Tag Archives: Stimulus Bill

The Next Flight To Safety Rush Into Gold, Silver And Mining Stocks

Another round of “QE” money printing, another round of the flight-to-safety rush into gold, silver and mining stock…

For as insanely overvalued as are many of the “tech/unicorn” bubble stocks (SHOP, W, TSLA, CVNA, etc), the precious metals sector, especially silver and silver mining stocks, are just as undervalued. With multiple Fed speeches per day everyday for the last few weeks, the Fed is priming expectations for another big round of money printing in order to monetize the deteriorating credit quality of bank balance sheets and to fund the next round of Government stimulus payments as well as the massive spending deficit.

An eventual, inevitable stock market “accident” like the one in March will likely take everything with it, including the precious metals. However, like in 2008 and March, I expect an event like that to create a buying opportunity because a lot of the money that is pulled out of general risk assets will find its way into gold, silver and mining stocks. At that point the precious metals sector will head higher while the stock market continues to head south.

Silver Bullion TV invited back onto its podcast to discuss the precious metals market in the context of the next shoe to drop in the global financial system:

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Buying physical gold and silver – not GLD or SLV – should be your first priority in seeking shelter from the eventual fate of the dollar.  But mining stocks offer the potential wealth enhancement as well “optionality” upside to the prices of gold and silver. If you would like some ideas for investing in mining stocks, take a look at my  Mining Stock Journal.

Stimulus Bill Gives The Banks $454 Billion In Taxpayer Bailout Money

The Government and the Federal Reserve are exploiting the virus crisis to implement another bailout – or attempted bailout – of the “Too Big To Fail Banks.”  The stimulus Bill approved 96-0 by the Senate gives the Fed a $454 billion taxpayer funded “slush fund” for Wall Street bailouts. Just as troubling, the Bill suspends the Freedom Of Information Act for the Fed until the earlier of the time at which Trump terminates the National Emergency declaration or December 31, 2020.

The latter provision means that the Fed can conduct meetings in secret,  is not under any circumstances required to disclose the meeting details to the public  and it does not have to keep a record of notes.   The public will never know how its $454 billion was spent or which banks and hedge funds (or individuals?) were the recipients of this taxpayer largess.

Wall Street On Parade takes a look at the implications of economic bailout Bill so far passed by the Senate.  It remains to be seen if this secrecy provision will be challenged by the House but I’m not hopeful.  You can read more on this here:  Wall Street On Parade