Ongoing government and central bank interventions has transitioned the economy and financial markets into zero sum games. It means that profits are private but losses and risks are transferred to the public. Profits are made at a high cost, by putting society in a position of disadvantage. These are no longer markets based on exchange … Continue reading The madness of ‘zero sum game’ world
If there was still any doubt that western socialist governments are not in a bubble yet, well I can say that there’s no reason left over to keep that doubt alive. They are into a big bubble! In socialist paradise they usually sell you that education, health care, and other welfare programs are free. Even … Continue reading The ultimate Socialist Paradise of Free money
“NY Fed President Williams says U.S. is not ‘anywhere near’ its limits to run up debt”. Was it really a surprise that NY Fed President Williams said that the U.S. isn’t not anywhere its limit to run up debt? According my Twitter feed not. Reactions on this differenced somewhere between laughing hard, sarcasm and ‘it … Continue reading The Great Debt Excess
For years I’ve been listening to deflationists, a narrative that is especially popular under dollar bulls. The deflation narrative makes little to no sense to me. In this blog I’ll explain why deflationist Dollar bulls could be wrong. Deflationists do think that there will be a 1929 - 1933 type of deflationary crisis again some … Continue reading The Dollar deflation myth unraveled; a big picture view
In the former post we focussed on negative bond yields as a kind of hidden price driver for Gold. In this post we dig a little deeper. We focus on the fundamentals of US government debt. When these fundamentals finally get into play, it will trigger the real driver for Gold: namely dollar depreciation, aka … Continue reading Gold’s next move
While precious metals traders are focussed on Gold’s paper derivative markets as futures, ETF’s and mining stocks, the physical Gold market is doing its own thing. Since early 2016 wealthy investors have been buying physical gold at a rate that overwhelms the commercial trader shorting on the COMEX as this graph by Goldman Sachs shows. … Continue reading Gold’s stealth move
In 2011 the markets taught me an important lesson. It was the year of the Euro crisis and Gold was topping. I just had started to find my way in the financial market jungle when I decided to buy gold miner stocks, not realizing they were close to a market top. My simple thinking was … Continue reading Looking back and ahead, my view on markets
Last week I came across this comment on the December 2019 Federal Reserve meeting: “The bar for lower interest rates and monetary inflation via repo and assets purchases is exceedingly low while bar for future rate increases and monetary restraint very high”. This is an interesting statement. First, it shows that expansion is easy. It’s … Continue reading Why it’s hard to escape the vicious circle of failing organizational and monetary reforms.