Powell Painted Into A Corner, Again

Powell Painted Into A Corner, Again

Back in 2019, we often wrote of how Fed Chairman Powell was being painted into a policy corner by the bond market. We knew this would force fed fund rate cuts, and it did. And now here we are again in 2020. If anything, this isn’t complicated. As last year began, the...
THE CRISIS WILL SINK STOCKS AND PROPEL GOLD

THE CRISIS WILL SINK STOCKS AND PROPEL GOLD

There are no safe assets. In 2002 we recommended our investors to hold up to 50% of their financial assets in physical gold. Today in 2020, I consider that up to 100% is the right figure since there are no safe assets except for physical precious metals. We are...
Hitting Zero: 700 Years Of Declining Global Real Interest Rates

Hitting Zero: 700 Years Of Declining Global Real Interest Rates

A recent study by Yale economist Paul Schmelzing suggests that global real interest rates “could soon enter permanently negative territory.” In Mesopotamia around the third millennium B.C. there were two types of money circulating: barley and silver. The interest rate...