The Financial Press Report Card

24 Jul

The Financial Press Report Card

We love reading what the financial press says about the rip-roaring gold and silver bull market.  

Sometimes they miss the mark, sometimes they stumble into the truth. Let’s look at two this week and give out some grades for their bull market coverage…

FX Empire

Here is some snippets from an FX Empire piece we saw on Yahoo! News

“The relationship between the world’s biggest economies has worsened, as the U.S State department ordered the closure of China’s consulate in Texas, growing concerns that tension between the U.S and China could escalate further….”

“While the precious metal continues to fly higher after recent headlines on global Covid-19 caseloads reached 15 million, gold could hit the $2,000 price level within few weeks, as more stimulus hits global financial markets.”

Grade: B-
Basically correct.


Marketwatch

MarketWatch cites someone saying, “In reality, virtually everything is going gold’s way—record debt, epic increase in money supply, silver catching up, negative real yields, and even a dollar correction.” 

Grade: A
We’ll give that an A because it is a little more comprehensive.


We won’t grade Michael Shedlock (Mish) from TheStreet.com because he’s not really part of the financial press:

“Tensions of all sorts are on the rise in the US , EU, and globally: Covid, employment, fiscal stimulus China (military and economic), and massive increases in money supply by the central banks, especially the Fed.”

TheStreet.com’s Michael “Mish” Shedlock

Although we know from reading him over the years that he has a good handle on the whole thing, he forgot to mention debt.

But Mish concludes with a question about the Federal Reserve:

“If you currently have any faith that Central Banks have things under control, then please explain where you got that notion.

“It should be obvious that the Fed is boosting financial assets but that is not going to create jobs or cure covid. 

“In short, the Fed is blowing bubbles, many believe on purpose, and gold has responded to the stress. 

“I do not see a reversal in Fed policy. Do you?”

And finally, if the authorities can create wealth with paper, why don’t they create more of it and solve all our problems?

Read this new parable called Paper is Paper; Money is Money by Senator Rand Paul.  

It begins with these words: “The time came when the emperor decreed: ‘The people are in need; a plague is upon the land. I will give them money.’”

It is a tale for our times!

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