China Shares Kept Out of Key Index: Blame Capital Controls (WSJ) Russia Is Saving Jobs, but Not the Economy (Stratfor) China Spends More on Infrastructure Than the U.S. and Europe Combined (Bloomberg) The decline of the summer job in one chart (MarketWatch) U.S. Economy Stuck in a Rut, CEOs Cut GDP Outlook (FoxBusiness) The Global Stakes of a Saudi Aramco I.P.O. (NYTimes) … [Read more...]
Archives for June 2016
Politicians Hate Gold, more Reason to Love it
I found this nugget in the August 2002 issue of Richard C. Young's Intelligence Report. Politicians Hate Gold In general, I am a fan of the gold standard. I would like to have my paper money readily and easily converted into gold any business day of the week. Politicians, of course, hate gold because of its very discipline. Money supply cannot be artificially inflated on a gold standard. … [Read more...]
Retails Sales Still Climbing, But Slower
Retail sales have been growing since November 2009, but peaked in April 2010. The growth trend has been one of deceleration ever since. … [Read more...]
Worthy Reads: Brazil’s Bank Chief Sets Ambitious Goal
Brazil’s Bank Chief Sets Ambitious Goal (WSJ) Yellen’s Thinking of “Natural Rate” is Simply Wrong…… (ValueWalk) Retail Sales Not Strong For All (WSJ) Americans' donations to charity: $373 billion last year (UPI) Chinese Await MSCI Decision (WSJ) U.K. Moves Closer to Brexit as The Sun Backs ‘Leave’ Vote (Bloomberg) … [Read more...]
LinkedIn for $26.2 Billion. Who says there’s no Inflation?
Here’s yet another example that inflation exists in several pockets of the economy thanks to the reckless monetary policy of the Federal Reserve. From today’s WSJ: The stock gains of the Obama era are partly a reflection of the resilience of American business in a tough environment, but they may also result in part from the Federal Reserve’s monetary exertions. Perhaps Mr. Hoffman decided this is the time to sell near the top. It’s clear how government policies are shaping the financing of the LinkedIn deal. As of March 31, Microsoft’s balance sheet held more than $105 billion in cash, … [Read more...]
Where to Buy Gold Coins and How much Gold You Should Buy
Where do you buy gold coins? For non-collectible coins, I’ve done repeat business with Blanchard and Co., Inc. and I like how I’ve been treated. I would expect the same for you. And, I say non-collectible coins because I’m not a coin collector. How many gold coins should you buy? When you buy gold coins do it as if the price is going to be cut in half tomorrow. Ask yourself how much you can comfortably afford to buy if that were to happen. That’s one way to make the right choice for you and your family. This was my thinking when I was establishing my gold coin position: What I set-out … [Read more...]
Worthy Reads: IMF sounds warning on China’s corporate debt
IMF sounds warning on China’s corporate debt (FT) ‘Dot plot’ to be best gauge of Fed’s mood after the jobs debacle (MarketWatch) Here's How the Fed's Unemployment Projections Could Change This Week (Bloomberg) Survey: Most Millennials Reject Credit Cards (FoxBusiness) China's yuan trade system to open branches in London, New York (Reuters) … [Read more...]
RAGE Gauge: Your Survival Cash and the Gold Rush
You and I both know there’s inflation today. It’s at the grocery store, education, real estate, taxes etc. As long as there is government controlling your money, there will be inflation. As I write here, cash may be king in a sudden disaster, but should be paired with a hard asset hedge for long term protection: Cash is king! Try selling that one to your spouse. But cash is pretty powerful. You never know when you’ll need it. Like when there’s a Wi-Fi outage that shuts-down businesses. No Wi-Fi, no credit cards. No Pizza. Cash is powerful to an empty stomach. But predicting an outage is … [Read more...]
Worthy Reads: The Big Bet of 2016: Buy Gold, Miners and ETFs
China Inflation Cools, Stoking Stimulus Expectations (WSJ) Venezuela Is at a Breaking Point (Bloomberg) The Big Bet of 2016: Buy Gold, Miners and ETFs (WSJ) Swiss franc hits eight-week high on safe-haven demand (Reuters) Foreign Demand Soars for U.S. Treasurys (sic) (WSJ) … [Read more...]
An Investment Risk That Can do Real Damage to Your Portfolio
We write a lot about monetary policy on this site, not because we enjoy the parlor game of trying to predict what the world’s central bankers are going to do next, but because over recent years, monetary policy has become the king-maker in financial markets. Those ignoring the actions, reactions, and mostly overreactions of the global central banking cabal may be unwittingly taking risks that have emerged as a result of the unprecedented scale of central bank intervention. First it was zero rates, then it was quantitative easing, then it was zero rates for longer. When these unconventional … [Read more...]