Mid-January Investor News Round-Up

16 Jan

Mid-January Investor News Round-Up

In times of crisis, informed people turn to gold and silver.  

This is such a time.  It is a classic descent into chaos.   

Today we’d like to share a few news stories.  None of them take much reading between the lines, so we will be sparse in our comments.

The first one is from Reuters (1/15/21):

“Policymakers worldwide should embrace more spending to help revive their stuttering economies, the head of the International Monetary Fund said on Friday at Russia’s annual Gaidar economic forum.

“Managing Director Kristalina Georgieva did not give any specific economic forecasts, but made clear her desire for governments to up their spending and that a synchronised approach internationally was best for growth.

“In 2020, the IMF provided support to 83 countries, she said.

“In terms of policies for right now, very unusual for the IMF, starting in March I would go out and I would say: ‘please spend’. Spend as much as you can and then spend a little bit more,” Georgieva said.”

Okay, so the IMF should spend more.  Global government debt appears to be closing in on $300 trillion, and the multinational geniuses want more?

Almost 25 percent of the IMF’s funding comes from the US.   When the IMF says it provided support to 83 countries, it is saying that US taxpayers are providing support to 83 countries.  There is a lot of cronyism at work in the IMF and the other so-called multinational institutions that the US supports.  Sometimes that IMF funding is awarded to countries to enable them to pay back reckless loans made to them by crony banksters.  So instead of lending money to productive people who will in-turn create more wealth (which always entails some risk) the banks make risk-free loans to foreign governments and are back-stopped by the taxpayers.

The US has given trillions of dollar and US gold to the IMF over the years.  No wonder the US is on destitutions doorstep.  It is too bad for you, but it has been great for the Deep State’s cronies.

Here’s the latest on the Fed from the Wall Street Journal (1/15/21):

“Federal Reserve Chairman Jerome Powell warned the U.S. is still a long way from a strong job market, an indication that the central bank’s easy-money policies will remain in place for the foreseeable future. 

“The Fed has pushed short-term interest rates to near zero and signaled it expects to keep them there for years. It also has been buying $80 billion in Treasury securities and $40 billion in mortgages bonds, net of redemptions, every month since June and committed to continue doing that until it sees “substantial further progress” in the job market…”

Ho-hum.  More of the same from the Fed:  money printing and bond-buying as far as the eye can see.  Never mind that 24 percent of all US dollars were created last year.  It is never, never enough!

And finally, this one that we missed when it ran on Reuters late last year.  Let’s start with the headline:

Vaccine rollout could cause U.S. dollar to fall 20% in 2021!

“The widespread distribution of vaccines to combat the coronavirus pandemic and ongoing monetary easing could cause the U.S. dollar to weaken as much as 20 percent next year [2021}, Citibank said…

“ ‘When viable, widely distributed vaccines hit the market, we believe that this will catalyze the next leg lower in the structural USD downtrend we expect,’ the U.S. bank said in a research note.

“ ‘Given this set-up, there is the potential for the dollar’s losses to be front-loaded, with the USD potentially falling by as much as 20% in 2021….’

“Citi’s bearish dollar view is also premised on bets that the U.S. central bank will continue to keep policy settings easy even if inflation expectations rise….”

For more on the dollar’s fate this year see our posts HERE and HERE on Stephen Roach’s warning that the dollar is liable to fall 35 percent by the end of this year.  The American people are going to be hurt badly, says Roach.    

Rising tensions, a divided country, widespread distrust of the government, a nation in lockdown, unpayable debt and an economy in trouble.  

Gold… Throughout history it is the first choice for financial protection in a crisis! 

Don’t be swept away by events.  Protect yourself.  Protect your family.

jim-sign