News Story of the Day: When will gold top $2,000?
Peter Schiff, the CEO of Euro Pacific Capital, says it will reach that level if Senator Bernie Sanders (I-VT) wins the 2020 presidential election. However, if the market thinks Sanders is going to win the race beforehand, then gold could exceed $2,000 before Election Day.
“If Sanders becomes president in 2020, the price of gold will be well above $2,000 on the day after election night,” he told the Fox Business Network.
“What a Sanders win means is much bigger government deficits, and much more money printing by the Fed because there is no way to finance all of the spending that will happen with tax hikes on the rich. We’ll get tax hikes on the rich, but they’re not going to provide the revenue to pay for the programs.”
Schiff adds another bearish point: Deficits could hit as much as $4 trillion, printing would be through the roof, and the U.S. dollar’s reserve status could not survive a Sanders presidency.
At the time of this writing, gold is trading at just under $1,600.
Chart of the Day: America’s suicide rate has increased for the 13th consecutive year. From The Economist:
“On January 30th the Centres for Disease Control and Prevention (CDC), a federal government agency, reported that more than 48,000 Americans had taken their own lives in 2018, equivalent to 14.2 deaths per 100,000 population. This makes suicide the tenth-biggest cause of death in the United States—deadlier than traffic accidents and homicide.”
Here is the chart:
Illustration of the Day: We have to give Representative Alexandria Ocasio-Cortez (D-NY) some applause. She finally did it! All on her own!
Quote of the Day: Is the era of the boom and bust over or not? That is a question that Thorsten Polleit explores in a new Mises Institute piece that is well worth the read. Here is an excerpt:
By controlling market interest rates, central banks have in fact put a “safety net” under the economies and financial markets. As central banks have signaled to the public that they feel responsible for a healthy economy, and, in particular, for ensuring that “financial market stability” prevails, investors can put two and two together: should the economies or financial markets get to the verge of collapse, investors can expect central banks to step in, fighting the impending crisis. This understanding encourages investors to take additional risks, step up their investments, and disregard and underestimate risk.
Central banks’ “safety net” is not only a powerful tool to sustain the boom, it is also a rather subtle, stealthy intervention in capital markets. It effectively brings about an entirely rigged financial market: prices are higher and yields are lower than unhampered market forces justify. The central banks’ safety net policies amount to a manipulation of the market system on the greatest scale possible. With basically all prices and all market yields distorted, the economy and financial markets enter a “hall of mirrors” regime, where consumers and firms must inevitably get disoriented and make wrong decisions.
However, under such conditions the boom can be kept going much longer compared to a scenario in which free market forces are allowed to do their job—that is, establishing financial asset prices as well as inflation, credit, and liquidity premia according to real-world realities. However, today’s environment is rather different: central banks, in their attempt to prevent the current boom turning into another bust, have effectively corrupted the vital roles that financial markets and market interest rates play in a free market system.
Tweet of the Day: So, apparently the Counterfeit News Network is upset that white people are trying to help solve the Wuhan coronavirus in the United States. Yep, it’s true. Because President Donald Trump’s task force is comprised of white people, CNN is outraged. Yes, really.
The real concern about the coronavirus is not the potential for a global pandemic, it’s the fact there are too many white people trying to stop it. https://t.co/Lo6NkZM8eo
— Paul Joseph Watson (@PrisonPlanet) January 31, 2020
Video of the Day: Out of everybody in this crazy circus, the best person coming out of the impeachment trial sham is Senator Rand Paul (R-KY). Check this interview out:
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