Stocks, Bonds, Paper Gold – What The Hell Is Happening?

Make no mistake, the financial system is collapsing under one giant margin call being issued to banks and hedge funds. How big?  No one knows. The Fed obviously was preparing for something when it commenced its money printing in September. But it had no idea of the scale of the underlying systemic problems.  Coronavirus is not the cause of what’s unfolding in the markets – it merely served as the pin that pricked the biggest financial asset bubble in history.

The $1.5 trillion “repo” QE announced by the Fed today did a complete belly flop, as the Dow closed 400 points lower than where it was trading when the QE was announced.  This will take the Fed’s balance sheet well above its peak level during QE1-3.

Craig “Turd Ferguson” Hemke and I had a short discussion about the devastation in the stock and credit markets, including trying to make sense of the action in the precious metals sector – Use this link to access the podcast and TF Metals or click on the image below:

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5 thoughts on “Stocks, Bonds, Paper Gold – What The Hell Is Happening?

  1. I’ve been reading about severe, tightening inventory for gold and silver. It looks like the ridiculous and criminal activity of the Wall Street crime syndicate is driving sellers of real metal to withhold sales based on the derivative price. I suspect that miners are part of that reluctant group, and if they aren’t, they should be.

    This means that the paper market’s days are numbered. One, if metal becomes unavailable, people will be demanding gold delivery from Comex, regardless of price and two, unless the racketeers can get out from under their still sizable short position, they will be in real trouble – but I’m sure they are already there, for other reasons.

    These rumors make sense to me, because when the credit markets seize (and based on spread blowouts and lack of bids for treasuries and other debt instruments, we are probably there, now) , the best, unencumbered, liquid asset for collateral, that has ever existed, is gold. Trade cannot be financed without collateral, and if normal bank credit is not there, gold will resume it’s traditional role. In other words, expect demand to explode.

    1. Friday was 100% unadulterated BIS/Central Bank paper manipulation operation. The Comex banks are booking
      profits on all contracts shorted above $1520, which is a substantial amount. It will be the only part
      of big bank operations that will show a profit besides NIM. The tell-tale was the record level
      of PNT/EFP transactions on Thursday preceded by a price ambush of gold on the LBMA p.m. price fix
      Thursday.

  2. Those crooks buying more and more shares of precious metals mining companies.
    You only smash price of gold and shares going down and very stupid sell their shares!!!!

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