Saturday , December 14 2019
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Steam Punk Animals – Precious Metals Supply and Demand

  Re-Purposing of Tractor Parts in South Dakota   The price of gold was all but unchanged, but the price of silver dropped another 46 copper pennies last week. We came across an article showing pictures of something we have previously described: sculptures made from parts taken from farm tractors. Here is a picture I took: The good old Predator made of tractor parts – looks almost like the real thing! Here is background information on...

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Every Bubble Eventually Finds its Pin

  Panem et Circenses The transfer of wealth from workers and savers to governments and big banks continued this week with Swiss-like precision. The process is both mechanical and subtle. Here in the USA the automated elegance of this ongoing operation receives little attention. Give them bread and circuses and they will never revolt… so said Juvenal, reportedly [PT] NFL football. EBT card acceptance at Del Taco. Adam Schiff’s...

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The Most Innocent Man Ever in the White House

  Great Moqueur Poor Donald Trump. The Chinese won’t play ball with him. The Democrats are trying to impeach him. And now, other world leaders are laughing at him! Mesmerized by his glorious radiance – the shepherd alights amid his flock. [PT] L.A. Times: “President Trump, who views norms like a teenager does curfews, shattered another tradition Wednesday when he became the first U.S. president to be laughed at by some of America’s...

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The Credit Market Powder Keg

    Credit Market Bifurcation By all accounts, credit markets remain on fire. 2019 is already a record year for corporate bond issuance, beating the previous record set in 2017 by a sizable margin. Demand for the debt of governments and government-related issuers remains extremely strong as well, despite non-existent and often even negative issuance yields. Even now, with economic activity clearly slowing and numerous  threats to the...

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Gold Moves from Vault A to Vault B – Precious Metals Supply and Demand

  Poland’s Gold and the Conspiracy Theorists The price of gold was up enough to buy a bottle of Two Buck Chuck wine, and the price of silver was up enough to buy a wooden nickel (well, not enough to buy a real nickel nickel). Poland’s gold bars are packaged by employees of G4S International Logistics to be transported from London to Poland. Poland’s gold was originally transferred to London at the beginning of WW II, when Stalin and...

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The Fed’s Answer to the Ghastly Monster of its Creation

  The Bubble Machine The launch angle of the U.S. stock market over the past decade has been steep and relentless. The S&P 500, after bottoming out at 666 on March 6, 2009, has rocketed up over 370 percent. New highs continue to be reached practically every day. S&P 500 weekly, since the low of 2009. A party of roaring 20s proportion in terms of duration, extent and end point valuations (a post-war inflation episode triggered a...

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Eating the Seed Corn – Precious Metals Supply and Demand

  Misguided Incentives The price of gold subsided a few bucks, and the price of silver blipped a few pennies. Not much action last week, groceries neither pumped into nor drained out of this asset class. Those who look to exchange capital goods for groceries need to find a different asset. The best-laid plans… [PT] Not even the S&P 500 Index provided a gain in groceries this week. It certainly wasn’t the much-vaunted store of...

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Japan’s Yield Curve Control Regime is Coming to America

  Monetary Lunacy, Nipponese Version Earlier this month, Bank of Japan (BOJ) Governor Haruhiko Kuroda commented that Japan’s central planners are considering a 50-year government bond issue as a long-term means of putting a floor under super-long interest rates.  How this floor would be placed is extremely suspect; we will have more on this in a moment.  But first, the dual benefits – according to Japan’s central planners… Kuroda-san:...

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Repo Market, QE4 (a.k.a. Not QE), the Fed and Gold

  Incrementum Advisory Board Discussion of 23 Oct 2019 In late October the Advisory Board of the Incrementum Fund held its quarterly meeting (a transcript is available for download at the end of this post). This time the board was joined by special guest Dan Oliver, the manager of Myrmikan Capital and president of the Committee for Monetary Research & Education.  Myrmikan inter alia publishes excellent and quite original research on...

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Gold, Togas and Very Fine Suits – Precious Metals Supply and Demand

  Yields and the “Everything Bubble” Last week the price of gold was up $9, and the price of silver was up $0.18. This week, our thought turns to a cherished old saw. Gold bugs often tell us that the purchasing power of gold is constant. An ounce of gold could have purchased, they say, a fine toga in Roman times. Just as it could buy a fine suit today. This magnificent toga will set you back an ounce, pilgrim. Just think of the...

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