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 some conflicting predictions of deflation and inflation. (See the Economy & Finance section.)
Precious Metals:
Arkadiusz Sieroń: The Narrative About Gold Is Changing Again
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Over at Gold-Eagle: Precious Metals Ratio Charts
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Illegal gold flowing through Miami is a ‘direct threat’ to U.S. national security, Rubio says
Economy & Finance:
At Zero Hedge: “Lower For Ever”: One Bank Makes A Stunning Discovery – The Fed’s Rate Cuts Are Now Deflationary
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But wait a minute….at Wolf Street: Inflation Is Coming: All the Trends That Were Deflationary Are Slowly Going in Reverse. A quote:
“If you think deflation is a fact of life, you clearly haven’t paid attention to history. Governments around the world have experienced a unique decade where they ran deficits and printed money without “bad inflation” which upsets voters. They think this is a new normal with no consequences. It isn’t. They’re already panicking with the S&P a few ticks from all-time highs. Soon politicians will go into ludicrous mode with fiscal stimulus.
What will fiscal stimulus do to the equity market? I’m reminded of the 1970s—inflation is no friend to most stocks. What happens to trillions in negative yielding long-dated bonds if inflation ticks up? What happens to bond proxies like global large-cap equity indexes or real estate? What happens to risk-parity funds that are leveraged a few times over expecting bonds and equities to increase over time? What if both legs of the trade drop at the same time?
No one is ready for inflation, but I believe it’s coming. Maybe not today or next week, but there is a powder keg of monetary supply just waiting to be unleashed by governments who think that inflation can never happen again. At first, markets will cheer a bit of inflation—then they’ll panic. The markets often do whatever the fewest people are positioned for. Who’s positioned for inflation? That’s about as contrarian as buying Argentine sovereign debt.”
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Trump’s “idiotic” trade policies will “destroy us”, here’s how according to Doug Casey