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 copper is leading a commodities boom and general price inflation. (See the Commodities section.)
Precious Metals:
Palladium Tops Record $3,000 Amid EV-Demand Surge, Supply Chain Pressure
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Tom C. sent a link to a fascinating video interview: Why has silver price not yet spiked from demand, but copper has? Lobo Tiggre. Tom’s Comment: “I think you will really enjoy this video, especially starting at the 20-minute mark. Just watch those two minutes, if nothing else.”
Economy & Finance:
A Record 34% Of All Household Income In The US Now Comes From The Government
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Reader G.G. suggested this, over at Zero Hedge: US Sells Treasury Bills At 0% For The First Time Since The Covid Crash
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A fascinating, insightful video interview: Election Panic Coming in 2022 – Martin Armstrong
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Value Investing Icon Jumps Off Manhattan Skyrscraper To His Death Days After Liquidating Fund
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Commodities:
Ted mentioned this AP wire story: Companies sound alarm over commodity price hikes
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G.G. flagged this: Everyday products are about to get more expensive, companies warn
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Goldman Goes All-In Commodities, Sees “Biggest Jump In Oil Demand Ever” Over Next 6 Months
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Lumber prices skyrocket nearly 250 percent, impacts local suppliers and buyers
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Soaring Copper Prices Send Crippling Shockwaves Across China’s Economy
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One Bank Warns Soaring Food Prices Will Lead To Social Unrest
Derivatives:
This article serves as a bit of “I told you so…” on derivatives counterparty risk: The $3 Trillion Hidden Exposure Behind The Archegos Blowup. Here is an excerpt:
“Risky Finance shares Stalmann’s bewilderment. Expressed as a capital requirement, Credit Suisse was able to satisfy regulators with just $2 billion of capital for counterparty credit losses – the lowest among the G-SIFI banks tracked by Risky Finance. Months later it reported a loss of $4.7 billion.
It should serve as a warning. 14 years ago, obscure corners of banking businesses became hotbeds of regulatory arbitrage, speculation and leverage. The contagion of US subprime brought the financial system to its knees. Now, after years of low or negative interest rates, equity finance may have become a similar hotbed.
The business is much larger than published estimates – Risky Finance believes there are more than $3 trillion of exposures. And the pressure to grow equity finance is leading banks to exploit loopholes in Basel rules. As in 2007, this is masked by the complexity of the models that Credit Suisse and other banks used to allocate capital to their prime brokerage business.”
Forex & Cryptos:
Dollar Dives After Dovish Fed Statement, Bonds Shrug
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EUR/USD Weekly Forecast: When will the dollar advance on self-strength?
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Bitcoin Breaks Above $57,000 As April Ends, Altcoins Continue To Rally
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Bitcoin and several altcoins took another jump yesterday evening. (Sunday, May 2, 2021.)
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A Pomp podcast: Bitcoin Continues To Move To Strong Hands
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H.L. sent this item: Is this the Endgame for Cryptocurrencies?
Tangibles Investing:
Ammo And Primer Shortages Continue Into 2021
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‘Mom And Pop’ Landlords Dying On The Vine As Un-Evictable Tenants Enjoy Pandemic Protections
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 or 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 items from local news outlets that are missed by the news wire services are especially appreciated. And it need not be only about commodities and precious metals. Thanks!