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Fed Reinforces Plans to Provide Open-Ended Stimulus to Spur Recovery
The Wall Street Journal reports that most central bank officials project interest rates will remain near zero for at least three years. (What do you think this will do to the price of gold??) Fed officials slashed their short-term interest rate to near zero in March as the coronavirus pandemic disrupted financial markets and the economy. They […]
Goldman Sachs acquires Perth Mint Physical Gold ETF
From ETF Strategy, by James Lord, CFA | Category: Commodities: Goldman Sachs Asset Management has entered into an agreement to acquire the $500 million Perth Mint Physical Gold ETF (AAAU US). The fund, which will be GSAM’s first commodity ETF, currently provides exposure to physical gold [held] and guaranteed by The Perth Mint, a wholly […]
Proposed US Trade Alliance
WSJ reports that Trump wants to create an informal alliance of Western nations to retaliate when China uses its trading power to coerce other nations. The US Administration conceived the plan in response to Chinese economic pressure on Australia after the Australian government called for an investigation into the origins of the Covid-19 pandemic. “China is […]
How do you measure performance?
Colin Twiggs points out that the S&P 500 is apparently booming, but performance measured in Gold rather than Dollars, tells a different story, with the S&P 500 starting a down-trend in late 2019. Stock prices are inflated and investors buying stocks at these levels are likely to realize poor returns…
Attack of the Zombies
From Bloomberg, 17 Nov 2020, by Lisa Lee and Tom Contiliano: …many of the nation’s most iconic companies aren’t earning enough to cover their interest expenses ( …zombie status). Almost 200 corporations have joined the ranks of so-called zombie firms since the onset of the pandemic… In fact, zombies now account for nearly 20% of […]
Asia signs on…
From The Australian, by Amanda Hodge: An Asian mega trade pact representing to 30 per cent of all global output is to be signed into force this weekend …amid [China’s] ongoing trade war with the US, and as its neighbours seek to diversify supply chains outside China’s sphere. All 10 ASEAN nations, plus China, Japan, […]
Wage freeze
From a report in The Australian, by TOM DUSEVIC More Australian workers will have their pay cut or wages frozen as the nation emerges from the COVID-19 recession. 55% of companies surveyed by the RBA have implemented a wage freeze or will implement one in the coming year. Furthermore, some companies have imposed temporary wage […]
Where’s the Gold?
Germany has the second largest gold reserves in the world at 3,366 tonnes. 1,698 tonnes (50%) of Germany’s Gold reserves are stored on its own soil, 1,236 tonnes (37%) stored in the U.S., and 432 tonnes (13%) in the U.K. During the hostage crisis (1979) the U.S. blocked Iran’s gold account in New York. Germany wants […]
Is Inflation the way out of this?
10-year Treasury Inflation-Indexed Securities (“real interest rates” ) are now negative. Hanging on to cash, costs money…. US federal debt is at the highest levels in over 100 years… Will the US Government impose austerity measures to build surpluses and repay debt… …or allow inflation to pump up GDP relative to debt (as it did […]