Why I Like Gold (for now)

I’m at the same place. I think @yakpoo makes a solid case but all that I see seems to never translate to what we think will happen with gold.

 

It seems like the Crypto market has supplanted Gold as the market's inflation hedge. Since crypto lives or dies by the politician's pen, a crash in Crypto could cause Gold (and other PMs) to rocket higher. No one knows if/when that might happen, but it's certainly a possibility to consider.

 

I had planned to do this once a week, but thought I would do one early as a test...

 

When you least expect it, expect it.

 

As of 9/7/2021...

 

Geez FD, age spots at 51?

Based on th'photos you use t'post, I's pritty sure you hadda thing for th'guys, but I think y'lost yer bearings. Then again, considerin' y'get everthin else backwards it sorta makes sense.

Can't help but notice that ya need t'cut yer nails too.

 

you can't see my ankles through my clothes lil yiper.

 

Here's the most recent numbers. It looks like markets are preparing for the Fed's tapering their bond purchase program. Everyone who bought real estate in the past year will be upside-down in their mortgages soon. Since the Afghanistan debacle, the Dollar is rising along with interest rates while PMs and other Dollar-denominated assets are falling...

 

It looks like the Fed is being forced to defend the Dollar since the Afghan debacle. This is interesting because Powell's term ends in February 2022. If he's not appropriately accommodative heading into the mid-term elections, he will likely be replaced by someone more willing to keep the stimulus flowing.

https://www.marketwatch.com/story/f...conomist-says-11632244116?mod=federal-reserve

 

The 10Y Treasury spiked above 1.5% this morning before settling back below 1.5%. The only reason interest rates aren't higher is because the Fed is keeping rates artificially low by printing money to buy our own debt. It's a Ponzi Scheme! As you can clearly see, the Fed has been actively manipulating interest rates to keep the economy from recession. We're heading off a cliff...even without the $5 Trillion "Green New Deal".

Here is a chart that shows the Fed's balance sheet. We're approaching $9 Trillion! Modern Economic Theory holds that any sovereign country can print as much money as they like since everyone is required to accept it. It's a crazy theory, but it's the foundation of all Democrat (aka. Marxist) policies.



The link these pictures come from has an interactive chart for your viewing pleasure!

https://www.statista.com/statistics/1121448/fed-balance-sheet-timeline/

The Fed is signaling that bond purchase tapering could begin as soon as this November. It'll be interesting to see how they do it without roiling markets.

 

Is the Fed losing control of interest rates? The 10Y Treasury has risen 18% in just the past 30 days!

 

Progressive Democratic lawmakers urge Biden to replace Powell as Fed chair

Reps. Alexandria Ocasio-Cortez (D-N.Y.), Rashida Tlaib (D-Mich.) and Ayanna Pressley (D-Mass.) are urging President Biden to replace Federal Reserve Chair Jerome Powell as his term's end date nears.

The trio of progressive Democrats, along with Reps. Mondaire Jones (D-N.Y.) and Jesús García (D-Ill.), issued a statement on Monday calling on Biden to “re-imagine” a central bank that is “focused on eliminating climate risk and advancing racial and economic justice.”

https://thehill.com/homenews/house/...ers-urge-biden-to-replace-powell-as-fed-chair

 

Gold is not doing too well these days.

 

Nope! ...it's moving opposite of the Dollar. This is a good time to dollar-cost-average into gold. There's nothing technically stopping any of their spending plans. They can pretty much do as they please.

That's always been the Democrat plan...cool the economy to keep inflation under control as social spending ramps up. The slowing economy will justify the greater social spending. We should know in the next 30 days whether or not the far left of the Democrat party get their way. It'll be a sad day for America if they do. We're spending our grandchildren's money.

 

Didn't the Trump GOP spend like 8T in four years?

 

He had to repair a decimated military and it didn't help having a spend-crazy Congress.

That's another way to detect a Marxist. When they're presented with proof positive that the entire impeachment fiasco was a totally fabricated DNC coup and multiple felonies were committed on behalf of Democrat lawmakers...they don't bat an eye. They're only comment is..."What took you so long?".

Don't you feel at least a tinge of remorse for what happened to General Flynn?

 

I'm guessing that this won't account for 8T in spending. Nice try though.



Donald Trump Built a National Debt So Big (Even Before the Pandemic) That It’ll Weigh Down the Economy for Years
The “King of Debt” promised to reduce the national debt — then his tax cuts made it surge. Add in the pandemic, and he oversaw the third-biggest deficit increase of any president.

One of President Donald Trump’s lesser known but profoundly damaging legacies will be the explosive rise in the national debt that occurred on his watch. The financial burden that he’s inflicted on our government will wreak havoc for decades, saddling our kids and grandkids with debt.

The national debt has risen by almost $7.8 trillion during Trump’s time in office. That’s nearly twice as much as what Americans owe on student loans, car loans, credit cards and every other type of debt other than mortgages, combined, according to data from the Federal Reserve Bank of New York. It amounts to about $23,500 in new federal debt for every person in the country.

The growth in the annual deficit under Trump ranks as the third-biggest increase, relative to the size of the economy, of any U.S. presidential administration, according to a calculation by a leading Washington budget maven, Eugene Steuerle, co-founder of the Urban-Brookings Tax Policy Center. And unlike George W. Bush and Abraham Lincoln, who oversaw the larger relative increases in deficits, Trump did not launch two foreign conflicts or have to pay for a civil war.

The National Debt Increased Under Trump Despite His Promise to Reduce It
Daily total national debt from 2009 to present.

 

Instead of just making stuff up, you should actually do some research. At least that way it wouldn't be so easy to disprove the nonsense you reflexively throw out there.

 

Presidents don't spend money. Only Congress can do that.

 

The Fed is expanding their balance sheet, but interest rates are rising faster than the Fed can knock them down with QE. Plus, the Fed announced they plan to begin tapering their bond purchases in November...which will increase the speed of interest rate increases (assuming they actually do it).