction of Justice.

      Jul 26, 2019 26:29 AM

      Liar Mueller…..switches the narrative to Russians…, the MIC….can spend more MONEY…..WHAT A JOKE……sheeple need to wake up….

    Jul 26, 2019 26:45 AM

    Absolutely — Mueller is a Deep State lackey for a long time. . .one of the Establishment liars who told Congress that Iraq had WMD’s, etc. This was pretty much all for show, and also to make life as miserable for Trump as possible.

    Jul 26, 2019 26:00 AM

    Face it…………the entire govt is corrupt……at this stage…..

      Jul 26, 2019 26:01 AM

      If, you do not believe it……..How about your money…..Constitution …..standing army…
      Freedom of speech……

    Jul 26, 2019 26:35 AM
    Jul 26, 2019 26:49 AM

    I know some do not like GATA , but, here is some news provided by them….:)

      Jul 26, 2019 26:49 AM

      From the European Central Bank
      Friday, July 26, 2019

      The European Central Bank and 21 other central banks that are signatories of the Central Bank Gold Agreement have decided not to renew the agreement upon its expiry in September 2019.

      The first agreement was signed in 1999 to coordinate the planned gold sales by the various central banks. When it was introduced, the agreement contributed to balanced conditions in the gold market by providing transparency regarding the intentions of the signatories. It was renewed three times — in 2004, 2009, and 2014 — gradually moving toward less stringent terms.

        Jul 26, 2019 26:51 AM

        Does it mean that central banks no longer are in enough agreement about gold to continue to coordinate their market interventions and that they will let the market alone determine the monetary metal’s price, or let the anti-U.S. dollar faction of central banks determine the price through their own purchases and interventions?

        The announcement says the parties to the agreement do not plan to sell significant amounts of gold, but what about interventions through swaps, leases, and derivatives, directly or through the Bank for International Settlements? The announcement doesn’t say.

          Jul 26, 2019 26:53 AM

          The signatories confirm that gold remains an important element of global monetary reserves, as it continues to provide asset diversification benefits and none of them currently has plans to sell significant amounts of gold.

          The fourth CBGA, which expires on 26 September 2019, was signed by the ECB, the Nationale Bank van België/Banque Nationale de Belgique, the Deutsche Bundesbank, Eesti Pank, the Central Bank of Ireland, the Bank of Greece, the Banco de España, the Banque de France, the Banca d’Italia, the Central Bank of Cyprus, Latvijas Banka, Lietuvos bankas, the Banque centrale du Luxembourg, the Central Bank of Malta, De Nederlandsche Bank, the Oesterreichische Nationalbank, the Banco de Portugal, Banka Slovenije, Národná banka Slovenska, Suomen Pankki – Finlands Bank, Sveriges Riksbank and the Swiss National Bank.

    Jul 26, 2019 26:45 AM

    Life Is Worth Losing – Dumb Americans – George Carlin

      Jul 26, 2019 26:33 AM

      Yes ! b ! And know Epstein and the Banking System ! High Banking en Epstein have connection in commodity and Hedge Funds !!!! It’s Big !!!!