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. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at how The Fed is diving in to the Repo market feet first. (See the Economy & Finance section.)
Precious Metals:
Interview: The reasons for gold price to test the $3,000 range; rally isn’t over yet
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Economy & Finance:
Fed Goes Nuts with Repos & T-Bills but Sheds Mortgage Backed Securities
JWR’s Comment: The Fed now finds itself in a jam. Since the Lehman Brothers fiasco, the Fed built an economy that appeared immune to the business cycle, but at the cost of creating Debt Crack Addicts. And then when they attempted to unwind from QE, they found it impossible. So the Fed is now committed to Liquidity to Infinity. The Fed is diving in to the Repo market feet first. This of course must end someday, but it will probably be an spectacular implosion of the credit market. That implosion will also bring down the equities markets, the commodities markets, and the Dollar itself.
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The Los Angeles Times reports: So much for a cashless society: Currency is popular again, especially the $100 bill. (Thanks to Joe B. for the link.)
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At Wolf Street: What Heavy Trucks Are Saying
Commodities:
H.L. sent us this:
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OilPrice News reports: The U.S. Oil Industry Just Did Something It Hasn’t Done In 40 Years
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And there is this, by Nick Cunningham: The Drilling Frenzy Is Over For U.S. Shale
Bonds & Stocks:
This Red Alert Is Now Flashing on the Bond Trader’s Radar Screen
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Gun Stocks Soar After Trump Admin Passes New Rule To Ease Exports
Forex & Cryptos:
GBP/USD Price Outlook Driven Lower by Latest US Treasury Yield Surge
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Over at Daily FX: US Recession Watch, November 2019 – Recession Odds Shrink on US-China Trade War Talks
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At Zero Hedge: Bitcoin Battered Below $9k After FBI Calls Crypto “Significant Problem That Will Get Bigger And Bigger”
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Here’s How Crypto Bank Silvergate Fared Day 1 of NYSE Listing
Tangibles Investing:
This is an unusual traverse from my typical Tangibles Investing column items. In fact, it is a special request: I’d like to rent some time on a 3D printer. My plan is to produce some custom pistol grips, in various colors. Ideally, it would be a high temperature 3D printer capable of laying down polycarbonate. But if need be, this could be done with a lower-temperature printer that produced lower tensile strength plastic.
I can provide my own CAD files for this project. I’d prefer to trade, but I could also pay cash for the 3D printer time, the filament, and the mailing expense for getting the completed grips back to me. (Note: Since this project won’t require a complete pistol frame on site, the grip frame modules can go through the mail with no FFL required. Nor does the owner of the 3D printer even need to have an FFL.)
If any of you readers own a good quality 3D printer with some production time available, then please let me know. Thanks! – JWR
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News from local news outlets that is missed by the news wire services is especially appreciated. And it need not be only about commodities and precious metals. Thanks!
Besides keeping Democrat senators running for President in DC clearing the way for Biden, has anyone considered the effect on the American consumer’s buying habits with a full blown televised bread and circus impeachment trial? Last presidential election cycle many consumers held off buying large items awaiting the outcome of the election. I believe we are likely to have that and more if there is an impeachment trial keeping Americans tied to their electronic devices to watch the battle. And I think that is part of the plan to help get someone from the Deep State elected as President next November.
I am curious too. I think 2020 is going to be a rough ride. And since I’m just a regular person, my feelings are probably similar to others. My personal plan was to be completely stocked up prior to the end of 2019, to do very little spending in 2020 so that I can build cash reserves to get through whatever may come after the election. While I think the Donald will be re-elected, I don’t underestimate the ongoing attempts to remove him from office, and crash the economy trying to do so. And if he does win again, I expect those who oppose him (and us) will cause all kinds of trouble. Just my gut feelings. So, either way, I have planned to tone spending way down next year. My two cents, misguided or otherwise.
As a business owner for 36 years, I can assure you that every presidential election cycle people draw their purse strings tightly starting about June, and they don’t turn loose until mid November.
It doesn’t really seem to matter who wins most of the time, they just get tight with their money until after things are settled.
I personally feel that this effect is part of what led to the bubble bursting and the recession of 2008. I often wonder if people with vast sums of money didn’t help things along to benefit their own ends ( profit and or pushing along their idea of a new world order).
My business has been odd for the last 3 years, and I blame it partly on the constant turmoil from the medias constant harassment of President Trump.
It is good to see that the overseas sales of guns has moved out of the hands of the bloated state department as this has been a negotiating tool rather than simply commerce. Since this responsibility has been removed will the state department cut their staffing? Tongue in cheek. With 75,000 employees they are well beyond their quota for doing their assigned tasks.
RE: Heavy truck sales,I live near the epicenter of inland ports(container intermodal/rail). While volumes are down the capacity is still short, any CDL driver with equipment can be working tomorrow(today if he has DOT Authority). The order frenzy was based on corporate inexperience and those cancelled orders also lose their deposits.
The terrorist/sabotage/false flag group”White Helmets” founder (British MI-6 agent) was found dead this morning in Istanbul. Are Syrian loose ends being cut,with US troops withdrawing and Iraq refusing to allowing them to stay,reoccupation of oil fields,Russian/Turk cooperation on ending Kurd genocide, Organization to Prevent Chemical Weapons investigations proven fraudulent, US claims of chemical weapons transfers to Syria from Iraq proven fraudulent, ISIS (israeli secret intelligence service/mossad/didn’t bother to change their name) exposed as joint CIA/Mossad operation, Hillary’s coup of Libya to steal weapons to start illegal war/invasion of Syria. A lot of loose ends are still to be cut.
Gold and Silver prices are worth watching/buying the dip.
We are on the horns of a dilemma: to spend or not to spend. At some point we may need/want to go all in on tangibles and not be the one left holding useless dollars. Ears to the ground. We don’t want to be the last one out of the room.
My spending is going to be more focused in 2020. The tools I need I will purchase.
The alternate stores of values like PM’s will be bought only to a point.
The old adage of having cash,(dollars), does not hurt in 99% of the time.
Also, building more stores of food and hardware is a given.
I agree with many that chaos is likely if Trump wins or loses.