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 the fate of the U.S. Dollar. (See the Forex & Cryptos section.)
Precious Metals:
We’ll start off today’s column with this piece by Arkadiusz Sieroń: Fed Can Control Yield Curve. But It Can’t Control Gold
o o o
Reader “S.” sent me this note:
“Jim, I work at a large coin and precious metals scrap shop in the midwest. We have bought over $1 million of bullion and scrap from the public in the first half of this month. Not many small businesses can do that. There may a run on silver by the big boys and those who have funds to invest, but some of the general public are flat out broke and the larger numbers influenced them to sell in a panic. As of right now, the public is not panic buying/investing in metals.”
Economy & Finance:
Paul Kupiec: Reading the inflation tea leaves.
JWR’s Comment: Some long-time SurvivalBlog readers may recall that back in 2008 I suggested that we might see simultaneous inflation and deflation in America. Much like in that financial crisis, as a nation, we are now crossing a similar Rubicon in the debt, equity, metals, and land markets. Witness the recent inversion of the Yield Curve. So now, once again: We might see simultaneous inflation and deflation. Let me be more specific: By this, I mean that some sectors of the economy may have rising prices, while at the same time, other sectors might have falling prices.
The Depression of the 1930s was an almost entirely Deflationary Depression. But the Depression of the 2020s could very well be an Inflationary-Deflationary Depression(TM). One current example: Rural real estate versus urban real estate. The big cities–particularly on the coasts–are presently hearing a Giant Sucking Sound. But rural properties are selling very rapidly. And I can foresee both personal (wrist and handheld) electronics–as well as most other home electronics–continue to fall in price. Ditto for photovoltaic panels — where the bottom might be found as low as 40 cents per watt. Oh, but large storage battery prices meanwhile might rise. Stocks and even the Dollar itself may crash, while precious metals and cryptocurrencies rise. Fuel prices may fall, while many staple foods may rise. Guns and ammo will probably continue to rise, while many other durable consumer products fall.
Buckle up, folks!
o o o
At Zero Hedge: “It’s Just Absolutely Incredible”: What’s Going On In The Corporate Bond Market Is Stunning
o o o
Paul in Nashville sent us this headline: We Just Crossed the Line Debt Hawks Warned Us About for Decades
o o o