Here are the latest news 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 SurvivalBlog’s Founder and Senior Editor, JWR. Today’s focus is on the implications of a possible resurgence of Fed Negative Interest Rate Policy (NIRP.)
Precious Metals (NIRP):
Simon Black: Reason #437 to Own Gold: The Fed Wants Negative Interest Rates . The article begins: ”
“And just like that, it seems we’re headed back to quantitative easing… After cutting interest rates to nearly zero following the 2008 crisis, the Federal Reserve starting raising rates near the end of 2015 (from 0.25% to 2.5% today).
Following the most recent hike in December 2018, Chairman Powell seemed hell bent on further tightening, saying “some further gradual increases” were in the cards.Then the stock market promptly fell nearly 20%.
Investors were in panic mode and calling for the end of the world. The pain was too much… Last month, the Fed left rates unchanged… and Powell removed any language about further hikes. Already Powell is capitulating.”
(Thanks to H.L. for the link.)
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Economy & Finance:
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At Zero Hedge: Turkish Government Wages War With “Price-Gouging Terrorist, Traitors” As Food Inflation Soars . The article begins:
“Food prices in Turkey have been soaring since the lira’s sharp, violent depreciation last summer. The rise in prices is not only a result of the currency’s depreciation which made the Turkish lira one of the worst performing currencies in the world, but is also a result of price gouging that has become a self-fulfilling prophecy, feeding on itself, over the last 6 months. According to Bloomberg , the price of eggplants, cucumbers and tomatoes in Turkey has jumped 81%, 53% and 39% monthly, respectively. Overall, food inflation in Turkey is at 31% annualized.”
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Forex & Cryptos:
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‘Arcane’ SEC Rules May Kill Chances of Bitcoin ETF in 2019: Crypto M om. Here is a brief selection from the article:
“The approval of a bitcoin ETF is widely seen as the next major trigger for a price rebound. The ETF would provide institutional investors with an easy way to get exposure to the crypto market.
The SEC rejected multiple ETF applications through 2018, including a proposal from the Winklevoss Twins. The Commission repeatedly cites concerns over manipulation and lack of maturity in the market.”
Jussi Askola, at Seeking Alpha: A Warning To Rental Investors .
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I found a great place to find pre-1899 guns. It is GunsInternational.com . They have 21 categories just for antiques. Some of the antiques are high-end specimens, and priced accordingly. But if your taste runs toward old Winchesters, then the guns on that site will amaze you.
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SurviavlBlog reader Jason X. wrote to mention that Palmetto State Armory has their PA10 AR-10 variant on sale today @$599.99, unitl Feb. 17, 2019. Finding a good quality .308 battle rifle for $600 is amazing. At the Palmetto site , search on SKU: 5165447827.
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