Yuan Enters SDR – Why its Reserve Currency Status Matters to Traders?

The Yuan has officially been inducted into the IMF’s SDR basket. The Yuan’s rise as a global currency is not only important to China but may also provide more opportunities for global investors.

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Today’s Fed Makes Volcker Look Timid

Let’s look at the Fed’s (and other central banks’) magnitude of monetary manipulation in recent years and the very constrained maneuvering room they now have as a consequence.
Of course, it’s questionable whether they should even be trying to maneuver the economy to the degree that they are. The current problem is a direct result of mistakes made during and after the last financial crisis.
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U.S. Dollar Consolidation – Break in Focus Heading into October Trade

The DXY looks to close the quarter within the confines of a well-defined consolidation pattern. Here are the updated targets and invalidation levels that matter heading into Q4.

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Noble Capital Announces their Focus on American Eagles Gold Coins – PR Newswire (press release)

Noble Capital Announces their Focus on American Eagles Gold Coins
PR Newswire (press release)
BOCA RATON, Fla., Sept. 30, 2016 /PRNewswire/ — Noble Capital www.noblecapitalcorp.com is a purveyor of only the finest precious metals including Gold and Silver. The company is based in Chicago, IL with offices around the country including Florida

and more »

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The Fed Is Leading Us to Economic Hell

The Fed argues that low rates have worked. The economy emerged from recession. Unemployment drifted back down. “Yay for us,” said the Fed.
Don’t buy that statistical economic garbage. The economy recovered in spite of Fed policy, not because of it. The economy recovered because business owners, entrepreneurs, and workers rolled up their sleeves and made things happen.

It involved a lot of pain: layoffs, asset sales, lost customers, and more. But the hard-working citizens of this country slowly and painfully pulled themselves out of the nosedive.

Those are the people who deserve the credit, not the Fed. Keeping rates at artificially low levels did nothing other than push our economy into the mother of all corners.

Look where we are now.

The next recession means rates will go below zero

The US economy is going to suffer another recession in the not-too-distant future. So, for lack of anything else to do, the Fed is preparing to send rates below zero when the economy next needs goosing. That was clearly the message from Jackson Hole.

What then? Here is the most likely scenario I think we are facing—and you are not going to like it.

We are going to go into the next recession with interest rates still stuck in the sub-1% range. This doesn’t give the Fed much ammunition.

Economists (who could certainly qualify as High Priests) have done studies on recent Fed policies. These show that quantitative easing didn’t really do anything, other than maybe goose the stock market.

There is also no data that shows any positive benefit from the so-called wealth effect, which was all the academic rage at the beginning of this process. Forget the wealth effect. The fact is that when the stock market goes up, it does not trickle down to the average guy on Main Street.

(It’s ironic that the same economists who derided supply-side economics as trickle-down economics have adopted trickle-down monetary policy. I mean, that is so messed up on so many levels.)

We know that the Fed will not simply do nothing. We’ll get quantitative easing on a scale that is currently unimaginable. This will blow out the Fed’s balance sheet to a level that is unrecognizable.

Unless there’s considerable pushback from Congress. And it must come from more than just the usual suspects on the far right of the Republican Party. If not, we will see negative rates in the world’s reserve currency.

The central bankers of Europe who are experimenting with negative rates came to Jackson Hole to advise the Fed. They said that negative rates are working wonderfully. Never mind that cash hoarding in Switzerland is at astronomical levels.

(It’s a fascinating arbitrage: bank rates are -75 bips, and you can insure your cash in a safe deposit box for about 10 bips. And in Switzerland, you can find a bill worth $1000. It makes total sense.)

Negative rates will drive consumer spending down, not up. They will result in less income in retirees’ pockets—forcing them to save more, work longer, and spend less.

The next 10 years will see an explosion of government debt and an implosion of the ability of governments to fulfill their promises. Any economic or investment model based on past performance under previous economic conditions will be worthless. Just as worthless as the Federal Reserve’s models.

The toughest investing climate of the last 100 years

We are truly going to have to go outside the box if we are going to figure out how to get our portfolios from where we are today to the other side of the coming crisis. There is no way to predict what our investment portfolios should look like six months or one year or two years or six years from now.

I see no way for Europe to avoid that crisis. The US might if we make some radical decisions in 2017. You can ask yourself how likely that is.

I’m telling you, this is not going to end well. You cannot assume that your investment returns will look anything like the average for the last 20, 30, 40 years.

I know some people will say that is exactly what’s going to happen. Many of them are my friends, and I enjoy sitting and talking with them over a bottle of wine and a great meal. But I will look them in the eye and tell them that they’re walking into economic hell with their eyes closed. And anyone who follows them will see their portfolio go up in smoke.

This is going to be the most difficult investing environment of the last 100 years. Only a public outcry can stop it.
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CAC 40 Rebounds From Weekly Lows

After trading to a new weekly low, the CAC 40 rebounding to intraday resistance.
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Noble Capital Announces their Focus on American Eagles Gold Coins – Yahoo Finance

Noble Capital Announces their Focus on American Eagles Gold Coins
Yahoo Finance
30, 2016 /PRNewswire/ — Noble Capital www.noblecapitalcorp.com is a purveyor of only the finest precious metals including Gold and Silver. The company is based in Chicago, IL with offices around the country including Florida and Virginia. Noble

and more »

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Mining Stocks’ Rally Despite Gold’s Decline

Quite a few rallies in the recent months were preceded by the mining stocks’ outperformance relative to gold and we just saw the same kind of phenomenon on Wednesday – GDX rallied while gold declined. Is the bottom in?
Let’s take a look at the miners’ chart for details – other charts don’t feature important changes from what we described previously so mining stocks are the part of the PM sector that we’ll focus on in today’s free article (charts courtesy of http://stockcharts.com):
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USD/CAD in Focus Ahead of Canada GDP and US PCE

The USD/CAD is trading higher as oil prices nudge lower alongside stocks on Deutche Bank concerns, Canada GDP and US PCE in focus

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Donald Trump Failing to Recover After 1st Debate Hillary Shimmy Loss – Betfair Betting Market

The betting markets tend to be better short-term gauge for reactions to political events such as the debates. In which respect Donald Trump is showing NO signs of recovering from Monday’s debate loss, instead the Betfair market odds have continued to widen from 2.88 (Trump) / 1.57 Hillary just prior to the start of the debate at 2am BST, which following the debate at 4am had widened to 3.35 (Trump) / 1.44 Hillary) and now 3 full days later the betfair market price is 3.45 (Trump) / 1.45 Hillary. Thus Hillary is continuing to capitalise on Trumps debate loss by widening her lead further, which means whatever post debate strategy Trumps team is deploying is just not working!
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The New Austrian School of Economics

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US Dollar to Join Yen Rally as Deutsche Bank Sours Sentiment

The US Dollar is set to join the Japanese Yen on the upside as insolvency fears plaguing Deutsche Bank heat up, triggering market-wide risk aversion.

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The Skeptic’s Simple Case For Gold – Seeking Alpha


Seeking Alpha
The Skeptic's Simple Case For Gold
Seeking Alpha
There are many voices in the precious metals markets, and the majority of the voices are bullish. Many prominent gold bulls also have items for sale: books, newsletter or trading subscriptions, advertising clicks, and gold and silver bullion. The sales

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Green Light For Stock Markets In 2017

We believe the stock market correction is running its course. The seasonally weak month of September has only produced one significant down day. Our expectation was that the retracement would take stocks between 5% and 10% lower, as explained in ALL Markets Going Down Except The US Dollar.
However, it seems that the stock market is quite resilient. Two weeks after that strong down days, we have not seen any meaningful sign of a continuation of that retracement. That does bode well for an end of year rally, and, even more important, continued strength in the stock market into 2017.
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How Much Is My Trade Silver Dollar Worth?

See how much your Trade silver dollar is worth. This page lists coin values and prices for Trade silver dollars minted from 1873 until 1885. View full post on About.com Coins: What’s Hot Now