Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on derivatives counterparty risk.
Precious Metals:
We’ll start with this from Andrew Hecht at Seeking Alpha: Precious Metals in the Final Month of 2017
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David Morgan: What drives the Silver Price — Supply or Demand?
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Reader R.B. wrote to mention this sign of the times: “APMEX just sent out an email indicating that they are now accepting payment for precious metals in Bitcoin.”
Stock Markets:
Kirk Spano: Let The Stock Market Bubble Blow
Commodities:
Lithium Giant Eyes New Project to Tackle Electric-Car Boom
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Steel stocks surges Commerce Dept.’s antidumping ruling on steel from Vietnam
Economy and Finance:
National Bank of Canada’s Monthly Economic Monitor
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Tax Plan Aims to Slay a Reagan Target: The Government Beast
Derivatives (Derivatives Counterparty Risk):
Michael Snyder: Financial Weapons Of Mass Destruction: The Top 25 U.S. Banks Have 222 Trillion Dollars Of Exposure To Derivatives. JWR Adds: I’ve been warning about a coming derivatives implosion, for many years. The derivatives counterparty risk is now greater than ever. Be ready for huge economic dislocation when the derivatives markets tumble. Watch credit derivatives, in particular. That is where there is is the greatest risk of sudden calamity. That could spread far beyond the credit markets.
Troubling Trends:
Five Cyber Security Trends to Expect in 2018
Tangibles Investing:
Fine art to topple fine wine in 2017 luxury investment league. JWR’s Comment: My Inner Contrarian is shouting: “Forget fine art. Buy Guns!” Presently, many guns and gun parts are selling at bargain basement prices. So… “Buy low, and sell high.”
Provisos:
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News Tips:
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Look for a tax code change to trigger to that implosion. Interestingly enough, and I am stupid for not realizing this sooner, the corporate desire to not pay taxes is what drives the derivatives market. The only reassurance I can find is that there is hidden profit in all that mess. Profit tends to cushion hard times.
I’ll also go on record that the stock market is not going to pop as soon as you think it is. That is not your grandmothers dollar that is the measure of the bubble. Debasement is the key concept. A banker buddy tells me as much as a third of the price level in stocks and real estate is debasement. Bet he is low balling that number because he is a banker.
Guns can be fine art,a fine shotgun or rifle can be sold at art auctions (that would normally never go near a firearm),and also can appreciate significantly. Buyer beware.