Posts Categorized: In The News

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Bill Holter’s Commentary

We would ask, if you sold your gold then what currency exactly would you sell your gold for?

The Markets Always Win Out (On Economics)_001

The Markets Always Win Out (On Economics)_002

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Bill Holter’s Commentary

Erik on politics. I try to stay away from this topic as much as possible because no matter what you think or say…SOMEONE will be pissed off.

The Conflicted Presidency of Donald Trump_001

The Conflicted Presidency of Donald Trump_002

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Bill Holter’s Commentary

All my friends and relatives tell me (I’m an idiot again) not to worry as everything will be normal again in 3 weeks when everything reopens…sorry, but what was considered normal 2 months ago will never return in my lifetime.

Total Loss Of Confidence: The Mega-Collapse Continues
May 4, 2020

There is no question that things are tough all over as the mega-collapse continues.

Things Are Tough All Over

May 4 (King World News) – Chris Williamson, Chief Business Economist at IHS Markit: Manufacturing output in Italy declined at an unprecedented pace as the COVID-19 lockdown continued. The PMI dropped to an all-time low of 31.1 in April (down from 40.3 in March), with new orders also falling at the quickest rate on record. (See below).

Italian Collapse Breaking Records



Bill Holter’s Commentary

Erik discusses the banking system. You might want a stiff drink before reading…but he tells the truth.

Thrown Back On Our Own Resources (On Economics)_001

Thrown Back On Our Own Resources (On Economics)_002

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Bill Holter’s Commentary

More good stuff from Erik.

We Are All In This—But Not Together (Political Economics)_001

We Are All In This—But Not Together (Political Economics)_002

Bill Holter’s Commentary

Yes, “just in case”?

After Gold & Oil Contract Chaos, CME Group Secures $7 Billion Credit Line “In Case Of COMEX Member Default”
May 1, 2020

Something unusual is happening in the gold market.

First we had unprecedented dysfunction in the gold futures markets with dramatic paper and physical price divergences amid virus-inspired geographical shortages for deliverables.

“I’ve never seen that before,” said one gold trader who has been in the market for 30-plus years.

Saxo Bank’s head of commodity strategy, Ole Hansen, observed that a lockdown is occurring in two biggest gold hubs in the world, New York and London, so many traders are working from home. “This has caused a breakdown in the marketplace”, he said.

“There is no price discovery in the market right now,” he said Tuesday morning. “If you need to borrow gold in the OTC [over-the-counter] markets right now, you are going to pay a king’s ransom.”

Then we had the even more stunning negative prices for front-month WTI crude futures as prices converged to negative spot prices at expiration/delivery, thanks to a lack of storage and ETF-driven illiquidity issues. This sparked major losses for some very large market brokerages and clearing houses, among them, Interactive Brokers:

CNBC: “Across the industry, do you think there is going to be some really serious pain?”

Peterffy: “There is about another half a billion dollars of losses that somebody is sitting on… and I do not know who those folks are.”


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Bill Holter’s Commentary

Erik on oil.

upporting Insanity With Bailouts (On Economics)_001

upporting Insanity With Bailouts (On Economics)_002

Bill Holter’s Commentary

You mean sovereign nations don’t like the guillotine of having their assets frozen hanging over their heads? A level playing fieild…what a novel concept!

Shanghai Gold Boss Wants Super-Sovereign Currency For Post-Crisis Times
April 28, 2020

HANGHAI (Reuters) – The president of the Shanghai Gold Exchange (SGE) called for a new super-sovereign currency to offset the global dominance of the U.S. dollar, which he predicted would decline long term, while gold prices rally.

Concern has mounted among some market participants over the dollar-denominated system as the U.S. Federal Reserve cut interest rates to near-zero and embarked on unlimited quantitative easing to contain the economic damage of the coronavirus pandemic.

The measures have helped to drive gold prices to more than seven-year-highs this month, while the dollar has been range-bound. Wang Zhenying, who heads the world’s largest physical spot gold exchange, said in an interview the gold gains should be sustained, but ultimately a new kind of currency was needed.