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Scooped by Hal onto Gold and What Moves it. |
Scoop.it!
As you know, the old Wall St. saying is that 'so goes January, there goes the rest of the year' or words to that effect.
The last chart shows that assets are having a very nice start. Silver is leading they way with stocks not far behind. Gold is still recovering from its end of year smash, which lasted into the first week in January. I suspect that if things hold together it will do well.
VIX is very low and complacency about the economic picture is the word for the day. ...
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Eric King: “Kevin, I know you’ve been communicating with many of the sovereign wealth funds overseas. What are you hearing from them?”
Sprott Inc. President Bambrough: “The burning question that I always have, I’m amazed at their ongoing willingness to continue to accumulate, and hold, such large amounts of US denominated bonds. It’s been my view that they are basically playing a Ponzi scheme.
I’ve had that confirmed when I’ve had long discussions with different sovereign wealth funds and different government agencies around the world. They’ve been willing to play this game, but more and more now, as their domestic economies have grown and the US portion of their exports becomes smaller, and with the amount of T-Bills that they have (already) accumulated, I believe they’ve reached the boiling point where they are really going to be unwilling to grow their reserves (of US Treasuries).
Just the process of not growing their reserves is going to be very disruptive. If they are not willing to accumulate more T-Bills, this is going to force the trade deficit closed. I think that is really going to rock the financial world at some point in the near future.
Hal's insight:
click over for the rest of the King World News. I've been wondering about this for some time mysefl, musing that once this begins to pick up steam around the globe that the fear will break out in DC. Pretty much because the emperor will be shown to have no clothes. Delete the scoop?
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