Equity 1 Group
Pushing back the frontiers of economic ignorance and restoring sound financial foundations, one family at a time.

Sep
07

Is it possible that the US Dollar could be creating a multi-year topping pattern, while Gold is creating a multi-year bottoming pattern?

MetalsResearch  |  Kimble Charting

I would understand if the majority feels it is almost “impossible,” as the long-term trend for Gold is down and the long-term trend for King Dollar is up!

What are the odds that Gold is creating a major bottoming pattern and King Dollar is creating a topping pattern? Very low at this time.

Even though the odds are low that Gold is bottoming and King Dollar is topping, it remains possible that both could be creating major reversal patterns over the past three years!

To prove that major reversals are in play, Gold would need to rally above $1,357 and the US Dollar would need to break below 88.

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Sep
07

Remember what we said about China angling to de-throne the U.S. as the WORLD’S RESERVE CURRENCY!  This completes one of the pieces of their puzzle.

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NewsMaxFinancial  |  Jeffrey Rodack

Construction of one of the world’s largest gas pipelines – from Russia to China – is about 93 percent finished, RT.com is reporting.

About 119 operational gas wells have been completed in Yakutia and the main technological equipment is now being installed.

The website noted the pipeline, called the Power of Siberia, could eventually help Russia become one of China’s main providers of natural gas.

Plans call for the nearly 2,500-mile long pipeline to begin pumping gas to China by the end of 2019.

Moscow and Beijing already are planning to construct another pipeline – Power of Siberia 2 – in an effort to keep up with China’s growing gas consumption, RT.com noted

Sep
06

The market value of virtual currencies tracked by CoinMarketCap.com has slumped about 75 percent from its January peak to about $205 billion.

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Bllomberg  |  Eric Lamb

Cryptocurrencies dropped sharply for the second time in less than 24 hours, sinking toward a nine-month low amid concern that broader adoption of digital assets will take longer than some anticipated.

Bitcoin, the largest cryptocurrency, tumbled as much as 9.8 percent and was trading at $6,480, down 6.8 percent, as of 10 a.m. in New York, according to Bloomberg composite pricing. The Bloomberg Galaxy Crypto Index, a gauge of the largest digital assets, likewise pared some of an earlier decline, when it traded near the lowest level since November 2017. Rival coins Ripple, Ether and Litecoin also slipped. Read the rest of this entry »

Sep
04

Currencies don’t melt down randomly. This is only the first stage of a complete re-ordering of the global financial system.

OfTwoMinds  |  Charles Hugh Smith

Sep
04

All around the world, the peak was in January 2018… and since that time most markets have been in MAJOR downtrends if not outright bear markets.

PhoenixCapital  |  Graham Summers

The markets are getting downright ugly. If things don’t turn up soon we could be at the point at which the Everything Bubble begins to burst.

While US stocks have performed relatively well recently, globally things are looking worse and worse.

Germany’s DAX never reclaimed its former high established back in January. Instead it’s been carving out a massive Head and Shoulders pattern. Germany is the fourth largest economy in the world and heavily reliant on exports for growth. This chart pattern doesn’t bode well for global trade or growth.

Read the rest of this entry »

Sep
04

Using government to steal from each other has thus become America’s largest economic activity.

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SprottMoney  |  Peter Diekmeyer

Alexandria Ocasio-Cortez’s recent win of the Democratic Party’s nomination in New York’s 14th Congressional district has given America’s socialists a breath of fresh air.

The telegenic 28-year old ex-waitress, who lives in a one-bedroom Bronx apartment, defeated Joseph Crowley, a 20-year incumbent and one of the Party’s most powerful members.

Ocasio-Cortez’s win has given particular hope to American youth. Polls suggest that millennials, like generations of youth before them, broadly support a socialist agenda.

However, there are growing signs that increasing government involvement in the economy is bad for Americans, particularly its youth. Read the rest of this entry »

Sep
03

Physical gold takes center-stage in times of crisis precisely because it has tangible value, is not issued by any central bank, monetary authority or government, cannot be debased and has no counterparty or default risk.

BullionStar  |  Ronan Manly

In recent weeks, global financial markets have been increasingly spooked by an intensifying crisis in emerging market currencies including those of Turkey and Argentina. Add to this the ongoing currency crisis in Venezuela and the currency problems of Iran. While all of these countries have economy specific reasons that explain at least some of their currency weakness, there are some common themes such as a stronger US dollar, high domestic inflation rates, economic mismanagement, reliance on foreign borrowing, and in some cases economic sanctions imposed by the US.

As one currency plummets, this intensifies emerging market risk across the entire asset class, and it’s not unreasonable at this time to at least speculate whether the contagion could spread. The Brazilian Real and South African Rand have come under pressure and in Asia, the Indonesian Rupiah and Indian Rupee are also now weakening against the US Dollar.

It is against this backdrop that physical gold is being increasingly mentioned within these emerging economies, with gold coming to the fore as it always does in times of crisis. It is for this reason that its interesting to take a look at a number of these currencies and examine how gold is playing the role of safe haven for these countries’ citizens as well as creating a challenge for these nations’ leaders and central banks.

Buying up Gold as the Turkish Lira Plunges

Read the rest of this entry »

Sep
03

Yet simultaneously, according to the Wall Street Journal, a full SIXTY % of corporate debt issued by companies in the Russell 2000 is rated as JUNK.

SovereignMan  |  Simon Black

Well, it happened. Yesterday the US stock market broke the all-time record for the longest bull market ever.

This means that the US stock market has been generally rising for nearly a decade straight… or even more specifically, that the market has gone 3,453 days without a 20% correction.

That’s a pretty big milestone. And there’s no end in sight. So it’s possible this market continues marching higher for the foreseeable future.

But if you step back and really look at the big picture, there are a lot of things that might make a rational person scratch his/her head. Read the rest of this entry »

Sep
03

The important thing to remember is that no one can predict the future… including [wait for it–] unelected central bankers who wield totalitarian control over the economy.

SovereignMan  |  Simon Black

Hallelujah, the US stock market is once again at an all-time high thanks to a little help from our friends at the Federal Reserve.

Every summer, central bank officials from around the world gather in Jackson Hole, Wyoming (which, if you haven’t been, is REALLY spectacular. Jackson Hole, that is, not the Fed conference.)

The event was held last week. And the main event was a speech from the new(ish) Fed Chairman Jerome Powell. Read the rest of this entry »

Sep
03

Politicians never take responsibility for creating hyperinflations. But the cause is always the same.

Forbes  |  Steve Hanke

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Zimbabwe02

In 1966, Milton Friedman wrote, as he often did, some memorable lines that have entered the lexicon of economic quotables. As Friedman correctly put it in a book chapter titled “What Price Guideposts?”: “Inflation is always and everywhere a monetary phenomenon, resulting from and accompanied by a rise in the quantity of money relative to output…. It follows that the only effective way to stop inflation is to restrain the rate of growth of the quantity of money.”

While true, Friedman’s classic statement doesn’t tell us anything about what drives the growth of the money supply that fuels inflation. The importance of this omission becomes particularly important in hyperinflations, when the monthly inflation rate exceeds 50% for thirty consecutive days. Hyperinflations are rather rare.

There have only been 58 episodes of hyperinflation in recorded history. The first episode occurred in France, where the mandat collapsed. In August 1796, France’s monthly inflation rate peaked at 304%. Today, there is only one hyperinflation, Venezuela’s. I measure both Venezuela’s monthly and annual rate of inflation with high-frequency data each day. On August 27th, Venezuela’s monthly rate of inflation was 177% and its annual rate of inflation was 60,934%.

Many people ask, how can this be? What drives the money supply and inflation to astronomical heights? To answer these questions, we must go behind Friedman’s heavily quoted words. Read the rest of this entry »