Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Gain About 1%
By: Chris Mullen, Gold Seeker Report

Northern Vertex Files Preliminary Economic Assessment Report for the Moss Gold Mine in NW Arizona
By: Northern Vertex Mining Corp.

Does The CoT Structure Prohibit A Rally?
By: Craig Hemke

Harry Dent’s Gold Prediction Invalidated
By: Przemyslaw Radomski, CFA

SELLING OUT OF PRECIOUS METALS AND BUYING BITCOIN…. Very Bad Idea
By: Steve St. Angelo

The Bitcoin Bubble Explained in 4 Charts
By: Jake Weber

VXX Sends an Awesome Message from Another Galaxy
By: Rick Ackerman

Geopolitical Risk Highest “In Four Decades” – Gold Demand in Germany and Globally to Remain Robust
By: GoldCore

Asian Metals Market Update: November-22-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Gain With Stocks
By: Chris Mullen, Gold Seeker Report

 
Search

GoldSeek Web

 
Strange and Crazy in the Financial World!


 -- Published: Friday, 22 January 2016 | Print  | Disqus 

By Gary Christenson

It’s been crazy so long it feels like normal …

  1. Several $ Trillion in global debt “pays” negative interest. Loan your capital to an essentially bankrupt government and lose a portion of that capital every year!  Strange and crazy!
  2. The US government runs deficits – every year – in the $500 Billion to $1 Trillion range. These are the official deficits, not what GAAP accounting would calculate.  So what?  Just print and borrow more.  Strange and crazy!
  3. The Fort Knox Bullion Depository is so important that almost no one is allowed inside, even the President. It is so important that the gold has not been (truly) audited during the past 60+ years.  They use armed guards, fences, motion detectors and much more to protect the gold that supposedly is vaulted behind those 22 ton doors.  But at current prices the 147 million ounces of gold is valued at only about $160 Billion.  The official national debt is over 100 times larger and the official debt increases by the entire value of the Fort Knox gold in roughly two months.  Strange and crazy!
  4. The Fed is all important. We hang (pun intended) on every word.  Media people analyze tiny nuances from Fed statements.  But the Fed is the “Wizard” behind the green curtain.  From Bob Moriarty:

“100 years of history proves that the Fed is clueless.  The mismatch between interest rates and risk today is absolutely insane.  My opinion is that the whole financial system is going to blow sky high.”  [Strange and crazy!]

Dow Jones Ind Avg: May 2015 high:  18,350, Jan. 13, 2016 16,151, down 12%

S&P 500 Index:       May 2015:  2,126, Jan. 13, 2016 1,890, down 11%

NASDAQ Composite:   July 2015 high:  5,230, Jan. 13, 2016 4,526, down 13.5%

Shanghai Comp Average: June 2015 high:  5,176, Jan. 13, 2016 2,950, down 43%

“The Societe Generale expert says if the U.S. economy tumbles into a recession led by low manufacturing output, the U.S. market will sink a whopping 75%.”  Diane Alter

Gerold’s Blog reported that as of January 8 there were no cargo ships operating in the Atlantic Ocean, something that has never happened before.

The CRB index of commodity prices just hit a 40 year low.

The Baltic Dry Index is down to an all-time low.

Strange and crazy!

From The Burning Platform:

“The third speculative boom in the last fifteen years fueled by Federal Reserve idiocy is about to become the third bust in the last fifteen years.  The unwashed masses who believe what they are told by CNBC are going to be pretty pissed off when they lose half their retirement savings again.  None of their highly paid financial advisors are telling them to expect 0% returns over the next twelve years, but that is their fate.  The numbers don’t lie over the long term.” 

“At current market valuations, a run of the mill bust will result in a 50% decline.  A bust that puts valuations back to 1982 bear market lows would result in a decline exceeding 75%.”

Strange and crazy!

2016 is an election year and will probably be a recession year.  An outright market crash, such as what is ongoing in China, is certainly possible.  The US stock market crashed in 2008 and the US elected a Democrat for President, as if it mattered.  A crash in 2016 might cause Wall Street funding to support, and the voting machines to elect, a Republican for President, as if it mattered.

The Fed will have choices:  (These are merely my “outsider” opinions.)

  1. Talk, act importantly, raise interest rates slightly, and increase debt, borrowing, and QE (monetizing debt).
  2. Act importantly, talk, and increase debt, borrowing, and QE (monetizing debt). It is what they do ….

There is an outside chance that the Fed “throws in the towel,” the PhD’s resign, admit failure managing the economy, money supply, and monetary policy, and allow nearly everything to crash and burn, metaphorically speaking.  My personal bet is that the odds of this are about the same as winning the Powerball, 1 in 292,000,000.

Sane, Not Crazy:

  • Trust history. Expect larger deficits, more borrowing, declining prices in stocks and bonds, higher prices in gold and silver, and trauma.
  • Trust politicians, the Fed, and CNBC – to mislead you. Act accordingly.
  • A different President and/or a different Presidential party will make little difference. The word diversion comes to mind.
  • Hemingway: “The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin.”    Is war in the Middle-East part of the plan?
  • The stock market crashed or corrected in 1987, 1994, 2000, 2008, and 2015-2016 – every 7 to 8 years. Watch out below.
  • Silver prices bottomed in 1986, 1993, 2001, 2008, and 2015-2016 – every 7 to 8 years. 2016 should be a good year for silver.
  • Gold prices bottomed in 1984, 1992, 2001, 2008, and 2015 – 2016 – every 7 to 8 years. 2016 should be a good year for gold.

2016 looks like a year for strange and crazy events, market trauma, more QE and diversions.  Rig for stormy weather and read:

Silver, Silliness, Gold, and Risk

Between the “State of the Union” and the next election much can happen.  I think it is safe to say that, “Gold Thrives, Paper Dies.”

Gary Christenson

The Deviant Investor


| Digg This Article
 -- Published: Friday, 22 January 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.