Armstrong warns of the potential for a domino effect of Pension Fund failures during a great financial “reset.” He sees another 1980’s like gold rally amid a “crisis in (financial) confidence.”
If the inflation numbers leave you scratching your head, join the club. The August data was especially perplexing. The Producer Price Index came in hot, up 8.3% in the last year, inviting 1970s comparisons.
Speculators have already done huge gold-futures selling in anticipation of coming Fed tightening, exhausting much of their selling firepower. And the market conditions today are way more bullish for gold than ahead of that last taper tantrum in mid-2013.
At the heart of all this growth was a ballooning central bank balance sheet. From 2000, when China joined the WTO until 2013, China’s central bank balance sheet grew almost 900%.
We now have genuinely crazy people in control of the apparatus of the state. They’re exactly the same psychological and philosophical profile as the Bolsheviks or the Jacobins. They’re not going to let go of power voluntarily. Anything is possible at this point; we’re still in the early days.
Those who call in seeking to make an investment in bullion get switched into a very different product – illiquid and overpriced “rare,” proof, and commemorative coins. And they are faced with large discounts when attempting to sell down the road.
Gareth Soloway sees a breakdown in the S&P market uptrend. He joins us to update his views on the market, including Gold and Silver prices in the current situation. Also, what will the Fed do?
If this theme intensifies, it can create outflows from the stock market and inflows into gold. A “1970s on steroids” theme appears to be at hand. Hardcore gold bugs who have great memories of shorting the stock market while buying gold stocks in the 1970s…
Inflation is one of the best determinants of gold price movements, because investors buy precious metals (gold, silver, platinum and palladium) as an inflation hedge when the prices of goods and services are rising faster than interest rates.
But you can’t have conversation about where the gold price is and where it should be without discussing the official effort to prevent gold from serving its role as the canary in a coal mine with respect to the failure of the Fed’s monetary policy and the Government’s failing fiscal and geopolitical policies.
