The Working Western Nations Currency Screen Saver, And The Mouse (Of Life)
May 1, 2019
Good Hump Day Morning Folks,
With the FOMC data coming out today, one has to expect the precious metals to trade lower, and they are with Gold at $1,284.20 down $1.50 with the low at $1,279.20 and a high at $1,285.50. The Tag-A-Long Kid (Ag) is trading at $14.91 down 7.1 cents with the low at $14.875 and the high to beat at $14.985. The US Dollar is barely moving with the value pegged at 97.105, down 9.6 points and close to the low at 97.065 with the high at 97.27. All this non activity was done way before 5 am pst, and the Comex Open.
The violence in Venezuela seems to be having the opposite effect on Gold (for now) with the Bolivar pricing Gold at 12,825.95 losing 34.95 Bolivar with Silver’s trade at 148.914 losing 1.198 Bolivar overnight. Argentina’s Peso now has Gold priced at 56,859.45 losing 242.68 Peso’s with Silver losing 6.373 A-Pesos with the price at 660.087. Apparently a coup attempt is not as important as our FOMC data.
The Silver Deliveries for the month of May are on with the early morning count now at 2,224 demands for physical still up on the board. That totals 11,220,000 Troy Ounces with a Volume of 104 posted on the board so far this morning. The Overall Open Interest in Silver continues to lighten up with the count now at 197,060 Overnighters losing another 1,291 obligations during yesterday’s trade. One day these Algos will break. Why? Because they all are based on preset rules made by people. Clif High posted this one sentence in response to the shutdown of people like James Wood on Twitter, but it matters far more (imo) when it comes to the fixed prices of Comex; “All algos operate from a rule base. Step outside the rules & algo breaks. Secret = no rules in (real) life”.
Bill Holter’s Commentary
Here is some stark math for you!
Endgame: Starting In 2024, All US Debt Issuance Will Be Used To Pay For Interest On Debt
May 1, 2019
While it is common knowledge that the US budget deficit is soaring even though the US economy is allegedly growing at a brisk, mid-2% pace, resulting in recurring bond trader nightmares about funding the growing twin US deficits (Budget and Current Account), what few people know is the increasingly ominous composition of this budget deficit.
As we first pointed out one month ago, when looking at the US ‘income statement’, most concerning by far is that for the first four months of fiscal year 2019, interest payments on the U.S. national debt hit $221 billion, 9% more than in the same five-month period last year, with the rate of increase breathtaking (see chart below). As a reminder, according to the Treasury’s conservative budget estimates, interest on the U.S. public debt is on track to reach a record $591 billion this fiscal year, more than the entire budget deficit in FY 2014 ($483 BN) or FY 2015 ($439 BN), and equates to almost 3% of estimated GDP, the highest percentage since 2011.