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- November report "Is it True, as David Hume (1711 – 1776) postulated that, "Nothing is esteemed a more certain sign of the flourishing conditions of any nation than the lowness of interest"?" published. https://bit.ly/2y4LJZQ
- Some have speculated Germany wants the gold at home in the event of a breakup of the EU and a collapse of the euro. http://bit.ly/2xfQO0f
- JP Morgan does not understand that it's not just about where interest rates are now that is the problem, but about how much higher they are going, and how quickly they will get there!
- SRSrocco put together a graph tracking production for the top-four gold producers. You will note a pretty consistent downward trend. If these forecasts hold, we are looking at a 23% drop in output over less than a decade. http://bit.ly/2I5FJVb http://bit.ly/2D3w91e
- (1/2) Global stock markets are now nearly as oversold as at the market low in October 1987. Expect a powerful and tradable rally of 20% or so from here. Cover all shorts and go long the most oversold stocks. However, do not expect new highs.
- A healthy monsoon season is showing an uptick in Indian farmers returning to the gold market to buy: https://t.co/KSA87hfWvw
- The Bigger the Bubble, The Fewer People See It
- Ep. 322: Economic Alice in Wonderland: http://bit.ly/2necG95 via @YouTube
- Russia has passed China to become the world’s fifth-largest gold-holding country. http://bit.ly/2CJzi6l
- Goldman pointed to several fundamental weaknesses it sees in cryptos that make gold a better long-term value. http://bit.ly/2z6Nt7l
Tuesday, September 8, 2015
Trade Deficit of the US vis a vis China/Japan...
I have always had difficulty understanding the mechanics of this phenomenon. Let me start with the following quote from wikipedia.. >Since the mid-1980s, the United States has had a growing deficit in tradeable goods, especially with Asian nations (China and Japan) which now hold large sums of U.S debt that has funded the consumption.[5][6] The U.S. has a trade surplus with nations such as Australia. The issue of trade deficits can be complex. To stupid old me, this is confusing. It paints the picture of the Chinese government buying treasuries (US debt) and giving the US government toasters. But governments don't exchange currency for toasters. Private merchants exchange currency for toasters. Can someone trace the mechanics of this "trade deficit" out so I can understand what's going on? How does the Chinese government end up with stockpiled dollars and the US government end up with citizens who have consumed a bunch of toasters without having to work so relatively hard for them?