WTF Just Happened? Gold, The Dollar And Interest Rates

What’s going on with gold, the dollar and interest rates – especially gold?  All of the variables that fundamentally support much higher gold prices are lined up perfectly.  Why isn’t gold moving higher?  The popular narrative in the mainstream financial media would leave one to believe that the dollar is soaring.  Eric and Dave put a big dent in that notion.  Additionally, in a long-term historical context, the recent rise in interest rates is tiny, yet marginally higher interest are already wreaking havoc on the economy (retail, auto and home sales).   What’s going to happen to the economy when the 10-yr Treasury hits 4%, which is still well below its long-run historical norm? (click on image to enlarge)

Eric Dubin and Dave Kranzler dig into these topics in the next episode of WTF Just Happened (WTF Just Happened is a produced in association with Wall St. For Main Street – Eric Dubin may be reached at  Facebook.com/EricDubin):

Visit these links to learn more about the Investment Research Dynamic’s Mining Stock Journal and Short Seller’s Journal.  I recommended Almadex Minerals at 28 cents in April 2016 – it closed Friday at $1.13.  I recommended shorting Hovnanian at $2.88 in January  – it closed at $1.89 on Friday and has been as low as $1.70.

14 thoughts on “WTF Just Happened? Gold, The Dollar And Interest Rates

  1. Part of the plan. A new system is needed – ideally a totally controlled digital Blockchain where every transaction can be tracked and those out of favour can be ‘switched off’. Even America pulling out of the Iran deal could have been deliberate to encourage the dollar being ditched (that seems to be working!) so that the system can be dismantled with some kind of order. Also all those contracts driving down gold could be a last ditch effort to convince the plebs that gold really is an ancient relic. The whole system is rigged but still the sheeple are convinced that everything is fine and dandy …. hey look at the Stock market ….. woohoo! I am very thankful that I woke up early enough to ditch my mortgage and get out of the banking system …. Thanks Dave Kranzler and all your mates who have been warning us all for years …. THANK YOU!

    1. “Also all those contracts driving down gold could be a last ditch effort to convince the plebs that gold really is an ancient relic.”

      I think those contracts which have been driven down could be a last ditch effort to convince sovereigns such as China, Russia, Saudi …., not so much the plebs, that gold really is an ancient relic.

      The whole system is rigged so the sheeple are convinced that it’s either the bond or stock markets denominated in the dollar. As long as the sheeple runs back and forth between the bond and stock. They are stuck within the dollar system.

  2. The Gold will go up again soon.
    We should know by now manipulators tricks , they well and still alive.
    The price of gold I think in last 2 years it’s very related to price of crude oil and the dollar.
    To expect gold to move much higher , they have to loose control of futures.
    One day we will have a panic and gold will skyrocket.

  3. Few experts believe that the accumulated national debt of more than 20 trillion US Dollars can be repaid. How about the simpler question: Can the economy be restructured in such a way that budget and trade deficits be restricted to less than 100 billion Dollars per year? What would happen if a serious attempt is undertaken to stabilize these two deficits at those lower levels ?

    The more general question is: what is the real reason for the US economy to run huge budget and trade deficits for many decades ? Are deficits really necessary in order to prevent an economic depression ?

    I think a serious investigation of this question by a team of competent economists would be very helpful for the understanding of the true nature of the US economy.

    There is no theoretical limit for the ultimate size of the national debt. As the national debt rises , interest rates have to be reduced (as it happened during the last 37 years) in order to keep the total amount of interest payments below tax collection. If negative interest rates and, more generally, asset confiscation is permitted, then there is no limit on the government debt. Even at 0% interest rates, the government debt can be orders of magnitude higher than it is today since no money needs to be allocated to interest payments. Why would investors lend money to the government at 0% ? That would happen if any other investment would automatically be threatened by either confiscation or bankruptcy. That could be the ultimate end of a continuing government buildup. In other words, not gold, but 0% government debt would be the only form of safe investment. Could that be our long term future ?

    1. The more general question is: what is the real reason for the US economy to run huge budget and trade deficits for many decades ?

      The answer is: US economy is a massive Ponzi scheme. Global economy will take a dive if the US decided to balance its trade and budget. Bernie Madoff caused a recession in Palm Beach Fl. when he failed to maintain his deficits or IOUs.

      Are deficits really necessary in order to prevent an economic depression ?

      Yes. Deficits is the opium to keep the global clients in the US Ponzi scheme. US deficits are their surpluses ON PAPER. As long as the clients are happy with their IOUs denominated in dollar, the economic depression can would continue to be kicked further down the road.

  4. M. Armstrong of a different opinion. Claims that $USD is the only game in town at the end of the day. When they lose control of rates.. capital to flow into $USD and US equities..Gold will hold up but kinda a meh in his opinion.. https://youtu.be/DFRuRoqLKZU

    1. While history shows that’s true, it’s limited to debt cycles that never completed. Intrinsically, the debt supercycle started when the gold standard was fully broached in 1972.
      These markets are all debt markets, reliant on interest rates and inflation. As the sovereign bond market (and copied by foreign CB’s) relies on hidden and overt QE, overseas proxy Fed buyers and hyperleverage as derivatives and swap contracts. Interest rate swaps and asset backed securities are two of the house of cards that they fear. But there is sovereign debt issue counterfeiting here asnd abroad, without proper documentation and chain of ownership. The same fraud as stock certificates at CEDE and Co.’s NYC DTCC (Depository Trust and Clearing Corporation) vault which a flood and fire afflicted: https://www.bloomberg.com/news/articles/2012-11-15/stock-bond-certificates-in-dtcc-vault-damaged-by-sandy-flooding

      1. The system is a sham! I got Kicked Off Kitco for posting this against some tripe a female commentator was putting out about how bad PM demand was and that was the reason for the price decline….

        This is truly one of the biggest scams ever….the EFP’s for silver and gold being transferred over to London where they just disappear….

        Silver (Seriously are you shitting me 190% of annual production transferred to London not even 5 months in? We still have 34.6 MILLION OZ standing in MAY how the heck are these SOB’s going to deliver that and yet they keep hammering the price.)

        TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER: SO FAR THIS MONTH: 147.320 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 21.04% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)

        ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S: 1,292.64 MILLION OZ.

        ACCUMULATION FOR JAN 2018: 236.879 MILLION OZ

        ACCUMULATION FOR FEB 2018: 244.95 MILLION OZ

        ACCUMULATION FOR MARCH 2018: 236.67 MILLION OZ

        ACCUMULATION FOR APRIL 2018: 385.75 MILLION OZGOLD

        Gold

        Same freaking story posting this and asking why is why I got kicked off Kitco.

        TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS : THIS MONTH IN 16 TRADING DAYS IN TONNES: 477.20 TONNES

        TOTAL ANNUAL GOLD PRODUCTION, 2017, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2555 TONNES

        THUS EFP TRANSFERS REPRESENTS 477.20/2550 x 100% TONNES = 18.71% OF GLOBAL ANNUAL PRODUCTION SO FAR IN APRIL ALONE.*** THE ACCUMULATION OF EFP CONTRACTS IS RISING PER MONTH.

        ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE: 3,234.83* TONNES *SURPASSED ANNUAL PROD’N

        ACCUMULATION OF GOLD EFP’S FOR JANUARY 2018: 653.22 TONNES

        ACCUMULATION OF GOLD EFP’S FOR FEBRUARY 2018: 649.45 TONNES

        ACCUMULATION OF GOLD EFP’S FOR MARCH 2018: 741.89 TONNES (22 TRADING DAYS)

        ACCUMULATION OF GOLD EFP’S FOR APRIL 2018: 713.84 TONNES (21 TRADING DAYS)

        Dave am I losing my mind? Why is this not an issue that is played up more in the Community…..Its beyond criminal and CRICKETS!

  5. Guverment subsidies cause another big splash:

    Consumer Reports: Tesla Model 3 not good enough to recommend
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    Man dies after Tesla crashes into San Francisco area pond
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    Authorities in the San Francisco Bay Area are investigating the death of a man after a Tesla car he was driving veered off a road, crashed …

  6. Only boomers and SS recipients complain about the xchange ratio between roth’s scrib and the precious elements.

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