Debt Out the Wazoo=$7000 Gold?

18 Sep

Debt Out the Wazoo=$7000 Gold?

From a dizzying array of news and information at our fingertips, we have ch0sen the following as among the most important and interesting for our friends and clients.

$7000 GOLD BY 2025

Senior Bloomberg Intelligence Commodity Strategist Mike McGlone makes the case for $7,000 gold not too far down the road.  

In a series of tweets, McGlone says that the fundamentals for gold are even better now than in the powerful bull market run from 2001 – 2011.

Here are some of the analyst’s recent tweets about gold:

9/4:  “The conundrum of monetary and fiscal stimulus lifting most assets may be nearing an inflection point, where the increasing certainty of QE and budget deficits firm gold’s foundation more.”

9/14:  “Rising gold prices, despite declining managed-money net-longs and an advancing dollar, are a sign of the strengthening foundation under the metal. Less speculation vs. more organic demand forces are at play for the store of value, which indicates a healthy bull market.”

9/15:  “Gold Set for $7,000 in 2025 If Trends Stay Friendly Like 2001-11: Gold is on sounder footings than at the onset of the 2001-11 and post-financial-crisis bull markets, warranting a rhyming rally, in our view.”

DEBT OUT THE WAZOO!

Take a good look at this chart of the spiking US debt from WolfStreet.com.  

Now closing in on $27 trillion, the debt grew by $3.3 trillion under six months of the COVID-19 lockdown.  

Besides the trajectory of the debt itself, take note of the periods that government spending was under a statutory debt ceiling.  The debt ceiling is popular with the people, but in practice it is nothing but more political bunkum.  Over and over agian, Washington has made the debt ceiling simply a brief interruption in its ever-growing spending, a ceiling quickly suspended and quickly surpassed.

DAVID STOCKMAN SPEAKS

“Washington has become disconnected from any semblance of fidelity to sound money and fiscal rectitude, while Wall Street has turned into an outright casino, valuing stocks based on endless Fed liquidity injections and the delusion that momentum chasing is an investment strategy.

David Stockman

“With respect to the rampant folly in the Imperial City, Treasury Secretary Stevie Mnuchin has always reminded us of Alfred E. Neuman of ‘Me Worry?’ fame at Mad Magazine. But recently he more than earned that moniker when in the context of the current monetary and fiscal lunacy he proclaimed that, ‘Now is not the time to worry about shrinking the deficit or shrinking the Fed balance sheet.’…

Wall Street is beguiled, says Stockman, by “stimulus” and “hopium,”  Hence, “nosebleed stock prices.”

His advice?

“Buy gold and either forget or (if you are courageous) short the rest.”

$1 BILLION-PLUS RIOT DAMAGE MOST EXPENSIVE IN HISTORY

The news site Axios reports, “The vandalism and looting following the death of George Floyd at the hands of the Minneapolis police will cost the insurance industry more than any other violent demonstrations in recent history.”

Property Claim Services, that tracks insurance claims classifies anything over $25 million in insured losses as a “catastrophe.”

We’re confused.  How could what the media told us were “mostly peaceful protests” end up doing $2 billion or more in damage?

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