Category Archives: Financial Markets

Don’t Worry About Gold Confiscation…

By Steve Saville

Worry About Capital Controls, Not Gold Confiscation

Due to the confiscation of gold by the Roosevelt Administration in 1933, there remains an undercurrent of concern among gold owners that the US government or another major government will confiscate gold in the future. However, the risk of this happening is presently so low as to not be worth taking into account. Of far greater risk are capital controls and the confiscation of cash.

Gold confiscation is not a realistic threat under the current monetary system, because under the current system gold isn’t money. To further explain, the reason that gold was confiscated in the US in 1933 was that gold, at that time and place, was money, with the dollar essentially being a receipt for gold. Consequently, the amount of gold in the banking system placed a limitation on the quantity of dollars. By making gold ownership illegal the US government not only prevented the public from removing gold from the banking system, thus eliminating one of the superficial deflationary forces, it also pushed additional gold into the banking system and paved the way for greater monetary inflation.

Continue reading Don’t Worry About Gold Confiscation…

Around the Web

By Biiwii

Market Analysis & News From Around the Tubes…

  • Banks, Gold & Yields  –NFTRH.com [biiwii comment: so i start a post simply to update the mostly inverse situation in bkx and gold, and i get into a whole ball of wax before it’s done.  check it out.]

 

Around the Web

By Biiwii

Market Analysis & News From Around the Web

  • Going Bust for Growth (PDF)  –Raghuram Rajan (to the Economic Club of NY) [biiwii comment: my personal central banking ‘hero’ speaks:  “The current non-system in international monetary policy is, in my view, a source of substantial risk, both to sustainable growth as well as to the financial sector. It is not an industrial country problem, nor an emerging market problem, it is a problem of collective action. We are being pushed towards competitive monetary easing and musical crises.”]
  • Avago to Buy Broadcom for $37b  –Bloomberg [biiwii comment: why again have we been interested in the semi’s since january of 2013? beuller?  here’s the chart of former NFTRH+ highlight BRCM; not that that long-ago update had anything to do with this.  that target was reached and exceeded a year ago… :-( ]

brcm

 

Gold Sector Weakness on Cue

By Biiwii

Fundamentally, the gold stock rally was labeled a “bounce only” because it was just another item rising anti-USD in an ‘inflation trade’ revival.  Right along with Oil, Copper and the outliers like REE, Lithium, Uranium, etc.

If we are disinterested in commodities (I am and have been), then we were cautious on the precious metals for this reason.

Like it or not, we are in a process of eliminating the inflationist gold bugs, and a lot of ‘inflation trade’ promoters while we’re at it.  I guess that is me being “sanctimonious” as one blog described me recently.  I prefer ‘overly judgmental’, but whatever.

Moving on, one indicator of the coming problem in the gold sector was the tried and true HUI-Gold ratio (HUI-GLD used here, while NFTRH used a very similar HUI-Gold chart to note the early caution signal on May 17).

hgr

Around the Web

By Biiwii

Market Analysis & News From Around the Web

 

Around the Web

By Biiwii

Financial Analysis & News From Around the Web

 

Around the Web

By Biiwii

Market analysis & news from around the web
  • Wall Street Vampires  –Paul Krugman  [biiwii comment: i’ll highlight anyone, incl. Krugman, when they are right about something; or at least mostly right about something. imo Krugman is right about this something]

 

Around the Web

By Biiwii

Analysis & News From Around the Global Buzz Factory

 

If Liquidity is Your Sword, Keep Swinging

By Michael Ashton

I am not one of those people who believe that if the Fed is dramatically easing, you simply must own equities. I must admit, charts like the one below (source: Bloomberg), showing the S&P versus the monetary base, seem awfully persuasive.

monbaseequalsstocks Continue reading If Liquidity is Your Sword, Keep Swinging

Around the Web

By Biiwii

Financial market news and analysis from around the Web (bright and cheery edition as Nasdaq hits blue sky… take it fwiw)
  • Manufacturing Up, Pollution Down: How?  –Conversable Economist  [biiwii comment: economists being economists, he talks about regulation as the reason. having lived the industry for many years i’d say yes, most definitely. regulations steadily marched stricter and stricter and that is a good thing (i’ve seen companies totally disregard the environment and human health). but don’t discount the degree to which automation has played into this as well.  progress is progress after all.]

 

Around the Web

By Biiwii

Financial Market News & Analysis From Around the Intertubes…