Rates, Recessions, Rentiers, Oh My!

"The sense of responsibility in the financial community for the community as a whole is not small. It is nearly nil.  Perhaps this is inherent. In a community where the primary concern is making money, one of the necessary rules is to live and let live.  To speak out against madness may be to ruin those who have succumbed to it. So the wise in Wall Street are nearly always silent.   The foolish thus have the field to themselves.  None rebukes them."

John Kenneth Galbraith, The Great Crash of 1929

Gold Charts: Weekly, Monthly, Yearly

And a monthly silver chart thrown in for free.

Timelines and persepctive— be sure to set yours appropriately and carefully and then try to stick to them.

Precious Metals Holdings and Commitments of Traders

"Who can stop a people determined to be rich without productive labor, and with a self-obsession capable of subordinating even heaven to their personal greed and vanity?  This will end in an ocean of tears."

Jesse, 9 Nov 2009

Stocks and Precious Metals Charts - Tweet Baby Tweet - Three Day Weekend

"Canadian GDP number masked a renewed contraction in real final domestic demand—  slipping in 3 of the past 4 quarters.  Bank of Canada won't be on the sidelines for much longer.  Sell the loonie! Consumer spending may be strong but the fundamentals supporting it are not.  Real personal incomes actually dipped 0.1% in July and the broad trends are visibly cooling off.  Pending home sales fell 2.5% last month.  More pushing on a string.  The Fed will cut rates to zero, but the failure of the bond market rally to elicit a pulse in the most interest-rate sector is rather telling."

David Rosenberg

"At gold’s most recent peak in 2011, it only took 135 ounces of gold to buy the average-priced home in the US.  It took just 85 ounces in 1980.  Today it takes 272 ounces.  Because unlike the 1970s, most major asset classes are in a bubble today, something history has rarely witnessed.

The global financial system is also much more precarious, particularly when you include widespread negative rates and money printing that wasn’t present then. And debt loads are at all-time highs for most segments of society — government, corporate credit, global credit, student loans, auto loans, and derivatives, not to mention unfunded liabilities for both federal and many states.

Add it all up and it is hard to imagine a scenario where gold and silver don’t soar in the upcoming fallout. So yes, a gold/real estate ratio below 85 is possible, even if that means house prices rise like they did in the 1970s."

Jeff Clark, GoldSilver.com

And it is.

Stocks jammed up at the top of their recent trading ranges. I have tried to show that range more clearly on the stock charts.

Gold took a hit today as the US Dollar caught a bid up to a near term high today.

Silver continued to do its own thing.

Non-Farm Payrolls next week.

Florida is bracing for Hurricane Dorian, which looks as though it might be quite damaging. Remember them in our prayers.

We have some tariffs that are scheduled to take effect between the US and China on Sunday September 1.

Let's see what happens with that.

Have a pleasant holiday weekend.