Gold Macro

Well, there seems to be no stopping the “new” paradigm, even though it is the same as the old, that is, the same as the last 12 or so years.

Credit cycles tend not to end in crash, until they do.

There is no need to bother including Europe, Japan, the rest of the world in the chart below, mostly looks the same, today is more about what the picture represents regarding “the future”. 

The above chart and all it represents has led to this below: (its ok to laugh).

Read More

Where’s the money going? Trillion here, trillion there…….money supply in the US last week surged by USD363BILLION, in one week, out of thin air!

We’re not going to go through the where’s it going story again but make no mistake, the global bureaucracy is the major beneficiary of the Covid crisis.

We’ll get into the numbers in a minute, suffice to say, haven’t see too many government departments shut down, so far, in fact some have had their funding supercharged, whatever it takes, right?

We were not surprised at this month’s commentary from BoomGloomDoom’s Marc Faber, and the fact that he directly points the finger at the cost and the beneficiaries of this Covid fiasco.

The place to start unpacking this little bureaucratic side effect is, in case you haven’t noticed, Central banks are in “whatever it takes mode” to keep asset prices where they are/were.

In simple terms, if asset prices have been sliced by 20 trillion, does that mean 20 more trillion needs to be printed to keep them “high”?

Is the system really so fragile?

Read More

There’s nothing like a week of the most horrible economic numbers delivered in modern history to keep Equity markets rising, ending in China’s worst GDP numbers in 40 years.

Australian markets followed the international lead this week, as usual, rounding the week out with a Stella 2.0% gain for the All Ords as of lunch time Friday.

So far, for all the turmoil this virus has bought global markets, the Aussie All Ords is down a mere 15%!!!

Are we back to “Good news is Good news and Bad news is even better”?

Equity markets may have been over sold at some point in March, but this is getting a little ridiculous.

Nothing sums up the last few weeks better than the below, from last week.

Read More