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Inflation Flaring Up, Dollar Resuming Decline; Powell: Governments Are LYING about Their Gold Activities

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason. Coming up we’ll hear a tremendous interview with Chris Powell of the Gold Anti-Trust Action Committee. Chris gives perhaps the most thorough explanation of why governments are so intent on manipulating the precious metals markets and reveals some very interesting recent data about what they’ve quietly been doing. Don’t miss conversation with Chris Powell of GATA, coming up after this week’s market update. Metals markets rallied strongly this week across the board, with copper surging 7% higher and gold rallying back up toward key levels on the charts. As of […]

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The Fed Targets Stock Prices – Here’s Why

The week before the Dow/SPX quickly plunged 10%, the Fed had reduced its SOMA account (the SOMA account is its “QE” account) by $ 21 billion.  Just as quickly as the stock market dropped, it has sharply recovered more than half of its losses from the previous week. As it turns out, the Fed added $ 11 billion back to its SOMA account. That’s an $ 11 billion injection of cash directly into the banking system.  Clearly the Fed’s actions were a large factor in the 10% plunge and the subsequent bounce. The Federal Reserve is targeting stock prices with […]

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When Will Higher Rates Kill Stocks?

Chart of the Day Interest rates have to go higher. Almost everyone knows that. But the real question on everyone’s mind is: will higher rates kill the bull market in stocks? There’s a strongly-held belief that higher interest rates always work against stocks. But that’s only half true. The direction of interest rates is important. That’s what everyone focuses on. But the level of interest rates is just as important. And this aspect of the relationship between interest rates and stock prices is overlooked by most. Consider this chart, published consistently in J.P. Morgan’s Quarterly Guide to the Markets: The […]

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Guess Where Crypto Utopia is Being Built

Some of the wealthiest, smartest people in the cryptocurrency sector have realized that the territory is a very attractive place to create Crypto Utopia… so that’s what they’re doing. They’ve taken over an old hotel in old San Juan and they’re out hunting for swaths of land. They have plans to build their own city and open their own crypto bank! I tell you why and what this means to you in my latest video, which you can watch now. I also give you details of two huge crypto conferences taking place in Puerto Rico in March. One is called […]

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The Dollar and Gold for 2018

This article and another were written for Miles Franklin. Read them here and here. Since this article was written in early January stock indices have bubbled higher. Some analysts have dreamed of a “melt-up” for stock markets. Regardless, bubbles crash eventually. The Dollar The Dollar Index dropped from 102.28 on December 30, 2016 to 91.82 on December 29, 2017, and further to 88.26 on January 25, 2018. The Index tracks the floating value of various unbacked fiat currencies against other fiat currencies also backed by nothing but debt, politician promises and taxing authority. The U.S. dollar fell this year against […]

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From Dalio To Dow To Thucydides And Beyond

Alex here with this week’s Macro Musings. As always, if you come across something cool during the week, shoot me an email at alex@macro-ops.com and I’ll share it with the group. Articles I’m reading — Dalio’s been doing a lot of blogging lately, which is nice. He’s a pretty smart dude. His latest write-up is on the short-term debt cycle — something we’ve written about quite a bit– and where he thinks we are currently, why, and what that means for markets. Here’s a snippet. You can find the entire article here. In the “late-cycle” phase of the short-term debt/business […]

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U.S. Public Debt Surges By $175 Billion In One Day

After the U.S. Government passed the new budget and debt increase, with the President’s signature and blessing, happy days are here again. Or are they? As long as the U.S. Government can add debt, then the Global Financial and Economic Ponzi Scheme can continue a bit longer. However, the days of adding one Dollar of debt to increase the GDP by two-three Dollars are gone forever. Now, we are adding three-four Dollars of debt to create an additional Dollar in GDP. This monetary hocus-pocus isn’t sustainable. Well, it didn’t take long for the U.S. Government to increase the total debt […]

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Is The Fed Back To “Quantitative Easing?”

The Fed added $ 11 billion to its SOMA account for the week ending yesterday. It purchased $ 11 billion in mortgage securities directly from banks. This injects $ 11 billion into the banking system. Cash is “high powered” money, meaning it can be leveraged 10x (banks need to hold 10% in reserves against “high powered” money. $ 11 billion is $ 110 billion of leverage for the banks to use for activities such as propping up the stock market. This certainly explains why there appears to be another “V” recovery in the stock market after a near-10% drawdown in […]

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Why Even Pretend There’s A Debt Ceiling Limit?

The current “debt ceiling” has been suspended until March 2019. The current amount of Treasury debt outstanding is $ 20.681 trillion. It has been estimated that the amount of Treasury outstanding by March 2019 will be as high as $ 22 trillion. U.S. Government has, for all intents and purposes, operated without a constraint on debt issuance since 2013: Beginning in 2013, Congress has taken to temporarily suspending the debt limit, rather than raising it directly. The debt limit has now been suspended on five occasions, most recently as part of the Bipartisan Budget Act of 2018, which suspends the […]

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Could Gold’s Day in the Sun Be Upon Us?

After last week’s market shake up, the questions of “what happened” and “what next” is definitely on all of our minds here at Dent Research. I’ve no doubt it’s on your mind too. The biggest question everyone’s trying to answer: Is this the end of the bull market? I still think that January 26 looks like a top, with its parabolic nature, but thanks to one technical indicator in particular, I have some idea of what might come next… Yesterday, I emailed to say that I believe we’re seeing Rising Bearish Wedge Scenario Type 2 unfolding right now. The markets […]

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