The recent weakness in the USD could be telling a signifying an important shift in money flows

October 16, 2019

With the USD breaking below 98 today there are a couple key factors to consider if this move continues. Chris Temple, Founder of The National Investor joins me to breakdown what he thinks is causing this move lower and if it is signaling a more significant shift in money flows. This very well could be a short term correction but the recent expansion of the Fed balance sheet needs to be noted in terms of timing as well.

Click here to visit Chris’s site and follow along with his newsletter.

    Oct 16, 2019 16:19 AM

    Is anyone looking at the closing of hedge funds…….people withdrawing their money…?

    Oct 16, 2019 16:39 AM

    I guess none of those hedge fund managers ever ltuned in to the KeReport.

    Meanwhile from the horse’s mouth….

    Oct 16, 2019 16:57 PM

    AOC Blames Capitalism for Government-Created Problems
    by Matt Palumbo Posted: October 12, 2019
    (in part)
    In response to an article from CNBC arguing that millennials are harming the economy by not spending more money, AOC replied that it’s not by choice. “[We’re] not stingy. [We’re] broke,” replied the woman who earns a salary of $174,000 per year. “And low wages, poor work standards, high cost of living, and a runaway student loan crisis have everything to do with it.”

    And to some extent, she’s correct. The cost of living, when it comes to housing and rent prices, are rising faster for millenials than prior generations, and that’s especially true when it comes to college costs.
    And for that, you can blame the kind of government meddling that AOC supports.

    For Most of American History, College Costs Did Not Rise

    In the 21st century, skyrocketing college costs have become the third thing certain in life – but it wasn’t always this way. In fact, for most of American history the inflation adjusted cost of college tuition was mostly constant. Paradoxically, it was government efforts to make college more affordable that have sent costs into the stratosphere.
    As I noted elsewhere, in the 1971-72 academic year, it cost $10,742 to attend a private four-year school, and $2,510 to attend a public one. Community college cost $1,126. A Nearly a decade later in the 1980-81 academic year, the costs were lower: $10,438, $2,320, and $1,128 respectively. (All figures in 2015 dollars)
    What changed? Subsidies. If the government subsidizes $1,000 of my tuition, a college can justify raising tuition by as much as $1,000 without me feeling any pain. And in the process, that higher sticker cost creates demand for more tuition subsidies, creating an endless feedback loop between increased aid and costs. A study from the New York Federal Reserve found tuition to increase 65 cents for every dollar in federal aid given.
    The federal government began subsidizing tuition as early as 1965, but it was the 1978 Middle Income Student Assistance Act (which expanded subsidies from the poor to the middle class) that marked a turning point in college costs. Since 1978 college costs have increased 1,225% while inflation has increased 279%.
    Instead of nationalizing higher education or bailing out student loan debt like AOC and Bernie Sanders wants, why not simply rollback counterproductive policies that will only exacerbate this crisis into eternity?

    Housing and Rent
    The student debt crisis has played its role in reducing millennial homeownership rates below prior generations at this stage in their lives. According to the Federal Reserve, the average $30,000 in student loan debt delays the average graduate’s path to homeownership by 7.7 years. The average baby boomer was 25 when they purchased their first homes – millenials will be 35. The problems created by this new debt burden aside, housing costs are still rising faster than wages in 80% of the country (which is a problem that affects everyone).
    Millennials purchasing their first home today pay roughly 39% more (inflation adjusted) than baby boomers purchasing their first home in the 1980s. And that’s just the buyers. Most are renting, and seeing those prices rising far more drastically. A millenial renting today pays an average of $1,358 per month, while a Gen-Xer at the same stage in their life would’ve paid $850 in inflation-adjusted dollars, and the Silent Generation paid less than $500.
    What’s to blame? Onerous government regulations making it increasingly difficult to build. In many major cities regulations make it literally impossible for their housing construction to keep up with population growth. To demonstrate the absurdity in America’s most liberal city, one man in San Francisco spent over five years and $1.4 million attempting to convert his laundromat into new housing – before finally giving up and selling it.
    Zoning laws saw a sharp escalation from the 1960s to 80s, and briefly took a halt in the Reagan era before lawmakers put the pedal to the floor.

    Oct 16, 2019 16:22 PM

    Matthew, back in August we looked at SSPXF@.18 and it quickly shot up to .34
    I finally bought some today@.193 as well as some OR@9.10
    Do you prefer a .270 rifle or a 6.5 Creedmore ?

      Oct 16, 2019 16:07 PM

      I’d take the old .270 despite the slightly greater recoil and possibly slightly less inherent accuracy (shorter cases do seem to have an edge when it comes to accuracy and efficiency).
      For most people under most conditions, the biggest differences between the two are seen in the trajectories and power and the flat shooting .270 easily wins both.
      For example, loaded with the 145gr ELD-X, the .270 delivers 1497 ft-lbs of energy at 500 yards after dropping 37.6″ while the Creedmoor loaded with the 143gr ELD-X delivers 1308 ft-lbs and drops 44.4″ at 500 yards.
      If you are sensitive to recoil, the Creedoor kicks significantly less.

      Oct 16, 2019 16:14 PM

      SSPXF has retraced its vertical move but did so on much lower volume, which is a good sign…

        Oct 16, 2019 16:29 PM

        I was sorry when SSPXF got away as it has huge reserves and resources and leverage to the gold price, and Guyana is a safer country than most below the Rio Bravo. So when I saw it at .21 today I put in a buy order @ .193 and was surprised when it executed late in the session.

      Oct 16, 2019 16:19 PM

      I make no comment regarding fundamentals or charts of SSPXF.

      I do notice, however, what I believe are excessive warrants around, and this raises a warning flag for me.
      Volume also is slightly abnormal high recently), according to my models. I have not investigated further, and do not know reason.

    Oct 16, 2019 16:18 PM

    Wrap your arms around this one……..George Webb…….update ….

      Oct 17, 2019 17:48 AM

      Crowdstrike……..Crowstrike……….Pres.Trump getting some help connecting the dots., finally.

        Oct 17, 2019 17:51 AM

        Wonder why Pelosi walked out of the meeting……..she has been discovered, concerning the blackberries and server………..Treason and a noose for Nancy……the Mob is on a short leash …….UKraine Nancy…..Baltimore Nancy…..

          Oct 17, 2019 17:57 AM

          Baltimore Cummins…..maybe the town will have enough money to buy some airconditioners for the schools now.?………$1.8 Billion missing and he ain’t telling no more.
          RIP………sorry, but, Fact are facts……..

    Oct 16, 2019 16:21 PM

    Thanks, Matthew. My Uncle Larry had a .270 and my Uncle Joe in Oregon had a .30/06 pre-1964 Winchester. Here in the woods of east Texas I would probably seldom have a shot of over 150 yards. If my model 94 30/30 gets stolen I think I’ll get a .270

    Oct 16, 2019 16:57 PM

    STILL, there you go…..

    Oct 16, 2019 16:11 PM

    The piece was authored by J. Christopher Giancarlo and Daniel Gorfine, both former employees of the Chairman of the Commodity Futures Trading Commission⁠—one of the toughest financial regulators in the US.
    ———————- That hurt when I fell off my chair laughing.
    Giancarlo and Gorfine propose a “digital dollar—a government-sanctioned blockchain protocol, created and maintained by an independent nongovernmental group but administered by banks and other trusted payment organizations.”
    Per the system, “Cash brought into the system would be exchanged for digital US dollars on a blockchain, with the cash lodged in special escrow accounts maintained by the Federal Reserve.”
    The authors believe the new system would maintain the authority of “trusted, regulated intermediaries to maintain digital wallets and validate transactions”, whilst allowing for its uses to make the most of blockchain’s advantages, like higher transaction speeds, security, and low costs.
    The system would also secure and extend the “central role of the US dollar in global finance” against new technological advances. Giancarlo and Gorfine expressed concern over digital currency initiatives by social networks, which they believe could “eventually erode the dollar’s status as the most popular currency for international exchange”—a concern shared by US Senators and Representatives regarding Facebook’s proposed Libra cryptocurrency. They also highlighted concerns over new digital currencies issued by central banks, like the Chinese government’s upcoming digital version of the Yuan.
    —————PLEASE NOTE
    The authors propose a pilot program that would allow people to use smartphone apps to buy digital dollars, then use them for everyday purchases.

      Oct 16, 2019 16:01 PM

      Con Cash……….mob substitute ……..

    Oct 16, 2019 16:19 PM

    Raoul Pal and experts value bitcoin….

    Oct 16, 2019 16:52 PM
    Oct 16, 2019 16:01 PM

    Wheee! BTC sliding down. LTC worries. Market overview. Dow lookin’ good.

    Oct 16, 2019 16:18 PM

    BOYS! You see this???

    DC’s Atlantic Council Raked In Funding From Hunter Biden’s Ukrainian Employer While Courting His VP Father

    As I recall, our good friend Harlan Ulman is a member of the Atlantic Coucnil….what do you have to say to that???

      Oct 17, 2019 17:42 AM

      I am reserving my thoughts on Bill Barr………as I have said before……
      Something is not right,…..but, I am not saying what he is doing presently is not right or wrong……..Just interesting.
      And thanks for the post.

        Oct 17, 2019 17:44 AM

        My question to you……CFS………..
        have you done any research on the background of BARR and his father, and the hiring of Jeff Epstein…???

    Oct 16, 2019 16:19 PM

    The Horowitz FISA report that Bartiroma reported would be coming out this Friday is now rumored delayed !

      Oct 17, 2019 17:46 AM

      More info being withheld…….?…..Seems to be slow walking

    Oct 16, 2019 16:59 PM

    Copy of Trump’s letter to Erdogan:

      Oct 17, 2019 17:33 AM

      Dang, can you imagine Obammy or Clinton writing a letter like that?

        Oct 17, 2019 17:46 AM

        I think there’s definitely a quid pro quo…….I’m surprised the Demons aren’t shouting impeachable content there.

      Oct 17, 2019 17:19 AM

      Kurds, along with ISIS, were going back and forth…..over to Turkey……according to the spokesperson from Turkey………PBS……Thursday morning….