Looking over the following chart of European government debt levels, the big financial story is how extreme the debt levels are in countries that continue to borrow for nominal interest rates. This is a complete contradiction to economic principles. For example, how is it that Spain borrows at 1.8% on its five-year sovereigns, or Japan for 0.5% for that matter.
There is considerable appeal for gold bling in China because of the small markups. Comparatively, most jewelry in the West has high mark ups, rendering it of little value as a store of money or value. But in China, 24-karat gold jewelry has a markup of less than 10% if it’s a popular item and 15% to 20% if it’s more of a designer item. Because a deep, active market exists for gold bling, there is always a resale price for this kind of pure-gold metal.
Let’s begin with Kennedy’s prescient speech on conspiracy practices and secrecy. He used the words “conspiracy” and “secrecy” repeatedly, and there is little doubt as to what he was referring. No one of importance today could make such a speech without being called crackpot or a conspiracy nut. Please, listen to the CONTEXT OF HIS ENTIRE SPEECH, especially the term “ruthless conspiracy.”
If the term “conspiracy” is good enough for JFK, it’s good enough me and for everyone else to use.
The most recent CoT report shows the continued reduction of hedging that the producer/merchants had put on at higher prices. To review, on March 18 producer merchants held a net short position of 60,312 contracts. Now, this group has reduced their short stance by 76%, from 60,312, to show just 14,585 contracts net short as of April 15 (POG at 1,304). I grade this an A minus for bullishness.
Coffee Trader writes: “I’m not against (the idea of) a conspiracy theory, it’s just that I’m not sure what’s gained by this one. In the case of Sandy Hook, what do you surmise the end game is? What are ‘they’ trying to accomplish? Just fear and chaos? Changing gun laws in the US? And how would all the ‘actors’ keep quiet? It seems terribly hard to hush that many people.”
Great questions. Yes, I think the idea is to maintain a constant level of mental discomfort, fear, apprehension and general weirdness so that the population is conditioned to accept a police state. A second element would be the expansion in the use of executive power. It is part of the narrative of control. Actually, Hollywood plays into this boogie man atmosphere as well. Finally, there have been financial benefits to the players, so pure greed is also a factor. What do you think an Occam’s Razor assumption is on free homes and $27 million in donations from the public dispensed to Sandy Hook actors and players?
I thought this Kyle Bass comment on Japan’s bizarre JGB bond market could be extended to about anything. Note he talks about normal equilibrium and arbitrage. That’s the bread and butter of good fundamentals in investing. Right now that is nearly eradicated thus rendering a conversation about “markets” moot. I think he is embellishing the part about BoJ declaring a minus interest rate, but I get the point.
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Alongside China, India is the most important gold consumer, comprising 20% of global demand. Without a doubt, India’s punitive gold taxes have penalized that population and has hurt the gold market. Official gold imports to India probably fell 70% in the final quarter of 2013, from 255 tons a year ago. The jewelry industry in India is very large and has been damaged by policy. Smuggling is rampant, and the gold trade has been taken over by mobsters. The following chart isn’t entirely accurate because of the under-reported smuggling activity, but it does illustrate the issue.