The central banks appear to be “all in” on stretching this freak show of a “market” for as long as they can. The ECB is pulling out all of the stops to keep their bond “market” from imploding and yet, the yields are rising anyway. They did raise rates for the first time in 11 years though. The citizens of the EU can now expect to get back their deposit since the rates are now ZERO. Just last week you had to pay them ½ % for the privilege of them holding your “money”.
I guess that with inflation raging in the Eurozone – even worse than here- zero rates will really slow things down. If you believe that then there really isn’t anything I can say.
I am also laughing at the clowns running Europe who are making demands upon Russia. Basically, they are pulling the economic rug right from under themselves as Putin is laughing all the way to the bank. The citizens of Europe are suffering from record price increases and fears of major shortages of not only fuel but also food later in the year. In the meantime, Russia is opening new markets with BRICS countries and selling their wares elsewhere. It appears the “printers” are getting a lesson in reality that they can’t print value- only debt.
Of course, in Denmark and other “green zones” they are trying to limit the farmers from using the nitrogen that they need to produce crops. Of course, this was a major reason that Sri Lanka finds itself in the mess it is in (totally bankrupt and in total chaos). It started with the same sort of “green insanity” that led to massive losses in crop yields and far less exports. Of course, I am sure that graft in the government was a major element in the collapse also.
A good question to me is are the Europeans just stupid (not my guess) or is this being done on purpose to bring on a crisis?
I can’t just talk about Europe because here in the USA there are over 100 food and fertilizer plants that have been destroyed since January. Coincidence? Union Pacific refused to deliver fertilizer to the farmers and are not accepting any new orders. (Coincidence?) Bill Gates is the largest owner of farmland in America (Coincidence?)
It has been reported that Nancy Pelosi’s husband front-ran the chip deal that was just announced. Why is it that it is ok for members of congress to trade on inside information when any one of us would be led away in handcuffs for doing the same? Graft? We’re loaded with that here too.
Bank of America, JP Morgan, Blackrock, and MANY others are warning of severe food shortages later this year. Are they in on the plan or are they just reading the tea leaves? I believe it is a plan to help usher in the “great reset”.
It appears that there is a new “crisis” just about every day. A new variant (in which almost nobody has any severe symptoms) but the fear is manufactured anyway. Monkeypox, nuclear war talk- hopefully that is ALL that is. News stories to keep everyone fighting each other when the real enemies of humanity are the money “printers” and their minions in the government who are uniting to make everyone’s (Except the 1%) lives miserable.
The government creates crises, the press perpetuates it, and the central banks conjure up cash to “fix” the problem. This leads to far greater debts, the need for even more debt to pretend we can still honor our prior commitments- which we can only do now with MORE DEBT.
The only question in my mind is WHEN will that final snowflake fall that will create the avalanche that those “in charge” are leading us towards.
It appears to me that we are nearing the end of an era that has been in place since most of us have been alive. The days of low interest rates appear to be coming to an end. Inflation is heating up and even if there is demand destruction for some goods there is a severe shortage of many materials and foodstuffs that could lead to far higher prices as people, companies and nations will have to bid for too few assets.
We are living in increasingly uncertain times. Throughout history, after virtually every major upheaval- whether it be war or financial meltdown gold has been a major factor in restoring confidence in the system. I don’t believe it will be any different this time which may explain why JP Morgan and major banks, most central banks and indeed nations are buying gold in record amounts while at the same time crushing the price below what its intrinsic value actually is. This allows them to load up on the cheap and also masks the degradation of fiat currencies.
It appears that particularly China and Russia know the term “Those who own the gold make the rules”.
JP Morgan himself said “Gold is money. Everything else is debt”. This is the guy who bailed out the US government in the early 1900s.
If the debt collapses- which in my opinion is a certainty- I just can’t say when- why would you want to own an asset that counts on another to pay you back when the numbers say that many (if not most) debts are unpayable if the currency maintains anywhere near its current “value”?
Don’t forget that if a company defaults on it debts the first people to get wiped out are the common stock shareholders so I believe that stock picking is also extremely important in this environment.
I don’t believe that following the investing crowd will work in the next few years the way it worked in the past few decades. Have a plan and …
Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.
Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.
Precious Metals, including gold, are subject to special risks including but not limited to: price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.
Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.