Bold Bets That Gold Could Triple to $4,000 Trade in New York

Newsmax | http://www.newsmax.com

The gold options market saw $1.75 million in block trades betting the precious metal could almost triple in more than a year, surpassing the record.

Around noon in New York Wednesday, 5,000 lots of a gold option giving the holder the right to buy the precious metal at $4,000 an ounce in June 2021 changed hands. The bets were sold at $3.50 an ounce.

“It’s like 18-month term life insurance; what will the world look like if gold is at $4,000,” Tai Wong, the head of metals derivatives trading at BMO Capital Markets, said in an email. “They are hoping for a quick violent move,” he said, referring to the people who bought the call options.

Gold futures climbed to a record $1,923.70 an ounce in 2011 as the Federal Reserve bought more than $2 trillion of debt to stimulate the U.S. economy. While bullion has rallied 14% this year, the precious metal is still 24% below the current all-time high.

Bullion for delivery in February settled at $1,460.80 an ounce at 1:33 p.m. in New York. Futures for June 2021 delivery, which settled at $1,494.40 on Wednesday, will need to almost triple before expiration to make the call options profitable for its holder.

We Are on the Brink of the Second Great Depression

Newsmax | http://www.newsmax.com

Ray highlights some problematic similarities between our times and the 1930s.

• A large wealth gap
• The absence of effective monetary policy
• A change in the world order, in this case the rise of China and the potential for trade wars / technology wars / capital wars

He threw in a few quick comments as their time was running out, alluding to the potential for the end of the world reserve system and the collapse of fiat monetary regimes.

Maybe it was in his rush to finish as their time is drawing to a close, but it certainly sounded a more challenging tone than I have seen in his writings.

Currency Wars

When Will the US Dollar Collapse?

How and When That Could Occur

A dollar collapse is when the value of the U.S. dollar plummets. Anyone who holds dollar-denominated assets will sell them at any cost. That includes foreign governments who own U.S. Treasurys. It also affects foreign exchange futures traders. Last but not least are individual investors.

When the crash occurs, these parties will demand assets denominated in anything other than dollars. The collapse of the dollar means that everyone is trying to sell their dollar-denominated assets, and no one wants to buy them. This will drive the value of the dollar down to near zero. It makes hyperinflation look like a day in the park.

2 Conditions That Could Lead to the Dollar Collapse

Paying Off Debt IS Investing

In effect, paying off debt is the same as investing at 12–30%.

Daily Reckoning | Jim Rickards

Americans in their 40s and 50s are devoting more of their discretionary income to paying off debt rather than savings or investments for retirement. Economically, this makes good sense.

Paying down debt is the same as investing; you’re giving up one asset (cash) in exchange for eliminating one liability (the debt) with no change in your net worth. The interest expense you save is, in effect, your return on an “investment” in debt reduction.

The KB Universe.

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Pay Yourself First

Perhaps more concerning is the idea that people think minimalism will help them financially.

Why Minimalism Will Never Make You Rich
Written by Robert Kiyosaki | Tuesday, January 22, 2019

Seems like everyone is talking about KonMari these days. For those of you who don’t know about this, KonMari is a minimalist method invented by Marie Kondo for getting rid of clutter in your house.

As described on her website, “The KonMari Method™ encourages tidying by category – not by location – beginning with clothes, then moving on to books, papers, komono (miscellaneous items), and, finally, sentimental items. Keep only those things that speak to the heart, and discard items that no longer spark joy. Thank them for their service – then let them go.”

Rondo gained fame through her book, “The Life-Changing Magic of Tidying Up,” but her latest show on Netflix, “Tidying Up With Marie Kondo,” has really pushed her into the cultural conversation.

Minimalists rise up

Your computer could be quietly mining bitcoin — for someone else!

The act, known as cryptojacking, has grown in popularity because it is hard to detect, reasonably passive and lucrative.

NBCNews  |  Jasmine Boyse

Hackers are quietly hijacking personal computers, company servers, cable routers, mobile devices and other forms of computing power to stealthily mine cryptocurrencies — a problem that cybersecurity experts warn is growing rapidly.

The act, known as crypto-jacking, has grown in popularity because it is hard to detect and reasonably passive, unlike other hacks such as Ransomware, which can encrypt files or lock users out of systems until money is paid.

“It’s sneaky,” said Raj Samani, a chief scientist at the cybersecurity firm McAfee.

AGAIN! Thousands line up for zero-down-payment, subprime mortgages

The subprime mortgage crisis was precipitated by lenders offering no-down payment loans with short-term “teaser” rates as low as zero.

CNBC  |  Diana Olick

Borrowers can have low credit scores, but have to go through an education session about the program and submit all necessary documents, from income statements to phone bills.

They must go through counseling to understand their monthly budget and ensure they can afford the mortgage payment.

Consumer Credit Rises $16.6B, Exceeds Estimates on Broad Demand

U.S. consumer debt rose in July more than forecast as non-revolving credit grew by the most since November and credit-card debt outstanding rebounded.

NewsMaxFinance  |  Bloomberg News

Highlights of Consumer Credit (July)

• Total credit climbed $16.6b (est. up $14b) from a downwardly revised $8.5b gain the prior month (prev. $10.2b), the Fed announced.
• Non-revolving debt outstanding rose $15.4b m/m after $9.6b gain
• Revolving credit outstanding rose $1.3b m/m, after falling $1.2b

Key Takeaways

No Enforcement Actions Taken a Year After Equifax Breach Read

The attack went unnoticed by Equifax for more than six weeks.

NewsMaxFinance  |  Associated Press

A new report by congressional investigators details how hackers broke into Equifax last year in a breach that exposed the financial information of more than 145 million Americans.

The lawmakers who requested the report say they will press the Trump administration on the lack of enforcement actions against the giant credit-reporting agency.

Shares of Equifax plunged by about one-third last year after news broke about the massive breach. Since then, the stock has recovered to about $10 below its peak before all the bad news and closed Friday at $135.91 a share. The company has reported a profit of $236 million this year, and second-quarter profit was down just 12 percent from the same period last year despite the breach.

Here is what you need to know about the breach and events since then: