Dollar, Not Bank

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Following up on what I wrote earlier, there were no Lehman’s or anything like it during March 2020. Does that mean there hadn’t been a crisis? According to some, yes. If you were talking specifically about a bank crisis, then, of course, that would be true. There was no bank crisis last month. It would… Read More

Banks Or (euro)Dollars? That Is The (only) Question

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It used to be that at each quarter’s end the repo rate would rise often quite far. You may recall the end of 2018, following a wave of global liquidations and curve collapsing when the GC rate (UST) skyrocketed to 5.149%, nearly 300 bps above the RRP “floor.” Chalked up to nothing more than 2a7… Read More

The Economic Relief Bill Makes It Easier to Donate to Charity

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When the 2017 Tax Cuts and Jobs Act (TCJA) was passed it changed the rules about deductions for charitable giving. Under current law the only way to deduct charitable gifts is to itemize on your tax return. Because of that, giving to charities has fallen substantially. In 2018 almost 32 million Americans made charitable donations.… Read More

Continuing An Optimistic Assessment of COVID-19

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PIcture credit: Aleph Blog, and the same for all the graphs and charts in this post. All liability for mistakes here is mine. Recommendations and Comments To the National Governments and Central Banks: don’t create a lot of policies that you might need to reverse. This crisis is coming to an end faster than most… Read More

Classified Fed Memo Expresses Confidence In Ability To Control Economy, Stock Market & Housing Prices

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…A classified Federal Reserve memo sheds new light on the Fed’s confidence in its control of the economy and the stock and housing markets…Paraphrasing the memo [it says]: We have the tools to insure that stocks and housing…move higher in a permanent uptrend. …The Fed memo…says (again, paraphrasing the memo): The Federal Reserve’s management of policies… Read More

China’s Back!

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The Washington Post began this week by noting how the US economy seems to have lost its purported zip just when it needed that vitality the most. Never missing a chance to take a partisan swipe, of course, still there’s quite a lot of truth behind the charge. An actual economic boom produces cushion, enough… Read More

Stocks Are Still Not Cheap

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A Prognosis for U.S. Stocks The future for U.S. stocks over the next decade appears ominous, regardless of the impact of the Coronavirus. Why? Because valuations matter. And stocks at the end of February were priced for perfection. Any significant negative development was poised to drive them lower. The COVID-19 Virus that shut down the… Read More

The Comex And LBMA: Paper Gold On Steroids

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I truly thought I had seen all that was possible in the creation of paper gold when the Comex rolled out its “pledged gold” category which enabled technically insolvent banks like HSBC and JP Morgan – the only two Comex banks to have taken advantage of this new gold derivative product – to use paper… Read More

(No) Dollars And (No) Sense: Eighty Argentinas

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India like many emerging market countries around the world holds an enormous stockpile of foreign exchange reserves. According to the latest weekly calculation published by the Reserve Bank of India (RBI), the country’s central bank, that total was a bit less than half a trillion. While it sounds impressive, when the month began the balance… Read More

New Retirement Account Rules – COVID-19

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The Coronavirus is changing the landscape, as we know it, in almost every part of life. Unquestionably, it’s also shaking up the financial universe and changing rules that have been etched in stone for decades, and retirement accounts are no exception. With the Coronavirus Aid, Relief, and Economic Security Act (CARE) now law, Americans 72… Read More

A Marathon, Not A Sprint

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Stocks rose last week, a breathtaking, nearly 20% run off the recent lows before a pullback Friday trimmed the gain for the week to about 11%. That was certainly helpful but investors would be well-advised not to get too excited. This is what bear market rallies look like. They come out of nowhere, they run… Read More

The Shortage Of LBMA Bars Persisted Before Coronavirus

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I found it amusing that Zerohedge tried to take credit for reporting the problem of a physical gold shortage on the LBMA and Comex earlier last week. Several of we “gold bugs” have been discussing and reporting on this issue since before the virus crisis exploded. The Comex has been settling contracts that stand for… Read More

Silver Setting Up A Perfect Storm? Here’s What Needs To Happen

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Automatically receive the internet’s most informative articles bi-weekly via our free bi-weekly Market Intelligence Report newsletter (sample here). Register in the top right hand corner of this page. …Today’s infographic is Part Two of the Silver Series (see Part One here), and it comes to us from Endeavour Silver, outlining some of the key supply and… Read More